Digital assets can represent a versatile range of things, covering any kind of valuables that are being created or presented online. However, when it comes to making money from these assets, digital assets mostly refer to cryptocurrency and NFT. These two offer various avenues to earn a handsome income to boost up your finances. Interestingly, both crypto and NFT are blockchain applications and cryptocurrency is the key medium of currency for NFT-related transactions. Visit multibank group
The post below offers a brief on the top ways to make good money with major digital assets such as cryptocurrency as well as NFT.
HODLing is the classic investment strategy where you buy assets aka digital assets at low price and then keep the assets on hold. The goal is to wait for months and even years for the asset to rise and soar so that the investor can sell it off at a high price and make a large profit. In regard to the crypto zone, legacy coins like ETH and BTC are two of the topmost picks for HODLing. For successful HODLing, you need to invest in digital assets that hold the potential of proliferating growth. Do not take chances with meme coins when it comes to HODLing as these are mostly based on hype and might disappear after a few years. Focus on crypto digital assets that hold some solid use cases that will drive demand and surge prices even further in the coming years.
You can choose and try from a wide range of trading strategies when you are looking to make money with the help of digital assets.
For example, you can sign up for leverage trading strategy if you are aspiring to open large trading positions for higher profits. One of the greatest aspects of leverage trading is that it doesn’t demand hefty investment of capital from traders aiming to open huge trading positions. You deposit as much as you can afford- the rest you can borrow from your trading platform.
Then, if you want short quick trades, you can try out day trading. Day trading enables you to make short but fast and frequent profits within a single trading day. Other trading options include range trading, spot trading etc.
This method of making good cash with digital assets is exclusively for PoS crypto holders. Bitcoin is not a PoS coin but Ethereum has recently shifted to the PoS chain. Besides, most of the new and emerging cryptos today are PoS coins.
Staking refers to the process of new block verification for PoS (Proof-of-Stake) blockchains. The PoS blockchains need a certain volume of cryptos for verifying new blocks and the chain sources these cryptos from the crypto holders. In return, the chain rewards the coin holders with staking rewards. So, if you are holding PoS coins and have no such plan to trade these off immediately, you can put these idle coins into staking for passive income. You can opt for staking through crypto exchanges. Otherwise, there are crypto staking pools as well. If you want to stake a coin that demands an extraordinarily high entry point, like Ethereum (32 ETH to enter ETH staking), you can join these staking pools. As these pools stake with shared resources, the entry point per staker is always lower.
Mining is the process by which PoW (Proof-of-Work) blockchains verify new blocks, like the Bitcoin blockchain. In mining, a miner has to solve complex mathematical equations to find the right hash rate. The PoW blockchain would offer reward to the first ever miner in the batch to resolve the problem. However, PoW mining is an extremely cost and energy-intensive process if you are planning to execute the entire set-up all by yourself. A more economical option is to go for mining pools or cloud mining.
Crypto exchanges, especially decentralized exchanges, are always in need of high liquidity. For that, these portals derive liquidity from DeFi lending firms. If your cryptos are currently sitting idle and you want these to help you with passive income, offer these to DeFi lending platforms. These platforms would reward you with interest in return.
Akin to cryptos, the NFT world too offers a wide range of ways to make good cash with digital assets.
Just like crypto assets, you can try HODLing with NFT assets. Most of the famous NFT assets that are now selling in millions cost no more than $50 when those were introduced initially. So, you have to find such highly promising NFT digital assets that could drive high market value and high market price in the coming years. Be careful about selection- the chosen NFT digital assets should hold some solid use-case. Also, those must be visually aesthetic as the visual attraction plays a major role in pulling crowd attention in the crowd of hundreds and thousands of NFTs.
Creation of NFTs
You can create NFT digital assets and sell them in NFT marketplaces. The NFT digital assets carry signatures of the creator embedded in the smart contracts. After you sell the NFT creation, you will receive royalty every time the NFT asset will be sold. However, when you create the NFT, just make sure that you are creating something that would appeal to the buyers. The NFT market is flooded with NFT digital assets and the competition is real cut-throat. In such a situation, if you are aiming for high market value for your NFT, focus on something that would be able to offer something different from the rest.
Flipping is a form of trading where NFT holders engage in quick and short trades repeatedly to churn up multiple gains over a period of time. This is the exact opposite to HODLing as unlike HODLing, you don’t hold on to the NFT assets for the long term. Also, in HODLing, the number of trades is lesser than in flipping as flipping involves frequent trading.
There are several P2E games today that allow NFT token holders to participate and earn by playing the games.