The global economy and financial markets are really taking a beating this year, and crypto has not escaped unbruised.
Bitcoin has been in freefall this year, falling almost 70% from its record high along with a number of plummeting altcoins. The collapse of the Terra ecosystem — a much-hyped experiment in decentralized finance began with its algorithmic stablecoin losing its peg to the US dollar and ended with a bank run that made $40 billion of tokens virtually worthless.
Meanwhile, Luna and Celsius crashed spectacularly, with Celsius Network token plunging nearly 40% in one day!
The question on every investor’s lips are cryptocurrency investments safe? Can you really earn a good APY while minimizing your risks?
The answer is an unequivocal ‘yes’!
So read on to find out what you need to do to minimize your risks and maximize your yields!
Transparency should be a priority for any sensible investor. A black box model in the financial markets is a software program that analyses market data and produces a buying and selling strategy based on that analysis. Still, how it works and the logic behind investment choices is not clear. Celsius – was a closed black box with no clear picture of what was happening behind the scenes. Many DeFi crypto projects offer greater transparency, allowing investors to understand any chosen investment strategies fully. Functioning on blockchain technology, all transactions, data, and codes on the blockchain are transparent to everyone.
INVEST IN STABLECOINS
As we have seen in the first and second quarters of 2022, token investments can carry way too much risk!. A safer strategy would be to invest with stablecoins. Stablecoins are pegged or tied to another currency, commodity, or financial instrument, providing an alternative to the high volatility of many popular cryptocurrencies, including Bitcoin, which, as we all know, has fallen by 70% this year.
Stablecoins are desirable for investments as they combine crypto features like convenience, privacy, and security without the volatility of their crypto counterparts. Faster to transact with (as opposed to other digital payments) and more accessible to the masses, unlike traditional stocks and shares, they aren’t bogged down by high service fees typical of other kinds of digital transfers.
LOOK OUT FOR PONZI SCHEMES!
It’s a sad fact, but many crypto investments are nothing but Ponzi schemes. Here are some of the signs that should raise red flags for investors. There are crypto companies promising implausible returns up to 100% per month. Anybody that knows anything about investing will tell you that these returns are improbable and this kind of business model is unsustainable. The crypto space is full of stories of people that have invested in fairytale projects only to get their fingers burned and lose all of their money. Be smart and avoid these ridiculously inflated promises of overnight riches.
If you’re new to crypto, then go and get yourself an education. There are a ton of videos on youtube and articles everywhere on the Internet, and companies like Binance and Coinbase have a wealth of information to get you started. You can also check out e-learning platforms like Udemy or Coursera for really good cheap self-study programmes. So, get your student head-on and make sure you read the crypto market news before buying anything.
DEFI INVESTMENT OPPORTUNITIES DONE SAFELY
The easiest and possibly one of the most cost-effective and profitable ways to build a cryptocurrency investment portfolio is through yield aggregators with companies like Bolide.fi
Yield aggregators give you a way into portfolio investing and allow you to avoid many of the problems we saw above. At Bolide, we use a diversified, stable coin basket managing the risks associated with the volatility of many coins while also using only trusted token pairs with the highest liquidity – something we monitor and control by using an automated landing protocol crush.
With Bolide.fi you can start with any amount and invest in a vast range of staking and farming options while choosing a risk strategy that best suits your risk appetite. Even better, there’s no lock-up period, and you can get APYs of up to 30%!
The benefits of yield aggregators and farming are pretty straightforward. If you already hold a cryptocurrency long-term, you may as well look to increase the return you can get on those holdings, and staking provides a low-risk way to generate extra returns.
Here’s a quick recap of the benefits of investing with Bolide:
- A one-stop investment product with access to leading protocols
- Automated, stablecoin investing producing maximum yields
- Low risk, market-leading yields of up to 30% APY
- Earn an extra 20% staking your BLID tokens and enjoy 11% APY on farming
- Start investing with any amount
- Hands-off, passive automated investments using your stablecoins
- No lock-up period access your funds and profits instantly
- No withdrawal limitations
Starting your yield farming and staking journey is easy with platforms like Bolide. Simply visit Bolide.fi, connect your crypto wallet, deposit either $USDT / $USDC / $DAI or $BUSD, and you’re good to go.
Start earning interest at the speed of light with Bolide today!