One of the most crucial pieces of investment advice shared on Dalal Street is: ‘Trying to time the market is a mistake! Instead, having a long-term approach to preserving and growing one’s wealth tends to pay off over the years!’
Now think for a moment. What if you had invested INR 1,000 in 2018 but sold it right after your portfolio crashed by -72.6%? That would have been a terrible mistake given the fact that Bitcoin has outperformed almost every other traditional asset class over the years.
Focus on time in the market, not market timing
Investing is a long-term game and the smartest thing to do often is to do nothing at all,
especially during a bear market. This is where passive income can play a pivotal role in helping you grow your wealth, while also protecting your assets when markets are down.
Investing in bear markets can be stressful, but it can be a great time to start accumulating your crypto.
It is important to stick to a disciplined investment approach and continue earning passive
income even during bear markets. A dollar cost averaging strategy can help avoid the common mistake of attempting to time market entry points.
Locking your assets can also help avoid emotional selling and maintain a focus on the long
term.
Yield App customers can earn up to 7.5% interest per annum on Bitcoin and Ethereum.
In addition, investors can earn up to 13% on stablecoins- USDC, USDT, DAI, and TUSD – and this interest is paid on a daily basis.
Stablecoins
Tether (USDT), for instance, issued more than US$60 billion worth of USDT in 2021-22 alone. Adoption of stablecoins has skyrocketed among crypto enthusiasts and Gen-Z.
Being dollar pegged, stablecoins don’t have the same volatility as Bitcoin and can help to
stabilize portfolio in a bear market. Yield App is one of the platforms where customers can
generate returns on idle stablecoin assets. Earning returns in stablecoins can help ensure that currency depreciation of INR against USD doesn’t take a toll on the overall gains.
Indian investors can benefit from an extra 2-3% each year on currency devaluation alone.
Managing risk
It is difficult to eliminate human emotion from decisions that involve the risk of monetary loss. Often people panic and sell assets at the most inopportune time i.e. during bear markets, when selling means crystallizing the loss.
However, crypto investors on Yield App are able to enjoy passive income on a range of digital assets, even when markets are down. And if you ask the Yield App’s customers in India, they are happy to earn on their Bitcoin especially during a bear market.
Ashish, a customer from Delhi, said that he started by adding a few thousand USDT in early
2021. “I slowly started growing my investments in Yield App and now I earn more than INR740 worth of crypto every day,” says Ashish. The platform allows him to earn 13% interest on his USDT and additional interest on his staked YLD tokens.
Yield App membership tiers
Yield App allows its members to stake their native token YLD and earn extra income. To earn the highest yields, customers must be Diamond Tier members, meaning they have staked or locked at least 20,000 YLD on the Yield App platform. But do not get discouraged, you can start your investment planning from as low as USD 100.
Long-term focus
In the digital asset world, it is quite common to find opportunities to lock away your assets for passive income. Like, Yield App has introduced the option to lock your YLD tokens for 12 months to gain higher rewards, you can earn an annual interest of up to 12% on locked YLD tokens by being a silver tier member or above.
Bottom line
Investing during bear markets can be stressful and it is easy to make mistakes. Having a
strategy at hand, such as the dollar cost averaging strategy or the ability to lock your assets for passive income over a period of time, can greatly reduce the chance of making mistakes thereby depreciating your wealth.
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