Anyone familiar with the cryptocurrency market will tell you that it's volatile. As a highly volatile asset, traders are exposed to a high amount of market risks. Additionally, the lack of a solid regulatory framework in the sector makes it difficult to accurately judge the merits of certain projects.
To be successful in trading, you will need to invest a large amount of time into understanding the market, and all the different cryptocurrencies available. You will also need to acquire some technical expertise in order to better predict future market movements off of indicators. These risks and more make trading crypto a risky business. Luckily, trading isn't the only way to earn your crypto anymore.
In an effort to provide higher returns and less risk exposure, developers thought up liquidity staking. This strategy requires you to lock your cryptocurrency up in a smart contract for a predetermined time period. You receive rewards based on the amount and time frame and the amount you staked.
Many crypto investors think of the Proof-of-Stake consensus mechanism when they encounter staking in the market. In this process, users participate in securing a blockchain and receive rewards for their efforts. However, PoS is totally different from Liquidity staking in terms of the general goal.
Unlike PoS stakers, liquidity stakers receive rewards for providing liquidity to a pool rather than securing a blockchain. The actual staking term more refers to the fact that both processes require you to lock your cryptocurrency up in a smart contract for a certain time period.
Bithumb Global takes this concept a step further with its latest feature, BG Staking. This feature places Bithumb Global directly in line with emerging DeFi platforms, however, unlike the competition, Bithumb Global has a proven track record of success in the market.
The first thing you will notice when beginning your staking strategy on Bithumb Global is the wide array of tokens the platform offers. The exchange offers investors access to some of the hottest and newest projects in the market such as Mantra DAO, 2Key network, and Gather, just to name a few. Consequently, Bithumb Global is known to provide users with some of the highest annual returns in the business.
The staging process is very easy to do when using Bithumb Global. You simply register for a free account. Once you have your account up and have verified your identity, you can begin to utilize these services. Simply click the staking button on the top right of the platform.
This button takes you to a page that has all the staking options available and their rates. You can see that each token has its own lock-up period and reward. The layout makes it simple to decide what project to stake. Click the project you desire and it will take you to their investment page. From here you just need to fill in the amount you plan to stake. Now you are good to go.
Bithumb Global is packed with advanced trading features that would make even the best trader blush. For starters, Bithumb Global supports an impressive number of coins at this moment. A nice majority of these coins come with fiat trading pairs. Fiat trading pairs save you time and money. When a coin you want doesn’t have a fiat trading pair, you first must acquire BTC or ETH. This extra step is unnecessary.
Bithumb Global features USDT Tether as the main stablecoin. There are USDT trading pairs for a wide selection of coins. Keenly, Tether is by far the most popular stablecoin in the market. Utilizing them as the premier stablecoin in the network further builds confidence in the platform.
Bithumb Global supports more than just cryptocurrencies. The platform allows users to trade ETFs. ETFs (Exchange Traded Funds) are seen by many as one of the most important gateways to the crypto market today. ETFs are certificates that allow investors to trade cryptocurrencies without actually owning any. In this way, investors can profit off the crypto market movements without taking on any additional regulatory risks.
Another powerful new feature of Bithumb Global is margin trading. Investors can now take short term Bitcoin trading loans. The platform supports up to 10X leverage. In a margin trading scenario, an investor would borrow more cryptocurrency prior to making their investment maneuver. Ideally, the value of their investment goes up and the person can then pay back the loan and keep the added profits due to the larger initial investment.
Leveraged trading is very popular in the stock market. However, in the stock market, investors usually leverage their short positions. When you short a cryptocurrency, you bet against its value. For example, let’s say you have one BTC. You borrow nine more to put you at ten Bitcoin right before you expect the price to drop. You then sell all of these coins and wait for the market to drop. Once the value falls, you repurchase the asset, repay the loan, and keep the difference as your profit.
Notably, shorting and leveraged trading are considered advanced trading methods because they increase both your profit and risk potential considerably. Before you attempt to make leveraged trades, you should research the strategy thoroughly. Luckily Bithumb Global offers courses to investors and firms interested in these topics.
Bithumb Global has an impressive Dapp that allows users to conduct basic trading activities from the convenience of your smartphones. The platform has everything you need to track, monitor, and trade any of the 100+ coins provided on the exchange. Best of all, the app is free to download on both Apple and Android devices.
Smart tokens are stablecoins that are pinned to major cryptocurrencies such as Bitcoin or Ethereum. The main goal of this product is to allow traders to short Bitcoin. Shorting Bitcoin has long been a desire of professional traders in the market. The volatility of the market lends itself well to this strategy when you have the experience and know-how to execute it properly.
Bithumb Global was built to meet the greater needs of the international crypto community. The exchange reflects the advancements made in the sector over the last 5-years. You can see aspects of the DeFi community such as its unique staking mechanism, in Bithumb Global's market approach.
It's exciting to learn that exchanges now offer users the ability to earn a passive income without the need to trade their crypto. For new users, this is a real game changer and for advanced users, it's just one more reason to utilize Bithumb Global.