A student in the community asked, in the cryptocurrency circle, besides cryptocurrency trading, what other ways are there to make money?

Today I will share with you the ways to make money in the cryptocurrency circle that I have participated in. There are roughly nine ways, let's see which one is more suitable for you?

The first one is currency speculation

Cryptocurrency speculation can be divided into spot speculation and contract speculation. I think it is more appropriate to call it trading. The essence of trading is a behavior of you playing a game with the market. So how to play a better game definitely requires mastering certain technical methods. Otherwise, if you don’t know anything, then you are just giving fuel to others in this market. For newcomers, if you want to learn trading, it is recommended that you start with spot trading, rather than directly doing contracts.

The second method is to hoard valuable coins

When it comes to hoarding coins, many people think that this is a job that does not require any technical skills, but this is not the case. We have heard many stories from the old people in the coin circle. Many people entered this circle 5-6 years ago, but there are very few who can still stay in this circle and keep their coins.

There are several such cases around me, so it is not as simple as we think. There is a community in China with tens of thousands of members. The founder of the community is an early buyer of Bitcoin and a loyal believer. In order to enable members to hold Bitcoin and to enable members to correctly understand investment and Bitcoin, he regularly does psychological construction for everyone in his community.

Of course, the core of hoarding coins is actually the choice of the target. If you don’t choose the right target, it’s useless to hoard. The most classic case here is EOS in 2018. In my circle, many people actually exchanged BTC for a large amount of EOS in 2018. Some people were indeed very good at it and kept it until the second half of 2020. Later, they found that the situation was not right, and gradually exchanged EOS back to Bitcoin, but at this time they found that the assets had shrunk a lot.

Therefore, before hoarding coins, you must choose a target that can stand the test of time. So far, perhaps only Bitcoin has passed the market test for more than 10 years, followed by other mainstream value currencies such as Ethereum.

The third type: exchange arbitrage (IEO)

The exchange arbitrage mentioned here is actually a new coin, that is, when the exchange lists some new coins, it and the project owner jointly conduct a staking reward activity. Such an activity promotes the project owner's project, and for the exchange, it obtains more traffic and also empowers its platform currency.

Generally speaking, to participate in this kind of new issuance, one needs to pledge the platform tokens in order to get the new currency rewards.

Why is it called exchange arbitrage? Because generally we cannot directly buy the platform currency of the exchange in order to buy a new currency, especially in the late stage of the bull market. If we buy directly, the risk is relatively large.

At this time, we can use some lending platforms to pledge our existing currencies and borrow the platform currency (for example, pledge BTC ETH USDT to borrow BNB and FTT) to obtain the qualification to buy new tokens. After the activity is over, return the platform currency, and your profit is the income from the new currency minus the interest income from your loan.

Currently, the exchanges that frequently launch new IPOs are Binance, Huobi, Gate, and FTX. However, since the second half of last year, many activities of Binance and Huobi often require you to have an overseas account to participate, so this requirement excludes many mainland users.

The yield of this kind of new issuance with nationality restrictions is generally good. Generally, you can get 2%-10% return by staking for 5-15 days. It mainly depends on the market conditions at the time and the fundamentals of the currency. So are there times when you lose money? Yes, but it is rare. Therefore, this kind of new issuance is relatively a low-risk arbitrage behavior.

The fourth type: airdrop

Regarding airdrops, I have shared several episodes in the previous articles and the voice of the Himalaya program. In the past 2021 and 2020, the returns from airdrops were still quite lucrative, but as the number of participants increased, this field began to become more and more involuted. Therefore, at present, if you still want to participate in airdrops, try to participate with the thinking of product experience. For details, please refer to the previous article.

Fifth, DeFi mining

Regarding DeFi mining, students who have been listening to the program should be familiar with it. In July 2021, we had more than 10 consecutive video programs, which were specially recorded about DeFi operations.

So what is DeFi mining? It means that you have coins that do not generate any income, but because you provide liquidity to the platform, the platform gives you rewards. Generally, this reward is the platform token of this platform.

Regarding DeFi mining, if the platform you choose is reliable, you will generally have a relatively good and stable income. There are many platforms where the income of stablecoins can reach an annualized rate of about 10%-15% (floating). However, it is still recommended that you choose some leading platforms, which are relatively reliable. If the amount is relatively large, it is recommended to directly choose a DeFi platform on the Ethereum chain.

The sixth type: mining with physical mining machines

The space for physical mining machines to survive in mainland China is getting narrower and narrower, because it is not allowed in the country. Therefore, it is generally necessary to look for reliable domestic mining companies that host machines overseas, preferably established ones.

Of course, the timing of buying mining machines is also very important. Many people who have just entered this market are often easily fooled by the words of some mining company marketing personnel or Fomo, and it is easy to buy at a high price. If you buy at a high price, then the payback time will be very long.

At the same time, there are many other factors to consider about mining. Here I recommend everyone to follow Shenyu’s Twitter **@bitfish1**. There was a tweet in December that specifically talked about mining machines.

The seventh method is to earn money through GameFi

GameFi is a very popular track in the second half of 2021. There are many blockchain games in this track. But overall, it is still in a chaotic period, and its model is more like a Ponzi scheme. Therefore, it is not recommended for novices to invest large funds in this field.

The eighth type is to participate in the primary market

Earlier we talked about the arbitrage activities of exchanges, which is a kind of new listing. In addition to the arbitrage listing of exchanges, there are also some third-party platforms that also list new listings. For example, Coinlist, Public DAOmaker, etc. There are more and more such platforms now. However, with the tightening of domestic policies, many such platforms now prohibit mainland participation. Therefore, if you want to participate, you still need an overseas identity.

Ninth, donations for early-stage projects

In the blockchain world, there is a platform called the Arsenal of Ethereum. This platform is Gitcoin. It is called the Arsenal because many early projects on the Ethereum chain can be released on Gitcoin if the project parties want to raise funds.

Generally speaking, if you have donated to a project during its early financing, then if the project issues coins in the future, those who have donated will have a high probability of receiving airdrops from the project.

The above are the nine ways to make money in the cryptocurrency circle that I have experienced and participated in in the past. Of course, all of these ways have different degrees of risk, some are high risk and some are low risk. So each of us needs to choose the way to make money in this circle that suits us according to our personal situation.

Of course, there are definitely others besides these. If you have other ways to make money, please share them in the comment section.

Disclaimer: The content of this article does not constitute any investment advice. Cryptocurrency is a high-risk investment product and may return to zero at any time, so please participate with caution. #币安合约锦标赛