Some pretty dark economic times seem to be waiting on the horizon and we will need to use our creativity to find innovative solutions in order to put things on their normal course. Although we’re not certain in what shape or form, the cryptocurrency market will continue to exist and because of that, maybe we can find some useful ways to use crypto in the months ahead. Here are three of the most useful ways to do it.
#1 Sending money fast
Many areas are now in lockdown and social distancing is recommended by authorities. We must keep distance against each other, and this is when technology can be a very useful tool. It may be possible that you have a friend or relative needing financial support. Exchanging fiat to crypto and sending it to a crypto wallet will be a very fast way to provide help. Normally, a cross-border bank transfer could take a few days or more than a week. And the commission is very high. It will cost you to send crypto, but at least the funds will reach their destination in less than an hour.
#2 Diversifying holdings
Due to downside economic pressures, government agencies are forced to use both monetary and fiscal stimulus measures in order to lift the economy. Even though that will alleviate some of the economic pain, it will definitely push lower the purchasing power of fiat money. Holding all your funds in cash will mean you will lose money, so you must find some assets that can perform better during this period. Since some cryptocurrencies, including Bitcoin and Ether, had dropped below their December 2019, valuations are cheaper, and opportunities could be already there waiting.
When the economy contracts, financial markets, including cryptocurrencies, had to go through a period with high volatility. Since valuations fluctuate a lot, trading opportunities are arising on a day-to-day basis. We must mention, however, that trading/speculating carries a high level of risk and could result in losses.
If you know how the financial markets work and why cryptocurrency prices change, then you could find trading opportunities in the crypto market and generate returns. There’s plenty of useful online material to study and if you want to use the time at home studying something, this is one of the areas that can turn out to be productive. Maybe it’s time to not rely solely on a full-time job and start developing new income streams.