Everyone needs to save money, and we can do that either by forgoing the extra expense of buying hubbies or by allocating a portion of our income to be saved for a long-term goal. The truth is that getting started on this journey is not easy. Unless you develop some sort of strategy, you will definitely find yourself unable to meet your saving goals.
In this article, I will show you five ways that you can save your money on cryptocurrency to achieve your short-term or long-term goals.
Most people believe that the cryptocurrency space exists only for financial traders who work day and night to win one CFD or another, or for rich investors who decide to buy some tokens at a low price and HODL them for long-term appreciation. However, the truth is that you can actually decide to save your money on cryptocurrency with no or minimal risk of its depreciation in value.
What is cryptocurrency?
Before I get started with these tips, let me make sure you have an idea of what cryptocurrency is.
Cryptocurrencies are digital currencies that are secured by cryptography, in which the records of transactions are stored and validated on a public ledger. The key advantages of this digital currency are its decentralized nature. With this currency, you can send and receive money from anybody, anywhere in the world without the intervention of a central body. You can learn more about cryptocurrency here.
4 Ways to Save Money on Cryptocurrency
1. Buy stable coins.
If your main goal is to save your money on cryptocurrency rather than buy it for long-term appreciation, then buying stable coins is the best option for you.
Stable coins are cryptocurrency assets programmed to have a stable value. Usually, these coins are pegged to a popular currency or commodity which cannot fluctuate highly in value.
Examples of this stable coins are USDT(the most popular), USDC, BUSD and many others..
As we all know, the major risk of investing in the cryptocurrency space is its continuous jump and dump in price, which usually results in unsavvy investors having their account liquidated. However, with stable coins, you don’t need to worry about this as their price remains relatively the same over time.
What’s more, you can easily convert stable coins into cold cash compared to other cryptocurrency assets. Because the value of stable coins is pegged to fiat currency, you can easily convert them to your country’s currency and send them to your bank account. In fact, most of the time, other cryptocurrencies are first exchanged to stable coins before they are sold for fiat currency.
2. Invest In Crypto Saving Packages.
Another perfect way to save money on cryptocurrency is to invest in saving packages. Different exchanges have their own crypto-saving plans. For instance, on the Binance exchange, you can invest in flexible saving plans, locked saving plans, or activity saving plans. More on this here.
When you invest in any crypto saving packages, what the platform does is that they basically use your asset to validate cryptocurrency transactions and pay you some interest from the transaction fees they charge. Some saving packages can have an annual percentage within the range of 1% to 5%. In fact, some crypto packages can have an annual percentage yield (APY) of up to 10%, which is profitable enough.
Moreover, while you keep your cryptocurrency asset in any savings package, it can appreciate in value, which is a double profit.
Before going to next tip, I must point out that while you put your cryptocurrency asset in this saving package, it has the chance to depreciate in value, and once it does, you may have some losses. One of the ways to mitigate this is to save with stable coins, which have a relatively fixed value.
3. Buy and Hold Exchange Tokens
Buying exchange tokens is another alternative to saving your money on cryptocurrency with less risk of liquidation. Exchange tokens are cryptocurrency assets developed by renowned cryptocurrency exchanges or DApps. Because these cryptocurrency assets are owned by renowned platforms in the cryptospace and in constant use for paying transaction fees, they rarely crash in value.
Examples of these exchange tokens are BNB Token, Gemini USD, FTX Coin, and Shushi..
Note: unlike stable coins, exchange tokens can fluctuate in value. In fact, it can even depreciate up to 40%+ in value when a high discount is experienced in the market. So do proper research before investing.
4. Hire Cryptocurrency Professionals.
If you are not educated enough to trade cryptocurrency or implement any investing strategy, you can look for a professional that will help you sort out your investments. There are many crypto traders freelancing out there. You can find them on freelancing platforms like Upwork or Fiverr.
Note: Before you hire any trading professional, make sure they are trustworthy and renowned for having recorded a good trading history. You can find someone who is good at the job by reading their review on the freelancing platform. Also, make sure you get to know his or her identity to some extent.
Conclusion
These four tips are the four major ways to save money on cryptocurrency if you have little or no knowledge about it. Buying as little of this crypto asset as you can will add up to something overtime.
Please be reminded that this post is not financial advice. Everything I’ve written here is based on my own research and experience, and I cannot claim to be perfect. Before making any financial decisions, please conduct your own research.