Inflation is raging in many countries around the world. As governments struggle to find a solution, cryptocurrency enthusiasts are succumbing to the yoke of the downtrend. Two phenomena, noticeably linked, but which cause many inconveniences. So how do you deal with inflation in a bear market?
What is strike?
The global economy has been hit hard in recent months. Rising consumer prices affect many governments. Inflation did indeed reach historic highs in July. While some measures have been taken, the fact remains that she has not yet said her last word. However, it must be recognized that it had a negative effect on cryptocurrencies.
They lost over 50% of their value during the bear market. Faced with falling prices, investors suffered heavy losses. So how do you grow your money in times of high inflation? There are several solutions to grow your investments during this downturn. Among other things, turn of.
But first, what is it? In fact, it is a mechanism by which token holders can be compensated with their cryptocurrencies. Technically it is the fact of immobilizing its crypto assets on a platform to participate in blockchain operations.
It has many similarities with crypto mining. Participants receive a reward for their contribution and enjoy various benefits. However, they are very different because of their algorithms. While mining uses Proof of Work (PoW), strike, is rather derived from Proof-of-Stake (PoS) or proof of stake in French.
The misunderstanding and risky nature of crypto strike scares many investors. However, he presents less risk than the actual investment in cryptocurrencies. Not only it consumes little energy, but is also easily accessible.
In addition, it offers many advantages and does not require any special knowledge. In this configuration, the main problem becomes the choice of platform. There are several trading platforms. While Bybit has a very good reputation, it’s the benefits it offers that make it a great option. In addition to the legitimacy to offer crypto staking, Bybit has indeed more than 25 tokens to bet, especially on the USDT and USDC stablecoins. The advantage of the platform is that it offers staking with moderate risk to all its users. In addition, she offers a product with an APY of 4.5% on USDT and 5.5% on USDC for example.
* APY or annualized percentage return represents the annualized return of an investment, taking into account compound interest that accumulates or increases with the balance. Compound interest includes interest earned on the original deposit, plus interest earned on that interest. Please note, important to know, the APY is not a fixed rate, but a floating rate that is likely to evolve over time.
Stablecoins are digital assets with many benefits. Indeed, they are backed by fiat currencies. As a result, they are protected regardless of the market risks. Why ? Because the stable nature of these tokens ensures that their value remains constant regardless of the trend of the crypto market.
For exchanges, this is an effective way to record more earnings by adding new crypto-fiat currency pairs. But for investors they are synonymous safety and warranty.
By offering crypto staking on stablecoins, Bybit significantly reduces the risk of volatility and thus large losses. This is how ByBit savings works like a bank savings account, but with: a better return than a booklet A.
Yield Calculation on USDT and USDC
The daily yield is automatically calculated on Bybit. As a result, your return is based on the conditions you have chosen. For flexible wagering that offers the possibility to redeem the locked tokens at any time, the daily return is done according to this formula: The number of tokens staked x (the APY of the staked token / 365).
Note that the APY varies depending on market conditions and the token deposited on staking. Thereby, the yield calculation starts the day after wagering your cryptos. As for the refund, it will be deposited into your Earn account the day after the start of the billing period. Importantly, no returns are generated on the day you end crypto staking.
The yield calculation for fixed-term products is as follows: the number of tokens staked x (the APY of the staked token / 365) x the stake period. Unlike flexible staking, fixed staking is done over a fixed period of time. Therefore, the APY and the eviction period are fixed once you subscribe to a product.
As for the capital and returns, they are automatically paid out to your Bybit Earn account at the end of your wagering period. If you are interested and do not yet have crypto to start with, Bybit will give you a 50 USDT bonus to easily take your first steps in the crypto world. Plus, you’ll enjoy zero fees throughout the promotional period when you buy cryptos across more than 30 fiat currencies.
Betting on Bybit is relatively easy. In fact, all you need to do is go to Bybit Earn, click on Bybit Savings, then use USDT or USDC flexibly and get started!
Inflation and the bear market are two very influential factors in the economic sector. In fact, investors are increasingly cautious during this period. The staggering price drop of most cryptocurrencies has damaged the sector. However, there is a solution to keep making money with your cryptos. In this case, crypto strike. In reality, Bybit offers investors the opportunity to invest with moderate risk on many stable coins. So get started now!
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Cointribune’s editorial board
Cointribune’s editorial team unites its voices to express themselves on topics specific to cryptocurrencies, investments, the metaverse, and NFTs, while striving to best answer your questions.