The difficulty of operating in the cryptocurrency market has entered hell mode. The market is jumping up and down, and the amplitude fluctuates greatly. In the face of Trumps every move, all technical analysis and market forecasts seem pale and powerless.
From the perspective of retail investors, excessive and rapid fluctuations have greatly increased the risks of contract trading. The long-awaited copycat season has made the so-called value investment a joke, and the entry of all kinds of monsters has made the meme market full of killing opportunities... In such a difficult new market environment, the operating strategies in the traditional bull market environment have been proven to be ineffective. If you want to win in the hell mode, you need to find a rational path in the fluctuations and look for more certain operating opportunities while protecting your assets.
Based on historical experience, the trough of the market (no intention to argue whether it is a bull or a bear market, but the current collective sentiment is obviously at a low point) is often a window for low-level layout and implementation of prudent strategies. The focus of this stage is to seek more prudent and low-risk operations. At present, major exchanges have provided a series of financial services such as single-currency interest and fixed investment. Flexible use of these services in major exchanges can help investors implement expected strategies with less effort and reap the rewards when the market improves.
Next, we will take Gate.io as an example to analyze the effectiveness of its Launchpool, Yubibao, On-chain Financial Management, Fixed Investment and Dual Currency Financial Management services one by one. These services have their own characteristics and have certain applicability and limitations. They can alleviate the pressure of market downturns to a certain extent, but their effectiveness depends on the understanding and reasonable use of the tool mechanism.
Launchpool: High-yield IPO opportunities
In a low market, new coins are often more likely to develop independent trends, and the Launchpools launched from time to time by major exchanges are often the best channels for users to acquire new coins.
The so-called Launchpool is simply a way to obtain token rewards for new projects by staking or providing liquidity. Users can stake designated tokens (such as BTC, ETH, USDT, GT) in the Launchpool pool in exchange for token rewards for the corresponding project. This tool provides investors with the opportunity to participate in early projects and obtain high potential returns, which is particularly attractive in a bear market. Compared with other basic financial products, Launchpool often provides higher returns before reaching the reward hard cap (some pools even have a return rate of more than 100%), which is suitable for investors seeking higher returns.
Looking back at the Launchpool records of major mainstream exchanges over the past period of time, Gate.io ranks first with a frequency of more than 20 projects per month, providing users with all-weather, uninterrupted new project opportunities.
However, participating in Launchpool is not completely “brainless”. Depending on the project potential, the size of the prize pool, and the competition situation, the yield of each Launchpool also varies greatly, and users need to conduct research and judgment on each Launchpool. In addition, a single Launchpool often does not last long, and there is a hard cap on the rewards, which requires users to actively manage their pledged positions and move and adjust them in a timely manner according to the real-time status.
Yubibao: a low-risk interest-earning tool
Compared to Launchpool, which needs to be constantly adjusted to find projects with higher potential, single-coin financial management is the simplest and most commonly used financial management tool in major exchanges. It has different names in different exchanges. For example, Binance is directly called financial management, OKX is called earning coins, and Gate.io’s service is called Yubibao.
Single-currency financial management generally provides two options: current and fixed deposits, allowing users to deposit idle cryptocurrencies and automatically earn interest. The income of single-currency financial management comes from the markets lending demand. In essence, users deposit funds, the platform is responsible for matching borrowers, borrowers pay costs, and users earn interest. However, due to the different matching mechanisms and subsidy levels of major exchanges, the yield performance of single-currency financial management on major platforms is also different.
Taking USDT as an example (of course, other volatile assets such as BTC and ETH are also supported), as of 17:00 on March 7, the real-time annualized yield of single-currency financial management in major exchanges is as follows:
Binance: 1.99%, with an additional 5% subsidy for transactions under 500 USDT;
OKX: 1.8%; additional 10% subsidy for less than 1,000 USDT, limited to 180 days;
Gate.io: 3.56%, additional 10% subsidy for transactions under 500 USDT;
From the above comparison, we can see that Gate.io Yubibaos basic yield and subsidy strength are currently at the top of mainstream exchanges . Although the 3.56% current yield is indeed lower than some on-chain financial management opportunities after exceeding 500 USDT, the single-coin financial management on the CEX side also has its own unique advantages.
The first advantage is that deposits and withdrawals are free and there is no handling fee , which allows users to flexibly adjust investment strategies based on market conditions;
The second advantage is that it is easy to use and has a variety of solutions . For example, Gate.io Yubibao already supports the combination of 800+ currency current and fixed-term multi-term products, and users can quickly participate in the exchange with one click;
The third advantage lies in additional subsidies and activities . For example, Gate.io often holds various incentive activities to provide users with increased returns, which will increase the average rate of return in the long run.
