Содержание статьи:
- Trading
- Algorithmic Trading
- Investment
- Stablecoins
- Backache
- ICO and IEO
- Mining
- Stacking
- Masternode Earnings
- Mining on the phone
There are many ways to increase savings with Bitcoin and other digital assets. For example, investing, trading, mining and other methods. Talk about all the options
2020 may well be the year when interest in cryptocurrencies reaches the level of the end of 2017. Bitcoin, according to forecasts, is again torn to historic highs, and altcoins are growing in price. It's time to recall the most popular ways of investing and making money on cryptocurrencies.
Trading
Trading involves short-term speculation, the completion of many transactions. For this, exchanges are best suited. It is easiest to quickly buy or sell cryptocurrency here. There is an option and margin trading with leverage. However, it is suitable only for professionals, since it is much more risky.
Cryptocurrencies are extremely volatile, so it is better to start trading them with a training account. It allows you to get acquainted with the exchange and its tools, get practice on a virtual balance. Then it’s better to start a small amount and, no matter how strange it sounds, survive the first losses. This will help to understand whether you are able to remain calm and make informed decisions in a stressful situation.
It is worth reading specialized literature on trading, listening to lectures, and taking courses. This will help to better understand the market situation and explore various trading strategies.
Algorithmic Trading
There is also algorithmic trading . Most transactions on world exchanges are carried out using high-frequency trading tools, a trading method in which special programs automatically look for opportunities to earn money, sell and buy positions in a split second. Due to strong fluctuations in cryptocurrency rates, bots are becoming more and more popular in this area.
Algorithmic trading systems are used by both professionals and amateurs. Programs vary in complexity and device principles. There are three main categories of software for working with crypto exchanges:
Simple bots with predefined logic;
Trained trading robots based on AI and machine learning technologies;
Advisor robots (do not make deals, but give recommendations).
This option is hardly suitable for beginners. System performance is difficult to predict and impossible to guarantee. You should not completely give up exchange operations to the software, but you can try the work of robot advisers and independently evaluate their effectiveness.
Earnings on referral programs of cryptocurrency exchanges
A referral program is a type of cooperation in which a company pays its client (referral) for attracting new users (referrals). As a rule, bonuses are received by both the one who brought in and the one who brought in. Each organization chooses the method and amount of remuneration independently.
Among the crypto exchanges with regular affiliates: Binance, BitMEX, EXMO, OKEx, Huobi and Bitfinex. The amount of remuneration depends on the total volume of all attracted referrals. It happens that companies run “one-time” referral programs, for example, as part of IEO or in honor of a major update.
In March, Bittrex Global announced major changes to the mobile platform: the platform began to support credit cards for the purchase of digital assets and pending orders on smartphones. Then the company introduced a new referral program, which allowed customers to receive an additional commission percentage from the transaction of customers who came through a special link.
Investment
An alternative to trading is "stall" or investing. This approach involves long-term transactions. It is more suitable for non-professionals, as it does not require knowledge of technical analysis, trading abilities and other skills.
Investing has less potential than trade. The price of cryptocurrencies can change by tens of percent every day, and the investor, accordingly, misses the opportunity to capitalize on these fluctuations. The "go" has another significant nuance. It is extremely important to find the right moment to acquire an asset, it is better to wait for a strong decline in its course. For example, users who invested in bitcoin in 2017-2018 at a cost above $ 14,000 still have not been able to close the profitable transaction.
Stablecoins
Stablecoin is a cryptocurrency secured by traditional assets, such as US dollars. Such tokens are often used on crypto exchanges as a convenient trading pair and adaptation tool. For traders, they are one of the main tools for taking profits. Having made a successful transaction, the user does not have to withdraw funds to fiat.
In April of this year, the balance of USDT and USDC stablecoins on the balances of users of all crypto exchanges exceeded $ 1 billion.Analyzer of the Longhash portal explained that traders did not withdraw money, as they were going to invest it back in cryptocurrency, they were just waiting for the right moment. Recall that at the beginning of the month, bitcoin was trading at $ 6,200, since then it has risen in price by 57% to $ 9,700.
Backache
Anomalies occur on trading floors when the price of a certain asset drops sharply or rises by tens or even hundreds of percent, and then immediately returns to its previous level. For example, in November 2017 at Coinbase, the Ethereum rate fell from $ 317 to $ 0.10 for a few seconds. This happened due to the fact that one of the traders sold more than 96 thousand coins with one order.
Often, such movements occur in pairs to stablecoins, such as BUSD, PAX, USDS and others. In order to try to catch a “cross” , you need to buy a stable coin, place a warrant for the purchase of cryptocurrency paired with it at a favorable rate. It is advisable to do this so that there are no other orders between your position and the current price.
