Crypto Frontline

LedgerX Now Offers Bitcoin Savings Account

LedgerX Now Offers Bitcoin Savings Account

LedgerX Now Offers Bitcoin Savings Account
May 16
06:00 2018

LedgerX, one of the most popular cryptocurrency asset management platform had launched a new feature for those people wanting to invest in Bitcoin over the long run. Buy-and-hold is now easier with the new licensed Bitcoin savings account, which has some special features, according to a recent material published on forbes.com. We’ve talked recently about Bitcoin cold storage and why is it better than any other option and LedgerX now comes with a brand new product, which might be appealing for Bitcoin enthusiasts.

How does the Bitcoin Savings Account work?

The people that want to make a savings account deposit their Bitcoin at LedgerX. Besides the fact that their coins are kept in a safe place, they are able to generate revenues as well, in two different ways. The first one is if the value of Bitcoin increases over time.

The other special feature introduced by LedgerX is called a call overwrite. This operation involves selling a call option at a relatively long date, with a high strike price. In this way, those who have a Bitcoin savings account with LedgerX are able to generate revenues in fiat money (US dollars) by selling Bitcoin-related options.

Regulation involved as well

Another detail that gives trust to LedgerX is their attention to regulation. The product mentioned above has two licenses from the Commodity Futures Trading Commission. The Derivatives Clearing Organization license and the Swap Execution Facility are the ones owned by the LedgerX.

This had been necessary due to the high level of sophistication involved in the process described above. Also, the issue of regulation had been in the center stage in 2018. Regulation companies from the industry of cryptocurrencies are benefiting from a higher customer trust.

We’ve seen recently that Thailand had already implemented regulation for digital assets a few days ago and that means other nations could follow in the months ahead. Also, the increasing interest for cryptocurrencies (especially Bitcoin) that comes from big banks like Goldman Sachs, proves that the industry heads towards a regulated environment.

The CFTC mentioned above had already taken a more aggressive stance towards the unlicensed companies, which could force them to join the relatively small group of firms that had already embarked on a path of regulated activity.

Bitcoin and the other cryptocurrencies could benefit from the move on the long-run since a massive inflow of investments could come as a result of regulation.