Inflation is causing stress and anxiety around the world. population turkeyAnd the ArgentinaAnd the Venezuela And the Dozens of other countries Prices have jumped hundreds of percent in recent years. This has become a bigger problem in developed countries as well.
According to experts at Goldman Sachs, inflation could happen in the UK up to 22% In the coming period. The European Union It also faces sharp price hikes. In the US, inflation figures released this week caused the stock market to post its worst day since 2020.
How do people protect their money during periods of inflation? The common advice is to invest in fixed assets such as real estate, commodities or precious metals (for those who can afford them).
But what about cryptocurrency? This could be a very good option; By their nature, cryptocurrencies are protected from fiat inflation, so the money that is put into them will be protected from high rates of inflation.
But this is not the end of the story. Even though cryptocurrency is protected from inflation, its value can still change, fall or rise just like other investment vehicles. In fact, the cryptocurrency market is very volatile at the moment. This is exactly why right now – if done correctly with the help of advanced technology and other methods – cryptocurrency trading can provide opportunities for appreciation, given the current market volatility.
As a result, cryptocurrencies can not only protect money from inflation but may also increase wealth at a time when traditional markets are slow. In fact, the growing role and value that cryptocurrency plays in the world of financial trading became even more apparent this week when legacy brokerages Schwab, Fidelity and other Wall Street firms announced the creation of New Crypto Exchange.
In short, cryptocurrency presents investors with unique opportunities, given the state of the economy at the moment. Many investors usually shy away from volatility. They want to be able to control their investments and rationally predict where their money will be at various points in the future. But volatility That allows investors to take advantage of sharp, rapid market volatility has a role in investments – especially during it periods of inflation.
When inflation is high, previously profitable blue-chip investments – such as stocks in big companies – generally Provides lower returns, because their stock prices and/or earnings can’t keep up with inflation. In fact, stocks are not doing well now during the current period of inflation, as are the Fed and Treasury around the world interest rates increase In order to curb demand and prices. And when investors can’t find profitable instruments for their money, they tend to be drawn to volatile investments, according to investment experts.
This is where cryptocurrency can play an important role in an investment portfolio. There are few investments that are more volatile than cryptocurrencies. But if investors are able to time the cryptocurrency market – using advanced artificial intelligence services to predict the likely movement of different currencies during periods of volatility or algorithmic trading tools capable of capturing market trends and capitalizing on them instantly – they can find that their money is keeping pace with inflation, then some .
In fact, some experts believe that the cryptocurrency market is making a file Better volatility investment From many other options available – such as Precious metals. One of the advantages of the cryptocurrency market is its diversity; There are many solid coins At different price levels, so when it price When BTC falls, the price of ETH or EOS may rise.
The key to knowing which currency to invest in, when to buy and when to sell, and how long to wait before doing either takes research and intelligence. Studying the cryptocurrency market, combined with the use of advanced AI-based prediction and trading tools, can help investors get the most out of their crypto investments.
This inflation here to stay – At least for now – it is clear. The question for investors is what to do about it, and investments in cars that seemed so volatile in the past could be the answer.
Holding cryptocurrencies will protect funds from inflation, although they are still subject to price fluctuations. But cryptocurrency trading, with the right tools that take advantage of the current volatility, can also raise funds. This makes it a more robust asset class in this difficult and uncertain economic time.
(Dmitriy Gushin is the chief operating officer and co-founder of EndoTech, an AI-powered trading platform.)