June 9, 2023

Inflation is causing stress and anxiety around the world. its inhabitants Turkey, Argentina, Venezuela And Dozens of other countries In recent years, prices have increased by a hundred percent. And it is becoming a big problem in developed countries too.

According to experts at Goldman Sachs, inflation in the UK is likely Hit as high as 22% In the future, the European Union Also facing sharp price increases. And in the US, inflation figures released this week marked the stock market’s worst day since 2020.

How do people protect their money during inflation? The general advice is to invest in hard assets like real estate, commodities or precious metals (for those who can afford it).

But what about cryptocurrency? This can be a very good option; By nature, cryptocurrencies are hedged against fiat currency inflation, so money held in them will be protected from rising rates of inflation.

But that’s not the end of the story. Although crypto is protected from inflation, its value still fluctuates, depreciating or appreciating just like other investment vehicles. In fact, the crypto market is extremely volatile right now. This is precisely why now – if it is done correctly with advanced technology and other methods – crypto trading can offer opportunities for appreciation given the current market fluctuations.

As a result, crypto can not only protect money against inflation but also boost wealth when traditional markets slow down. Indeed, the growing and increasingly valuable role that crypto is playing in the world of financial trading was made even clearer this week when legacy brokerages Schwab, Fidelity and other Wall Street firms announced the creation of a New crypto exchange.

Crypto, in short, offers investors a unique opportunity considering the state of the economy at the moment. Many investors generally shy away from volatility; They want to be able to control their investments and reasonably predict where their money will be at various points in the future. but restlessness Which allows investors to capitalize on sharp market swings quickly plays a role in investing – esp Period of inflation.

When inflation is high, previously profitable blue-chip investments — such as stocks of large companies — usually are Give less yield, as their share prices and/or dividends may not keep pace with inflation. In fact, stocks are not performing well during the current inflationary period, as are Feds and Exchequers around the world Interest rates are pumped up To reduce demand and price. And when investors do not find profitable vehicles for their money, they turn to volatile investments, Investment experts.

This is where cryptocurrencies can play an important role in an investment portfolio. Few investments are more volatile than crypto. But if investors are able to time the crypto market correctly — using advanced AI services to predict the likely movements of various currencies during volatile periods or algorithmic trading tools that are able to immediately pick up market trends and take advantage of them — they may find that their money Keeping up with inflation, and then some.

In fact, some experts believe that the crypto market makes for one Good volatility investment Compared to many other options available — like Precious metals. One of the advantages of the crypto market is its diversity; There are numerous Well established currency At different price levels, so when price As BTC falls, the price of ETH or EOS may rise.

Determining which currencies to invest in, when to buy and sell, and how long to wait before doing so requires research and intelligence. Studying the crypto market, as well as using advanced AI-based prediction and trading tools can help investors make the most of their crypto investments.

That inflation Must stay here – at least for now – clear. The question for investors is what to do about it, and investing in vehicles that have seemed too volatile in the past may be the answer.

Holding crypto will protect money from inflation, although it is still subject to price fluctuations. But capitalizing on the current volatility and trading crypto with the right tools can still make money. This makes it an even stronger asset class in these challenging and uncertain economic times.

(Dmitry Gushchin is the chief operating officer and co-founder of Endotech, an AI trading platform.)

With US inflation remaining stubbornly high, the Federal Reserve is expected to raise interest rates by 75 basis points for a third consecutive meeting this week.

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