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There are several ways of earning money on cryptocurrencies in the digital assets market. Unfortunately, not all of them deserve attention.
Amid the coronavirus crisis in 2020 and its consequences that continue its influence in 2021, many people consider additional sources of income. Among other things, the special attention was drawn to cryptocurrencies and opportunities to make profits on them.
One of the most popular ways to make profits on digital assets happens to be staking. Let’s compare it with other ways to earn money on cryptocurrencies.
In the crypto community, the term “staking” stands for the passive income that comes from holding crypto on the account or freezing it for the projects’ needs. Different platforms offer different terms and conditions. For example, in the decentralized finance (DeFi) market, one can find loan projects where users can get income from freezing the funds for startups’ needs.
On average, staking brings about 5-15% annually. The profit depends on project characteristics and its terms and conditions. As of the end of March 2021, Top-5 cryptocurrencies by profit margins on staking, or Staking Value, looks in the following way:
Top-5 cryptocurrencies by staking value. Photo: Staking Rewards
Earlier crypto community members had to analyze the market by themselves when seeking opportunities for earning on staking. Today, thanks to platforms that serve as offers aggregators, it is much simpler to find a profitable option. One of such platforms, Tidex, launched the smart staking service the users of which get the following benefits:
Another Tidex benefit is the availability of its own ecosystem, that among other things include digital assets exchange. By using the trading platform, project users can instantly convert earned on staking profits into the currency of their choice.
Interesting fact: The Tidex team, according to its representatives, is challenging the status quo that staking can bring no more than 15% profits. Some offers bring over 50% of annual income.
What else, if not staking?
There are also other ways to earn profits on cryptocurrencies in the digital assets market. Here are some of the most popular ones.
The term “mining” stands for the process of the release of digital assets from the network. To mine crypto, one needs equipment with certain processing power. For example, mining on computers or via mining farms requires the installation of video cards.
Pros of crypto mining
Cons of crypto mining
Interesting fact: There is an alternative source to mining via “cloud” operational mode. It assumes renting the processing power from providers. Unfortunately, the majority of such offers come from fraudsters. Moreover, a few real providers with cloud mining offers bring modest profits. That is why this way of earning money is slowly losing its relevance.
Trading is about making money on exchange rates differences. A substantial part of the crypto community considers trading as one of the ways of earning profits on digital assets.
Pros of crypto trading
Cons of crypto trading
The majority of crypto projects are interested in acquiring new users. Many companies are willing to pay for those who will help them to attract these new clients. To start earning on attracting users to crypto platforms, one needs to become a member of a referral program of these projects.
Pros of participating in referral programs
Cons of participating in referral programs
Ways of earning on crypto | Possible level of income | Risks | Availability |
Staking | 5-15%. In some cases, up to 50% annually. | When working with proven platforms, risks are reduced to zero. | It is available to everyone |
Mining | Unlimited | There are risks of a substantial drop in profits (in case of a price drop of the cryptocurrency of your interest). | Efficient work is available for those who have powerful equipment. Earning on mining might require substantial investments. |
Crypto trading | Unlimited | One can lose all with a wrong prediction | It is available to everyone |
Referral programs | Unlimited. Moreover, referral programs rank below in profitability, in comparison with other ways of earning on crypto. | Minimum risks | Some crypto projects set requirements for members of their referral programs. For example, companies could limit the project user reach to certain jurisdictions. |
There are several ways of earning money on cryptocurrencies in the digital assets market. Unfortunately, only a few deserve attention.
One of the most effective ways in 2021 is the staking on cryptocurrencies. To find safe offers of getting profits, it is possible to use special platforms like Tidex.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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