Crypto as universal remedy: how to Protect Savings from Inflation

Inflation in the world is one of the main problems for the economy in 2021–2023. Therefore, people worldwide are looking for a way to save their savings and keep them from plummeting in value. Today, several investment instruments include buying gold, bank deposits, and investments in real estate or cryptocurrency. However, not all have returns above the official inflation rate in the U.S. and other Western countries.

Bitcoin and altcoins can become the most profitable tool for protecting and increasing assets. Users, crypto-enthusiasts, investors, and experts worldwide are increasingly talking about it. But should we be afraid of the global crisis, transferring all savings into cryptocurrency? We have analyzed this topic. Read to the end and find out even more interesting things.

Global Inflation is the Main Problem of the Economy in 2022–2023

The coronavirus pandemic has had significant economic consequences, forcing the United States to print more and more dollars. This supported the population and the economy during the crisis, but caused record inflation in some countries.

Annual inflation in the U.S. as of February 2022, reached 7.9%. This is the highest in 40 years since January 1982. Similar figures are observed in Europe, Canada, Britain, and other economically developed countries.

Against this background, the U.S. Federal Reserve has already repeatedly raised the key rate, citing analysts’ forecasts. According to them, it could be raised seven more times by the end of the year. It will stabilize the national reserve system, but will hurt inflation. So, this confirms that the problem will not be solved in a few months. And we need to search for alternative savings instruments, their safe exchange and passive income above inflation already now.

One of the main factors of financial instability is geopolitical difficulties. Russia’s war against Ukraine and sanctions against the Kremlin, the threat of an attack by China, and many other things create preconditions for higher energy and food prices.

Meanwhile, economic growth has slowed, and new jobs are not being created amid uncertainty and rising production costs.

Do you think that it will all be over in a few months, and all your savings in the U.S. dollar will be safe? Current yields at banks in USD range from 0.5% each year. This is only 1/16th of the actual inflation rate in the United States. If you are not willing to lose your money, you should resort to alternative financial instruments.

Cryptocurrencies as a Savings Protection Instrument

As we said before, many see great prospects for cryptocurrency as a tool to protect capital in times of crisis and geopolitical risks.

There are several reasons for this:

• Cryptocurrencies are not subject to inflation due to limited issuance and periodic “burning” of some tokens;
• Ownership of cryptocurrencies is completely anonymous and decentralized;
• Cryptocurrency wallets like Trustee Wallet allow you to buy, exchange and sell coins in a few clicks;
• Absolute security and transparent KYC conditions (for example, cryptocurrency wallet Trustee does not require verification for cryptocurrency transactions in some countries);
• No restrictions on storing, exchanging, buying, and selling cryptocurrencies.

The U.S. dollar and other fiat currencies have no such advantages. Any monetary unit is inflation-proof due to unlimited issuance. This distinguishes cryptocurrency from fiat currency. For example, in 2020, the Federal Reserve printed over $3 trillion to support the United States economy. This led to the rapid inflation we see until now.

Bitcoin has a limited issue of 21,000,000 coins. This fully protects it from inflation and guarantees high liquidity. However, the constant increase in the complexity of mining also contributes to this.

Another important factor is regulation and transaction limits. For example, you can’t carry more than $10,000 with you to another country. In addition, you have to declare all the money in your accounts when getting a visa, filing a tax return, or other transactions. This increases your tax burden and makes it inconvenient to manage large amounts of capital or savings.

Cryptocurrency wallets like Trustee have no limitations. You can instantly fund your cryptocurrency account in Bitcoin, Tron, USDT, ETH, and other coins from your debit card, storing any amount.

Such assets are not regulated and do not need to be declared on tax returns. At any moment, you can withdraw the money to your card or transfer it to another cryptocurrency wallet.

It is convenient if you often move between countries and fear for the reliability of your bank. Keeping your savings in cryptocurrency eliminates using a safe deposit box or an account that you have to pay for every month. For example, a safe deposit box in New York City will cost $15–25 each month. Add to that the account debit and credit card maintenance fees. Cryptocurrency accounts have none of that. You have 24/7 access to your electronic coins with no fees or overpayments.

