by Ib Macdonald
If you are broke and you want to be rich through crypto trading, you will need luck or a long time to be rich. Crypto trading is not a get rich quick scheme.
There are various ways you can earn from the Crypto market and they all need skill, luck, or patience. This piece highlights 5 ways of earning money from cryptocurrency trading.
1. Earn from Airdrops and bounties
You can earn without any capital by participating in airdrops/bounties. Airdrops are like your Facebook and Instagram giveaways. You get free tokens/coins from developers and through you, others get to know about their project as you are required to perform some tasks to qualify. Tasks may include sharing the link, tagging people, liking their pages, etc.
2. Earn from spot trading
You can earn by engaging in spot trading on centralised or decentralised exchanges. Spot trading involves buying coins/tokens when you presume/analyse they are cheap and selling when they are more valuable. This requires patience for maximum profit as some coins may take months or years to increase your small capital to huge gains. We have seen people turn 20k naira to 2million naira but for it to make the news shows it does not always happen. You also need to be earning in other ways for you to be able to be patient and wait for huge profits. Else hunger can make you sell at a loss. Who dey alive nai dey invest.
You can as well have short term smaller targets like 2%-30% profit but you need a huge capital to enjoy this. Imagine you have only $100 and you do 2%? My brother, you won’t be happy with your trades. But someone with $10k capital can do 2% daily and manage. You see, sapa is not a nice person.
3. Earn from Futures trading
You can also earn by trading futures if you are skilled or trading with your future if you are not skilled. With futures trading, you don’t only make money when the price goes up, but you also make money when the price goes down. You can buy/long when you feel the price will go up, and then sell/short when you will feel it will go down. The leverage feature on Futures makes it sweeter and deadlier at the same time, as you can trade with up to 100x of the money you have. Only the skilled and less greedy will survive.
4. Earn from staking/farming
You can also earn by Staking or farming. Staking is like a fixed deposit in crypto. You buy crypto and stake then you earn rewards by holding that crypto. This needs patience and also good capital to really enjoy the benefits.
5. Earn from Peer-to-peer trading
You can do some peer to peer trading, by buying coins of fellow traders and also selling to those who are in need and adding a small percentage as your profit. Let’s say you buy at 560 and sell at 565 per dollar.
If you can do all of the above, which I do, you will always be earning from crypto. But if you are a newbie, you will likely do only spot trading and that needs some patience. We all started from the spot market and it has turned many novices into millionaires. Are you ready to be patient?
Disclaimer: Only invest what you can afford to lose as cryptocurrencies are very volatile assets.
IB Macdonald is a Crypto trader, investor and technical analyst. She is the CEO of D-Online Harvest, a Crypto, Blockchain and online skills training institution.