Earnings in cryptocurrency

The issue of earning in cryptocurrency is becoming more and more relevant every day. Opinion of an expert on the ways of making a profit. Cryptocurrencies are the most popular topic talked about all over the world today. But we all have questions about how to earn them properly and how to make money from them. We can go the old way of deposit placements. First, let's understand the types of earnings and features of the cryptocurrency market.

Crypto funds

Secondly, it is possible to take advantage of the way to profit from the work of crypto funds. Given the fact that this direction is still very young, the performance of companies is high, and the desire to "win all the money in the world", is also at maximum levels.

So - as options to diversify their deposits way suitably. The negative components can also be noted in the life of such corporations. There is no confidence in how much they care about their reputation and how long-term plans they have for the development of their funds. The funds have an average return of 7-10% per annum because of diversification. They buy a large number of instruments so that they can average positive returns.

Cryptocurrency trading

Third, the best way to make money from cryptocurrencies would be through active trading. This is one of the most complicated ways, which requires preparation, knowledge, skills, and patience. Among the positive components are super profits and high returns on speculation. Among the negative components is the unwillingness of most to take responsibility for their speculations. High psychological pressure and, as a consequence, loss of money instead of profit. If we talk about profits, then 100% annualized returns can be made this way.

Ways to invest in NFT

Investing in NFT tokens has become very popular in the cryptocurrency market. There are different ways of such investments, among them:

- Direct investment - investing followed by resale.

- Lending - borrowing digital assets.

- Indexes - investing through the purchase of an index fund.

- Buying NFTs - investing for additional opportunities.

Stacking

In the crypto industry, "Stacking" is the yield from 3% to 15% per annum. The most promising for Stacking are tokens that have a medium-term tendency to rate growth. Therefore, first of all, one should pay attention not to the Stacking percentage but to the stability of the company's product. Still, relevant tokens for Stacking are EOS, Stellar, Cardano, TRON, and Tezos. You can easily buy Tron coin and others on any cryptocurrency exchange.

The plus side is that the psychological burden on the investor is low. You have once selected the tool, investing your money, and do not worry about the volatility of the market situation and price movements on the exchange. The disadvantage is that the yield is low.

Direct Investments

How to invest in NFT to get returns? Finding a profitable crypto-asset is critical here. You buy it at a low price and then sell it after the value rises. Such tokens are traded on special NFT platforms. At the same time, transactions are carried out with the use of the Ethereum coin. Competent investments will allow you to earn very good money in NFT.

Investors can invest in tokens tied to pictures, music, jewelry, and other items. They would need a wallet that is compatible with the ERC-20 format. Prospects here depend on the project itself and competent timing for buying and selling the asset.

Among the advantages of this method are:

Great prospects of earning;
The possibility of investing in a variety of NFTs;
The probability of good profits from a promising project;
The variety of assets to invest in.

Disadvantages:

Risk of loss due to declining value.

NFT cryptocurrency loans

The sphere of lending has found its application in the segment of cryptocurrencies as well. Users have started lending against NFT tokens. By lending your crypto assets to other people, you will be able to receive a reward in the form of interest.

At the same time, the lender will be protected from being cheated by the borrower. If a person fails to pay back the funds on time, they will lose the token that they pledged as collateral. The interest rate in cryptocurrency lending can be as high as 20% per annum or more. So the owner of a crypto-asset gets a great opportunity to earn extra money from it. Lending allows you to turn any cryptocurrency into a liquid one.

The number of NFT lending deals continues to grow. There turn out to be a lot of people willing to provide and receive such loans. Several platforms provide such a service.

The advantages of this method include:

Benefits for both the borrower and the lender;
The existence of special platforms with the service of cryptocurrency lending;
The growing popularity of the direction;
The opportunity to increase the liquidity of any crypto-asset;
Obtaining additional income from cryptocurrency loans;
Security of the transaction due to collateral NFT.

Disadvantages:

The field of credit is still gaining popularity.

NFT indices

In this case, the investor invests in an index fund, which includes NFT assets. In essence, you are buying an investment NFT portfolio where the principle of diversification is already initially used.

This is a very smart approach in terms of investment, as you minimize the risks involved. If any of the assets comprising the index falls in value, the situation will not be critical: the fall in one NFT will be compensated by the growth of the other.

Investing in NFT indices eliminates the need for the manual selection of assets. You save a lot of time because you immediately buy a selection of different NFTs. Then all you have to do is keep an eye on the value of the index, which includes several tokens.

The advantages of this method include:

Compliance with investment diversification;
Provision of multiple NFT tokens;
Saving time on the manual selection of these instruments;
The ability to purchase on some platforms.

Disadvantages:

Investing in similar NFT tokens, which does not guarantee loss protection.

Buying NFTs

Purchasing this type of asset allows you to convert it into any cryptocurrency and then change cryptocurrency for cash. This is achieved through the use of ERC-20. This is why NFT crypto investments are so popular these days. NFTs are purchased for a variety of purposes. Such tokens give the possibility of management. Users can get privileges on various services. NFT is also used to confirm the right of equity ownership.

The ability to manage gives the right to participate in the development of the project. Investing in such NFTs can turn out to be a good return for you. Especially if you invest in a project that has a lot of popularity. Some tokens give benefits to certain services. Such investments are very relevant for clients of these platforms because, for other users, such privileges will not be available. NFTs also allow you to trade shares of paintings and other items.

As the pluses of this investment option, it is worth mentioning: