HOW TO MAKE MONEY WITH CRYPTOCURRENCIES IN 2022
- Invest in cryptocurrencies over the long term ( buy and hold ):
The first technique for making money with cryptocurrencies is of course to invest and keep your crypto-assets for a long time. This method is commonly called the “HODL” or “HOLDER” and for it to work, you will of course have to invest in solid cryptocurrencies .
However, beware of the cryptocurrencies you plan to buy and study them before rushing. Before buying, you need to ask yourself the right questions to know if the cryptocurrency you are considering is reliable:
The lifespan of cryptocurrency
His utility
If it is liquid
This principle of research is called fundamental analysis of a project . This avoids falling on a scam like a rugpull and that the cryptocurrency you are going to choose will still be present in a few years. Really focus on cryptos that provide real utility if you don't want to be disappointed. Investing for the long term is often the most effective method if your investment is reliable .
- Crypto-asset arbitrage:
For those who don't know, arbitrage involves buying a cryptocurrency at a given price on one platform and then selling it with a margin on another platform . If you are a regular on exchanges, you have probably seen price differences between these platforms. Arbitrage will therefore allow you to make a small profit from this price difference.
In general, arbitrage can be done on platforms that are not well known or that lack liquidity. In this case, you have to be extremely fast in executing trades to guarantee you high profit margins.
Lately, a bit of arbitrage has taken place on the Furucombo platform where some people have been able to make some profits. Another example could be doing arbitrage on cryptos that are on different blockchains and platforms using a bridge to switch between them.
There is software that can help you easily spot these arbitrage opportunities, for example:
Sigmax
Executium
Nevertheless, this practice is less and less common with the many robots and AMM ( automated market makers ). Keep your eyes peeled, you might just stumble upon the right opportunity and if you're quick you can always give it a try.
- Mining cryptocurrencies with GPUs or ASICs
Cryptocurrency mining , an activity that validates and processes transactions on a blockchain using computer hardware. Its purpose is to guarantee the security as well as the synchronization of the network in order to be rewarded in cryptocurrency.
For this, you will need to use specific computer equipment such as:
Graphics cards (GPUs)
Processor (CPU)
ASIC (Application Specific Integrated Circuit)
FPGAs (Field Programmable Gate Arrays)
The goal is therefore to invest in equipment and optimize its settings to maximize performance. For more information, here is the lair of one of my favorite experts , Mr. TK in person. You can also follow him on Twitter and he will be happy to answer you.