Patrick Iturra Report, EIG Asset Manager
If you are an avid cryptocurrency investor, then there is something you need to pay attention to. The latest Federal Open Market Committee(FOMC) came with the news of multiple interest rate hikes.
Already, the crypto market has been on the downfall over the past few months. Many investors are contributing to the online forums, where most of them claim that there are tough times ahead!
Most of these investors are correct, but still, there are a lot of opportunities to make gains in the crypto market. As a strategic investment advisor, I am here to help all my readers to understand & make the most of this!
After analyzing this trend, I have concluded that stable coins are one of the hottest cryptocurrencies to buy right now.
Here’s my analysis:
Although during the Federal Reserve meeting, there was no timeline specified for the timeframe for the interest rate hike! During my research, I found that the interest rate hike will happen in March. In such a situation, stable coins are the best investment at this time.
Lately, stable coins are not the most preferred investment, but right now, they are the best investments you can make!
Let’s see why:
Stable coins are the digital currency considered a “stable” asset, such as USD/Gold. All stable coins are decided to reduce cryptocurrency volatility.
Right now, there are multiple reasons to invest in stable-coin. The best thing about stable coins is that they generate passive income.
Also, many Defi-based platforms generate higher passive income than traditional banking schemes. The APY(annual percentage yields) are higher than savings bank accounts 2-3 times.
Here’s a list of 3 stable coins that you consider:
DAI is one of the most significant stable coins in the world. The DAI stable coin market capitalization is around $10 Billion. It is one of the most popular cryptocurrencies around the world; you can use the same to hedge against high-interest rate spikes.
Over the past years, the decentralized finance space has seen growth. The traditional loan method was a complete pain, as most of them come with high-interest rates, but banks do not recognize crypto assets as collateral.
DAI solves this problem, and Defi platforms use DAI as collateral on the crypto blockchain. One major platform here is compound, which is DAI loans at an interest rate of 2.5%. The interest rate is quite affordable and reasonable compared to the traditional method of providing loans.
As Defi loans become popular, then demand & popularity of DAI will appreciate its value. Therefore, investing in DAI will help users build a passive income source.
The second coin on my list does not require any introduction, and it is the biggest stable coin in the world. The best thing about investing in Tether is that you can use it as a medium of exchange between Fiat money & crypto assets. It is because of Tether that liquidity mining is highly popular.
Liquidity mining is another way to build a passive income source. Using liquidity mining, miners supply new pairs of cryptocurrencies into a decentralized exchange. When you add this to the liquidity pool, all liquidity miners earn rewards. These can also be termed as transaction fees for mining.
Therefore when you add an inflow of Tether in the crypto mining, then you can easily generate a high APR for your investment. Therefore, mining Tether is highly beneficial, and you should invest in Tether stable-coin to make the best of it!
My third pick on my list is TerraUST; I like this cryptocurrency because it offers you the opportunity to earn passive income through arbitrage and staking.
Right now, it is one of the largest decentralized stable-coin. UST is fixed to a price of $1. The stable coin maintains this fixed value by keeping a strict command between UST & demand.
Another point about UST is that you can use stable-coin to leverage your earnings with LUNA. By leveraging the protocol’s price stability program. When the valuation of UST increases more than $1, then all LUNA holders can convert their holdings to UST. But, if the demand goes down, then the value will also decrease.
Also, if the UST value goes below $1.00, then you can convert your UST to LUNA to balance the supply and increase the price above $1.00
You can use this strategy to increase your passive income using both LUNA and UST stable coins.
Another interesting factor is that UST is also used by Anchor, which is a Defi lending platform. Anchor provides astonishingly high & consistent APY & UST staking. Over the period, it has generated 20% APY for UST staking,
Make the most of this today!
The news of this interest rate hike has led to many worries for crypto investors. But, you should focus on turning this into a strategy to build your passive income!
As a strategic investment advisor, I am here to help you!! Over the past 25 years, I have helped my clients to set up a business, generate passive income & build long-term wealth!
My services include:
- Asset/Investment Management
- Business Formation
- Business credit
- Crypto trading bots (passive income to your business)
I use my experience to help my clients to achieve their goals.
If you have a business then, I can help you to get your first round of funding for the required push! I also consult my clients to save on taxes to become financially educated & achieve their financial goals.
EIG Asset Manager, I monitor my investors’ property performance and maximize their real estate income. My job involves leading your real estate investment company’s construction, operations, and leasing teams to ensure optimal value for each asset. FALLOW