You may have heard of the invention of Bitcoin and other decentralized cryptocurrencies. You may have tried some cryptocurrencies by making a purchase on an exchange. At this point, like being sucked into a rabbit hole, everything is a bit confusing and you'll find it a lot more complicated than most people think.
Most people outside the cryptocurrency space are unaware of the fact that an independent, decentralized economy centering on blockchain technology and cryptocurrency is growing rapidly. This means that there are countless ways to acquire cryptocurrencies other than simply giving fiat money and buying it on an exchange. Let's take a look at some of those options.
hodling or trading
Some cryptocurrencies have seen significant growth in value over the past decade. For reference, when the first Bitcoin exchange was created, Bitcoin was traded for less than one US dollar. Today, Bitcoin is trading at around $10,000. Some of those who bought it early and kept holding it have made huge profits.
How can I call my cryptocurrency holdings? Let's take a look at several methods together. Cryptocurrencies can be 'hodl', traded and earned.
One of the popular expressions since the introduction of Bitcoin is the expression 'hoddle', which means that someone continues to trade cryptocurrency without trading at all (the act of selling some cryptocurrency for short-term profit and then repurchasing it after a certain period of time). Thus, it is a fun way to express the state of 'holding'. In a nutshell, hodlers buy cryptocurrencies and keep stacking them, expecting them to go up in value, waiting for them to do nothing. For background explanation on the term ' the history page of bitcointalk.org , please refer to
However, there is no guarantee that the value of cryptocurrencies will grow forever. Investors are investing at their own risk, and the market price of cryptocurrencies is also highly volatile.
Get Crypto with DeFi Loans
Another way to increase your cryptocurrency holdings is through decentralized finance (i.e. DeFi). , such as crypto-secured loans, DeFi features continue to grow, which makes it possible to invest in cryptocurrencies to earn an annual interest rate (“APR”). These returns are higher than the interest rate on fiat money deposited in the bank. Of course, these high rates are rewarded for a much higher risk.
Investing in DeFi means funding common financial functions such as market makers, insurance funds, or lending economies.
What is a loan?
as a borrower or borrower lending You can participate This allows creditors to earn APR on their investments. As a debtor, you can take a leveraged position on your cryptocurrency holdings or gain some short-term liquidity without liquidating a specific trading position.
The main currency used for DeFi lending is a stablecoin, . This coin minimizes the price volatility of cryptocurrencies, but this means that investors will not be profitable even in bull markets. For this reason, many cryptocurrency investors choose arcs during bull markets and move their coins to DeFi during bear markets.
If you decide to use DeFi, your funds are managed by automated smart contracts and these funds cannot be manipulated externally, but can be vulnerable to hackers. The same rules of caution apply as in any cryptocurrency-related space. While keeping your private key safe from hackers, you need to be careful not to lose it inadvertently.
the benefits (or risks) of cryptocurrency loans, about article will give you all the information you need.
Loan through Trusted Crypto Site
The mining hardware wallet is a great solution for storing cryptocurrencies on DeFi. Ledger Live has DAI , USDT , and USDC , with more coins coming soon.
So, you can now enjoy all the features of your cryptocurrency in one place, allowing you to easily manage your assets while earning interest under the protection of your hardware wallet. Because the private key is stored encrypted and transactions can be signed without exposing the key to an online computer, there is no need to trust a central authority.
Staking, another way to get cryptocurrency
Staking is one way to earn passive income. Staking allows you to earn cryptocurrency without doing anything. There are many different ways to monetize through staking today. The rules differ depending on the blockchain being used. What you need to know is that, from the user's point of view, staking is a form of reward for participating in the network ecosystem, similar to interest on savings in traditional banks.
What is staking?
In a proof-of-stake (PoS) blockchain, new coins are not mined by performing cryptographic calculations, but coins are mined by distributing coins to block validators who stake their own coins and guarantee the validity of the block.
In a word, staking alone or with the help of a service provider will earn you APR for the cryptocurrencies you stake. How high APR you earn depends on the blockchain network the cryptocurrency is based on, but at the same time keep in mind that PoS-based cryptocurrencies are associated with inflation. Therefore, the ratio of staked and unstaking coins plays a bigger role than the APR alone factor.
stakingrewards.com allow you to compare different PoS networks and their rewards minus inflation. However, supply is only half of this equation. You may also want to stake cryptocurrencies through constant demand. Keep a close eye on network usage, development and partnerships that may further increase demand.
