3 Ways to Turn a Crypto Profit With Almost No Risk

3 Ways to Turn a Crypto Profit With Almost No Risk
фото показано с : beincrypto.com

2020-3-5 19:00

In the last several months, the cryptocurrency market has been embroiled in a wave of volatility that has seen many cryptocurrencies fluctuate between bullish and bearish price action.

Although this market is welcomed by traders that thrive on volatility — such as day traders and volatility traders — it has left more risk-averse cryptocurrency holders looking for risk-free ways to invest their crypto assets.

To help make this search a little bit easier, we have compiled a list of three different ways to make a profit in the world of cryptocurrencies — with little to no risk.

Earn Interest on Your Unused Balance

One of the simplest and safest ways to turn a profit on your cryptocurrency balance is through peer-to-peer cryptocurrency lending. As the name suggests, this is the practice of lending your cryptocurrency out to borrowers in return for an agreed interest rate.

The amount you can earn largely depends on two factors:

The platform you choose to lend with. The cryptocurrency you offer for lending.

In general, you can expect an interest rate of between five to 10 percent, with shorter-duration loans typically attracting a higher APR.

CoinMarketCap Interest is a useful resource for finding information about the best interest rates available for your crypto assets since it contains a frequently updated list of current interest rates for both centralized and decentralized lending platforms.

Although it might seem like a high-risk practice from the outset, cryptocurrency lending is actually a low-risk investment option — regardless of the prevailing market conditions — because the vast majority of lending platforms implement several security measures to ensure that lenders receive their investment back, in addition to their due interest.

Firstly, borrowers are almost always required to put up collateral worth significantly more than the loan value, ensuring the maximum loan-to-value ratio (LTV) stays below a certain threshold — usually under 70 percent. Borrowers are then required to ensure their collateral stays above another threshold, known as the automatic liquidation threshold, which is typically set at around 90 percent of the loan value.

Failure to ensure the collateral stays above this threshold will typically result in partial liquidation to pay down the loan — ensuring the lender is sufficiently protected against unexpected volatility.

Participate in Trading Competitions

Although cryptocurrency trading can be an extremely profitable venture, it is also risky, since a large proportion of traders have little to no trading experience and are prone to making mistakes.

Fortunately, a good proportion of modern cryptocurrency exchanges offer a demo trading feature, which allows traders of all skill levels to try out the exchange features, as well as test their trading strategies, with absolutely no risk. These demo platforms, in combination with the wide variety of online trading resources available, can quickly turn a novice trader into an experienced one — making them well-prepared to tackle the market on a real trading account.

However, although building experience with no risk is all well and good, getting paid to do so is even better. That’s exactly what could happen when participating in the increasing number of cryptocurrency trading competitions, which give traders the opportunity to win real prizes for trading risk-free on a demo account.

StormGain, a popular cryptocurrency derivatives exchange, is currently scheduled to launch one such trading competition on March 13, 2020, which will see demo traders compete to win a slice of a 100,000 USDT prize pool. The rules of the game are simple, register for an account on StormGain between now and the end of the competition (April 09, 2020) and try to rack up as much profit with your 50,000 USDT starting balance as possible.

The 500 participants with the highest amount of profit by the end of the tournament will share part of the $100,000 USDT prize pool, with the number one trader winning a cool 5,824 USDT deposited directly to their StormGain account. Others will win a variable amount based on their ranking.

Stake Your Cryptocurrencies

In recent months, cryptocurrency staking has gone from being a relatively obscure practice performed by only a small percentage of cryptocurrency holders to a widely accessible feature available on several major exchange platforms.

Part of the reason behind this increased popularity is owed to the profitability of the practice since many proof-of-stake cryptocurrencies offer a yearly yield of more than five percent — with close to no risk.

The process is simple, by participating in the staking process, cryptocurrency holders receive a portion of the block rewards generated as part of the block verification process. These rewards are typically distributed in proportion to the amount of cryptocurrency that is staked, hence a large stake earns more rewards than a smaller stake.

Because the payout is guaranteed by the blockchain protocol itself, you only need to trust in the protocol to deliver the expected rewards.

Image courtesy of Staking Rewards.

As it stands, there are a wide variety of different stake-able cryptocurrencies available, each having their own pros and cons and differing wildly in the yields you can expect. As such, it’s worth weighing up the estimated returns against the volatility of the underlying cryptocurrency to ensure these rewards offset any losses due to bearish price action.

Staking Rewards is a popular platform that can help with this decision since it lists the majority of popular proof-of-stake cryptocurrencies along with their estimated rewards and provides a useful calculator to estimate your own potential staking rewards.

According to Staking Rewards, the average reward rate is more than 13.5 percent across the 85-yield bearing assets it tracks, though this is somewhat lower for the largest stake-able assets, such as Tezos (XTZ) and Waves.

