Affordable And Less Risky Ways To Invest In Cryptocurrency
Ways To Invest In Cryptocurrency – Our society is becoming more and more reliant on cryptocurrency. As a result, many more online platforms and companies offer financial services related to their respective industries.
Making money with cryptocurrencies passively is easy when your know-how. I will quickly explain three ways to do so below. Among the many other methods I have seen, the following are the ones I have personally tried and liked (and that have brought me significant results).
To clarify our understanding, Staking is synonymous with “blocking” cryptocurrency (crystallizing it in deposit but not being able to use it) for a time to utilize blockchain technology and generate interest (profit).
In the same way as a bank deposit. Crypto staking offers benefits every day, and you can withdraw it at any time without losing your benefits. You can earn more than you would in a bank, as well.
Staking with Stable coins is the best part of the whole process. When you stake on stable coins, you get good returns and the same low risk as if you were investing in the Euro or the Dollar. There are many platforms to do it. The most popular way is by staking on the Binance platform.
Use of Bots
For a long time, bots (automatic buying and selling machines) have been used in traditional markets. Because of their popularity, cryptocurrencies also rely on them.
They do not require programming knowledge. The use of these platforms allows you to give a bot specific instructions to buy or sell at certain times, based on various circumstances, in an intuitive way. It is straightforward to put them to work, but another aspect is that your instructions are correct!
A simple example is to tell the Bot to buy when Bitcoin falls to the xxx price and sell when the profit is 5% or when the loss is 2%.
There are other bots in which you tell him if you want to take low, moderate, or high risk, and he starts to work according to your aversion to risk.
There is a type of Bot used commonly called the Grid Bot. it establishes a few “price lines,” and each time, for example, Bitcoin crosses one of them, the grid bot buys or sells according to touch. In other words, every time the price drops to cross one of those lines, “buy cheap,”; Whereas every time the price rises to cross a line, it “sells high.”
That’s how it works, I don’t want to bore you now with details, but you can find a lot of information online on different types of crypto trading bots.
The returns can be very diverse, some very high (those that you hear or read about in cryptos) but in exchange for a considerable risk.
Becoming a Liquidity Provider
In the most used exchange platforms like Binance, money can be deposited to have sufficient liquidity for its users; a return is perceived.
This is very similar to Staking. In fact, for the investor, it is practically the same. The difference is in what your money is used for while it is deposited.
One significant benefit of this is that you get the returns daily. That is, any day and time the capital contributed plus interest can be withdrawn without any damage.
Again, there are options to contribute volatile cryptocurrencies ( typical ones like Bitcoin, Ethereum, etc.) but also stable coins (like Bnb, Usdt, etc.) even traditional currencies (currently Euro, Libra, and Dollar). This allows you to generate very significant returns with minimal risk.
So that’s all I can share with you on this topic. Are you scared of investing in cryptocurrency? But you want to have a share of the benefits from it right? You can apply any of the strategies I listed above. Which og=f them are you likely to try soon? Tell me in the comment section below.