Inflation is raging in many countries around the world. While governments struggle to find a solution, cryptocurrency enthusiasts are crumbling under 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 staking?
The global economy has suffered a severe blow in recent months. Rising consumer prices are hurting many governments. Indeed, inflation reached historic highs in July. Although 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 impact on cryptocurrencies.
They lost more than 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 make your investments grow during this period of decline. Among others, staking.
But first, what is it? In fact, it is a mechanism that allows token holders to be compensated with their cryptocurrencies. Technically it is the fact of immobilizing its crypto assets on a platform in order to participate in blockchain operations.
It has many similarities with crypto mining. Indeed, participants get a reward for their contribution and enjoy several benefits. However, they are very different due to their algorithms. While mining uses Proof-of-Work (PoW), staking, is rather derived from Proof-of-Stake (PoS) or proof of stake in French.
Why do staking?
The misunderstanding and risky nature of crypto staking scares many investors. However, he presents less risk than the actual investment in cryptocurrencies. Not only it consumes little energy, but in addition it is easy to access.
In addition, it provides many advantages and does not require any special knowledge. In this configuration, the biggest problem becomes the choice of platform. There are several trading platforms. Although Bybit enjoys a very high reputation, it is the advantages it offers that make it a great option. Indeed, in addition to having the legitimacy to offer crypto staking, Bybit has more than 25 tokens to stake, notably on the USDT and USDC stablecoins. The advantage of the platform is that it offers staking with moderate risk for all of its users. Moreover, she offers a product with an APY of 4.5% on USDT and 5.5% on USDC for example.
* APY or Annualized Percentage Yield represents the annualized rate of return of an investment, taking into account compound interest which accumulates or increases with the balance. Compound interest includes interest earned on the original deposit, plus interest earned on that interest. Attention, important thing to know, the APY is not a fixed rate but a variable rate 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 market risks. Why ? Because the stable nature of these tokens ensures that their value remains constant no matter the trend of the crypto market.
For exchanges, this is an effective way to record more revenue by adding new crypto-fiat currency pairs. But for investors, they are synonymous security and warranty.
Thus, by offering crypto staking on stablecoins, Bybit considerably reduces the risk of volatility, and therefore large losses. Thereby, 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 calculated automatically on Bybit. As a result, your return will be based on the terms you have chosen. For flexible staking which offers the possibility to redeem the locked tokens at any time, the daily return is made according to this formula: The number of staked tokens x (the APY of the staked token / 365).
Note that the APY varies depending on market conditions and the token deposited in staking. Thereby, the yield calculation starts the day after staking your cryptos. As for the return, it will be deposited in your Earn account the day after the start of the calculation period. Importantly, no returns are generated on the day you end crypto staking.
The return calculation for fixed-term products is as follows: the number of staked tokens x (the APY of the staked token / 365) x the staking period. Unlike flexible staking, fixed staking is done over a fixed period. Therefore, the APY and the staking period are fixed as soon as you subscribe to a product.
As for the capital and the return, they are automatically distributed to your Bybit Earn account at the end of your staking period. If you’re interested and don’t have any crypto yet to get started, Bybit offers you 50USDT bonuses to take your first steps in the crypto world with ease. In addition, during the entire promotion period, you benefit from zero fees when you buy cryptos via more than 30 fiat currencies. Throughout the period of its promotion, you benefit from zero fees to exchange fiat for crypto. So enjoy it !
How to do crypto staking on Bybit?
Staking on Bybit is relatively simple. In fact, all you have to do is go to Bybit Earn, click on Bybit Savings, then USDT or flexible USDC and get started!
Inflation and the bear market are two very influential factors in the economic sector. Indeed, investors are increasingly reluctant during this period. The vertiginous fall in the price of most cryptocurrencies has damaged the sector. However, there is a solution to continue making money with your cryptos. In this case, crypto staking. In effect, Bybit offers investors the possibility of staking with a moderate level of risk on many stablecoins. So get started now!
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