If You Want To Stay Afloat In Crypto? Here's How To

in BDCommunity6 months ago

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A lot of people run from the cryptocurrency world not because they aren't interested in it but because they think it's all about trading coins and tokens or perhaps just find it difficult to understand the technicalities of trading. Well you are not alone because the crypto world isn't just about the bulls and bears. There are many other ways to make money in cryptocurrency and many people don't know this but as they say information is power and not many people have the right information. One could liken the crypto world to sports, just because soccer or basketball are the most popular forms of sports doesn't mean others like swimming or golf don't exist. You just need to find what catches your fancy and invest in it.

First on my list is Long term investment. The crypto world is still emerging and although it can be very volatile short term they can be very profitable in the long run. An interesting example is Solana. Early this year SOL was pegged below $50 and today more than 8 months after Solana is $231 and rising. Imagine buying $10,000 worth at that time, one would be in 4x profit by now. The key factor is identifying projects with good potentials and investing in them earlier. By making appropriate research into it's use case, how long it would be around for and other factors one can build a portfolio of assets to hold and make money from.

Secondly you can stake. Staking in cryptocurrency means providing crypto assets to support a blockchain network to confirm transactions. This is usually available with cryptocurrencies that use proof-of-stake model to process payments. It allows you make passive income while keeping your stake. Most of these projects that use proof-of-stake offer very generous interest rates but the more you stake the higher your rewards. Staking your assets means they would be locked up for a period of time while being used to confirm transactions on the blockchain in which you would be rewarded crypto for as long as you stake. Your stake can also be withdrawn anytime you wish depending on the rules of staking that particular coin or token.

Next on my list is NFT and NFT games. Non fungible tokens are the in thing right now and unlike fungible tokens they can take any form the creators wishes. They can't be broken into units for sell but are sold as an entire piece on the blockchain. If you didn't know, NFT collections have sold for as high as $60million and it is only a matter of time before some other collection beats this record. If you are an art lover, you can collect rare NFT pieces to be resold for higher prices whenever you want or as the market demands. NFT games have an even more interesting twist, they allow you earn cryptocurrencies while playing games with NFTs. The most popular right now is Axie infinity with over 250,000 players daily and a current volume of $2.91B.

And lastly liquidity Pools. This is a collection of funds usually an equal value of two tokens in a pool locked in a smart contract. These are then used to facilitate decentralized trading, lending and other functions on decentralized exchanges. By providing liquidity pools you can earn trading fees from the trades that happen in the pool in proportion to your share of total liquidity. Due to the nature of decentralized exchanges, anyone can provide LP and examples of the exchanges are Position exchange and Pancake Swap.

There are many more ways to make money in crypto while staying afloat but it is always important that you DYOR.