What is HTX's "Borrow & Earn" event?

HTX's "Borrow & Earn" event has entered its third phase, aiming to reward loyal users. The event launched on December 23, running until December 31, offers a prize pool that has been doubled to 10.8 billion $HTX. Users borrowing USDT through HTX’s Flexible Crypto Loans will share the pool based on their cumulative interest expenses. The more you borrow, the more you earn.

How can small businesses in Latin America benefit from blockchain trading?

Why should small businesses consider crypto exchanges?

If you own a small business in Latin America, you may want to consider blockchain trading platforms for international transactions. The use of crypto exchanges can be a cost-effective solution. These platforms typically offer lower fees due to the absence of intermediaries and reduced currency conversion costs. This is a major plus in hyperinflationary settings, where traditional banking tends to be more costly.

What added benefits does blockchain provide?

Blockchain can enhance transparency and security, ensuring that transactions are recorded and verifiable. This is crucial for small businesses needing to keep thorough financial records. Such measures can curb fraud and errors.

Can it speed up transactions too?

By facilitating direct currency pairings, it streamlines the process, making transactions faster and less complicated. For instance, platforms like IBM's Blockchain World Wire and Ripple aim to make cross-border payments quicker by cutting out intermediaries.

Does it improve financial access?

Cryptocurrencies and Central Bank Digital Currencies (CBDCs) can help improve financial inclusion and reduce remittance costs. This is particularly helpful for businesses in areas with limited access to traditional banking.

How can USDT loans protect you in hyperinflationary economies?

Why are USDT loans relevant?

In countries facing hyperinflation, stablecoins like USDT can be a safe haven. They maintain a stable value, typically pegged to the US Dollar, making them an effective means to safeguard savings and purchasing power.

How does it help with economic stability?

Stablecoins lessen the risks that come with holding local currencies that can fluctuate wildly. They also enable easier access to international markets, which is crucial in nations where converting local currency into foreign currency is difficult.

Can it facilitate remittances?

Stablecoins have proven useful in delivering remittances and aid in hyperinflationary economies. For example, Venezuelan families have used stablecoins to receive aid directly, bypassing corrupt financial systems.

How does HTX's event stack up against traditional banking solutions?

Are the fees lower?

HTX provides a much more affordable option with 0% maker fees and 0.02% taker fees for spot trading. Traditional methods like bank transfers or PayPal usually carry higher fees, particularly for international transactions.

Is it faster?

Speed is another advantage. Crypto transactions are generally faster, allowing for near-instantaneous transfers. Traditional banking can take several days for international transactions.

Is it more secure?

Crypto exchanges utilize security measures such as two-factor authentication. However, they are not entirely risk-free, as hacking and market volatility remain concerns. In contrast, traditional banking methods are seen as more reliable and less prone to fraud.

Are they globally accessible?

Crypto exchanges often have a global reach, enabling trades from virtually anywhere. Traditional banking solutions like Payoneer and Wise offer similar access but may come with complex regulatory hurdles.

Is it user-friendly?

Crypto exchanges can be challenging for beginners, requiring a good understanding of trading and crypto risks. Traditional banking methods are generally easier to navigate and integrate into everyday finance.

What are the risks and rewards of HTX's event?

What are the rewards?

HTX’s Flexible Crypto Loans offer low-interest rates and zero fees. Participants can also share in the prize pool based on their cumulative interest expenses.

What are the risks?

However, market volatility is a significant concern. Stablecoins are not entirely immune to fluctuations, especially in times of economic stress. There’s also the risk of the issuer not having enough liquid assets to cover redemptions in a crisis.

What about regulatory scrutiny?

Stablecoins face increasing regulatory scrutiny, which could impact their stability and usability.

Is there a risk of default?

When used for lending, there’s a risk that borrowers may default, raising the overall risk of the crypto ecosystem.

Summary

HTX's event highlights the potential benefits of crypto exchanges and stablecoins. For small businesses in Latin America, these platforms can serve as a cost-effective means for international transactions. Individuals in hyperinflationary economies can utilize USDT loans as a buffer against inflation. Freelancers may find lower fees and faster transactions more appealing compared to traditional banking. But remember, the risks of volatility, liquidity, scrutiny, and default are real. Understanding these factors is crucial for making informed decisions.