Would you like to know how to improve your finances with the help of cryptocurrencies? In this article, we are going to explore several methods that will allow you to obtain a solid ROI. From showing you how to buy XRP and other cryptocurrencies, to claiming airdrops, this guide is exactly what you need right now.
Buy and hold
If you just want to buy and wait for your investment to grow, then you should hold. However, you must do it during a bear market cycle, because it will allow you to take advantage of the following benefits:
- You will get access to cheaper prices on all cryptocurrencies. They tend to crash by 90-95% from their ATH, and this is a great entry point to start buying solid picks like BTC, ETH, AAVE, MATIC, FTM, etc.
- You will be able to see what projects are in for developing real solutions, and which ones are in for the money. Therefore, you will be able to pick higher quality projects that might perform very well during a bullish market cycle
If you had invested $1000 in ETH at the beginning of 2021, then you’d be sitting on over $5000 USD if you managed to sell at the top. And your ROI would be even better if you managed to buy ETH at its lowest price in 2018, below $110 USD per ETH.
Swing trading works during a bullish market (in a bearish too, but it has higher chances and better returns in an uptrend). It can take anywhere from a few weeks to a few months, but it can bring nice returns as well. You need to analyze the resistances and supports, as well as the momentum of the market, which is mainly dictated by BTC.
Even more, now that longs and shorts are creating huge waves and swings in the market. You need to analyze all the scenarios to determine the best entry point and position size for your swing trade.
Scalping is more of a short-term trading setup. It usually involves time frames between 1m to 15m. It allows you to take advantage of small increases such as 1% to 15%. Over time, especially with compounding, it can be very profitable. It works in both markets, and many times, traders resort to this during a bear market because it is more convenient and less risky than swing trading.
You can also profit when cryptocurrencies go down, and that’s shorting. You’re literally betting that the price of a cryptocurrency will decrease. When we are near to a blow-off top, it’s a good bet. Imagine betting that the price of BTC would decrease from $20,000 in 2017? You’d have made an excellent return on your investment.
This is more of an advanced technique and you can easily use it in swing trading, scalping and also in long-term trades. Some shorts can take several weeks or months to become highly profitable.
If you want to take advantage of the crypto world without investing money, then you need to start claiming airdrops. They are giveaways by existing or upcoming cryptocurrencies. You get them for free and you can sell them afterward. They’re not huge rewards, but they can end up being very profitable, especially during the latest phases of a bullish market cycle.
To make this profitable, you should start claiming all the airdrops you find. This way, you will end up accumulating some solid runners that will give you good crypto profits at the right time.
Staking and DeFi
If you want to make the most out of your holdings, but don’t want to bother with trading, then you can try it with staking, liquidity pools, and other DeFi products. You can earn a nice APY on your holdings, anywhere from a small 1% until more than 50-100% – even in stablecoins like USDT, DAI, USDC, etc.
By joining multiple pools and staking multiple coins, you can make a decent income, especially when the bullish market is thriving. You can stake during a bearish market cycle to accumulate even more. In any sense, this strategy will work to make you richer.
You need to take advantage of staking and DeFi products. This way, you will end up making more money at any stage of the cycle.
These are the best methods to increase your budget with cryptocurrencies. Which ones do you use? Which ones have brought you the best ROI? Let us know in the comments because we’d like to learn about your strategies.
Furthermore, what are you going to do when the bear market arrives? You need to start developing your own strategies. If you’d like more guidance about it, let us know in the comments so we can release a proper guide.