A Guide to Cryptocurrency Investment in 2022
1) Early Investment In New Coins - Best Approach to Profit from Cryptocurrency
Being one of the first people to invest in new coins is the best method in making a profit from cryptocurrency. Bitcoin is a good example. If you had invested in it in 2009 when it launched, it would only have cost you a fraction of a cent. Another example is Ethereum. During its release in 2015, a token only cost $0.75.
Today, both of these coins are worth many thousands of dollars. So, early investors are enjoying big returns because they got in when the coin was young and price was still low. Another coin with good potential is Lucky Block. It is developing a decentralized app to enable the play of lottery games through smart contracts that are immutable. In January 2022, LBLOCK costs only $0.00015.
Look at the price today. Currently, according to CoinMarketCap, LBLOCK has reached $0.009. It gained many thousands of percent, and it only took a couple of months. Lucky Block is still a very young cryptocurrency, so it is prime for investors who want to get in on it early while the price is still favorable. If you don’t have the time to spend looking through new projects then using trading software like Bitcode can help and make things a lot easier.
2) Staking and Interest - Take Advantage of Idle Crypto Tokens To Earn Passive Income
In the crypto market, there are two methods that allow you to earn a passive income on the digital tokens you own that are idle. The first idea is crypto staking. This is when you lock away your tokens for a specific length of time for the purpose of helping in transactional validations on blockchain networks that are proof-of-stake.
A couple of the top staking networks are Tron, Cardano and up and coming Ethereum. As long as you lock away your tokens, you will earn interest. You can avoid the minimum lock-up period if you decide to proceed with staking on the eToro platform. In place of that, you have the ability to withdraw your tokens whenever you want.
The second way that you can think about in learning how to make money with passive cryptocurrency is via an interest account. Just like a traditional bank, if you deposit your cryptocurrency tokens in a crypto interest account, you will earn interest.
This is quite different from staking. In staking, your crypto tokens go into a smart contract. However, in interest accounts, the provider of the interest account will lend your tokens to people who need to borrow funds. The borrower will pay you interest as long as they are still borrowing the tokens.
Right now, the crypto savings account that is considered the best one is provided by Aqru. Aqru has a good reputation. For deposits of Bitcoin and Ethereum, you can expect to earn 7% a year in interest. For stablecoins such as Tether, you can expect to earn 12% a year. Accounts from Aqru are all flexible and do not require any lock-up terms. In addition, you can make a deposit in fiat money, and purchase cryptocurrency through Aqru.
3)Day Trading - Trade Cryptocurrency Pairs and Make Money
You can make money with cryptocurrency by actively trading it. This has good potential in making money for you. The only catch is that you have to know how to look at price charts, analyze the information, and figure out if the price of the token you were interested in is leaning toward rising or falling. If you have the aptitude in these types of analyses, then you will have a good chance of making money trading cryptocurrency all day long.
The basic premise with doing day trading with crypto is that you are taking advantage of volatility in the short-term. In fact, experienced day-traders rarely hang on to a position for more than 24 hours. Their approach is to open a number of positions during the day where they can make small profits frequently.
In order to do day trading with digital currencies, you need to find a legitimate crypto exchange that can meet the following two criteria: inexpensive fees and support for many markets. The fee issue is obvious - if you day trade the currency on an exchange that imposes high fees, it will be difficult to net a profit in your day trades. Any profit you make would be offset by the high fees that you are paying in commission.
Here is an example. Suppose the fee in Coinbase is 1.49% per slide. So, any money you make must cover this fee before you close the trade and consider the trade profitable. On the other hand, eToro is very competitive. It provides you with access to many leading digital currencies. Given that, you will always have the opportunity to day trade.
4) HODLing - Long Term HODLing for Your Crypto Investment
This crypto money-making approach is probably the best option for those who are just starting out in cryptocurrency. HODLing is really just a play-on-words for "Hold." This is the old technique of buying and holding for the long term. So, you buy cryptocurrency and hold on to your tokens for a length of time, just like how you would buy a stock and hold on the shares over a long time to wait for the value to rise.
If you do this, you would not need to concern yourself with price volatility in the short-term. When you invest in established cryptos like Ethereum and Bitcoin, it would not be an issue. For instance, in May 2021, a token of Etherium cost $4,300. The next month, the price dropped to $2,100.
If you panicked and sold your Ethereum tokens, you would have lost 50% of the value in your investment. However, if you had held the tokens, in other words, practiced HODLing, you would have seen the price of ETH go up to $4,900 a token. There are many examples like this. The take-away lesson here is that the best investment strategy of investing in cryptocurrency is holding on to it for the long-term.
To make HODL a smart investment approach, you still have to find an appropriate exchange, and eToro seems to be the best one here. You can invest in 60 of the best cryptocurrencies by depositing a minimum of $10. In addition, eToro is approved by the licensing entities in the United States. So, you can be sure of the safety and security of your investment when you HODL.
5) Crypto Games that are Play-to-Earn: Play crypto Games and Earn Rewards
One approach to making money with cryptocurrency surprises a lot of people all the time. That approach is by playing games. There are plenty of play-to-earn games on the gaming market right now, and it has turned into a billion-dollar industry. This game space is home to many titles and game variations. One of the most popular title is called Decentraland.
At the simplest level, Decentraland is a metaverse that allows players from anywhere in the world create a virtual avatar. They can converse with other people in this virtual world and most important of all, they can buy land. When you buy your own plot of land and start building on it, it is represented by a unique NFT.
After this, you can put up your real estate NFT for sale in the open market. It might be hard to believe, but some plots in this metaverse sold for many millions of dollars. What this says is that if you invest early, you have the opportunity to buy an NFT at a still-low price.
6) Crypto Lending and Yield Farming - Earn a Decent APY on Your Cryptocurrencies.
Yield farming and lending is another investment approach using cryptocurrency. Both ways enable you to earn interest passively, but there are differences. In crypto yield farming, you lend your idle tokens to a liquidity pool.
In general, you will contribute to liquidity to exchanges that have been decentralized. The funds are locked away for a short period of time. A couple of leaders in this market include Uniswap and Pancakeswap, both on the Binance and Ethereum blockchain networks.
As long as your tokens are in the liquidity pool, you can collect an interest. In many instances, newer cryptocurrencies are less liquid. That raises the APY that the pool offered. In crypto lending, this is similar to what was discussed earlier. The tokens of your digital currency will be deposited into a savings account.
In the liquidity pool, your tokens will be lent to people who need to borrow money. If you conduct crypto lending, you will need to make a wise selection of a platform as your preferred one. The reason is that a borrower can default on their loan. This is one reason why Aqru stands out from the crowd; it limits its loans to only high-grade borrowers which it vets in advance.
7) Faucets – Do Easy tasks and Earn Free Cryptocurrency
Faucet websites of cryptocurrency provide you a chance to earn digital tokens for free by completing specific tasks. This space is home to various platforms, and each site will have its own set of tasks that it requires you to complete. For instance, a platform might ask you to complete captchas.
Anyone can do this, and it does not need any previous experience. Some crypto faucets are mobile apps. A typical task would be playing new games that have just been launched. After you complete a certain level, you earn free crypto.
Given that, you should be aware that the crypto reward is very small. In fact, for every task you complete, it may only reward you with crypto worth just a few pennies. Regardless, you do not need to deposit your own money, so crypto faucets are a risk-free way to earn rewards.