Cryptocurrencies are all about buying and selling assets. A trading platform is the go-to option for these purposes. But users seeking to quickly profit from operations with cryptocurrencies have to be aware of the fact that the glamorous stories about crypto millionaires shown on television are quite far from the reality prevalent in the general sectors of the digital economy. Most crypto retail investors and traders are far from millionaires. Very few make it to actually earn a fortune on cryptocurrencies. Another important fact to take into account is that a vast majority of the so-called crypto millionaires who show off their luxurious lifestyles in Instagram and other social networks, are actually quite broke.
Image is everything in the crypto market, just as networking. Appearing to be prosperous and successful is a must for those who have made into crypto and started trading. The reasons are quite simple. First, it is essential to instill a sense of confidence in one’s own self and others to attract the attention of potential investors and partners. And secondly, no one likes admitting that they have failed, so showing off success, even if it is pretense, remains the only option. Truly successful crypto investors never show off their wealth for many reasons, not the least of which is the fact that the tax authorities are keeping an eye on them.
Nonetheless, there are plenty of opportunities to make money on the crypto market and prosper modestly without venturing into social networks with fake watches and rented supercars. The market presents numerous avenues for making both passive income and direct revenues.
First off, users need to select a trading platform of choice and connect their bank account to their wallet to start topping up their balances. Next is the most important part – selecting the strategy of choice. This is where things get more difficult, as there are an innumerable variety of approaches to choose from, each with their own pros and cons. The simplest one is holding. Just buy a certain cryptocurrency and wait for it to appreciate before selling it off and reaping the profits. Another popular strategy is scalping, which requires traders to set dozens of small orders and reap minute profits from each one. The latter strategy is more like a full time job, unless traders use a life hack and install a trading bot, which will operate based on the algorithm it is programmed to follow. The risks of trading are many and involve a very high chance of losing all the invested funds.
Staking is another very popular approach that allows users to earn on cryptocurrencies relatively risk-free. All that is required of the user is to stock up on some popular, or lesser known, cryptocurrencies and select a staking platform. The risks of selecting a fraudulent or scam one are quite high, considering the extreme amount of hacks and losses in DeFi space. Reputable and reliable platforms will be offering yields that are on par with market averages or just below that. Anything offering exuberant rates is likely a Ponzi scheme. Once the platform is selected, users need to select a staking plan and place their funds in a pool. The liquidity will be used to facilitate trading and reward users with a constant flow of income from commissions made with every transaction using their funds. The best part is that users can exit the pools at will and migrate to another platform without losing their funds.
Mining is another avenue that retains its actuality even in light of the dwindling volumes of mining rigs. Though energy prices are high in many countries around the world, mining Bitcoin, Ethereum and other coins is still profitable. The requirements may be high in terms of equipment maintenance or energy prices, but mining can still yield results if it is aimed at some coins that are appreciating and trading well.
Non-Fungible Tokens are a major trend that is marching through the blockchain space. Thanks to their versatility, NFTs are capable of being used in many projects and gain in price by virtue of their actual applications. Art NFTs are fetching millions in prices at auctions, while in-game NFTs of various projects are soaring in prices as demand for them rises, riding the crest of their uniqueness, or the utility they provide for in-game traction.
Speaking of blockchain-based games, they are also a major source of revenue on the market. With the sad reality being that most projects in GameFi and blockchain space are released for the sole purpose of earning on in-game NFTs and native cryptocurrencies, users and players should not expect to find much stellar gameplay or profound storylines. The best they can hope to find are repetitive battlers, card collecting games, some building apps and limited strategy games. However, the immense amount of NFTs they shell out and the advanced internal economics provide much room for investment maneuver. In addition, some in-game NFTs can be rented to less affluent players for a constant stream of income.
Metaverses are another promising avenue for earning on cryptocurrencies, since most metaverse environments rely on digital assets and NFTs to operate. In fact, many metaverses involve gamified mechanics, which significantly add to their attractiveness as versatile environments for deploying all kinds of projects.
Lastly, digital real estate is a big trend, even if it is basically digital land within metaverses and various projects like Decentraland. Nonetheless, such plots fetch high prices, since many brands are making the move into digital space and are setting up both shops and offices there. By buying up and selling such plots at project launch, holders can expect some returns as the space scales and demand increases.