PennyWorks: Have you heard?

 

PennyWorks is a platform that allows you to easily earn interest through investments made possible by secured lending.

Unlike cryptocurrency exchanges, you don't need to have any prior knowledge of the crypto market or risk management in this alternative asset class. Instead, you buy PennyWorks Notes, and PennyWorks generates income by providing secured credit for digital assets. This deal is similar to auto and home loans, but instead of the car or home, digital assets serve as collateral.

In return, you get a higher interest rate based on the balance in your account and the amount of time between repayments. You can earn up to 6% returns per year - much more than if you put your money in bonds, savings accounts or other investment opportunities. While PennyWorks provides an excellent platform for investors to diversify their holdings, it does not offer active trading services. Investors looking for returns without long-term commitments will benefit most from PennyWorks.

The PennyWorks Product Offers

While everyone is talking about cryptocurrencies, they can also be intimidating if you are not willing to endure the volatility of the market. If you're looking for a way to capitalize on cryptocurrency returns in a low-risk environment, check out PennyWorks. PennyWorks is a high-yield investment platform that allows you to earn interest through secured lending. These investments have the potential to help you earn up to 6% returns depending on how much money you invest and how long you keep it in your account.

As the name suggests, stablecoins are less risky than the cryptocurrency market as a whole. They are designed to be linked to an underlying asset, typically a fiat currency such as the US dollar. The goal of stablecoins is to maintain the same value indefinitely. In other words, if you have a single token pegged to the US dollar, it should be worth $1 now and 10 years from now. Not all stablecoins are the same; some are coupled to algorithms that follow complex digital base values. PennyWorks only lends stablecoins with a proven track record that are pegged to the US Dollar to ensure your capital maintains a low risk profile.

Tether: The most well-known stablecoin

An example of this is Tether (USDT), the world's most widely held stablecoin, which is pegged 1:1 to the US dollar. Issued by Hong Kong-based company Tether, Tether aims to provide the community with an asset-backed option that is compatible with multiple blockchains. The company said it owns approximately $286 million in non-US government bonds and more than $39.2 billion in US Treasury securities. These are the assets that back Tether and maintain the value of its tokens. When you compare this to standard cryptocurrencies that are not backed by any type of assets, it becomes clear why more cautious investors are interested in stablecoins.

PennyWorks has taken advantage of this stability to offer its platform users easier access to higher interest rates through secured lending. At PennyWorks, you don't need to have any experience with decentralized finance (DeFi) or even cryptocurrency to earn interest on cryptocurrency loans. These loans provide you with higher returns than interest on a savings account and give you direct access to cryptocurrency investments without the traditional risks associated with cryptocurrencies.

How it works is as follows

Create an Account: Getting started with PennyWorks is extremely easy - most users are able to create an account in 10 minutes or less. Create your account and specify a funding method for your investment.

Invest USD: Transfer your PennyWorks Notes by direct debit or bank transfer. PennyWorks will convert the dollars into stablecoins. PennyWorks then lends these stablecoins on a collateralized basis, which offer high returns with low risk for the lender.

Earn Interest: You can earn up to 6% interest on your investment depending on your account balance and the time elapsed since your last withdrawal. Users who repay after 90 days receive the highest interest. As you earn interest, you'll see it right in your PennyWorks account dashboard.

Many new cryptocurrency investors are concerned about crypto lending because they believe they need to lock their coins or tokens with their broker for a period of time. When you invest in PennyWorks Notes, you are free to return your funds at any time. PennyWorks does not require a minimum waiting period for interest to begin. However, you can earn higher interest rates if you only cash in your funds occasionally.

The PennyWorks security

PennyWorks uses your investment to make secured loans. These loans are more accessible than cash loans, and digital assets are useful for more decentralized applications on the borrower's side. This convenience and easy access is one of the reasons the returns offered by PennyWorks are significantly higher than ordinary savings accounts.

PennyWorks uses lending protocols that require borrowers to post collateral worth more than the value of the lent cryptocurrency before funding the loan. This practice makes borrowers highly motivated to return their loan - and with it your investment. PennyWorks also ensures that the platforms have sufficient assets to allow you to withdraw your funds at any time. PennyWorks is a US based company which means it can easily be subjected to US regulations.

PennyWorks bonds purchased on the PennyWorks platform are not FDIC insured as this type of lender does not require it. The platform is very security conscious and all users who purchase at least $25,000 will receive a physical security key with multi-factor authentication (MFA). These devices offer one of the strongest forms of security against unauthorized access and add another layer of protection to the account.

PennyWorks User Benefits

PennyWorks differs from both traditional savings accounts and regular cryptocurrency exchanges. Some of the advantages that this platform offers over its competitors are as follows

No Cryptocurrency Knowledge Required: New to cryptocurrencies but looking for a way to add them to your portfolio? PennyWorks could be the right answer for you. When you create an account with PennyWorks, you don't have to figure out which coins and tokens to invest your money in. Investors who want to learn more about cryptocurrencies but want to start investing in the market now will appreciate PennyWorks' uncluttered platform that doesn't use technical jargon.

Stable Investments: Cryptocurrencies are volatile assets, which usually doesn't make them a good choice for investors looking to buy and hold. To manage this risk, PennyWorks converts your funds into a USD-backed stablecoin. Stablecoins do not fluctuate in value on a daily basis because, unlike traditional cryptocurrencies, the price of each coin is backed by an asset. Investors looking for low volatility options will find a high level of stability when investing in the PennyWorks Notes.

High Yield: PennyWorks is able to offer higher interest rates compared to traditional savings accounts because the loans are unique. Loans made up of digital assets are easier to use and more accessible than cash loans, so borrowers are often willing to pay a premium, resulting in better interest rates for you and an easier borrowing process for the user.

Secured Loans: Most cryptocurrencies are very volatile because they are not linked to an underlying asset. This means that the price of the token or coin is only worth what it is currently being traded for, and that number can change drastically from one day to the next. PennyWorks overcomes this problem by investing your money in USD-pegged stablecoins. With investments made through lending, it is important to understand what the collateral is and how it will be repaid when the loan is recovered. With secured lending, PennyWorks reduces the risk of losing capital because the collateral can be liquidated in real-time to pay off the debt.

Conclusion

Since PennyWorks does not require any technical know-how, as is often the case with traditional crypto exchanges, it can be a good option for investors who are new to cryptocurrency. PennyWorks' investment in stablecoins means volatility is far less likely to destroy your portfolio, while secured lending can give you an edge in terms of APY.

Overall, investors who are new to cryptocurrencies but want to add stablecoins to their overall portfolio to diversify into digital assets will likely enjoy PennyWorks' no-nonsense approach to crypto investing and interest. Despite the volatility in the crypto markets over the past few months, PennyWorks has continued to deliver good results for its investors.

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