Is staking the only way to take profit in crypto?
No doubt we earn crypto from staking, but there are more ways to increase your crypto portfolio today.
We've all heard how we can multiply our crypto assets by staking on various platforms available today. Staking is only one way to make money in crypto, there are many others. Let's understand how staking works first.
Staking is the process of investing or locking up your crypto and getting new cryptocurrency in the form of interest. After the period of staking is over, you get your staked crypto back along with the new cryptocurrency.
While some projects allow you to earn the same coin, others allow you to earn a new coin. You must, however, lock the crypto for the staking period, and it cannot be redeemed in the meantime.
Now that you know about staking, let's discuss other ways to make money with cryptocurrencies.
When you buy a cryptocurrency and hold it for a long time, you can make a profit. Consider great concepts and good use cases before you buy crypto assets. They are likely to provide you with good returns if you hold them long term. Identify the period in which you want to hold it and monitor it periodically, so once you reach the desired price, sell it and book your profit.
Cryptocurrencies like Klever, Bitcoin, Polygon, Ethereum are good for long-term holding and this will definitely give you positive results.
Even if the prices fall for a while, keep on holding, because it is only through patience that one can reap profit. However, HODLing does not earn you any interest. *Unless staked
Trading cryptocurrencies daily is another way to book your profits from crypto, where you buy and sell cryptocurrencies. The process is the same as stock trading, where you buy and sell stocks to make profit margins. You can buy cryptocurrencies of your choice on a number of exchanges. As soon as the price rises, you can hold them for some time or sell them immediately.
However, that requires you to track your assets minute by minute. However, there are options where you can set the target to sell or buy, but then you book more profit or loss.
You need the right analytical and technical skills to become a successful trader. Analyzing market charts on the performance of the listed assets will allow you to make accurate predictions about price increases and decreases.
Watch out for the launch of new crypto projects. Get in on crypto projects before they go live on exchanges. As the early investor in the project, you can earn a profit from this. In a cryptocurrency, you can earn through exchanges, ICOs (initial coin offerings), or direct investment and partnership.
Your investment in crypto will give you returns not only through the price appreciation of the coin/token but also through your share of the project. The type of cryptocurrency you invest in determines whether you can access the project/product or use the coin for payments.
Another way to earn cryptocurrency is through airdrops, which do not require any investment. The only thing you need to do to earn free/bonus coins is to join an airdrop or bounty program of a cryptocurrency and perform some easy tasks.
If the airdrop tokens are listed on an exchange, you can sell them there. In some cases, it may be better to wait until the tokens are listed on different exchanges. The more exchange listings you have, the higher your token price will be and the greater your chances of making good profits.
In many projects, early investors can earn more than double their investment in the pre-sale phase.
The most popular way to own a coin or token without purchasing it is through mining. You will need to invest in specialized hardware and have technical expertise.
Initially, cryptocurrency gained popularity only due to mining, since users were not interested in buying the coins/tokens. Mining remains a crucial part of the proof of work mechanism. This is where the value of a cryptocurrency is created. By mining a cryptocurrency, you receive new coins.
There are many crypto projects that now offer dividend tokens to all their holders. It is just like stockholders receive dividends from the company.
If any user sells their token they have to pay sell tax and this sell tax is divided and distributed among all the holders. This is a very good way to earn crypto in the longer run.
However, the project that you invest in needs to be successful, otherwise you will have tokens, but with no value.
One bonus way: Instinct
Your instinct can make you earn a good profit. I suggest you follow your instinct while dealing with cryptocurrencies. Don't blindly follow the experts or any news/articles, because they are being presented to the audience with a motive.
Even after doing your research, you come up with many questions, so your instinct can help you believe in the project and make you earn profit.
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Disclaimer: This article is only for educational purposes. It is not investment or financial advice and doesn't recommend buying and selling cryptocurrencies. Always do your due diligence, before investing in any crypto project.