This is a very unusual topic, I guarantee you, and one that not many people talk about.
I have inquired from many of you readers about what you do with your earned DAI on Publish0x, and almost 95% of you say you convert it to BAT or LRC or any other cryptocurrency of your choice.
Well, you've been doing it wrong! In this post, I'll show you two creative ways you can use to make money through stable coins.
One of them is very low risk, and very low reward, and the other is pretty high risk, and pretty high rewards as well. So let's get started!
But first, a mandatory disclaimer from the guys who gave me money to test these methods out.
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1. The riskier method.
This method is very popular among crypto owners and investors. Did you say trading? Well you're correct!
Trading the volatility of stable coins can make you a fortune, mostly because they don't move too far away from their preexisting points.
"But Stable coins move like $0.03 a day. How do I make any money through that?"
The answer is, you don't! Mostly because you can't trade a stable coin in a vacuum. You have to trade it against another stable coin. That's where the money starts being made.
Stable coins are all "supposed" to be worth exactly one dollar. But because of imperfections in real life, they are usually worth a little less, or a little more than that.
The interesting part here is that while one stablecoin might be up, say $1.01, another might be worth $0.99. Sure, that's a $0.02 difference, but these fluctuations can happen at least 20 times a day. If you have $1000, and you catch a $0.02 move everyday, and you do that 5 times a day, that's $100 a day, GUARANTEED!
And while not too many exchanges offer the exciting stable coin pairs, KUCOIN and BINANCE offer some tasty ones, which I have been trading myself. KuCoin has the DAI/USDT pair(which has been immensely profitable for me), and Binance has the BUSD/USDT pair, which isn't as volatile as the DAI pair, but can make you some decent money.
If you have BUSD or USDT and you want some DAI to make those easy bucks, try out today's sponsor to do that quickly and for cheap!
2. The less risky method. Saving!
Saving is encouraged everywhere you go. That's because of its upside benefits, and very low, if any, risks. However, saving on the blockchain is very different.
While saving in real life might get you 0.5% APR, you're sure your money is safe, and no one gets to it. Inflation is present to possibly eat up your money, but at least it's safe.
However, in crypto, you can get as much as 20% APR saving some cryptocurrencies in a wallet. While this is possible, we're here for the stable coins.
This service is known as Compound. If you save your DAI there, you get a whopping 6.4% APR if you're leave it locked up for a year. That's amazing, and a great use for DAI you get for free. Just pop it in there once you withdraw every week, and when you check back in a few years, you'd be amazed how much it has compounded upon itself.
The obvious downside to this is that you can't just pull out your money, as you'd break the streak. But if you can be disciplined and keep adding money, you'd see some great returns.
You could also use Binance savings. This is just like Compound, except that you can't use DAI, but BAT and USDT.
Those are my methods to make money with stable coins! Do you know any other methods? Let me know down below!
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