The last and most important advantage is that exchanges can provide additional security . Take the recent Bybit hacking incident as an example. If the incident happened on the chain, the participating users would most likely have to accept the loss, but the exchange can make up for the gap with its own profits and corresponding reserves.
In general, single-currency financial management solutions such as YuBiBao can be regarded as low-risk active position interest-earning tools in low market conditions. They are more suitable for users who hold U and wait for opportunities or plan to hold certain assets for the long term . Although the overall rate of return of this solution is not too high, it is the most convenient and safest financial management option for ordinary users.
On-chain financial management: a more efficient DeFi entry
For those who want to use their own positions to obtain higher interest rates, on-chain may be a more suitable choice. However, if you want to earn high interest by directly participating in major DeFi protocols on the chain, it often requires a high learning threshold. It is difficult for ordinary users to understand the security status of a certain DeFi protocol and the potential risks of various high-interest strategies.
To this end, Gate.io has opened an on-chain financial management channel directly within the exchange, allowing users to capture on-chain profit opportunities without leaving the platform. Compared with users actively performing on-chain operations, Gate.io on-chain financial management eliminates complex account management and technical barriers, while reducing security risks (such as private key loss or hacker attacks).
More importantly, Gate.io will also provide additional subsidies for on-chain financial management and provide tiered interest rates based on different investment scales and risk preferences. For example, the current annualized rate of return for directly staking USDe on the Ethena mainnet is only about 5%, but after receiving subsidies on Gate.io, the highest annualized rate of return can be 24.94%.
Simply put, for users who are interested in finding higher returns through the on-chain world, Gate.ios on-chain financial management may be a more efficient choice.
Fixed investment: the core trading strategy in the trough market
There is a saying circulating in the cryptocurrency market: Reduce holdings in a bull market and invest regularly in a bear market.
Fixed investment means investing a fixed amount of money regularly to buy assets. This strategy can spread the cost of market fluctuations by extending the time period. This strategy is particularly effective during market downturns because buying at low prices can significantly increase asset holdings. Historical data shows that investors who insist on fixed investment in the past few major cycles can often obtain more generous returns.
Gate.io fixed investment backtesting report data shows that from November 8, 2021 to December 30, 2024:
The return rate of fixed investment in SOL is 379.14% - 379.53%;
The return rate of fixed investment in BTC is 182.09% - 182.73%;
The return rate of fixed investment in ETH is 61.37% - 61.73%;
The return rate of fixed investment in GT reached 203.32% - 204.19%.
For investors who are optimistic about certain assets in the long term but are worried about timing errors, the fixed investment strategy does not need to predict market ups and downs. It can gradually find a relatively ideal entry position by automatically dispersing the buying points and wait for the market to improve.
Dual Currency Investment: A Gaming Tool in Fluctuation
Dual Currency Investment is a non-principal-protected product that provides substantial returns. Regardless of whether the market goes up or down, it can help users earn extra income while buying or selling digital currencies at the target price. Specifically, investors can choose two currencies (such as BTC and USDT), select the target price and holding period, and earn extra high returns based on whether the market price reaches the target.
Dual currency financial management has special advantages and risks.
Its advantages are:
Flexibility: Regardless of whether the market goes up or down, investors can obtain certain returns, which is suitable for volatile markets.
Buy low, sell high: By setting a target price, investors can buy low when prices fall, or sell high when prices rise, earning extra income.
No need for frequent trading: The product is automatically executed and there is no need to monitor the market in real time, which is suitable for lazy investors.
Potentially high returns: If the market moves as expected, the returns may be higher than traditional investments.
The risks are:
Risk of floating loss on paper: If the market price does not meet expectations, investors may only obtain fixed income or even suffer a floating loss due to one-sided positions.
Difficulty of market forecasting: It is necessary to accurately judge the market direction. Misjudgment may result in lower-than-expected returns.
Liquidity restrictions: Funds are locked during the holding period and cannot be withdrawn early, which may lead to missing out on other opportunities.
Judging from user portraits and usage scenarios, dual-currency financial management is more suitable for investors who have a clear judgment on market trends, fully understand the product logic, can accept certain liquidity restrictions, and are willing to take certain risks to gain higher returns.
There is no perfect tool, only eternal rationality
There is no perfect strategy in the world. Although the above four financial management tools can help different types of investment needs and risk preferences in the trough market, they also have certain limitations. Yubibao and chain-based financial management are simple and easy to use, but the expected return of passive interest is never as attractive as active trading; fixed investment focuses on long-term accumulation and is more suitable for investors who can patiently wait for the market to reverse; dual-currency financial management has both benefits and risks.
In the current market downturn, investors should tailor their strategies based on their own financial goals, risk tolerance and market judgment. Only rational decision-making can pave the way for the future in the trough.
