Last Updated on Mar 22, 2022 by James W
Many people, when they get acquainted with digital assets for the first time, ask a question: is it real to increase their capital with the help of cryptocurrencies?
The answer is simple – it is real, but not as easy as it seems. In any case, if you are going to own cryptocurrency, you have to pay taxes from bitcoin and other cryptocurrencies, and bitcoin tax tips will not hurt you. In this article, I will introduce you to three unusual ways how you can make money from cryptocurrency using different tools. You will finally see that there are different ways to make money.
New ways to make money from cryptocurrency
We’re not going to talk about mining and trading, everyone has been familiar with that for a long time. This article will talk about ways to make money from cryptocurrency, such as token sales, staking, trust management funds. At first glance, it seems very complicated. But in fact, it is much easier for a beginner to earn from these very ways than from mining or trading. Bitcoin trading is difficult and confusing. Bitcoin Prime Website makes it easier than ever to trade bitcoin with real time charts that show you what’s going on in the market so you know when a price change happens! Let’s take a closer look at them.
1. ICO and Token Sales
An ICO (Initial Coin Offering) is an initial coin offering. Companies that want to attract investment before launching a project issue and sell their tokens (coins) in advance, before putting them on exchanges in full access. Usually, a certain number of coins are sold at a certain undervalued price. This is how the company gets the investment from the start-up to develop. And people who bought the coins in advance at a lower price directly from the company get an opportunity to sell them at a higher price in the future.
Sometime after the limited token sale (ICO coin sales), the company lists (lists) its coins on the exchange. From this point on, they become available to everyone. Anyone can buy or sell the company’s coins. And during the listing, the price of a coin usually rises sharply and then falls. That said, if you manage to buy a coin during the token sale, then no one else has it during the general listing, but you have it and at a lower price.
So you can sell this coin at the time of listing to other users who just want to buy it, and you are already in good profit. Usually, you can get a profit of 100% or more.
How does it work?
This process isn’t complicated. The only problem is that it is not directly up to you. Usually, presales and token sales are organized on the Coin list. You need to register there, get verified, and wait for the announcements. When the token sale starts you need to be at the platform, and you will automatically be placed in a queue with hundreds of thousands of applicants. Your number in the queue is determined in random order. Out of 100,000 or even 500,000 people usually, only the first 5,000-30,000 will have time to buy. And sometimes even less. So it all depends on luck here.
Is it suitable for newcomers?
The bottom line is that if you manage to get in the queue and buy this or that coin early, you can wait for a general listing and sell the coin at a higher price right away – that’s your earnings.
2. Steaking and Farming
Without going into the details of the algorithm of steaking and farming itself and explaining these terms at the level of a layman, stealing is giving your crypto funds to a certain network in exchange for interest. In simple words, you lend from your funds and make a profit in interest, just like banks.
The algorithm and sequence of actions are as follows:
- You find specialized platforms, study them, choose the cryptocurrency you want.
- Next, you choose the annual percentage offered. Usually, platforms offer anywhere from 2-3% to 80% per year for steaking. There are 200% and even 1000%. Remember, the higher the percentage, the greater the risk. Some scammers will offer you thousands of percentages and take your money. You have to be careful with this.
- You send money to the platform, it is automatically “frozen”. At any time you can withdraw the amount of money by getting a percentage from it while it was online.
Farming is a similar system, except that the interest and reward for sending money to the network will not be given to you in the same currency that you sent, but in another currency of the project that provides you with the farming site.
Risks of Steaking
To avoid risks, firstly, you should pay attention to what percentage is assumed. The too-high percentage may be the first messenger of cheaters. Secondly, pay attention to how much money is already frozen in the network. The more, the more reliable it is.
There are several specialized and confirmed sites with an adequate low or average percentage. In that case, no one will cheat you.
3. Trust management funds
Trust management funds exist not only in the cryptocurrency segment. The principle of their work is very simple: you send your money to the fund, and you get back a fixed or floating percentage at the expiration of time. Only your money ends up in the hands of experienced traders who make huge profits. And a portion is returned to you for providing your funds.
The uniqueness of the cryptocurrency segment is that the cryptocurrency market yields much higher percentages of profit (if handled skillfully) than the stock market or the banking system. This means that the annual interest in cryptocurrency trusts is much higher.
The pros of trust management
Usually, cryptocurrency trust funds offer good annual percentages of profit: 40-50-80 and even 100. All you have to do is go to the fund’s website and deposit your money. This is the perfect way to make money from cryptocurrency for a beginner and for someone who wants to have a passive income and not get involved in the cryptocurrency industry.
The main disadvantage of trust funds
There is only one problem with trust management. But it is so big, that these earnings can be considered the riskiest of all presented. 95% of all such funds are pyramids and HYIP projects.. Pyramids simulate the booming activity, but in fact, they just cheat and take all the money invested by the client.
That is why you should not invest a lot of money in such funds. Only a small part of it, only after a thorough personal check: reviews of real users, the background of the creator, conditions of use, etc.
Big Profit – Big Risks
In the end, we can say that it is possible to make money on cryptocurrency. There are a lot of ways to make money. Many are suitable both for beginners and for professionals.
If you have a desire to understand every type of income, you have enough time to do it, and you have FREE capital, then cryptocurrency can become a real additional passive or active income. The main thing is to choose the right strategy and the most convenient ways of earning.
The only important condition is to always be careful, diversify your capital, monitor all risks, and be ready both for big earnings and big losses.
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