As soon as investors buy Bitcoin on paybis, only one thought crosses their mind – how to increase the value of their portfolio. Making money with cryptocurrency is very popular these days and the opportunities continue to grow.
In this article, we will introduce our favorite methods and help you discover how you can also make profits through Bitcoin. After reading this post, you will have an overview of all the financial services you can deploy to grow your portfolio.
Method #1 – Bet
One of the most popular ways to make money through Bitcoin is staking it. In a nutshell, staking refers to the process of “locking” your funds, making them inaccessible for a short time. By staking, you earn interest in the form of the same (or different) cryptocurrency, which is then credited to your account.
There are two different types of bets:
- Staking on an exchange – Staking services can be implemented for multiple cryptocurrencies operating on the basis of PoS consensus. Exchange platforms distribute rewards to individual coin holders, and the barrier to entry is usually very low.
- Staking to Your Wallet – This process is more “old school” and depends on the mechanics of a certain blockchain. Users place their coins in any supported wallet and automatically receive rewards depending on the size of their holdings. For example, users who stake NEO in their wallet will receive GAS coins as a reward. Note that, for some coins, their minimum bet size is much larger than when staking on exchanges.
Method #2 – High Interest Savings Account
Savings accounts gained popularity in 2018-2019 as popular exchanges started offering more rewarding alternatives to bank accounts. The annual percentage rate depends on the cryptocurrency being staked and is known to be at least 10 times higher than if you deposit it in a bank account.
To give a brief example, Blockchain wallets currently offer savings accounts that yield an average of 5% APY for Bitcoin and up to 12% APY for stablecoins.
This is the least risky way to increase the value of your portfolio and the way many large capital investors use to generate passive income.
Method #3 – Trading
Trading is clearly the most popular way to (potentially) make a profit from your Bitcoins. Users trade crypto pairs on exchanges in hopes of outperforming the market and increasing the value of their portfolios in return.
In general, there are two types of traders:
- Swing Traders – These traders make decisions based on price charts and indicators and often use leverage to increase their profits. This strategy is considered useful for short-term traders and is mainly based on technical analysis (TA).
- Sentiment Traders – These people make trading decisions based on the overall popularity and “feeling” of the overall market. Often referred to as mid-term traders, these people will create a small number of traders every year, usually during a change in market cycles or during key events that affect the market. school. Sentiment traders use sentiment analysis (SA) to make their decisions.
The above options are then broken down into several subsections, making trading a very broad and complex subject that requires both education and ongoing practice. And even then, only a small percentage of traders end up profitable in the long run.
Method #4 – HODLing
“HODL” comes from the word “hold” and is an acronym commonly used by cryptocurrency investors to explain the long-term investment process. In other words, HODLers are those who don’t sell their coins when the market fluctuates but keep their coins stored in wallets due to their unshakable belief in their fundamentals.
Bitcoin is the most popular HODLed coin and those who managed to keep their emotions under control and not sell for years are now being greatly rewarded. Obviously, this process comes with a lot of anxiety because of the high volatility of the market – however, those who have been through this process long enough are now immune to such feelings.
To make money by buying Bitcoin through HODLing, it is important to study the fundamentals of the coin. As for Bitcoin, this will be Satoshi Nakamoto’s 9-page white paper outlining Bitcoin’s underlying technology and its future potential.
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You should now have a better idea of all the different methods you can use to increase the value of your portfolio. In a nutshell, here are the methods we looked at:
- Staking Bitcoin on an exchange or wallet (works with other cryptocurrencies too)
- A high-interest savings account that offers returns at least 10 times higher than the average bank.
- Trade your money, whether through swing trading or sentiment trading.
HODL your Bitcoin for the long term and study its fundamentals. This is the least risky and potentially most rewarding option you can choose.
Categories: How to
Source: vothisaucamau.edu.vn
