There are many ways that people can get involved in the crypto market, from investing (holding), trading, staking to mining or participating in Airdrops. However, the most popular strategies for making money in the crypto world are holding and trading.
This article, however, will discuss strategies that holders can use to optimise their investments. Traders also can use the article as a reference in case they unwillingly become holders.:)
Please note that following strategies are not for those who want rapid profits; instead, it is for long-term holders who seek to increase the number of coins/tokens till the next bull run.
With a vast majority of crypto ecosystems at the moment, it is a challenge for holders to have a deep understanding of what ecosystems and coins/tokens will bring the best profits. It depends on people's beliefs as the future is unpredictable. However, the table below will briefly mention the most well-known ecosystems till now.
Holders can choose to increase their coins/tokens via different methods such as staking, farming, and lending. This article will provide a brief review of these three strategies and provide information regarding platforms that holders can consider using.
The term “staking” is indeed prevalent in the cryptocurrency market. It is a feature of all blockchains that use the PoS (Proof-of-Stake) consensus protocol. To stake a cryptocurrency, you have to hold coins/tokens. Before, you could only stake crypto from your digital wallets, which must constantly be connected to the network. However, many platforms have offered holders to stake directly from its platform, such as on Binance exchange, making it easier for most users.
Here is information regarding popular staking platforms:
Yield Farming has become increasingly popular as it is a way to gain more crypto using crypto. It can be known as liquidity mining, as crypto holders provide liquidity to the DeFi platform and receive rewards. There are two types of Yield Farming that holders can take into consideration.
The first one is DEX Farming, where holders provide liquidity to DEX and receive rewards from DEX transaction fees. Rewards are usually in the form of a DEX native token.
The second type is Yield Aggregator Farming. Projects that provide this type of Farming will compare farming pools and choose the one that has the most profitable yield. Moreover, users can also receive the project native token.
Below is a comparison between these two types of Farming:
