When thinking about how can we get xlm interest or how to make money on cryptocurrency for a beginner, many see the prospect not in trading coins, but in their mining. In addition to the well-known mining, there is another way. It is called staking. Without going into detail, this method differs from mining in that the user does not need technical power. Because the coins are not mined by computing to confirm transactions, but by providing the system with coins that already exist.
This mechanism assumes that anyone who owns, say, Ether, can mine more Ether. Without investing, trading, or other mechanics. All you have to do is find an exchange that allows you to make money on staking and make a deposit. There are two nuances. First, you can snatch a large sum, if you start mining a new promising coin. Secondly, there is a risk to lose everything at all if quotations of the coin begin to fall strongly and its extraction falls. All types of cryptocurrency earnings involve similar risks.
An example is staking ETH on Binance. At the moment on DeFi-staking the minimum deposit is 0.001 ETH. Investment for 120 days brings 10.12% annual income. That is, by investing 100 ETH, you will receive 3.37 ETH in 4 months. This is 5 705 USD of profit. And you can combine earnings on cryptocurrency with long-term trading. You buy crypto and wait for a good moment to sell at a higher price. But all this time coins are not just lying in your account but bringing you money.
- Advantages: minimal investments are required, earnings are passive, you don’t need technical capacities and deep knowledge of the market, and you can combine it with a long-term strategy.
- Disadvantages: high earnings will require significant investments, and there is always a risk of partial or complete loss of the deposit.
AVAX is a native token of the Avalanche platform that serves as a settlement to the entire ecosystem. The platform itself is used to:
- Launching DeFi projects;
- The deployment of large corporate networks running on the blockchain;
- Trading of digital assets, including financial assets such as stocks, bonds, and debentures.
The Avalanche platform is an amalgamation of subnets and different modules. Thanks to this approach, parallel processes can be run, which significantly speeds up data processing. In the ecosystem, users can count on the highest transaction speed – all transactions are carried out within a time frame not exceeding a second.
- Has shown significant capitalization growth.
- It has already attracted the attention of not only individual traders but also institutional investors – large American and Asian funds and consulting agencies invested in it.
- It has an elaborate deflationary mechanism (all transaction fees are automatically burned down), which protects the coin from inflation.
- Characterized by a high level of decentralization – the largest AVAX token holder holds less than 5% of the total issue.
- It can be stored in Avalanche’s cryptocurrency wallet and invested through staking.
AVAX cryptocurrency is available on many exchanges. To buy AVAX through a cryptocurrency exchange, the user will have to:
- Create an account and verify their identity.
- Refill the deposit with one of the national currencies or already existing stablecoins.
- Specify the amount to buy, make sure you are satisfied with the offered exchange rate, and confirm the transaction.
Cryptocurrency Polygon MATIC was created based on the Ethereum blockchain. However, the developers set a goal to surpass Ethereum by successfully solving one of the most important challenges of the cryptocurrency industry – scalability.
As the number of transactions grows, the verification algorithm becomes more complex, which leads to a decrease in throughput. Therefore, Polygon added several special tools (distributed validator network, Plasma infrastructure, and ZK rollups) to its network.
Advantages of the tools:
- Increase the transaction speed;
- Ensure work security;
- Simplify the interaction of users with decentralized applications.
The advantages of MATIC, in addition to the excellent scalability of the network, include:
- Low transaction fees;
- Compatibility with other blockchains, which increases the possibilities of using crypto;
- Active work of the team both directly on the project and in cooperation with other crypto-projects;
- The trust of the major players in the crypto market;
- The possibility of staking crypto.
- Special exchanges. Crypto exchanges allow both to exchange other cryptos for Polygon and to buy MATIC for fiat. The user must:
- Create an exchange account and make a deposit.
- Choose a trading pair and specify the number of coins you want to buy.
- Confirm the transaction.
When buying Polygon through an exchange, you should pay attention to the reliability of the site and the amount of commission. It is too risky to apply to a newly created exchanger, while proven crypto exchangers often take excessively high commissions.
The main distinguishing feature of the Cosmos ecosystem is its cross-platform solution, which allows linking different blockchains in one system and interacting between them. And the governing token of the ecosystem is ATOM. Atom’s capitalization has increased decently now, but experts believe it will continue to grow in 2022. Experts attribute this to the fact that:
Cosmos is a fundamental project that not only helps users solve currently relevant problems, but also offers a new, unique mechanism for functioning decentralized networks. Many decentralized applications have been launched in the ecosystem, and cryptocurrency exchanges and solid companies have already begun to use the project’s infrastructure.
The coin has attracted the attention of media persons, it is no longer popular only in a narrow circle, and the close interest of celebrities always provokes an increase in the value of the asset.
ATOM is traded on many major cryptocurrency exchanges. To buy this cryptocurrency, you have to:
- Go to the cryptocurrency exchange’s website and register.
- Confirm your identity and top up your wallet.
- Go to the trading section and find ATOM tokens in the list of traded pairs and create a transaction request.
- Confirm the transaction and become the owner of the Cosmos ecosystem cryptocurrency.
Thinking about how to make money from cryptocurrency? Many people start with trading. Especially those who already have experience in trading on the exchange. Technically, the algorithm is the same: you buy a cryptocurrency when it is worth less and sell it when it is worth more. But this is only one option; you can also make money on a price drop. This type of trade is called short. A short is when you borrow money from your broker, committing to pay it back after a certain period at a fixed price.
For example – you take 100 ETH from your broker, and immediately sell it for 1000 USD for 1 ETH. In two hours, the Ether price falls to 900 USD per ETH, and you buy 100 ETH to give back to the broker. It’s easy to calculate, that way your profit for each Ether coin will be 1000 – 900 = 100 USD. That is, you earn from the difference in quotes between two points in time: the first point in time – when you borrow ETH from the broker and immediately sell it, and the second point in time – when you buy ETH at a lower price and return it to the broker.
- Advantages: high-profit potential in the short term, you can use different combinations of methods of technical and fundamental analysis, and you don’t need a big investment.
- Disadvantages: you need to know the market very well, follow the quotations of assets permanently, choosing the ones, where there is an opportunity to earn right now.
The CoinLoan crypto app is a simple but reliable solution for those who want to keep their funds in one place. The company offers a transparent and smart way to manage your crypto assets – CoinLoan Wallet.