Massive price increases and 100x increases get lots of attention from journalists and influential people in the cryptocurrency industry as they provide the promise of instant wealth.
These opportunities are far and few from. And, just a few traders are able to spot these opportunities and make their cash withdrawals in time to secure the life-changing cash.
It is important to note that catching a huge price increase isn’t the only method cryptocurrency investors can earn an income as the rise of Decentralised Finance (Defi) and non-fungible tokens (NFTs) as well as the steady progress of widespread adoption of crypto provides the potential for a nearly endless number of opportunities for investment.
Let’s look at five ways for crypto users to make an easy profit without trading.
Staking, which pays users by locking tokens onto an exchange to serve as collateral for validation of transactions is one of the most efficient ways to make money on investments in a portfolio based on crypto.
The month of August will see it is expected that the Ethereum network will change from a proof of work (PoW) model of consensus to a proof of stake (POS) model. Ether ( ETH) holders who invest in the Eth2 contract could earn as high as 5.83 percent.
In the new PoS system, the token holders participate in the validation of transactions by locking their coins into nodes of the network. These nodes compete for the chance to validate transactions, build new blocks, and earn the benefits that go along with it. Bitcoin trader know what works best in which situation.
Information from Staking Rewards illustrates that an investment of 10 Ether is currently generating the weekly earnings of 0.0075 Ethereum, or $17.96 at the current price, and a total annual income of 0.3876 ETH, which is worth $933.69.
The yield percent for Ether decreases when more tokens are secured on the network. Therefore, the final earnings could change.
At present, the top five crypto assets in terms of the amount of staked are The Cardano’s ADA, Ether, Solana (SOL), USD Coin ( USDC), and Polkadot (DOT).
If you think about it Staking is one of the most ways to build a larger stack, regardless of market performance or market sentiment as well as helping help the network by facilitating transactions confirmation.
Lend crypto for yields with low risk
The rapid growth of the Defi industry has led to the development of a multi-faceted cryptocurrency lending market, where customers can transfer their crypto to various lending platforms to earn rewards in the token that is used to make the loan or various assets such as Bitcoin ( BTC), Ether and various altcoins.
Aave is the most popular lending platform at the moment and it provides yield opportunities to tokens that are on the Ethereum and Polygon network using its native MATIC coin.
The chart below highlights the seven most popular lending pools that are available via AAVE. AAVE protocol for Polygon and the rewards are paid via wrapped MATIC (WMATIC) with the latest deposit per year annual percentage rate (APY) at 1.92 percent and an annual estimated APR of 6.1 percent.
Other popular lending protocols are Curve (CRV) Compound (COMP) MakerDAO ( MKR) and Yearn. finance (YFI).
Lending can be a great way to make a decent profit in both bear and bull markets, with tokens that do not offer the same rewards as stakes that are controlled by the user, such as stakes.
Earn tokens and fees from the provision of liquidity
Liquidity is one of the most important aspects of the Defi platform. Investors who decide to contribute money to new platforms typically receive high returns on stakes, and also a portion of the commissions earned from transactions inside the pool.
As can be seen in the picture above as shown in the image above, providing liquidity to an Ether/USDC-based pool on QuickSwap can provide an investor a portion of the total $23,098 daily distributed rewards, and an APY fee of 33.81 percent.
Ideally, investors who are looking for long-term investment should research the various tools available that are available, and if a pair of liquidity consisting of solid projects, as well as a stable coin combination like USDC/Tether ( USDT), seems appealing, it has the potential to become the blockchain-based variant of the savings bank account that has higher yields than what is currently offered in any traditional or bank financial institution.
Increase yields through yield agriculture
A yield farm is a process of placing crypto assets to work to produce the highest return possible while keeping risk to a minimum.
As new protocols and platforms come out, they will offer a huge incentive to depositors as an opportunity to mine for liquidity, and thus increase the amount locked (TVL) for the protocol.
The high yields are typically distributed using the native tokens of the platform as described above. In this instance, users have deposited a liquidity pool token to the STICKS-WITH coin, which offers an annual percentage rate of 189.2 percent and has thus far earned an amount that is 3.312 DINO.
For investors with a long-term investment plan who have an investment portfolio that is filled with various tokens, yield farming can be an opportunity to get exposure to new projects as well as acquire new tokens without spending money on new ones.
Blockchain gaming and NFT can allow for ‘play-to-earn’ to become a reality
Gaming on blockchains and NFT collecting is a different way to earn a profit from the crypto portfolio without investing in new money.
Axie Infinity is one of the most well-known examples in the present The game’s in-game gameplay involves battling, trading as well as breeding NFT-based creatures referred to as Axis.
The game Axie Infinity gives reward points in the shape of the Smooth Love Potion (SLP), an in-game token utilized in the Axie breeding process, and trades with major cryptocurrency exchanges. Players can exchange SLP to stablecoins that are based on dollars or other cryptocurrencies with a large cap.
According to information from Your Crypto Library, “Today, the average player earns between 150 to 200 SLP per day,” which according to current market prices is between $40 to $53.50.
In certain parts around the globe, this can be as much as the earnings earned by an employee with a full-time job. Because of this, Axie Infinity has seen a significant increase in the number of users and accounts added to new ones in nations like Venezuela in addition to Malaysia.
Lending, crypto investing, and staking, as well as play-to-earn games, offer a higher ROI than traditional banks’ savings or checking accounts. As blockchain technology expands and expands, it’s likely that people will seek out platforms that provide high returns when they engage with the blockchain protocol.
Are you looking for more information on trading or investing in the crypto market?
- The sweet place Traditional financial institutions, ready to accept Defi
- The game creator of NFT turns Axie Infinity virtual land for 9,200 percent gain in just one year
- How can crypto revolutionize the lending world
- Is there a new era in the field of crypto mining? Industry responds to wake-up calls
- Here’s how DinoSwap’s (DINO) TVL rose above $330 million just a week after it was launched.
The opinions and views that are expressed in this article are the sole opinions of the writer and do not necessarily represent the opinions of Cointelegraph.com. Every investment or trading decision is risky, so you must make your own investigation prior to making an investment decision.