“Staking” has been quite overused lately in the crypto-trading universe, but with Gemini Earn you dont stake your crypto, you lend it.
The term ‘staking’ has been used quite loosely in the crypto world. However, you are lending out your crypto with Gemini Earn, instead of staking it.
Only a few cryptocurrencies are able to be stacked on the Gemini site. As said before they must be on a proof-of-stake network, this includes currencies like these
- ADA
- ATOM
- DOT
This means that most currencies on the Gemini cannot be stacked as they aren’t really proof-of-stake currencies.
Is there a minimum amount required for Gemini Earn ?
No, in fact there is no minimum required for each crypto to start your Gemini Earn career, but there is a catch, the lower the lend amount of crypto, the less interest will be offered. It is up to you, you are able to earn interest on any amount. On the contrary to Crypto Earn for example, which requires a minimum amount to lend out your crypto.
Are there any fees on Gemini Earn ?
Well, actually there are fees. An ‘agent fee’ is paid when crypto is loaned out with Gemini Earn. However, The agent fee does not include the agent fee, which can change any time.The Gemini will notify you of that.
Although Gemini charges you an ‘agent fee’ you will not be charged any fee when transfering your crypto in and out of Gemini Earn, which is an advantage compared to other sites like BlockFi or Nexo.
In conclusion, the main fee you will be charged is the agent fee.
Is Gemini Earn safe?
Gemini Earn loans your crypto to the borrowers approved by multiple extensive checks. On the other hand, according to Gemini’s Terms of Service, the site claims the right to lend out your cryptocurrencies via an unsecured loan, which will increase the risk of your loan.
Though, your Gemini Earn funds are exclusively lent out to approved borrowers, which at the time of making this article is only Genesis Global Capital.
You need to be extra cautious when entrusting your funds to Gemini Earn, as the Terms of Service state that in the event of a borrower defaulting with your crypto, you might be unable to get your funds back.
Furthermore, borrowers are not required to post collateral when a loan is taken out. This, in turn means that your Gemini Earn loans are much riskier when in comparison to other premier crypto lending sites like BlockFi or Celsius. The borrower may be much more likely to default with your crypto as not Gemini will not impose many penalties if they do so.
As such, it's up to you to consider if loaning out your cryptocurrencies with Gemini Earn is worth taking the risk.
Is Gemini Earn insured?
This might be a bit upsetting to read if you were planning to start taking advantage of Gemini Earn. Your lent out funds are not covered under Gemini’s ‘Digital Asset Insurance’. As your assets are lent out to Gemini approved borrowers, the site could not have control over your assets. In addition to that, your funds are not insured by the FDIC either.
Although Gemini is considered one of the most secure crypto Wallet and Exchange platforms on the market, There is even an insurance policy that returns your funds if the funds in their hot wallet get hacked, you unfortunately lose these insurance benefits when you decide to use Gemini Earn. This is because you intrust your assets with Gemini’s approved borrowers, not with Gemini itself.
Published: 04/02/2022