Different Ways to Profit From Cryptocurrencies
Mining and investing are two main ways to profit from cryptocurrencies. When you mine crypto like Bitcoin or Ethereum, or any other cryptocurrency, you will create a new coin and you earn miner’s fees. When you invest in cryptocurrency you will profit when the price goes up, for example, if you buy bitcoin now for $38,000 and if the price goes up and becomes $40,000, you will profit $2000 from Bitcoin investment. However, mining and investment are not the only ways to profit from cryptocurrencies.
Making Passive Income Through Cryptos on Binance
Everyone knows you can make money from cryptos through investment and trading, however, not many people know you can also earn passive income from your cryptos.
If you have cryptos, you can put your cryptos into generating profits for you. On Binance, you can earn from various methods and one of the easiest and also the best methods is staking. When you stake cryptos, you will have to lock your cryptos for a certain period and will earn fixed interest rates, for example,
If you stake BNB for the period of 120 days, you will earn 12.99 percent annual interest;
If you stake ADA for 30 days, you will earn 7.75 percent annual interest and 8.24 percent for the period of 60 days, and 10.43 percent when you stake for 90 days.
If you have ETH 2.0, you can stake and earn 5.20 APY.
The best thing about staking is the guaranteed principal return.
Crypto Trading
Crypto trading basically means you are buying and selling crypto frequently. You don’t wait for a long time for the price to go up, you will start selling even when there is a $1-$2 increment in the price. When you are selling in volume, you can make a lot of profit.
If you have just started out, crypto trading can be very confusing. You might be unable to decide on which currency you should buy and when to sell
Crypto Staking
If you are confused with crypto trading, you can try crypto staking. Actually, if you are holding a lot of crypto assets, staking is the best option to grow your crypto assets as a newbie.
Yield farming
Just like crypto staking, you can also yield farm your crypto and earn profits on your crypto assets.
Crypto Arbitrage
Crypto arbitrage means you take the benefit of difference in the crypto price in two different exchanges. Let's say BTC price on Binance is $40,124 and the BTC price on Coinbase is $40,100. You can see there is a difference of $24. If you buy bitcoin on Coinbase for $40,100 and sell on Binance for $40,124, you will earn $24 profit from each Bitcoin you trade. This is a good strategy to make money.
Long Term Investment
By the way, investing in various cryptos for the long term is good for everyone including newbies. Even though there are over 8000 cryptocurrencies and crypto tokens, not all currencies and tokens can be considered profitable in terms of cryptocurrency investment. If you want to invest in cryptocurrencies and also want to minimize the risk associated with crypto investment, bitcoin and Ethereum are for you. Bitcoin is too expensive, you can try your hands on Ethereum.
Why Are Governments Suspicious on Cryptocurrency?
However, you also need to understand it is a very volatile market. One of the reasons for volatility is related to the government’s policy.
One of the major issues with cryptocurrency payment is also related to money laundering. Governments are suspicious that people will use cryptocurrency to launder money. Well, this cannot be denied as cryptocurrency transactions are anonymous and all transactions can be kept completely private. This is something that needs to be addressed.
I don't think governments hate cryptocurrencies. There are only a few countries that are yet to legalize cryptocurrencies. Cryptocurrencies are available in many countries. However, it is true that governments are suspicious of cryptocurrencies because of their alleged link with illegal activities, such as funding terrorism, money laundering, etc.
First published on Trendri, in author's name.
