Investment & Income Strategies In The Time Of Pandemics and Business Shutdowns

The year 2020 started with the Covid pandemic, and 2021 began with more Covid-19 cases. Many of us are still trying to make sense of it all. Most of us are not quite sure how our lives will unravel in 2021 and beyond. Will we remain healthy? Will we still have a job? Will our business survive? Will the money we have now retain its purchasing power? Will we be able to produce an income that will enable us to support our families?

Against this and a backdrop of already fragile economic conditions, much uncertainty remains about how and when the pandemic will run its course, but the unprecedented economic shock generated by the global health emergency has already sharply exposed the global economy’s pre-existing weaknesses, severely setting back development progress around the world.

However, if we can somehow find a way to do two things successfully, we could survive and perhaps even prosper through these difficult and uncertain times.

Firstly, we should be able to use a small part of our capital to produce an income independent of a job that we may not have or a business that may not operate.

Secondly, given the very high probability that governments will continue to impose travel and movement restrictions, we should be able to use a part of our capital to produce an income while working from home.

However, the truth is that we can do very few things with just a small amount of capital to produce any significant income while working from home. For example,

Trading stocks or commodities online to produce any reasonable return requires a risk of at least $100,000, and you have to compete against well-funded large institutions.

Trading currencies online on margin leverage requires less capital but is extremely risky due to the leverage and the fact that you will have to compete with banks and hedge funds.

Trading Cryptocurrencies online could be the answer.

Compared to the stock, commodity or currency markets, the cryptocurrency market is relatively new; it has experienced significant volatility (essential for trading purposes) due to vast amounts of short-term speculative interest.

For example, the price of Bitcoin has fluctuated from $5,851 to $50,000. Other cryptocurrencies are also attracting trading interest. The volatility of cryptocurrencies is part of what makes this market so exciting to trade. Rapid intraday price movements can provide a range of opportunities for traders to Buy Long to sell higher and Sell Short to buy lower.

Therefore, if you decide to explore the cryptocurrency market, you must have both a trading strategy and a risk management strategy in place.

Because there is no traditional centralized market, the cryptocurrency market is usually available to trade 24 hours a day, seven days a week, and transactions occur directly between individuals, cryptocurrency exchanges, and brokers worldwide. However, there may be short periods of downtime when the market adjusts to infrastructural updates or system upgrades.

With most exchanges and brokers, you can trade cryptocurrencies against US dollars and other major currencies. Liquidity is the measure of how quickly and easily a cryptocurrency can be bought or sold and converted into cash without impacting the market price. Liquidity is necessary because it brings about better pricing, faster transaction times, and increased technical analysis accuracy.

In general, the market for Blockchain-based cryptocurrencies is considered less liquid because the transactions are dispersed across multiple exchanges, which means that comparatively small trades can have a considerable impact on market prices which is part of the reason why cryptocurrency markets are so volatile.

However, when you trade non Blockchain dependent Cryptos like CryptRight (CR-USD) on a spot basis or through options (for a limited and quantifiable risk), you get improved liquidity because the ownership verification process is fast and straightforward. This means that trades are can be executed quickly and at a lower cost.

With a crypto asset like CryptRight, you can go Long, i.e. BUY to sell it after its value increases to a pre-determined level, or SELL it Short in order to buy it back at a lower price later, allowing you to take advantage of both rising markets as well as falling markets.

A positive note

Even though there are still many questions to be answered, COVID-19 has spurred on many already visible trends, magnifying some obstacles to development and opening up new trade and development opportunities.

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