How do you passively make money on crypto?

0
26

The cryptocurrency market is attracting more and more people. Some believe cryptocurrencies are the future, others want to keep up with the developing world and technology, and some are simply looking for an additional way to make money. All in all, every newcomer may have his or her own reason for becoming interested in digital assets. 

But it’s not enough to be interested, many of them want to start earning with crypto and make it their main income.  Here begins the study of the market, terminology, etc. The most popular ways to earn income from the crypto market is to start trading or investing in assets, as well as automated crypto trading.

Trading

Trading is an activity that will only be profitable for those who have studied the topic well and gained some experience. If you simply enter the market without technical knowledge and experience, the probability that you will lose your deposit is maximum. 

Investing

The second way is to invest. Investing in an asset and holding it short or long term, hoping it will grow, is one of the easiest things to do. That is why many people buy bitcoin or similar coins. But you can get a big return here if you invest for the long term. With short-term investments, you might get lucky if you choose a token that few people know about yet. And when it shoots up, if it does, you will become rich. One example is mem-coin Shiba-Inu. Its lightning-fast growth in a short period of time brought a big income to those who managed to buy the coin at the beginning of the hype. 

But there is a downside as well. When the buzz around the token died down, it also lost value quickly. That is why it is important to withdraw funds into fiat in time.

Staking

Staking can also generate passive profits. The idea is that you buy certain coins and freeze them on the exchange for a certain period of time. The more coins you give to the exchange and the longer the staking period you choose, the higher the profit will be. 

Staking can be compared with opening a deposit in a bank. You give a certain amount of money and choose a storage period. What percentage will be accumulated during this time and will be your profit.

Trading bot

We have already said that trading without the necessary experience and knowledge of the market is likely to result in you losing your deposit. However, traders have an assistant in the form of a trading bot.  

A free crypto trading bot can generate passive profits for the trader by trading cryptocurrency. How it works: 

  • The trader finds a service where you can create or purchase a ready-made trading bot;
  • Sets the necessary parameters, which will meet the requirements of the trader;
  • Chooses a trading strategy;
  • Chooses a trading pair and market (or several trading pairs and markets);
  • Starts the bot. 

These simple steps will cause the trading bot to do almost all the work for the trader. But if it is difficult to set parameters and choose a strategy, you can buy a ready-made bot, which is already set up for you. 

Every beginner in the cryptocurrency market can choose his or her own path to develop and profit. But it is always important to take it seriously and study the market well.