If you’re like most people, saving isn’t your strong point. It can be boring and create stress when you are trying to slowly build up your fortune over years and years. The savings process may never be fun but the introduction of cryptocurrencies has added at least a little more excitement and options to the market. Here are the best ways to save your crypto
Set a Goal
One of the main reasons many crypto traders never achieve their trading strategy is that they don’t have one. It is a very common saying, “If you don’t have the plan to get rich, you’re planning to be poor“. The same goes for cryptocurrencies, if you don’t have a hard set-in-stone savings strategy, the chances are high that you will spend it or trade it.
One of the first steps is to create separate wallets for tokens used when trading versus tokens you intend to HODL (hold on for dear life). Splitting up your funds will make it easier for you to keep track of your savings and your trading results accurately. Additionally, splitting up your fund enables you to utilize certain portions for wealth-generation strategies.
Be Realistic
One of the best pieces of advice you can take to heart is to be realistic about your savings goals. Never chase waterfalls. This statement means that if something sounds too good to be true, it probably is and it’s best to avoid it. The same goes for blockchain projects.
Remember crypto is not a get-rich-quick scheme. It should be thought of as a methodical way to generate wealth over time. Some huge advantages make it ideal for this use case. You just need to be aware of the work and commitment it takes to succeed. Once you accept these challenges, you’re ready to start building your financial future.
Security
Security should be your priority when discussing saving crypto. It does you no good to save up only to have your holdings hacked away or accidentally sent to the wrong address. To avoid these concerns, you need to create a storage and security protocol. This is a process that you follow exactly, every time you send transactions or conduct trades.
Open Source Projects
Open-source projects are considered the best option for traders for a couple of reasons. For one, they enable anyone to check out the core processes of a platform. Users can check to ensure nothing is going on behind the scenes. They can also verify that there are no smart contract programming errors or attack vectors.
It recommended that traders stick with open-source projects because they demonstrate a desire by the developer to remain transparent. Open-source protocols are the most popular in the market today due to these reasons. Additionally, they have proven to be a safer alternative time and time again.
Wallets
Part of your strategy will include how you intend to store your crypto. There are a variety of options available to users today. The most popular and easiest is on a mobile app. Platforms like Jaxx offer users an excellent selection of projects they can hold and other services such as news updates.
Non Custodial Wallets
Non-custodial wallets are the best option for you to consider when thinking of how to protect your assets. Non-custodial refers to the structure of the wallet in terms of your holdings. Custodial wallets are usually found on CEXs (Centralized Exchanges). They require you to send your crypto to their network to use their services.
This structure poses some major security flaws. For one, if the network gets hacked your funds are gone. Additionally, there are times when you will be unable to access your funding like during upgrades and other network changes. These occasions can occur during times of market volatility which makes them even worse for the holder.
Multi-Sig
Corporations and blockchain service providers should always use a multi-sig wallet. The term multi-sig refers to the need to provide two or more signatures to approve a transaction. The use of multi-sig wallets could have prevented some of the largest crypto hacks of all time. As such, these wallets are standard on most exchanges today.
Hardware Wallets
If you are seeking to hold lots of cryptos, a hardware wallet is a great option. These devices protect your crypto from all online threats by separating your coins from the internet. When crypto is held in this style of wallet it’s called “cold storage.” Hardware wallets also employ other tactics to keep your crypto safe such as the need to press a button to approve transactions. Even the best hackers in the world are unable to manually press a button on a device.
2FA
2-factor authorization is a smart way to add another layer of protection to your wallets and exchanges. These systems require you to retrieve a time-sensitive code from another device to access a platform or authorize transactions. The main advantage is that a hacker would need to access both devices to steal your funding.
These systems are a core component of traders’ protection against SIM hacks. In a SIM hack, a person will talk the phone company into copying your SIM by impersonating you. They will then use the duplicate SIM to access your accounts. Using 2FA on a separate device can eliminate this risk as there is no way for them to get the code promptly.
Biometrics
Some of the most advanced networks like META 1 Coin offer support for biometric security protocols. Biometrics makes logging in more secure and easier. Today advanced DeFi networks support both fingerprint and facial recognition software. These systems ensure that hackers will have their work set out for them if they chose to target your holdings.
Notably, fingerprint scanners and facial recognition have been a part of Smartphones for years now. As such, they are easily integrated into DeFi networks without the need to purchase additional hardware. This easy integration has helped these technologies to become more popular over the last 2 years.
Put Your Savings to Work
Once you know how to hold your crypto, you’re ready to put your savings to work. Today there are crypto projects that enable anyone to secure passive rewards and thereby grow their wealth. The META 1 project provides users with multiple ways to drive their savings balance upwards.
