In one of our previous notes we talked about the temporary correction of the exchange rate of the internal cryptocurrency of the STEPN application, which is called GST. Recently, the GST has corrected again. Let’s look into the reasons for this drop and find out how to reduce the impact of GST volatility on our earnings.
Why Has the GST rate corrected again?
For those who don’t know what STEPN is, read one of our previous articles, in which we told how and how much you can earn on this application.
In short, the essence of STEPN is that you can earn cryptocurrency (GST tokens) while walking or running by buying or renting special NFT sneakers.
So, back to the issue of the fall in the GST rate. In the period from May 4 to May 12, the rate of this cryptocurrency corrected ~ 65% (from $6.6 to $2.2). What is it connected with?
The fact is that now there is a global correction in the value of almost all cryptocurrencies on the crypto market. From May 4 to May 12, the price of bitcoin (BTC) fell by more than 25%.
Since the BTC rate is an indicator of the cryptocurrency market, there is a correlation between the rates of most cryptocurrencies (including the GST token) and the Bitcoin rate.
Correlation, in this case, is the relationship between the market value of two assets. Bitcoin fell – following the course of most cryptocurrencies corrected. The GST rate is no exception.
How can you reduce the impact of GST volatility on your STEPN income?
The cryptocurrency market is quite volatile. The course of any token can sometimes fluctuate. Let’s figure out how we can protect ourselves from the impact of changes in the GST rate on our income in STEPN?
There is 2 main ways:
- Hedging by opening a short position against GST. This mechanism uses GST futures, which can be purchased on the FTX exchange.
- Regular conversion of GST to USDC.
USDC is a stablecoin, i.e. it exchange rate is pegged to the dollar. You have the option to convert your earned GST tokens into USDC right inside the app. This happens almost instantly, and the conversion fee is quite low, because. STEPN runs on the Solana blockchain. Lock in your USDC profits on a regular basis and you won’t be so affected by market changes;
2. Private channel about investments in NFT / Cryptocurrencies / GameFi (Learn more
Rent STEPN for free:
We have created a community where it will soon be possible to rent STEPN sneakers for % of earnings in GST tokens, or vice versa to rent out your own sneakers. Join and stay tuned!
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