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Are you concerned about the latest news? As confirmed by the U.S Officials, inflation won’t be transitory, and hence, your money will lose even more purchasing power. None likes that, and hence, we are going to share with you the best ways to hedge against inflation.
The storm is upon us and it won’t stop, so you better be ready to take action. Fortunately, the solutions you’re about to find are easily applicable, even if you don’t hold a huge fortune and simply want easy ways to protect your hard-earned income. From holding crypto and taking advantage of derivatives on platforms like Bitlevex to investing in gold, silver, and land, you’re going to learn what it takes to defend your personal economy.
The Crypto Way of Fighting Against Inflation: Looking Beyond Trading
The U.S Officials have confirmed what several investors and journalists reported weeks ago, inflation is no longer transitory. What’s even more concerning is that the effect of inflation in 2022 will be more widespread and profound, affecting a larger number of industries, services, and goods. In a nutshell, everything will be more expensive in 2022, handicapping your purchasing power.
We put crypto first because, out of the other alternatives, it’s more accessible even if you don’t have much money. Let us show you how to take advantage of this opportunity.
Holding strong projects
The secret to holding is buying promising projects that haven’t rallied much yet. For example, we have KDA which has dropped to $8-12 USD from an ATH of over $26. Being one of the main competitors of ETH with a much lower market cap, it’s a great gem that you should add to your portfolio.
The same can be said about projects like QRDO, LTO, EPIK, etc. They all solve latent problems in their corresponding industries – from chains to gaming – and since they have small market caps, they can easily “moon” in the next bull rallies.
Therefore, the secret here is to stick to fundamental analysis. Find good projects that are cheap, hold them, DCA if the price goes below your entry price and wait for the price to grow and meet your targets.
Staking
Why limit yourself to holding when you can stake your cryptocurrencies? With huge returns such as 77% APY by staking $CAKE, it’s easy to see why this method is a good way to protect your purchasing power against inflation.
If you check the crypto markets, you will find similar opportunities. For example, $DODO offers you over 66% APY, and some platforms even bring you 20% APY on stablecoins, which is amazing. Because you can cash out as we near the top of the bull cycle and put your profits to work at a handsome 20% APY.
Trading
Finally, you should assign a smaller percentage of your portfolio to trading. Be it cryptocurrencies or crypto derivatives, by studying technical analysis and applying it effectively, you can obtain a good return on your investment.
Precious Metals Will Always Be an Excellent Reserve of Value
Gold and silver are excellent ways to protect your purchasing power. Sure, they’re not as liquid as cryptocurrencies and definitively don’t have the huge rallies that you see in crypto markets, but they’re still a tool to hedge against inflation.
In fact, we recommend you create a strategy that includes precious metals. It depends on the level of risk you want to take. For example, you could assign the majority of your money to crypto holding, staking, and trading, whereas a lower percent to gold, silver, and paying for land.
There’s not much science about this – just decide what level of risk you want to play by, buy gold and silver and simply hold it. As inflation won’t be transitory, and we expect it to grow over the next years, your investment will prove to be a great way to defend your purchasing power.
Buying Land – The Always Scarce Asset
Be it that you buy it in monthly payments or directly, buying land is a good way to hedge against inflation. There’s only a determined amount of land, and hence, as inflation grows, it gets more expensive since it doesn’t lose value. In fact, it gains even more value, because since the consumer goods get more expensive, the land to produce evidently grows in price.
In fact, investing in land is not only an hedge but also a source of income. You can easily rent it or build a business, and as you own the land, you don’t have to worry about paying for the location, and that will help to make your company successful.
Therefore, we recommend you to consider buying land. You can invest a fixed percentage in crypto, gold, silver, and land. This kind of portfolio will prove to be brutally strong against inflation, so you cannot only retain purchasing power but actually increase it.
