Is it possible to earn fixed returns in cryptocurrencies
Several cryptocurrency platforms have innovated their products offerings to commit guaranteed fixed returns on cryptocurrencies — ranging from 1% to as high as 250%. These platforms earn by either lending to the institutional investors or by staking the coins.
What does staking cryptocurrency mean? Is it possible to earn fixed interest on cryptocurrencies? Fortune India spoke to Mridul Gupta, COO at CoinDCX to get his insights.
As per Gupta, there is no fixed returns in cryptocurrencies in INR terms. You can get fixed returns only in bank fixed deposits (FDs), he says. "Markets are volatile. For the investor at the end of the day INR value matters, but there is no way to control market volatility on price in cryptocurrency markets and there is no way to give the assurance of fixed returns to investors."
Fixed returns in cryptocurrencies is a false promise, Gupta adds.