RIO DE JANEIRO, BRAZIL – Recently, a study commissioned by Sherlock Communications and conducted by the Toluna research platform revealed that for 48% of the population, Brazil should follow the bold example of El Salvador and adopt bitcoin as the country’s main currency.
This result is not exactly a surprise. Cryptocurrencies are increasingly on the agenda, and interest in this type of asset is growing exponentially worldwide.
Ben Zhou, the cryptocurrency exchange Bybit, explains that this phenomenon is not for nothing. According to him, cryptocurrencies have been the best performing asset class in the last decade – in the previous ten years, bitcoin has yielded ten times more than the Nasdaq index and has already appreciated more than 400% in 2021 alone.
Along with these impressive numbers, there is also the fact that new ways to invest in crypto are emerging, such as ETFs (investment funds). For Zhou, however, the best way to get exposure to crypto-assets is still directly.
“When you buy cryptos themselves, rather than derivative financial products, you can buy, sell, transfer and custody the assets as you like, with exposure to their actual price. Other than that, you can leverage solutions to ‘rent’ your assets and receive yields of up to 17% per year,” he points out.
HOW CRYPTO RENTALS (STAKING) WORKS
So-called DeFi Staking, as Bybit’s founder explains, is an activity in which investors lend their cryptos to a protocol to validate transactions on a blockchain or provide liquidity to the market.
“In exchange for renting their assets, investors receive income that can be compared to interest,” he says.
For the executive, the significant advantage is that staking can offer much higher returns than most traditional fixed income alternatives, with less bureaucracy and in dollarized form.
This is particularly true in the case of staking stablecoins, such as USDT, because of their protection against volatility. This is possibly a profitable way to diversify investors’ exposure in the crypto universe.
At Bybit, for example, investors have two types of staking: Mining Staking uses a consensus mechanism known as “Proof of Stake” to ensure that all transactions on a blockchain are validated adequately without the need for a centralized bank or intermediary.
Liquidity Provisioning, on the other hand – protocols that provide liquidity to the market – is a way to receive revenue in exchange for this rental of assets.
Staking at Bybit
Bybit is today one of the fastest-growing cryptocurrency exchanges in the world. Launched in 2018, the platform has over 3 million users and over $10 billion in daily trading volume.
“We are among the top four cryptocurrency brokerages in terms of trading volume of ethereum or bitcoin futures contracts, for example,” Zhou points out.
To create an account and invest in cryptos via Bybit, register an email address and password. The withdrawal limit without verification is two bitcoins per day. But, those who want to increase this limit only need to send an ID document and perform complete verification.
Within the platform, investors can transfer their crypto assets and make new purchases by credit card and now also by Pix, a novelty that aims to democratize access to cryptocurrencies. “We want to be at the forefront of a financial revolution that is already a global trend.”
Bybit also offers a powerful API, with market data sent every 20 milliseconds, a highly reliable system – with servers that never went offline – and 24-hour customer support through a multilingual team.
BYBIT
Bybit is a cryptocurrency derivative margin trading platform, established in March 2018. It is headquartered in Singapore and has offices in Hong Kong and Taiwan.
According to Bybit, the exchange hosts traders from all over the world, including North America, Europe, Japan, Russia, South Korea, and Southeast Asia.
The exchange prides itself on delivering multilingual online support to its customers and is committed to providing a transparent and efficient trading experience. The products on the platform include BTC/USD, ETH/USD, EOS/USD, and XRP/USD perpetual contracts.
A perpetual contract resembles a traditional futures contract in many ways. Its main difference, however, is that it doesn’t have an expiry date. Hence, traders are allowed to hold their positions for as long as they need to.
Moreover, the exchange boasts a 100,000 TPS state-of-the-art matching engine. While many of its competitors have suffered from repeated overload problems, this high-performance matching engine makes it possible for Bybit to stand above the competition.
The Bybit cryptocurrency broker platform is operated by Bybit Fintech Limited which is registered on the British Virgin Islands, with headquarters in Singapore. The company was launched in March 2018, making it a fairly young player on the market.