If it’s taking you a long time to find the answer to the question, how to earn interest on crypto, here’s a hint. Copytrading is your option. The mechanism is reflected in the name of the method – a trader copies the deal of a more experienced trader. Pay attention, this is not PAMM accounts or their analogs. The trader does not give his funds for management to anyone. Also, he can copy the deal not completely, for example, select a smaller leverage.
Example – CopyTrader service on the cryptocurrency exchange eToro. You open a trader account, register in the service, and choose an experienced trader from the top (such a trader is called a signal provider). Once the trader is selected, you set restrictions on copying trades (deposit value, leverage, etc.). That’s it, the signal provider trades, and you automatically copy his actions.
The average annual earnings on cryptocurrency for top signal providers on eToro is 30.4%. No one successfully closes every trade. But an experienced trader with a high rating has successfully most of his trades, which means you will earn by copying his actions. For your part, the signal provider will take a small percentage of your profits. You can start copying trades with a deposit of USD 200 or more.
- Advantages: passive income (you only need to choose a signal provider and set the copying mode), you do not need a big deposit. The trader can learn by analyzing the actions of his signal provider.
- Disadvantages: The risk of losing money is retained; to earn a lot in this way you need a substantial investment, and it is desirable to divide it between several signal providers.
NFTs are non-mutually exchangeable tokens and there is only one copy of them and they have no equivalent alternatives. The value of NFTs is not so much determined by the market as by the author and the owner’s actions. Let’s say a Beeple digital art is often worth several thousand dollars at the start. But if it’s the work of an unknown artist, he can hardly count on even a couple of hundred. But let’s imagine that right now you buy an NFT of this artist, and in six months he will be famous. Then you could sell that painting for an order of magnitude more.
There is more than just art in NFT form. NFT markeplays sell poems, books, songs, game items and characters, and 3D design objects (buildings and entire neighborhoods). Earth in the Metavers is also an NFT. This is one of the most popular options for how to make money from cryptocurrency for a beginner. Because you don’t need to deeply analyze the market. It is enough to identify the main trends and choose the asset in the prospects of which you are confident. On the other hand, an unknown artist can remain unknown.
An example of the value of gaming NFT. In Axie Infinity, characters are bought and sold. Zero-level characters cost around 6 USD. But already at the first level, their price exceeds 20,000 USD. Yes, “pumping” such a monster may take a couple of months, but apart from the time you are only required to make a minimal investment to buy characters.
- Advantages: high-profit potential on the trend; NFTs are objects of art, not just coins; no deep knowledge of the cryptocurrency market is needed.
- Disadvantages: NFT prices are even more unstable than regular interchangeable coins, so the risk of losing your investment is higher.
How to identify projects with high potential?
If a trader is going to trade actively and make transactions in short periods, he should pay special attention to technical analysis tools. But those users who are planning to invest in crypto for a long time should take into account several factors that can significantly affect the change in the rate of a particular digital coin in the long term. Such parameters include:
The potential benefit of the coin to a large number of people. Users are usually attracted by the speed and ease of making transactions, the possibility of anonymous transactions, and security. Also, the coin should have some advantages or distinctive features, which make it stand out among competitors (like the LBN token, which allows one to get prizes in a lottery).
The reputation of the project’s developers. Any scandal, unprofessional behavior of the team, and inability to keep promises leads to the collapse of the exchange rate and often becomes a verdict for the future of the crypto coin. Conversely, a well-coordinated team with solid experience can turn even crypto with no particular idea into a reliable digital currency that inspires the trust of users.
The age of the coin. If a token has just been born, it is very difficult to predict its fate. It may “shoot” and increase its value many times over. But it is no less likely that the coin will simply fade into oblivion. Therefore, for long-term investments, it is necessary to choose assets among those cryptocurrencies that have been circulating in the market for a long time.
The presence of an active community. The more people believe in the success of a particular crypto, the larger its community will be. Without a community striving to make a coin the best, it’s hard to expect high growth of the asset in the long run.
Developments from the world of finance, economics, and politics. If governments start tightening cryptocurrency laws, all digital money will start to sag in value. And if several countries allow crypto to be used freely as a means of payment, the value of coins will increase. The long-term investor should keep track of the news to make more informed decisions about his investment portfolio.
Storage of cryptocurrency assets
All crypto is stored in special electronic cryptocurrency wallets. The owner needs to choose the most appropriate one:
- Online and mobile wallets are not very reliable. Therefore, you can leave only a small amount of coins in them, needed for spending or exchange shortly.
- Hardware and computer-based cryptocurrency wallets are highly secure. However, the user should not lose or forget keys and passwords, because without them the cryptocurrency owner will not be able to prove his right to the assets in any way. Security experts recommend keeping keys in a home safe if possible.
- Exchange wallets are the most viable option. They are both well protected and allow the user to regain access to the crypto-purse if the password is lost. But the exchange must be reliable and have good reviews from traders.
LBN cryptocurrency, which appeared recently, has already managed to get recognition from both investors interested in digital money and gambling enthusiasts. The token is designed for a global blockchain-based gaming platform. This platform:
- Is not subject to geographical boundaries and gives equal chances to users from different countries;
- allows fair lottery play through the use of decentralized technology;
- attracts a huge number of players, which makes it possible to significantly increase the prize pools.
Investing in Lucky Block is profitable for several reasons. With this cryptocurrency you can:
- Participate in an honest and fully transparent lottery with a large variety of prizes and instant payouts.
- Receive winnings from every jackpot regardless of whether the LBN owner plays the cryptolottery or not.
- Achieve a small passive income just by holding coins in your cryptocurrency wallet.
- Influence the development of the platform by participating in voting.
CoinLoan is a European cryptocurrency platform operating under a license from the Estonian Financial Authority since 2017. CoinLoan’s token provides users with better interest rates by adding 2% to the underlying annual interest rate. It also reduces the borrowing fee paid in CLT by 50%.