The crypto industry is incredibly lucrative and offers plenty of opportunities for people to enrich themselves. Even complete newbies can make quite a lot of money by relatively simple means. And any tips and tricks that increase the efficiency of this process can go a really long way. After all, if the basis is high, modifiers have a greater impact.
And today we will share with you four easy methods that will allow you to make both investing in and trading cryptocurrencies much more efficient, so you will make much more money on them.
Use arbitration
A plethora of exchange platforms available on the crypto market makes it relatively easy to use arbitrage. Basically, it means that you find an asset that costs more on one platform than on the other. You purchase the asset on the latter platform and sell it on the former, thus making a profit. And the difference in prices of 5-10% is much more common than you would think, so arbitrage is not only a good way to supplement your income from crypto, but also can be a viable primary way of earning.
However, there are a few pitfalls that you should be aware of:
- Dozens of resources should be monitored constantly, so special scanner websites are the way to go.
- You have to either compete with arbitrage bots or to launch your own.
- You should take into account fees – in some cases fees can turn your profit into actual loss.
In other words, arbitrage can be rather lucrative, do not require a particular talent in market prediction, but still carries significant inherent risks.
Get a crypto loans
It is much, much easier to receive a cryptocurrency loan than to deal with banks in the traditional financial system. And there are a lot of other advantages, namely:
- There is no need to submit any paperwork to prove your credit history. Basically, as long as you have the collateral required – you can get the loan automatically and immediately.
- Low interest rates – you’ll be hard-pressed to find a lending platform that charges more than 8% per annum. And rates below 1% per annum are not unheard of on some DeFi platforms.
- There is no need to make monthly payments. At the end of term you either pay off the loan in full, or your collateral is debited. No negative consequences follow in either case.
The last point presents you with incredible flexibility, since collaterals are fixed – you can decide, what option is more profitable for you depending on changes in the exchange rates that occured between you obtaining the loan and paying it off.
And any savvy businessmen understand the possibilities that are open due to easy access to loans.
Provide crypto loans yourself
Even if you prefer to HODL your crypto rather than trade, it doesn’t mean that you can’t make your coins work for you while you are waiting for an opportune moment to dump your digital money on the market. And one of the most reliable ways to do that is to provide crypto loans and earn interest.
You can either rely on p2p lending or provide liquidity to a platform that works as an intermediary. The latter ones take a cut from the interest earned, but the risks are lower: in p2p lending, if the borrower defaults on the loan, you get the collateral, which can diminish in value since you have provided the loan. If you finance a platform, it just pays you a fixed interest and deals with this risk on its own.
In addition, you can provide your crypto not only to lending platforms, but to major cryptocurrencies as well. They use these funds to finance leverage trading by their customers. Such features are available, for example, on Binance and Poloniex.
So there are a plethora of opportunities to earn money while HODLing.
Sell your crypto higher
There are many more nuances in selling your hard-earned cryptocurrencies for fiat that one can think at first glance. In addition to factors like payment methods, reliability and available amounts of fiat, there is often quite significant difference in exchange rate between platforms.
However, some cryptocurrency exchange platforms made it their speciality to offer their users the best deals available on specific assets. A good example of such a platform is Tirlu. It only allows you to sell BTC or LTC for PayPal USD, but aggregates offers from dozens of market makers from all over the world. This way it consistently ensures exchange rates for both LTC and BTC that are 5-10% higher than the market average (sometimes even more).
In addition, it is one of the very few platforms that actually allow direct exchange of cryptocurrencies for PayPal despite the corporation’s bluntly anti-crypto policy. So if you use this payment system often – Tirlu is even better option.
There are similar platforms that work with other payment methods and other cryptocurrencies. However, we would advise you to be careful and somewhat skeptical: the offers 5-10% higher that the market average are quite plausible and easily explainable, 25+% higher are definitely too good to be legit.
And do you know what’s the best part of the crypto industry? The methods of increasing your profits mentioned above are not mutually exclusive options: you can happily use all of them at once if you want to and make heaps of money!