The fall of bitcoin and stablecoins

The fall of bitcoin in recent weeks and the domino effect that caused the collapse of other cryptocurrencies/ could be influenced by the announcement of the federal reserve raising interest rates, a saturated market, and the constant threat of omicron.

Despite these bleak expectations, once this wave of bearish, the entities involved in this very unpredictable market intend to offer investors and traders,strategies that allow extraordinary returns once the market turns in our favor.

One of the options to face these abrupt changes is the use of decentralized finance or Defi, which in conjunction with stable currencies offer return on your investment regardless of whether the market goes up or down, because it has made it possible to link a part of the investment to the US dollar

For this purpose, stable cryptocurrencies are deposited in peer-to-peer lending protocols, stable coins are designed to maintain their value, focusing on stability over volatility is very attractive to when it comes to investing, this union of a crypto

graphic asset and a physical currency prevents the cryptocurrency from decreasing in value below the stable currency that supports it, which reduces risk and provides confidence.

Stablecoin or stable coins are linked to a specific amount of fiduciary currency, that is, 1 stable coin is equivalent to 1 dollar, fiduciary currencies are backed by reserves, trades on the stock market, gold, silver, etc., while algorithmic Algorithmic stable coins use supply and demand to stay stable. The interests achieved with Defi far exceed those offered by traditional banking.

To mention some examples of Defi protocol, we have projects like Curve Finance and Anchor protocol sushiswap, any swap, and Beefynance, with which you can earn more than 20%. For a stable coin, of course. it is necessary to refine a method or strategy  since every investment has its share of risk and you should not invest more than you are willing to lose.