How to earn a relatively stable return in a bear market
Many reality investors are beginning to accept the prospect of a long, drawn-out bear market during this period. However, how to earn a relatively stable income in a bear market? In the recent period, investors can go to buy some dual currency. Although the price of BTC continues to fall, there is a good chance that it will not fall by more than 2,000 USD in recent days. Therefore, investors can buy something that is 2,000 USD lower than the BTC index with a one-day expiration.
What is the Dual Currency product? The Dual Currency product is a digital wealth management service with a unique settlement method. Based on the settlement price and linked price, investors can earn benefits from either currency payout. Take BTC-U dual currency for example, the linked price is 20,000 USDC. If the settlement price is higher than 20,000 USDC, investors will be paid in USDC currency while earning more USDC. Instead, it is paid back in BTC currency to have more BTC. Investors will have low risk when they set a low linked price and a short-term contract.
How does the dual currency work? Let’s take the example of a one-day maturity for BTC-U dual currency with a linked price of $20,000. When the client buys 10,000 USDC from Matrixport, Matrixport will sell this 10,000 USDC in the options market with a linked price of “$20,000”. The buyer from the options market is given the right to sell BTC at an expiration time of $20,000. Once the price of BTC is higher than $20,000 at maturity, then the buyer will not use the right and we will harvest more USDC. Conversely, we will receive more BTC if the BTC price is lower than $20,000.
Usually, in a bull market, dual currency BTC-U enables investors to achieve an annualized return of 18–45%. These are some of the BTC-U dual currency returns. However, dual currency BTC-U will increase riskiness in a bear market, even if it is converted to BTC. People can also switch to investing in dual currency BTC and start hoarding coins slowly in a bear market. The value of BTC in our hands will continue to appreciate once the price of BTC goes back up.
Written by CryptoSharpe
