Professional traders in the digital currency market know very well that bull markets are about making profits and bear markets are about holding on. However, the latter may not be so simple in practice, as you have to deal with inflation, which reduces the value of fiat or paper currencies. with the bear market.
If we take a general look at the digital currency market, we see that the market is currently heading towards the digital currency winter. The prices of tokens are at the lowest possible level and developers are more focused on creating the next protocol or a new token. Meanwhile, some traders in the cryptocurrency market are looking for new ways to protect their digital assets and increase their wealth in preparation for the next bull market.
In this Cermix article, we will now discuss five key ways in which investors can increase their holdings without incurring losses or additional costs, combat inflation, and protect themselves from the crypto winter.
Staking
Staking is probably one of the most proven ways to increase the number of tokens you hold without risk, as most proof-of-stake (PoS) networks that offer staking services offer a fixed interest rate to lock your tokens.
By including your tokens in a smart contract, you not only contribute to the validation of transactions and the security of the network, but you also reduce the available circulating supply, which can in turn increase the price of digital currency assets.
However, you should be careful about the tokens you stake, as the current crypto winter is more brutal than any bearish conditions that have hit the market. Most market protocols lack fundamentals and lack significant support, which ultimately leads to their destruction. So be careful when choosing the right digital currency.
Historical digital currency projects, good transaction volume, an active and growing community are some of the most important factors that you need to consider when choosing a token for a network. The main cryptocurrencies in the market suitable for staking include: Ethereum (ETH), Cosmos (ATOM), Phantom (FTM), Solana (SOL), Avalanche (AVAX), Polygon (MATIC), and Polkadat (DOT). .
GameFi and games to earn money
In 2021, we have seen the emergence and flourishing of GameFi protocols and some games with a monetization system. These games and protocols allow players to do what they have always done with great joy and love, while earning money.
The token price of the most popular blockchain game, Axie Infinity, has dropped significantly, which has seriously affected the income of its players. However, blockchain gaming remains one of the most active segments of the cryptocurrency ecosystem and is expected to continue to grow in the future.
It is worth noting that some blockchain games require an upfront fee, which may not be appealing to those looking for free ways to earn digital currency. But it must be acknowledged that there is a solution to this problem as well. Protocols such as Yield Guild Games and Merit Circle allow users to borrow money to participate in a game in exchange for a small percentage of their rewards.
Collaborative economy in digital currencies
Since the last decade and since the beginning of the Corona virus epidemic, service applications such as food delivery and other online services as well as travel have become very popular and have led to the emergence of an economy called the "gig economy"; But what exactly is the "gig economy"? One might think that the collaborative economy is a new phenomenon, but this is not the case.
The gig economy is also called the independent economy, agile workforce or temporary work. Nowadays, and perhaps in recent years, service jobs and so-called on-demand jobs have arrived on every mobile phone, and now everyone in society can easily access this type of economy.
Teleworking and working from home have become very popular during the coronavirus pandemic, and many prefer this way of life even after the pandemic is over. The decentralized nature of digital currencies at the time opened many doors and opportunities for people to use methods to earn digital currencies while contributing to the development of the ecosystem.
Even though the crypto winter forced companies to lay off some of their staff, new jobs are being created every day in the cryptocurrency sector, and rest assured: if you have the skills, many companies will want to hire you.
Air-launched fighter
Airdrops in the cryptocurrency market have become an important element, especially in the cryptocurrency community. Airdrop is one of the best ways to market and attract new users to the growing cryptocurrency industry and community.
During bear and bear markets, various projects disappear, but at the same time new projects emerge that must incentivize users to continue their activities and create their ecosystem. This is where airdrops come into play to attract users to this protocol. New project tokens usually have no value at the time of their creation, but if you are patient, you will make good profits in the end.
Users can also sell the tokens they receive or exchange them for a stablecoin or other digital currency after receiving the airdrop. The choice is yours.
Invite others to use digital currencies and earn rewards
One of the oldest ways to make money is by inviting friends and acquaintances to the digital currency market. You may be wondering: how does this translate into making money? You can invite your friends to cryptocurrency exchanges and get rewards, or find newly created decentralized projects that want to attract users and earn money by inviting your friends to these protocols.
The important point about this type of income is that as an inviter you must be absolutely sure that the desired exchange or the effectiveness of the desired project is secure, because you are responsible for the person you invite and must not invite them by mistake. your friends. Enter into fraudulent projects and exchanges.
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