Five Ways You Can Increase Your Cryptocurrencies While You Hold
It is all about waiting with cryptocurrency because reports have shown that the value increases over time. Therefore, you might get a bigger return after many years when you wait. In that case, if you have any money you want to keep, you can put it into different cryptocurrencies that you believe have a future and can stand the test of time.
As you plan to keep cryptocurrencies, you should understand that there are different ways you can get your money to increase. For instance, you can use your crypto to play at an online casino. Other than that, there are other ways you can learn about to ensure that your money is safe and that you’ll keep getting value from the various options that you decide to use.
In that case, we’ve put together five major ways to help you increase your cryptocurrencies while you keep them and wait for the value to increase. You can check these methods out and give them a try. But you should know that some of them come with risks that might mean you’ll lose some part of your money if it’s not done right.
One of the best ways to increase your money in the crypto space is through trading. You need to understand that you can trade different cryptocurrency pairs just like with fiat currencies, and the same principle typically applies. However, there are two kinds of cryptocurrency trading that you should know.
There is the spot trading option, which is almost like buying and selling cryptocurrencies as commodities. This trading type is more similar to stock trading.
On the other hand, there is futures trading, where you are trading currency pairs against each other. You should know that they are both risky. However, futures trading is riskier.
Yield Farming and Staking
If you want a long-term earning mechanism that has very low risk, you should go for yield farming and staking. In this case, you’re putting your assets back into the ecosystem, and as the exchange continues to use it, you’ll enjoy returns for as long as your money remains in the system.
However, you should know that you won’t earn anymore once you take your money out, and you might lose any unpaid interest. Therefore, you should read your exchange’s terms and conditions before you start farming or staking your cryptocurrencies.
Fortunately, exchanges provide tutorials to help newbies understand the concepts better.
Lending to the Liquidity Pool
Many crypto platforms now offer loans to enthusiasts that want to enter the system but do not have enough funds to start. In that case, they will have to borrow crypto from the system.
So, if you want to ensure there are enough funds in the liquidity pool to keep the ecosystem running, you can lend the coins you’re not using to the pool.
In this case, the only risk is if the exchange platform closes up. Therefore, you should only do this on platforms you believe have a future and can’t fold up for as long as you plan to hold your money.
In that case, you’ll not have to worry about losing your money, and you can keep lending until you want to take out your money.
Vault and Savings
Many crypto exchanges offer the chance to safe-keep your money on their system like a bank. You can put your money into the vault for a specific amount of time, and if you’re done, you will continue earning until the time elapses.
In most cases, the vault option does not allow you to take out your money until it is a specific time.
Therefore, this is perfect for anyone that wants to keep their money for a long time and would like to keep earning as they go. The good thing is that it does not diminish once your money is in the vault, and you can take it out as soon as it matures.
Aside from that, you can also keep it in the savings section, where you can take it out any time you want.
Aside from others that we’ve touched, you can also participate in Play2Earn Games, where you can sell in-game assets for money. In this case, you’ll have the option to make money as you play games using crypto.
Although you might have to purchase NFTs before you can earn, the money you’ll get is in cryptocurrency.