Here are just some of the ways to help you grow your bitcoin and crypto investments.
Buy and Hold
Buying and holding crypto is one of the most straightforward and most beginner-friendly ways of growing your crypto. You could wait weeks, months, or even years before you decide to sell. That’s the beauty of buying and holding.
This technique has become so popular there’s even an internet name for it
Hodling is simple, all you need is a safe and secure wallet to hold your crypto, and watch it gain as the market soars.
Besides holding, the other ways to exploit to grow your crypto are trading and lending.
If HODLing is long-term investing, trading bitcoin is its fast-paced equivalent.
Essentially, BTC trading means taking advantage of its highly volatile nature. This method requires practice and knowledge of the market, so be sure to do your homework before giving it a shot.
Here are different kinds of trading that you can take advantage of:
Day trading entails short and quick trades allowing opportunities for small and fast profits.
Day traders don’t hold any open positions overnight, so the method consists of carefully analyzing the market, seeing small money-making opportunities, and capitalizing for a small profit.
At the end of the session, day traders could have a significant cumulative gain.
If HODLing is long-term and day-trading is short-term, swing trading is kind of in the middle.
Like HODLers, swing traders will buy low, wait long enough to see their holdings increase in price, and then sell high.
However, their holding time isn’t as long as a HODLer and isn’t as short as a day trader.
Bitcoin arbitrage is similar to the styles above. However, instead of looking for money-making opportunities within the same exchange, traders who use arbitrage look for those opportunities across different platforms.
In essence, they buy BTC from exchange A then sell it at exchange B for a higher price.
The decentralized nature of bitcoin and other cryptocurrencies makes it simpler to make transactions. This is because you won’t need any authorities to validate it.
Because of this decentralization, you can loan BTC and earn some cash through interest. Think of it as a way to make your money flow even when you’re HODLing – you’re actually using your wealth instead of keeping it unmoved in your wallet.
Unchained Capital, Bitbond, and BTCpop are some of the websites you can use to help you with your lending services.
Popular lending protocols include Compound and Aave in addition to many other ones coming up all the time.
So, if you’re still wondering how to make money with cryptocurrency, give lending a try.
At its core, yield farming is a process that allows cryptocurrency holders to lock up their holdings, which in turn provides them with rewards. More specifically, it’s a process that lets you earn either fixed or variable interest by investing crypto in a DeFi market.
With yield farming, same way that bank deposits earn interest, cryptocurrency that would otherwise be sitting in an exchange or in a wallet is lent out via DeFi protocols, or locked into smart contracts, in order to get a return.