Advanced cryptocurrency investment strategies on JustLend.org
Greetings Steem Alliance friends, I hope you are all having very profitable days. The topic that brings me here today is one that I feel may be of value to all. Currently, with the rising prices of most cryptocurrencies, it is interesting to see how we can take advantage of this opportunity.
Many people are saving in Bitocin, for example others in Ethereum, or both. Those of us here at Steemit are among those who hold Steem in the form of Steem Power, and that is a kind of savings that we have there.But that produces profits for us, not only by price hikes but because by curation it reproduces. This is not something that we can achieve by storing BTC, the gain is only by price increases.
But, there are ways in which we could leverage our coins like Ethereum and Bitcoin to be able to make additional profits while holding our coins. Even, if we have stable coins like USDT we could make some additional profits by doing Stake. I'm a proponent of always having money moving, because otherwise, it decalcifies and we end up losing, inflation doesn't stop.
justlend.org can be a very good investment option
A very good tool for this that I have discussed so far is justlend.org, an app where you can borrow using your cryptomonedass as collateral. This is a clear example of how decentralized finance can help us, of course, if we know how to use it and take measured risks. Remember that ultimately they are investments, and always bring risks with them.
I know this collateral thing can be a bit confusing, but when I understood how it worked I knew it could be a great tool. If we have for example a Bitcoin in a cold Wallet, we know they are there and they are safe, but the profit will be if they go up in price, however, by using a service like JustLend we could continue to keep our cryptocurrencies, but use it as collateral to borrow money, and with this loans we could invest in other businesses, in other cryptocurrencies, for example.
As you can see, on the left side it says Supply in that function we can place as capital in that app our Bitcoins or Ethereum, which are not going to generate us a big profit margin, is the reality, because it gives us less than 0.15%, however, leaving our coins there in the app, we could ask for a borrow, for example in USDT , same that we could use to make other investments.
If we had a Bitcoin, for example, at the current price is $37,000, we are not going to get those same 37 k of loans, but we could say that we borrow $10,000, which we will use to produce in other ways, which would allow us to pay that 2% annualized interest that they ask us for that loan. I know it sounds easy, the truth is that it is that simple.
Always very attentive to the risks
As I said at the beginning, there are always inherent risks in every investment. In this case, there is a risk meter in the same app, which should never be allowed to reach 100%, this means that if the Bitcoin is worth 37,000, and we put one BTC, but we ask for 30k $ of loan, if the BTC drops quickly to 30k, we could lose absolutely all our BTC. That's why we have to be very attentive to the amount we borrow, to avoid losing our money.
As I said, it is really something very easy, no paperwork or bureaucracy as in traditional banks, but here there are no advisors, it is an automated system and the ideal is that we know very well this system, its risks and everything that revolves around this financial product to be able to take advantage of it without losing money.
Conclusion
To conclude, I would like to say that this is not an investment advice, you before making any movement with your capital should investigate very well any tool or investment vehicle, however, if I think it is a very good way that we can leverage for specific purposes, and sure that with a very well thought out strategy, we could make profits while maintaining our capital.
Without further ado, I say goodbye, I hope this post has been very useful for you.
https://x.com/josevas217/status/1724157203093823703?s=20