The answer is simple. There is a widespread belief that intelligent trading with digital currencies will place investors on the pathway to riches! It is akin to what Forex traders feel when they are conducting monetary deals over the Internet. If you are keen to join this crowd, you may visit this link, a review for cryptocurrency investment.
However, like many other investors, do not forget that only a combination of knowledge and experience can ensure that your investments do not face a sad end. Obviously, everybody needs guidance. Outlined below, are four of the best ways to make money.
Be a Crypto Lender
You place a certain amount of funds in a specific pool, governed by a Defi protocol. There are numerous protocols out there, such as Uniswap, Compound, Instadapp, Maker, etc. The pool is akin to a bank with all of you, lenders, as depositors of money.
Accredited or vetted borrowers are welcome to dip into this pool, whenever they need urgent ‘crypto’ funds. However, they must deposit collateral for doing so. The idea is that should the borrower default on repayments, this collateral may be liquidated.
Whoever takes a loan from you, must repay it in alignment with a pre-decided schedule. In turn, you will earn interest on this loan, until the principal amount is cleared. Since borrowers take loans from a pool, all the users are exposed to similar benefits and risks.
True, there is some risk here, considering that lending platforms tend to halt withdrawals due to high volatility in global marketplaces. However, they are prepared for such contingencies too. In case, there is a crypto crash, you may opt for Nexo loans. The loans take into consideration 32 diverse tokens, including Bitcoin, altcoins, and Stablecoins.
Alternatively, you may choose to earn your returns via NEXO tokens. You will gain an additional interest of 2%. In case of higher loyalty, you will gain higher interest. In other words, if you enhance your NEXO holdings regularly, you stand to profit more.
Opt for Staking
Blockchains going in for Proof-of-Stake (PoS) consensus mechanism, offer staking. Examples of such blockchains are Cosmos, Ethereum, etc. You may take up the job of validating transactions going through these platforms, and earn healthy rewards.
What is staking, exactly?
You offer your coins to the PoS network. This helps in validating crypto deals going through it. Every time you lend your coins, you receive newly minted tokens. These tokens are products of recent mining activities. The tokens gather in a special pool for a certain period. In other words, they are locked up, inaccessible. Note that you do not become a validator yourself.
Try Yield Farming
You will have to deposit your digital currency tokens into a liquidity pool. This pool exists on a decentralized cryptocurrency exchange or DEX. Users of this platform are welcome to exchange tokens for rewards. This way, these users gain access to liquidity. The reason for this strategy is that such a platform is too small to cater to a traditional order book, which offers liquidity on a centralized exchange.
The happy users are ready to keep a pair of tokens locked up in the liquidity pool for a month. An example is USDC/BTC. The liquidity pool is the holder of funds deposited by different investors. It serves to conclude business deals involving the specified currency pair immediately. As a reward, a depositor gains a percentage of the transaction fees connected with every trade/swap. Everything goes through automatically, via smart contracts.
Copy Trading is Another Option
As the name suggests, you emulate the tactics used by smart investors. Register at BingX, Gate, Io, or any other similar service. Discover the investor, who can prove an apt guide, and pay the requisite charges.
These charges are quite nominal. In return, you will gain access to the platform that will reveal everything about the concerned trader’s complete history, business deals, strategies used, return on investment, etc. Observe and use them to your benefit! In turn, you will begin garnering similar kinds of gains. You will not even mind that part of your fees goes to the selected trader, for he/she has willingly shared valuable information!
Masab Farooque is a Tech Geek, Writer, and Founder at The Panther Tech. He is also a lead game developer at 10StaticStudios.
When he is not writing, he is mostly playing video games