Binance, one of the largest centralized crypto exchanges, offers a platform to trade and engage in the global crypto market, which could bring returns. Individuals as well as institutions can take a trade position or partake in the different forms of crypto engagement. There are different forms of crypto engagement, some of which do not require active speculation of crypto tokens. The crypto audience in developing countries like Nigeria can maximize some of these forms of trading that do not involve the active speculation of crypto tokens.
One of the blockchain digital currencies that enable this form of engagement is stablecoin. An example of a stablecoin is Tether USD (USDT). The value of a stablecoin is pegged to an asset like the US dollar. Since fiat currency does not experience high volatility like crypto, funds held as stablecoins take after their pegged currency. The stability of USDT makes it an attractive choice for holding funds in a highly volatile market like crypto. This article explores practical and beginner-friendly ways Binance and stablecoins can be harnessed for profits even without in-depth trading knowledge.
Understanding the Economic Crisis in Nigeria
Before delving into the details of how to profit from Binance without trading, it’s important to grasp the economic situation in Nigeria. This crisis, however, is the backdrop for this strategy. Over the years, Nigeria has faced high levels of inflation, particularly in its currency. The exchange rate of the naira to the US dollar has experienced significant fluctuations. At the time of writing, the exchange rate stood at above 800 naira to 1 US dollar, a stark contrast to the previous year, when it was 500 naira to 1 US dollar.
Economic crises are marked by increased inflation, a rising cost of living, and numerous financial challenges that could impact the average citizen. However, those who understand how to navigate these situations can leverage them to their advantage. The adage “the rich get richer and the poor get poorer” holds during economic crises, as those with financial acumen can turn the situation to their advantage.
The primary concept behind the strategy is hedging against inflation. Hedging is a financial strategy that involves taking measures to protect your investments from adverse market movements. In the context of Nigeria’s economic crisis, this means safeguarding your wealth from the effect of inflation on the naira. One of the most effective ways to do this is by holding stablecoins.
Additionally, here is a video by Joshua Mba, a seasoned entrepreneur, where he explains how to profit from exchange rates in an economic crisis by leveraging platforms like Binance.
How to Make 1 Million from Binance Without Trading
Stablecoins like USDT are central to the success of this strategy. They offer a reliable store of value. While other cryptocurrencies like Bitcoin can be highly volatile, stablecoins maintain a steady value.
This step-by-step guide on how to profit from Binance is a method that has helped many navigate economic crises. However, utilizing this method requires an understanding of the crypto market and the concept of stablecoins. Additionally, knowledge of common risk management in crypto is important.
Create a Binance Account:
To engage in this strategy, you’ll need a Binance account. Binance is one of the world’s largest cryptocurrency exchanges, offering a wide range of digital assets and trading options. Signing up for a Binance account is a straightforward process and can be done in Nigeria or anywhere in the world.
Deposit and Convert Naira to USDT on Binance:
The first step in this strategy is to deposit and convert your Nigerian naira into USDT. Binance offers different deposit options, including using a bank card. Choose a preferred deposit option on Binance and complete the process. Afterwards, convert your funds to USDT by buying and swapping your naira for USDT.
Hold USDT as the Exchange Rate Fluctuates:
The amazing part of this strategy is its simplicity. By holding USDT, you don’t need to actively trade in volatile cryptocurrency markets. Instead, you’re effectively holding US dollars, and the value of your assets remains stable as the naira’s value fluctuates.
Benefit from Exchange Rate Differences:
As the naira’s exchange rate experiences fluctuations and inflation, your USDT holdings retain their value in US dollars. This means that your funds are hedged against the devaluation of the naira. When the value of the naira moves above the initial conversion, converting the USDT back to naira gives returns of the exchange rate differences.
For example, as demonstrated in a video by Joshua Mba, ‘Mr. A’ deposited 1.5 million Naira (approximately $3,000 at the time) into his Binance account in the form of USDT when the exchange rate was 500 Naira to 1 US Dollar. Given the exchange rate of 895 Naira to 1 US Dollar, his funds in USDT are worth over 2.6 million Naira. This equates to an additional one million Naira without actively buying or trading any cryptocurrencies.
Further, the potential gains can be even more substantial with larger sums or over a longer period. For example, someone who invested $10,000 could have turned it into a significant profit by now. It’s essential to note that these profits are the result of passive investing rather than active trading. This procedure makes this strategy accessible to individuals with limited experience in the crypto market.
See this explainer video by Joshua Mba to get more insights on the steps and process of following this strategy.
Conclusion
The economic challenges faced by Nigeria and many other countries are a call to action for individuals seeking to protect and grow their income. While economic crises can have an impact on those unprepared, they could be an opportunity for financial growth. The strategy using Binance and stablecoins like USDT is a compelling way to hedge your funds and make profits.
To implement this strategy effectively, it is essential to stay informed about exchange rates and economic developments. Additionally, it’s recommended to seek advice from financial experts and perform your due diligence.
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