There’s nothing worse than seeing so many people lose money and get frustrated with their cryptocurrency investments. However, there is a way to make money without actually trading cryptocurrencies. It’s called arbitrage. Arbitrage is when you take the difference between the price of an asset on one market and the price on another. If you notice that one cryptocurrency is trading for a low price on one exchange and a high price on another, there is a chance you can buy the cheaper cryptocurrency and sell it on the higher one for a profit.
You may have heard of cryptocurrencies like Bitcoin . You may have heard of more anonymous currencies like Monero . And you may have heard of the more obscure and less discussed currencies like Zcash . But what about the coins that use completely different algorithms and new ways of encryption? That’s right, you’ve probably never heard of them; they’re called altcoins . But the point is there are a ton of altcoins out there. How can you make money with them?
If you are tired of watching the cryptocurrency market crash every other day, then you might want to consider taking a crypto-trading course. But don’t worry, there are a lot of options out there that are designed to teach you how to day trade without having to deal with the intricacies of building your own trading strategy. After all, if you are tired of seeing the same person on the news a few days a week, it might be time to learn how to become a cryptocurrency trader.. Read more about how to make money with cryptocurrency 2023 and let us know what you think.
Large price surges and 100x increases in the cryptocurrency industry get a lot of attention from commentators and influencers because they promise instant wealth.
These possibilities, in fact, are few and far between. Not to mention the fact that only a select few traders are able to ride these waves and cash out in time to lock in life-changing profits.
Fortunately, catching a big price spike is far from the only method for crypto investors to earn money, and the recent development of decentralized financing (DeFi), nonfungible tokens (NFTs), and the gradual march of mainstream crypto acceptance offer a seemingly limitless supply of investment possibilities.
Let’s take a look at five alternative methods that crypto investors may earn money without needing to trade.
Staking
One of the greatest methods to generate a return on assets kept in a crypto-based portfolio is via staking, which pays users for locking coins on a network as collateral for transaction confirmation.
The Ethereum network will transition from a proof-of-work (PoW) to a proof-of-stake (POS) consensus mechanism in August, with Ether (ETH) holders who stake in the Eth2 contract earning up to 5.83 percent.
Token holders actively engage in transaction validation under this new PoS system by locking their currencies in network nodes, which then compete for a chance to validate transactions, produce new blocks, and earn the benefits that come with it.
According to Staking Rewards, a stake of 10 Ether generates a weekly income of 0.0075 ETH, which is presently worth $17.96, and an annual earning of 0.3876 ETH, which is currently worth $933.69.
Staking payouts for Ether have been calculated. Staking Rewards is the source of this information.
As more tokens are locked on the network, the percentage return for Ether lowers, thus the ultimate profits may vary.
Cardano’s ADA, Ether, Solana (SOL), USD Coin (USDC), and Polkadot are now the top five crypto assets by staked value (DOT).
The top five crypto assets in terms of staked value. Staking Rewards is the source of this information.
Overall, staking is one of the greatest low-risk ways to grow your crypto holdings independent of market mood or performance, while simultaneously contributing to the network’s stability via transaction validation.
For low-risk returns, lend crypto.
The development of a diverse crypto lending ecosystem, where users can deposit their cryptocurrencies to various lending protocols in exchange for rewards in the underlying token or in different assets such as Bitcoin (BTC), Ether, and various altcoins, has resulted from the growth of the DeFi sector.
Aave is now the most popular lending protocol, and its native currency MATIC provides yield possibilities for tokens on the Ethereum and Polygon networks.
The Polygon network’s top 7 Aave lending pools. Aave is the source.
The graph above shows the top seven lending pools accessible on Polygon through the AAVE protocol, with rewards given in Wrapped MATIC (WMATIC) and a current deposit annual percentage yield (APY) of 1.92 percent and a yearly projected APY of 6.1 percent.
Curve (CRV), Compound (COMP), MakerDAO (MKR), and Yearn.finance are some of the most popular lending protocols (YFI).
Lending is another low-risk method to make a good return on tokens that don’t provide user-controlled incentives like staking, in both bull and downturn markets.
Provide liquidity to earn fees and tokens.
Investors who opt to contribute money to developing platforms are typically rewarded with high percentage returns on the amount staked, as well as a portion of the fees earned by transactions inside the pool, as one of the main components of a DeFi platform.
On QuickSwap, there are rewards for the ETH-USDC liquidity pool. QuickSwap is the source of this information.
Providing liquidity to an Ether/USDC pool on QuickSwap entitles an investor to a portion of the $23,098 in total daily dispersed incentives and a fee APY of 33.81 percent, as seen in the picture above.
Long-term investors should research the available pools on the market, and if a liquidity pair comprised of solid projects, or even a stablecoin pair like USDC/Tether (USDT), looks appealing, it has the potential to be the blockchain version of a savings account that offers far better yields than any bank or legacy financial institution can currently offer.
Yield farming may help you get the most out of your money.
Yield farming is the practice of putting crypto assets to work in a manner that maximizes profits while reducing risk.
As new platforms and protocols emerge, they offer high incentives to depositors as a way of mining for liquidity and increasing the total value locked (TVL) on the protocol.
DinoSwap rewards for STKGHST-WETH LP deposits. DinoSwap is the source of this information.
The high yields are usually given out in the platform’s native token, as shown above, where a user has deposited a liquidity pool token for a STKGHS-WETH combination with an APR of 189.2 percent and a reward of 3.312 DINO so far.
Yield farming is a method for long-term investors with a diverse token portfolio to get exposure to new projects and acquire new tokens without having to spend additional money.
Here’s why DinoSwap’s (DINO) TVL surpassed $330 million a week after its debut.
Play-to-earn is now a reality thanks to NFT and blockchain gaming.
Another method to get a return on a crypto portfolio without investing fresh money is to engage in blockchain games and NFT collecting.
At the present, the most popular example is Axie Infinity, in which players trade, battle, acquire, and produce NFT-based animals known as Axies.
Smooth Love Potion (SLP), an in-game token that is utilized in the Axie breeding process and also trades on major cryptocurrency exchanges, is earned by playing Axie Infinity. Users may exchange SLP for other large-cap cryptocurrencies or dollar-based stablecoins.
“Today, the typical gamer makes between 150 and 200 SLP each day,” according to statistics from Your Crypto Library, which is valued between $40 and $53.50 at current market value.
In some areas of the globe, that’s equivalent to a full-time job’s pay. As a result, Axie Infinity has witnessed a significant increase in user activity and new accounts from countries such as Venezuela and Malaysia.
Traditional banks’ savings and checking accounts give a significantly lower return on investment than crypto investing, lending, staking, and play-to-earn blockchain games. As the blockchain industry matures, investors will likely continue to flock to platforms that promise significant returns in exchange for participating in the protocol.
Do you want to learn more about trading and investing in the crypto markets?
The author’s thoughts and opinions are entirely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
Cryptocurrency investing has become increasingly popular over the past few years; one could even say it has exploded thanks to cryptocurrencies like Bitcoin, Ethereum, and Litecoin. With all these new and exciting projects, it may seem as if it would be difficult to figure out where to start. Unfortunately, many people are still completely lost when it comes to how to get started in the game.. Read more about how to make money with cryptocurrency reddit and let us know what you think.
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