Hit by the collapse of Luna and UST, as well as another round of interest rate hikes and balance sheet reductions by the Federal Reserve, cryptocurrencies suffered a market-wide slump in May 2022, and the market has not rebounded significantly at present. Additionally, Bitcoin and Ethereum prices have fallen by more than 50% from their all-time highs. Meanwhile, other altcoins have fallen even more. The entire crypto market remains in a bearish period.
Having said that, will Bitcoin and Ethereum go to zero? the answer is negative. With the advancement and wider application of blockchain technology, more and more users have joined the encryption field, and the market value of Bitcoin even surpassed Meta (former Facebook) for a time. At the same time, some traditional institutional investors are entering the crypto market, with bitcoin appearing on the balance sheets of a growing number of public companies. More and more institutions are focusing on the function of Bitcoin and Ethereum as hedging tools, and some countries even use Bitcoin as legal tender.
According to the general trend, more and more individual users, companies and governments will adopt Bitcoin. Furthermore, over the past decade, Bitcoin has witnessed various attacks and smears. It’s even banned by some state regulators. Nonetheless, Bitcoin has survived with great resilience, proving that it can withstand tests and challenges. Furthermore, more and more investors are starting to notice the value of Bitcoin.
The cryptocurrency market has been pushed to a whole new level in recent years with the boom in cryptocurrency categories such as DeFi, NFTs, and the Metaverse. In today’s market, one can profit not only from direct investment, but also from an increasing number of crypto-based financial services. As related products mature, more and more investors are flocking to crypto finance.
Therefore, we can draw two basic conclusions: 1) The crypto market will not decrease. On the contrary, more and more global users will adopt cryptocurrencies, and the user base of cryptocurrencies will continue to expand; 2) The overall price trend of Bitcoin will remain stable. In other words, the price volatility will not be as large as the previous record, which means that the BTC price will not drop as much.
Therefore, if you hold mainstream cryptocurrencies, there is no need to panic as they may become more valuable based on past market cycles. In our opinion, the best strategy in a bear market is to hold your cryptocurrency and do nothing. At the same time, we also recommend that you seek to expand your cash flow to secure an income stream and buy more cryptocurrencies at low prices.
While some say the best shorting strategy is to hoard cryptocurrencies, a better approach is to earn more cryptocurrencies with existing holdings, similar to earning interest on bank deposits. At present, many crypto exchanges have launched products focused on crypto finance, and we can choose suitable products according to our needs.
What metrics should we consider when choosing crypto financial products?
Safety is the number one priority. The importance of security cannot be overemphasized in the cryptocurrency market, and placing deposits in an insecure environment for small profits can often lead to huge losses. For example, some exchanges run by scammers use high returns as bait to trick users into making crypto deposits. Users are lured by the promise of high returns from financial products, but scammers are targeting their deposits. In the cryptocurrency space, many users have suffered huge losses while trying to make small profits.
This is why we must choose safe exchanges. Many cryptocurrency exchanges are known to have suffered security breaches, and even some top exchanges have lost large amounts of Bitcoin, resulting in loss of user assets. On the other hand, CoinEx is one of the few exchanges that has never been hacked. CoinEx founder Yang Haibo once said that security has always been the most essential commitment of CoinEx, and it is also the core advantage of CoinEx. CoinEx always puts users first, and the products it develops ensure the safety of user assets and have been widely recognized by the exchange.
When it comes to crypto finance, we can choose CoinEx, a zero-accident exchange. Financial account is a product launched by CoinEx to provide interest for deposit holders. Users only need to deposit idle assets into the account to get daily income, with daily compounding interest. In addition, 70% of such compound interest comes from the income generated by crypto loans in margin trading, which is a stable and reliable source.
While some exchanges offer financial services with high returns, they often come with a lot of strings attached. For example, many of these services require deposit terms of at least 30 days, 60 days, or even longer. In contrast, CoinEx’s financial accounts do not require any minimum deposit period and users can deposit/withdraw at any time.
What are the advantages of on-demand deposits/withdrawals?
Cryptocurrencies are highly volatile, with cryptocurrencies sometimes plummeting by more than 20% in a week. If we choose a crypto financial product with a minimum deposit period (e.g. 7 days), it will be difficult for us to withdraw our deposit or sell cryptocurrency to minimize our losses once the price plummets. Given the huge risks involved, the meager profits that such financial products generate are clearly not worth it. With CoinEx’s financial accounts, users can deposit and withdraw cryptocurrencies at any time, which means they can quickly withdraw deposits and earn profits in the event of wild market fluctuations. In addition to this, there is no minimum deposit amount for financial accounts, and users can choose to deposit at will.
Crypto bears are nothing to fear because they allow us to hoard cheap chips. Therefore, when the bear market hits, we should continue to expand our cash flow. While investors reserve more cryptocurrencies in a rational strategy, they also need to deposit their holdings to ensure financial management of exchanges and wait for the next cryptocurrency bull market.