There is no news that cryptocurrency investors dread more than the C word — that’s right — crash. Yet, the market is no stranger to breaking news of a market crash; instability and fluctuation are part and parcel of the high-risk-high-returns trade. That said, no one wants to be on the losing end all the time.
Do not resign yourself to market-dictated fate. Here are three stable ways you can protect yourself and your profits in times of a market crash — and maybe even profit off the crash.
1. Convert your cryptocurrency to Tether (USDT)
How it works:
Just like how most financial instruments are convertible to USD to defend against volatile fluctuations, the cryptocurrency market offers a similar option with Tether (a stable low-risk cryptocurrency) pegged to the value of 1 Tether is to USD$1.
This conversion safeguards your profits against landslide losses typical of popular (and volatile) cryptocurrencies by converting your tether to cash (in the form of USDT) — free from depreciation of value. The benefit of USDT’s stability in the face of a market crash may override its downside of marginal returns — unlike the ability of popular cryptocurrencies to rapidly surge in value, the USDT here acts like the tortoise in the Tortoise and the Hare fable — slow and steady.
For the ever-cautious investor:
Take a backseat from aggressive profit-hunting in the downtime and convert to USDT to stem your losses.
2. Sell Short
How it works: Borrow cryptocurrency coins, sell them via a USDT pair (the price may fall due to greater supply), buy them back at a lower price, and return the initial quantity to the lender, pocketing the value difference.
Strike when the iron is hot — or at the first hint of a downturn. Risk-taking investors may capitalize on the gloomy market forecast by selling short, riding on the downward trend and bear markets, and buying back their borrowed stash at a lower price, hence making a profit.
For the adventurous risk-taker:
Of course, selling short has immense risk and requires a certain level of tenacity and timing ability to execute. It may also cause the crash to worsen drastically should too many investors follow suit. Adopt this method at your own risk — it is not for the fainthearted investor who can’t stomach losses.
3. Switch to Mining and Supply Coins for the Market
How it works: A miner profits by purchasing mining equipment to generate coins, and then selling these coins in the market or hoarding it in case of price hikes.
Rather than remain at the mercy of the market, a more deterministic way to profit in a crash would be to do mining — the supply side of the cryptocurrency market. However, this form of passive income also comes with prohibitively high capital costs that make it difficult for individual miners to profit.
The solution: Cloud mining, a form of crowd-sharing resources and returns, has risen to the fore to combat traditional mining’s huge energy costs, thereby negating the need for individual effort.
Maximise Returns with MaxiMine (MXM)
No more laborious self-mining — MaxiMine is a cloud-based pool mining platform that allows its users to do NO mining at all. Instead, it uses a Hashing Power Credit system that works like a Proof of Stake algorithm: it allows its users to stake their tokens in the platform to reap proportionate rewards generated by its mining pool. It can also mine multiple coins with its state-of-the-art equipment, a profit-maximizing step ahead of traditional single-coin rigs.
Before you scoff at how this seems too good to be true, MaxiMine is powered by maximizing efficiency and economies of scale. Its advanced cloud-based mining is carried out in dedicated mining farms in Northern China where land and electricity costs are low, generating massive cost savings that outweigh that of individual mining. As a crowdfunded base resource, MaxiMine hopes to capitalize on its cloud mining efficiency to generate greater returns for its users.
It’s like paying someone to make more money for you without having to do any manual work. Investors stake MXM tokens in exchange for proportionate returns of hashing power (which determines the quantity of coins mined). These MXM tokens do not change even with the cryptocurrency market’s fluctuation because each token is backed by the hashing power of the mining rigs, and the quantity of mined coins will be proportionate to the user’s hashing power — a stable and trustworthy transaction sheltered from market instability. By switching to mining, investors can take a break from buying and selling coins and supply the currency instead.
Make the right choice
Market booms and crashes are inevitable occurrences of the trade. While advice may range from go big or go home to don’t put all your eggs in one basket, an undeniable fact remains: the cryptocurrency market is here to stay. Cryptocurrency activities will continue to populate headlines, with coin mining at the heart of all the action.
For a comprehensive guide on how to profit with MaxiMine, visit the following links:
Website: https://maximine.io/
Telegram: https://t.me/maximine
Reddit: https://www.reddit.com/r/maximine/
Twitter: https://twitter.com/maximinecoin
Medium: https://medium.com/@maximinecoin
Facebook: https://www.facebook.com/MaxiMineCoin/
Bitcointalk: https://bitcointalk.org/index.php?topic=3247389.0
Github: https://github.com/maximine