To learn more about proof-of-stake blockchain, read here the article on how it works and the main coins that can be staked
Staking via Crypto Site
Again, Like Indodax is an alternative option that allows you to easily staking your own coins while simultaneously managing them yourself. Ledger Live has continued Tezos (XTZ) , Tron (TRX) , Cosmos (ATOM) , Algorand (ALGO) and Polkadot (DOT) to support staking
Become a validator
For experienced cryptocurrency owners, there are also plenty of interesting options, such as setting up and running validator nodes by yourself. This means you need a server (which runs 24/7 in principle) running the validator software provided by the blockchain network.
In addition to staking validator nodes, it is also possible to stake and operate master nodes that provide ancillary services such as privacy protection or off-chain payment networks to the blockchain. This offers a much higher return than simple PoS staking, but there is more work to be done.
Since running this masternode requires extra work and a rather large stake, cryptocurrency beginners may find this option difficult and prefer to passively monetize through an accessible staking option.
Finally, it is similar to DeFi and has numerous economic features that can be achieved through staking. The difference between staking and DeFi is that in staking the reward is paid in exchange for minting new coins whereas in DeFi it is obtained by collecting a fee from the counterparty (eg interest from the debtor).
Other ways to earn cryptocurrency
There are countless ways to get cryptocurrency. In general, whenever you provide a service to a blockchain network (e.g., publicly provide a portion of the hard disk for decentralized storage, or publicly provide a portion of its bandwidth for P2P file sharing), you should expect some form of reward. can.
Whether this reward is worth the time and effort is up to you, and in effect the idea of a decentralized economy is that those who add value get paid. The opportunities to add value to decentralized networks are endless. About such opportunities, I cannot introduce all of them in this article, but I will introduce some.
Running a microblog
Some social networks encourage content creation by rewarding creators with cryptocurrency. Hive , Steemit , Publish0x and Uptrennd Some decentralized social networks such as
Other publishing platforms such as minds.com have implemented cryptocurrency rewards later, and other platforms are planning to implement this measure in the near future. Reddit, for example, is currently testing this Business Momel on several selected subreddits. Many of these platforms support uploading or streaming video in addition to text, which can result in additional rewards.
Microtasks and Bounties
Microtasks are a fast-growing field in today's economy, where AI does a lot of work, but still requires some human intervention. Many companies are also using microtasks to expand interest in their products (by paying companies to install apps or watch videos) or for market research purposes (eg, paying survey participants).
platforms include Bituro , Coinbucks , and EarnCrypto.com . Depending on your skills, you may be entitled to perform larger tasks, in which case the company pays a bounty.
Even if not a bounty platform, most cryptocurrency projects promote their products or find bugs in their code through some kind of bounty program. Some bounty projects reward hundreds of dollars for publishing Medium articles in major publications, or tens to hundreds of thousands of dollars for finding critical bugs.
good and honest
Finally, you can earn cryptocurrency by working for a cryptocurrency-related company as an employee or freelancer. Many of these companies pay their employees in cryptocurrency by default, or on request. Blockchain developers are in the highest demand among cryptocurrency companies, but at the same time, they require staff for multiple positions, including social media managers, accountants, lawyers, analysts, and managers.
If you work for a company that issues your own tokens, you will normally receive those tokens as part of your paycheck. Finally, you can also become a cryptocurrency entrepreneur yourself and issue utility tokens via ICO or IEO. Especially in the early stages of startups, tokens will make up the majority of your salary. As in any industry, setting up a cryptocurrency company involves risks, but if successful, those risks are well worth it.
Disclaimer: The content you are reading is for informational purposes only. This article does not constitute soliciting or recommending the sale of cryptocurrencies in this or other jurisdictions where it is illegal under national law. Please make an informed decision through sufficient research before using the service. Cryptocurrencies are highly volatile assets. Carefully evaluate your goals and the financial risks you take.The newbie does not provide financial, tax or legal advice. Decisions related to the operation of cryptocurrencies should be made based on your own judgment or the opinion of a trusted and qualified expert.
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