The advantage of a life hack is that it eliminates most market risks. If the "cross" happens, you buy cryptocurrency at a favorable rate. If not, the money remains in stablecoin, the value of which is equal to the US dollar. The only, but very unlikely possible danger is if the token issuing company announces the cessation of activity.
ICO and IEO
The peak of the glory of ICO projects took place at the beginning of last year. They were remembered by both large losses and huge earnings of investors. Perhaps the point in this method of attracting funding in the spring of 2020 was put by the Telegram Open Network - a project of Pavel Durov, which was much more talked about than others. An American court banned the release of Gram, after which Durov announced the completion of work on the blockchain platform.
ICO was replaced by IEO - the primary exchange offerings . They differ in that not the project developers are looking for investors, but the cryptocurrency exchange selects promising teams and promotes their coins among their users. One of the main advantages of IEO is that tokens are necessarily issued and are listed. That is, there are no deceived investors who did not wait for the appearance of their coins.
No one guarantees investors high profits, but most IEO projects have shown multiple growth at the start of trading. Last year, this method of earning was so popular that some fundraising campaigns ended in seconds. Most investors did not have time to take part in the crowdsale, so the exchanges changed their approach and made a lottery out of it.
Now, on the vast majority of sites, customers need to keep exchange tokens on the balance sheet for a certain time before the token sale. In this case, people can participate in the lottery and try to get an allocation for the purchase of new coins. Often the percentage of winning tickets does not exceed 20% of the number of applicants.
Mining
One of the most popular ways to make money on cryptocurrency is mining . Now, after the May halving, bitcoin mining has become even less profitable. Mining the first cryptocurrency is hardly suitable for beginners. It is often earned by large companies that have a large number of necessary equipment, access to cheap rental conditions, electricity and maintenance. It makes sense to get digital coins only if it is possible not to sell most of them to cover transaction costs.
Beginners are better off mining altcoins. It is cheaper and makes it possible to resell video cards in case of failure. After operation ASIC is much more difficult to implement. It is even more profitable to work in a pool, that is, together with other miners. In this case, due to the total capacity of the pool, you can get a small but stable income.
Stacking
An alternative to mining is stacking . This is a way to mine cryptocurrency, but without farms or asics. Coins that work on the Proof-of-Stake algorithm are stored in the wallet, and while it is running, they bring a certain income. The amount of earnings depends on the account, the annual interest rate on PoS and, a little, on luck.
In PoS, network operation is provided by remote servers running the software. They are also called masternodes. In fact, this is a home computer or laptop on which a special wallet is installed and a certain amount of coins is lying. For example, in order to participate in the ETH 2.0 stacking, which may be presented as early as the fall of this year, it is necessary to keep at least 32 ETH.
In order to earn on stacking, you need to replenish your wallet with coins. Then wait for the blocks to appear, usually this process takes 1-2 days. After - install the software client on the computer and start the storage operation. It should be active and synchronized, and coins should not be used for transactions for a long time.
Stacking is like a bank deposit when a user deposits funds into an account at interest for a certain period of time. The more money in the account, the higher the profit. The power of the computer in the case of stacking does not affect income in any way, only the balance of the wallet and the shelf life are important.
To search for coins using the PoS algorithm, the StakingRewards service exists. The portal has information about approximate income that can be obtained from the storage of certain coins. Now on the market there are more and more altcoins that support stacking. But the most anticipated is Ethereum. It is still unknown when the ETH 2.0 network will be launched, but many experts predict its success.
Masternode Earnings
Masternodes are needed to ensure that transactions take place as quickly and anonymously as possible. Each owner of such a server, as in the case of stacking, must be a holder of a certain amount in cryptocurrency. Earnings consist of part of the remuneration of miners.
The most profitable and risky option in this case is to look for new projects that implement the masternode mechanism and become the owner of the node in them. This does not require large investments, but, in case of successful development of a startup, it allows you to get a high income. In this case, you must be constantly online and be able to negotiate in English.
According to Dmitry, a system administrator from Belarus, this way of earning brings $ 2000-3000 per month . This directly depends on the activity of altcoin users and its relevance in the market. The main problem associated with this type of activity is regulatory loopholes. It is not yet possible to correctly explain to the tax authorities what kind of business it is, how it works and where the money comes from.
Mining on the phone
Not everyone knows about the complexity and features of mining, so some users believe that you can get digital money on a regular smartphone with the Android operating system. In the Google Play application store, there are several options at once, each of which promises easy earnings without unnecessary costs.
However, none of them in reality can bring real profit. And phone problems are easy. For example, the most realistic way to earn digital money in a smartphone is in a wallet from the Electroneum project.
In 99% of cases, applications that offer mining on a smartphone actually do not mine anything. They can show ads and use other methods of earning on users. But real income cannot be obtained in this way now.
