2023-02-26 18:03:57
How to earn on cryptocurrency This publication is an overview of the main and long-term investment instruments powered by the blockchain. Let’s consider one way to earn cryptocurrencies without investments, which involves active actions on the part of users, while the remaining methods listed below will require investment of your own funds.
Airdrops and bounties are free distribution of tokens for young projects for activity: likes, reposts, using a wallet or service. For each action performed, you are rewarded with project tokens, which later, if this project is successful, you can sell for fiat currency and exchange, for example, for bitcoin. You don’t invest anything financially, only your time.
Investing is the easiest and best way for beginners to make money on cryptocurrencies with a high potential return. All that needs to be done is to decide on an asset, buy it and store it in a wallet for 3-5 years, using the proven strategies of large funds such as Buy and hold and DCA.
Buy and hold is a strategy in which an investor buys securities and promising assets and holds them for a long period.
DCA
(Dollar-cost averaging) is the practice of systematically purchasing equal amounts of an asset. DCA helps reduce the impact of volatility and average the price. Everyone can choose what is more convenient for them: how long, for what amount.
Trading. Cryptocurrency trading is potentially a highly profitable activity. It’s about making a profit from speculation on cryptocurrency price fluctuations. For example, you can go long
(buy) if you think the price will go up, or go short (sell) if you think the price will go down. Cryptocurrency trading requires special knowledge, skills, a lot of time and available capital.
Staking is the process of receiving rewards for placing tokens in a liquidity pool for a long period of time. To earn, it is enough to buy cryptocurrency and freeze the coins for a while. The yield ranges from 1% to 20% per annum and varies greatly depending on the selected project. The more coins are involved in staking, the greater the reward amount will be. Staking is a good solution for a long-term investor to increase their crypto assets.
Buying at an early stage is the riskiest way to invest in digital assets. The method allows you to buy assets at the initial minimum price and, if the project is successful, multiply your investments, however, if the project fails or the tokens are not in demand, there is a risk of losing your funds.
Always remember that investments and trading in cryptocurrencies are associated with a high risk of losing money. Therefore, before you start doing this, you need to follow a number of simple rules:
● Don’t invest more money than you can afford to lose;
● Never invest with borrowed funds;
● Diversify your investments – do not invest all your money in only one cryptocurrency.
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