Understanding MEXC Savings
#Spot
#Beginners
Related Articles
MEXC Savings is a product offered by MEXC. This article aims to explain MEXC Savings for beginners and identify the type of users who can benefit from it.
1. MEXC Savings: What is it?
MEXC Savings is a service that allows users to earn yields simply by staking their cryptocurrency. As of February 2023, the service was renamed to MEXC Savings for clearer user comprehension.
There are two types of MEXC Savings: "Locked Savings" and "Flexible Savings." In "Locked Savings," the deposited assets are locked for a certain period, during which users cannot trade, transfer, or withdraw these assets. This can be likened to a fixed deposit in traditional banking where early withdrawal is not permitted.
Conversely, "Flexible Savings" allow users to trade, transfer, and withdraw their crypto assets anytime. Users can earn rewards while holding assets in MEXC's regular wallet. If compared to traditional banking, this resembles a savings account.
In MEXC, the process of participating in MEXC Savings is referred to as staking. In the cryptocurrency world, staking typically means contributing to the validation of transactions on the blockchain by holding tokens and receiving rewards in return. Originally, this was only applicable to tokens that use the PoS (Proof of Stake) consensus algorithm, like Ethereum. However, on MEXC, staking is possible even for tokens that do not follow the PoS model.
2. How to use MEXC Savings
To use this service, choose [Savings] under [More] on the MEXC Web interface.
To use this service, choose [Savings] under [More] on the MEXC Web interface.
You'll see [Savings] and [Simple Earn], under which a list of supported tokens will be shown. Start staking by clicking on [Stake Now].
3. The differences between Savings and Simple Earn
Even with the same token, both "Savings" and "Simple Earn" may both be available. The differences are shown when viewed on the MEXC Web interface. Let's consider USDT as an example.
In the case of "Savings," the confirmation screen will look similar to the following. With "Flexible Savings," since it allows withdrawal at any time, it simply lists the "Subscription Date" and "Value Date." "Subscription Date" is the day when you begin your staking subscription. The yield depends on the deposited amount. Generally, a higher interest rate is applied to smaller amounts, but the yield decreases as the amount increases.
With "Simple Earn," the screen will look a bit different. Since "Simple Earn"is "saving with lock," withdrawal isn't allowed during a specified period, and a "Redemption Date" is set. You cannot transfer funds until the "Redemption Unlocking Date." The yield doesn't change based on the deposit amount.
4. How to calculate yield
The daily revenue is calculated as follows:
Daily revenue = User staking amount * Annual return rate / 365
For example, if User A stakes 10,000 USDT and the annual return rate is 5%, User A's daily yield is calculated as follows:
10,000 * 5% / 365 ≈ 1.37 USDT
5. FAQ
5.1 MEXC Savings supports which cryptocurrencies?
Under MEXC's financial products, you can choose from dozens of cryptocurrencies (such as BTC, ETH, etc.). You can view the detailed list here.
5.2 How to start earning revenue?
Stake your digital assets into DeFi products and you can view your returns the following day. There may be variations in individual products. Please refer to the relevant terms for details.
5.3 How do I calculate my daily yield cycle after participating in Simple Earn?
Yield calculation begins the next day and snapshots are taken daily. Specific details may vary depending on the product. Please refer to the product page for accurate information.
5.4 Can I redeem in advance? If I redeem early, do I still collect the interest?
Flexible savings can be canceled at any time, and the yield will be settled until the day before unstaking. When other products reach the minimum savings period, you can choose to redeem or continue savings. The final yield will be calculated according to the actual days staked, and the principal will be unlocked on the redemption unlocking day.
MEXC Savings is a relatively low-risk product suitable for cryptocurrency beginners. Use MEXC Savings to increase tokens that may have been dormant for a while.
Note: The content of this page is not investment advice, nor does it recommend specific investment products. Please make investment decisions after considering individual needs, investment objectives, and financial situation, and after fully understanding the risks.