Some networks offers low-risk staking services to users. You can stake your tokens by locking up a predetermined amount into a staking pool. The more tokens you participate with and the more rewards you earn.
Farming pools are like staking systems but they don’t have lock-up periods or pre-set APYs. Instead, farmers must monitor the gas prices and APY of pools to ensure they are achieving the best returns. Another feature that is growing in popularity is crypto bank accounts.
These systems function like their centralized counterparts in terms of features. However, they eliminate the bank, and instead, the users split the profits. For example, the META VAULT offers users 10% APY on savings accounts. The national average for fiat accounts sits at just 0.03%.
Easy to Access
The META VAULT MasterCard enables users to spend their crypto like a credit card at their favorite online and offline retailers. The META VAULT card is attached to your VAULT account. When you swipe the card, the system automatically converts the corresponding value in META 1 into fiat currency for the region.
The system is ideal because the vendor receives fiat currency. There are no delays and the transaction completes like a regular credit card transcription. Additionally, the card looks and operates just like a MasterCard complete with the logo. This strategy has helped META 1 Coin secure a growing user base due to its convenience and flexibility.
P2P Lending
Peer-to-peer lending services are growing in their popularity. These networks enable users to lend out their crypto and in return, they receive repayment plus interest. These systems are hugely popular because they provide lenders with the ability to get repaid on time regardless of the borrower’s actions.
These systems leverage large lending pools. Funds go into this pool and generate rewards. Additionally, the pool’s token gains in value as the liquidity pool’s balance rises. Borrowers also gain more flexibility. Some networks enable users to select items such as their repayment dates. The main requirement is that the borrower meets the collateralization requirements.
Minimize Transactions
Another thing to consider when saving crypto is that every time you move your funds it costs you a fee. Depending on the platform or wallet, this fee can be +10%. Worst of all, many networks base their fees on the size of the transaction. This approach means that you will pay more in fees as your savings grow.
To avoid high fees, there are a few things you can do. For one, you need to get your savings to their wallet destination in as few transactions as possible. Most hardware wallets will support direct trading which can help. Also, conducting direct peer-to-peer trades using a DEX saves you on the fees charged by large centralized platforms.
You will want to utilize any additional protocols that help lower fees. For example, the Lightning Network is an off-chain solution that provides Bitcoiners with lower fees and faster transactions. Immutable X is another second-layer protocol that services the Ethereum network. These networks were built to improve the scalability and functionality of these systems.
Avoid Inflation
If you want to save for the future, you need to eliminate inflation from your strategy. Inflation is a loss of buying power by a currency. It can occur for many reasons, including over-printing and supply chain issues. The main problem with inflation is that it disproportionately affects savers.
Inflation robs savers of their future spending potential. Additionally, it hurts lenders who now receive less value in return for their loans. As such, inflation is a major concern for all parties in the economy.
Sadly, inflation has hit 40-year highs in the US and EU. The FED has tried to curb the inflation rate by raising interest rates. However, it had little effect due to the combination of factors reducing the currency’s value.
Gold Related Assets
Now is a good time to consider gold-related assets. Unlike in the past, when savers had to buy paper gold and never actually hold their assets, there are no gold-backed stablecoins that enable you to custody your tokens directly. Gold-backed stablecoins provide anti-inflationary characteristics to the market. Additionally, they are ideal as a store of values.
Multiple Assets are Better than One
The best projects will use a combination of assets to remain stable. By diversifying their reserves, these networks can buffer against any losses in particular markets. The META 1 Coin leverages a basket of gold-related assets to keep the token stable. This structure means that the token appreciates alongside gold.
This appreciation was seen recently when the token spiked 1.35% in value during the last market correction. This spike in value came amidst major losses by most other projects. There were even stablecoins like UST/LUNA that failed during this correction. These tokens are leading the way for savers seeking alternatives that are transparent and anti-inflationary.
Safehaven Options
Safehaven tokens take the benefits of stablecoins and combine them with smart contract protections. For example, the META 1 Coin eliminates whales from the market by blocking all non-humans from the ecosystem. No corporations or trading firms can join the economy. This strategy prevents centralization in the future by eliminating the groups that are most likely to conduct harmful whale trading activities.
Saving Has Never Been so Exciting
The DeFi sector has taken what it means to save and flipped it on its head. What used to be you holding on to coins and waiting for time to pass. Now HODLers securing passive rewards while retaining ownership of their assets. This strategy creates an ever-growing wealth creation system that powers your saving strategy in 2022