The bear market has been taking a beating for a few months now and there seems to be no sign of a recovery for the time being. Investors’ top priority during a period like this is to protect their assets, although this can be a daunting task. A relatively new Dutch blockchain project now seems to have found a nice way.
Stablecoins
One of the biggest risks of the crypto market is of course the volatility. In no time at all, the value of, for example, bitcoin (BTC) can fluctuate by many tens of percent. Smaller altcoins can make it even more colorful and it sometimes happens that an altcoin loses more than 50% of its value in a day. That is of course a doomsday scenario for an investor.
That’s why many investors look to alternative investments and better protect their assets, especially during a bear market. Here are some way for today. For example, you can limit yourself to bitcoin and ethereum. The two largest cryptocurrencies are a lot more secure than altcoins.
If this is still too risky, then you may have to avoid investing in cryptocurrencies. However, that does not mean that you should skip the entire crypto market in its entirety.
A possible outcome for these investors is stablecoins. These are basically cryptocurrencies that, as the name suggests, remain extremely stable no matter what the market does. That is because the value of stablecoins is pegged to an underlying currency, which is often the US dollar.
DUCA
A new and interesting stablecoin is DUCA. DUCA is an algorithmic stablecoin from Dutch soil and hopes to be a safe haven for investors who want to keep their heads above water during the bear market. DUCA is completely decentralized and that way a central entity has no influence on the entire ecosystem.
In addition, users of DUCA can earn a nice annual return simply by owning the stablecoins. This is in contrast to the well-known stablecoins where you always have to strike to achieve a return and therefore may also run a risk. Couple this with the fact that the value of DUCA is always stable, retains this value in the future and is protected against inflation and you actually have a recipe for a relatively risk-free way to store your money in a bear market. Such a stablecoin is also referred to as a safe asset.
The return that users receive is also controlled in a fully decentralized manner by an algorithm. This means that the rewards that are handed out will always be fair.
DUCA is currently still in its infancy, but the team is well on its way to making DUCA a revolutionary project. You can join in the blink of an eye private sale from DUCA.