How to earn passive income in the crypto world?

In the past month, the value of Bitcoin has increased 1.5 times. On the morning of August 23, the price of the first cryptocurrency crossed the $ 50,000 mark for the first time since mid-May. Traders who bought Bitcoin in May, June and July at a price of $ 30,000 each have already recovered almost 67%. However, buying cryptocurrency is not the only way to make money from digital assets.

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borrow

Image source: Spectrocoin

Borrowing is a form of earning money that temporarily exchanges interest rates on cryptocurrencies.Cryptocurrency traders offer loans for exchanges (and therefore may increase) or individuals. Currency exchange is frozen in a smart contract.

For example, Binance, the largest cryptocurrency exchange in terms of transaction volume, offers two types of loans.

the contract is permanent.Even though the interest rate is very low, you can withdraw or add money to this type of contract at any time.

binding contract.Usually you set a special time frame (10 days, 15 days, 30 days, etc.). Higher interest rates. These types of contracts are not refundable before the end of their period of validity.

Binance users can use USDT secure bitcoin to invest in cryptocurrencies under perpetual contracts.The annual interest rate on this deposit is 1.2%. The top token perpetual bond rate has an annual interest rate of 3.3%.

Axie Infinity Fixed Token Contract (AXS) provides 15% of annual revenue.However, the amount of the investment under the contract will not be available for 14 days. On the decentralized BlockFI platform, USDT stablecoins can be borrowed at a fixed interest rate of 9.3% per annum. The Celsius lending platform offers a stable 5.3% bond on Ethereum.

Programme

Source : CoinMarketCap

Staking is not a lucrative business and users save coins in the PoS algorithm to ensure the efficient functioning of the blockchain.thisThis benefits the incumbent.. This option only applies to cryptocurrencies executed on PoS platforms such as EOS, Tezos, TRON, and Cosmos.

The purpose of the contract is to guarantee the entire operation of the blockchain and to support the network.Thus, digital owners benefit from it. The longer the tokens hold, the more they will become creators of new blocks.

The use of evidence materials depends on the intention of the trader. If members can enjoy the pain of not being able to sell their assets for a long time, he said, collateral will be another source of income.

In the medium to long term strategy, users can get more money by holding open positions, which seems to be expanding in the context of traditional financial markets. This strategy turned altcoin purchases into contracts and coupon income.

Investment commitments can bring in 3 to 15% of your annual income. Experts say the best bet is a token with a medium to long-term exchange rate, otherwise additional tokens won't be able to tell the difference. so,The first thing to pay attention to is the stability of the token value, not the performance of the product.

The best tokens are EOS (EOS), Stellar (XLM), Cardano (ADA), TRON (TRX) and Tezos (XTZ).

A contract is an exchange for a bank account or a contract.This is a conservation tool that can reduce risk in some strategies.

The risk depends on the choice of the asset class and the type of money.For example, long-term shutdown of unstable altcoins with fixed locks is the greatest risk, while fixed assets with tradable locks have the greatest risk.

The duration of the EOS contract on Binance Exchange is 30 days, 60 days and 90 days. The rates of return are 4.2%, 4.6% and 6.1% respectively. The Huobi Global cryptocurrency exchange holds TRON (TRX) shares at 7% per annum. Coinbase offers Cosmos (ATOM) an engagement rate of 5% per year.

argent crypto

How does cryptocurrency work?

Cryptocurrency can be compared to currency exchanges that affect specific industries, but it involves digital currencies.

Most funds will buy Bitcoin and other liquid cryptocurrencies.In this case,The results depend on the growth of the cryptocurrency market.In addition, these funds have the option of exchanging cash to maintain their position in the cryptocurrency market. When an asset is purchased for a certain purpose, it is sold and the trader receives a similar return.

Outlook for crypto funds

Both short and long term investments in cryptocurrency now seem reasonable. Indeed, in the short term, there will be a wave of Bitcoin lending in the financial system, which will cause the price of Bitcoin to rise in the coming weeks, if not months. Long term, over the next 5-10 years, Bitcoin will be able to detonate higher highs and deeper lower crystals.

Potentially dangerous

When investing in large cryptocurrency investments, all major risks are discussed first, and investors may see their income better than buying digital perks themselves. Cryptocurrencies come with special risk regulations that describe the level of risk capital (potential loss) and the level of equity that will accrue to the investor.

As with all assets, cryptocurrencies will not only rise, but fall as well. Digital benefits are more like commercial products than benefits because they can meet all needs. For example,Injunction of the rules in the developed country.

How to choose cryptocurrency?

In order to choose cryptocurrency, you must first do your research.Examine a company's reputation and work history. One of the benefits of financial fraud is their promise of return to their investors.Partnering with funds that hold ETFs for the long term is essential.

ETFs are exchange rates. Each of these funds includes real estate, including commodities, contracts, stocks, etc. Simply put, it is a business plan.