When you are trying to capitalize on cryptocurrency, any opportunity shall be considered. The most straightforward ones are to invest in a promising project and wait until its price surges to sell your coins and get a profit. Another option is to benefit from trading, however, it is not suitable for anybody. We recommend it for those users only who are into trading and understand all the factors that move the market and the prices of assets.
Along with these more evident opportunities to earn there are other options. One of them is running a masternode. This option is not known to the general public and therefore, we believe, we can discuss it in more detail. However, let us start with those earning options that are normally considered by the majority of users.
Trading is among the most popular ways to earn on both long- and short-time crypto price fluctuations. However, even though many inexperienced users believe it is easy, this is far from the truth. That’s why many people still associate trading with gambling which is absolutely incorrect. And that is why many people lose more than they earn and thus, get disappointed in trading. That’s why before you swap, say, USDT to AXS, check everything very carefully and study the perspectives of both coins.
If you understand what factors move the market and influence the prices of crypto, trading might become your reliable way to earn more income.
Consider though that the main difference between cryptocurrency and any other asset is an extremely high volatility level of the first one. Therefore, the price drops and surges might be very drastic and unexpected. It means that if you cannot afford to face the related risks, start with a small number of coins. And remember a golden rule of every trader - never risk with money you cannot afford to lose.
This is what many people do - they buy coins that support a promising project and keep them in a hope that their value increases and holding the coin bring the expected profit. To invest this way, it is recommended to perform careful research on the potential of the coin and the perspectives it might have in the long term.
It is recommended to invest at the early stages of the project development because coins are cheap then. It is also connected with risks because now, there are too many new crypto projects and it is difficult to determine which one is going to fail and which might turn out to be the next Bitcoin. Therefore, here, we’d give the same advice - invest only those coins that you can afford to lose.
Running a Masternode
By running a masternode, you can not only confirm transactions in a specific network but you can vote on the project’s future. To run a masternode crypto, you’d need to stack a specific number of coins. After that, you will get awards and a percentage of transaction fees performed by other users.
It is better to think about running a masternode at the initial stage of a project if the project looks promising. The thing is that when the price of a specific coin is low, you can start with a masternode business relatively easily. But when the coin price grows, you might need more money to do so or it might become even impossible at all.
Anything in crypto promises big rewards but is also connected with significant risks. That’s why whatever you select, make sure you understand what you are doing. Research well on the project you are interested in. Do not trust the hype. And finally, you will be able to make a profit.