How to Trade Cryptocurrency and Make Profit
Trading Cryptocurrency in Bear Market: The cryptocurrency market has been running in the phase of recession for the past several months.
This has shaken the confidence of investors on this new investment option. The collapse of some blue-chip crypto firms is a key reason for this, including Three Arrows Capital, Voyager and now FTX, the world’s third largest cryptocurrency exchange.
Such high volatility and falling prices are commonly associated with bear markets (bearish) in which investors lose their savings, but a bearish market can also be used as an opportunity to make money in the long term.
Here we are going to tell you some ways to earn continuously in the crypto market and make profits even in the phase of recession.
Staking is the First Way
If you already have some tokens and do not intend to sell them, buying more is an easy way to increase your capital.
Staking requires you to lock your crypto tokens with a platform in order to earn interest on them. Staking platforms often offer both fixed and withdrawable staking. Centralized exchanges such as Binance, Crypto.com, KuCoin and ByBit allow staking of tokens.
Along with this, platforms like Decentralizedz including Beefy Finance, CryptoS and DEX like Pancake Swap are also available for this purpose.
Yield Farming is Another Way
From an investor’s point of view, yield farming can only be compared to staking. If you currently hold crypto assets, this method can be even more lucrative.
Yield farming platforms like Bify Finance, AutoFarm and Singal Finance are available online. Liquidity mining is sometimes referred to as yield farming.
It is a passive way of making money by adding to the liquidity pool. This is the practice of receiving tokens or fees in return for locking up your cryptocurrency.
Crypto Loan is the Third Way
Lending is another way to earn money from your assets in a down-market. Crypto lending is exactly like its name.
That is, you lend your assets to someone else for a predetermined period of time. You will be paid the agreed interest rate for the loan tenure.
This Method is the Fourth Way
The fourth way is Grid trading bots. Firstly, trading with bots is a risky bet. Grid trading bots take advantage of market fluctuations.
The bot will always sell a part of your assets when the price goes up a bit and buy a part when the price goes down. But this happens as long as the price stays within a chosen range.
DeFi Products
Decentralized finance (DeFi) is growing rapidly. New projects are launched daily offering great investment opportunities.
Thorough research should be done before investing in DeFi initiatives. It takes a lot of time to properly assess risks and identify attractive initiatives.
However, considering that many DeFi projects pay well, this could be a good use of your time.
Crypto Mining is the Last Way
This is the riskiest way. However, it has huge earning potential. It is worth noting that crypto mining is also prone to scams if the wrong platform is chosen.
First of all, know that cryptocurrency mining has nothing to do with the standard bitcoin mining process.
On the other hand, if you compare cryptocurrency mining to staking or lending, you will notice, both are slightly different from each other.