The post 3 Ways to Turn a Crypto Profit With Almost No Risk appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

United Traders Token (UTT) на Currencies.ru

$ 0.0223715 (+0.47%)
Объем 24H $235
Изменеия 24h: 23.70 %, 7d: 34.69 %
Cегодня L: $0.0223715 - H: $0.0223715
Капитализация $0 Rank 6130
Цена в час новости $ 0.2207 (-89.86%)

volatility traders turn market ways profit cryptocurrency

volatility traders → Результатов: 126


Фото:

Has the New Bitcoin Bull Market Officially Begun?

Bitcoin’s status as an uncorrelated asset makes it extremely difficult to gauge the timing of the market cycle. Its volatility makes it easy for traders to get pump-faked and get liquidated when the market takes an unexpected reversal, so, are we finally in a bull market? Are We in a Bitcoin Bull Market? Benjamin Cowen, a trader who goes by intothecryptoverse on Twitter, has released a video where he addresses Bitcoin’s recent bullish price actionRead More

2020-2-16 19:00


Фото:

Buying $1K of Bitcoin at the 2018 Bottom Would’ve Made You This Rich

Bitcoin and other crypto-assets are both loved and loathed by traders for their epic volatility. While many have lost everything from it, others have made a fortune by getting in at the right time. So, how much would you have made if you invested $1,000 in BTC during the 2018 bottom? That Momentous Bitcoin Bottom Bitcoin has had an amazing start to 2020, up 44% since its yearly open price. So far, it has outperformedRead More

2020-2-15 22:00


Binance Futures Adding Chainlink Could Spark Major LINK Volatility

The margin trading wing of popular cryptocurrency exchange Binance has announced that they will soon be offering traders access to up to 75x leverage on popular cryptocurrency Chainlink (LINK). The addition of LINK to the platform comes on the heels of the addition of Ethereum Classic (ETC), and just a couple months after they added... The post appeared first on NewsBTC.

2020-1-17 00:00


Analysts Fear the Worst as Bitcoin Price Readies to See 20% Breakout

Over the past week, Bitcoin has found itself flatlining, establishing a tight range in the low-$7,000s as volume tapers off. This consolidation has forced the Bollinger Bands, a moving average-based technical analysis tool often used by traders looking for more information about trading ranges and volatility, for Bitcoin to reach extremely tight levels, implying that.

2019-12-16 22:30


Analysts expect Bitcoin to falter as price fails to break past low-$7,000s

Over the past week, Bitcoin has found itself flatlining, establishing a tight range in the low-$7,000s as volume tapers off. This consolidation has forced the Bollinger Bands, a technical analysis tool often used by traders looking for more information about trading ranges and volatility, for Bitcoin to reach “squeeze” levels, implying that volatility is on […] The post Analysts expect Bitcoin to falter as price fails to break past low-$7,000s appeared first on CryptoSlate.

2019-12-15 10:33


Фото:

After 3 weeks of stagnation, traders say Bitcoin poised to see big volatility

Following three weeks of stagnation, technical analysts anticipate the bitcoin price to see large volatility in the short term as it looks to test important levels. Cryptocurrency trader Josh Rager said: “With three weeks of sideways and the Bollinger Bands starting to pinch, Bitcoin price could see some volatility soon Good news is that the […] The post After 3 weeks of stagnation, traders say Bitcoin poised to see big volatility appeared first on CryptoSlate.

2019-10-14 14:33


Bitcoin Traders Fear Sub-$10,000 Drop if This Key Level Breaks

The bitcoin price has dropped from $10,968 to $10,285 in the past three days. If BTC fails to remain above $10,100, traders anticipate a bigger pullback below the $10,000 level. Since early August, the bitcoin price has demonstrated volatility within a large range between $9,400 to $10,900, unable to break above or below key resistance […] The post Bitcoin Traders Fear Sub-$10,000 Drop if This Key Level Breaks appeared first on CCN.com

2019-9-10 09:29


Volatility Deepens with Cryptocurrencies as Policymakers Make Conflicting Signals

Cryptocurrencies are inherently volatile, but that volatility has become increasingly pronounced as Q3 gets underway thereby subjecting traders to a wide range of conflicting emotions. Bitcoin and the general cryptocurrency market started 2019 with steady gains that erased the bitter aftertaste of the 2018 crypto winter.

2019-7-26 23:31


SFOX Volatility Report Shows Market Moved From Uncertain To Mildly Bullish As Of July 2019

SFOX Releases New Volatility Report Showing That The Market Moved From Uncertain to Mildly Bullish Litecoin, Bitcoin SV and Bitcoin are going to experience important events in the near future SFOX, a prime dealer of cryptocurrencies for traders and institutional investors released a new volatility report in which their Multi-Factor Market Index moved from uncertain […]

2019-7-12 17:06