The coronavirus pandemic has changed the entire global economy. As a result, many businesses closed down and several industries faced downturns, affecting populations around the world. In the Philippines, the unemployment rate rose to 8.9 per cent in September 2021 –the highest recorded data for 2021. Similar trends have been faced by countless nations across the globe.

According to the International Labor Organization, there are over 220 million unemployed people in the world, a whopping 18 per cent increase before the pandemic. Because of this unexpected crisis, millions of people are left to explore alternative ways to replace their lost source of income. Many people find comfort in online jobs, particularly those based on digital platforms. Businesses that shifted to the digital space have found themselves thriving.

Besides work from home, another sector that flourished during the pandemic is the cryptocurrency space. Many businesses and individuals view cryptocurrencies, or digital assets, as a new source of revenue. This is opening up various opportunities to help them overcome tough economic challenges. However, many beginners, especially those without technical knowledge, find it challenging to start. How can individuals and enterprises earn passive income or safely invest in digital assets?

Making money work for you with passive earnings

When it comes to cryptocurrency, trading is a ubiquitous way of earning money. However, it requires users to thoroughly understand the market, which beginners simply lack. Moreover, while digital assets can offer high returns, numerous technical barriers limit new investors from easing in. Fortunately, simplified crypto apps make it easy for beginners to start earning crypto, similar to starting with popular savings apps.

For example, digital wealth management platforms such as YIELD App allows beginners, especially those with limited cryptocurrency knowledge, to earn passive income. YIELD App enables users worldwide to start earning returns from cryptocurrency and DeFi products without going through a lengthy, tedious, and often expensive learning curve. Users can generate passive returns with stablecoins, which means there is no risk of volatility.

Also Read: You’re not really diversifying your investments by buying altcoins

“Dealing with complicated fee structures in crypto and learning about the hundreds of assets to choose from are typically overwhelming for mainstream users. Naturally, there is growing demand for apps that can reduce these complexities, while at the same time allowing end-users to gain maximum exposure to the benefits of crypto,” explains Lucas Kiely, Chief Investment Officer of YIELD App.

Like individuals, businesses and enterprises need various sources of revenue to stay afloat in today’s economic situation. “Digital assets are now a popular alternative investment, allowing all types of businesses to diversify their assets, protecting their wealth and generating returns on their treasuries, especially during economic downturns,” says Kiely.

Security is vital for strategic investments in digital assets

Economic cycles are normal phenomena that have occurred time and time again. Companies use various strategies to hedge against inflation and market cycles. However, the pandemic has caused steep hikes in the annual inflation rate of national currencies.

In the US for example, the inflation rate accelerated to 6.8 per cent in November 2021, the highest since June 1982. This means that companies with significant treasury assets in USD, in simplistic terms, will lose their purchasing power if they don’t hedge into other assets. Generating 10 per cent APY on stablecoins for instance can already offset this inflation and generate net profit.

For businesses dealing with large sums of money seeking to invest in stablecoins, qualified custodians help serve the needs of professional digital asset security. The concept of physical stacks of cash and banks do not apply to digital assets. Instead, highly advanced digital vaults are required to adequately protect them. Many companies understand the importance of diversifying their corporate assets. However, businesses that are new to the crypto space do not have sufficient know-how for keeping their digital assets safe.

Also Read: Bitcoin and Ethereum simplified for a five-year-old

Institutional grade custodians such as Onchain Custodian helps businesses to safely segway into cryptocurrency management. The company offers a global, standardised, resilient, insured, and compliant custody service for the safekeeping of institutional digital asset investments with incomparable user experience.

As the digital asset industry continues with rapid technological development, further interest from global institutions can be expected. A key challenge to overcome will be keeping up with this swiftly adapting industry to better serve enterprise needs, without sacrificing on security.

Opening up a digital world of opportunities

No one can predict the future, but everyone can prepare and find new ways to thrive in today’s digitally-oriented world. Professional companies including the likes of YIELD App and Onchain Custodian are providing direct gateways into digital asset wealth management and custody solutions. Now millions of individuals, as well as businesses, are better empowered to safely and easily participate in these opportunities.

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This content was first published by The Human & Machine.

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