Cryptocurrencies are more beneficial for preserving capital in crisis and turbulent times. These decentralized assets can help save on bank fees, eliminate the risk of losing money due to bank failures, and remove all restrictions when traveling or leaving the country.

How to Protect Savings in Cryptocurrency From Inflation?

Now let’s move on to a guide on protecting your savings in cryptocurrency from inflation and economic crisis. As you know, you can make cryptocurrency transactions at cryptocurrency exchanges or wallets. There are many such services, but they all offer different terms, rates, and restrictions.

It would help if you chose an exchange or a wallet based on the user’s goals. For example, for spot or margin trading, it is preferable to use exchanges. On the other hand, cryptocurrency wallets are more suitable for storage, buying, and instant selling. Trustee Wallet provides more options, as you can make cryptocurrency exchanges in your app and withdraw and buy coins from your bank card.

Let’s look at several ways to invest and protect your cryptocurrency savings, using Trustee Wallet functionality as an example.

Transfer all your savings into cryptocurrency

How to transfer your savings from VISA/MasterCard to cryptocurrency? First, register with Trustee Wallet and use the app to connect your bank card. It will take you just a few minutes. After that, you will be able to buy USDT, BTC, ETH, TRX, or NFT for any amount, without any restrictions. In addition, a Trustee does not have any processing fees for transactions in crypto.

However, you will have to pay a small fee per blockchain transaction, which is a few cents (for example in Tron network). This is much more profitable than making transactions in OTC format or spot trading through an exchange. Pay with your bank card and wait for the cryptocurrency to accrue. Fast, convenient, and secure.

Before the transaction, you will be offered the best system with the lowest commission and best market quotes (Smart Swap system). In addition, it guarantees 24/7 liquidity and the most favorable cryptocurrency exchange rates.

You can then store thousands, tens, and hundreds of thousands of dollars in cryptocurrency with absolute anonymity and a high level of security.

Use the stacking to earn passive income

Trustee Wallet has a stacking feature that allows you to earn a stable passive income from the cryptocurrency in your account. Stacking yields range from 5 to 35% p.a. or higher, depending on the cryptocurrency selected. Compare that to U.S. bank deposits from 0.5%, which do not cover inflation.

Stacking yields at Trustee Wallet are more profitable, plus you can stake coins with daily income accrual. As a result, this is currently the most profitable financial instrument for those who want to keep their savings without resorting to trading and other riskier investments.

You can stake Tron, Solana, and AMB into the Trustee Wallet. Then, choose what you want and diversify your savings to reduce risk.

Diversify your cryptocurrency

Cryptocurrency has very high volatility. This increases the risks for investments and savings. That’s why we recommend diversifying your money into different coins. The safest stablecoins on the example of USDT. This coin is pegged to USD and is always valued at $1. In addition to this, you can count on the possible increase in the value of Bitcoin, Tron, Ethereum, and other cryptocurrencies. It will protect you from inflation and allow you to earn money. However, consider all the risks and use fundamental analysis before buying cryptocurrencies. After all, a cryptocurrency wallet is not responsible for the value of the coins you own.

Exchange, store and withdraw cryptocurrencies at any time

Trustee Wallet allows you to buy and sell cryptocurrency with your bank card in any currency. There are no restrictions by country, bank, or payment system. Add your card to your profile and use it to buy or sell the offered cryptocurrencies instantly. As a result, your savings will always be with you, regardless of inflation, geopolitical risks, and the economic situation in your region.

Save money and use cryptocurrency to make money. It’s easier than you think. Especially, if you use Trustee Wallet.

Conclusion

The traditional banking system is very vulnerable in times of crisis. During this time, customers of even the largest banks in the U.S. and the world may experience some restrictions or difficulties accessing their savings. In addition, when inflation is enormous, banks do not increase deposit interest. That means that inflation is now much higher than most banks’ returns.

You can’t protect your finances if you use traditional investment tools.

Cryptocurrency is currently the most innovative financial instrument with legal regulation and profitable programs.

Cryptocurrency wallets like Trustee allow you to make transactions with BTC and altcoins in a couple of clicks. It’s fast, secure, and affordable.

Use this as one way to diversify your investments and protect your assets from the global crisis.