Crypto exchange – not only the way of managing your assets, but also a variant to earn. Volatility of cyber coins which is often called its disadvantage is an advantage at the same time. Exchange rate might be dramatically changed in an instant, which gives an opportunity to millions of traders to increase effectively their investments in their top crypto wallets India.
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How to earn on cryptocurrency exchange
The mostly spread variant is crypto stock trading. It can be done both, manually or with trade bots. As usual the income counts of currency margin at the moment of buying and moment of selling.
Trading
Examples of crypto stocks used for trading: Binance (an absolute leader), Huobi, OKEx, FTX, EXMO. One of the main factors when use a stock is collection fee. If trading is active a substantial part of the profit will be taken by transaction fees for each trade, so it is advisable to have a minimal collection fee. For instance, fees on Binance is 0,1% and they might be decreased with the help of native token BNB or by big trading volume.
Features of crypto trading:
- Free access. Any who has a wish can trade and earn cryptocurrency without identity confirmation or any contract, in comparison with stock markets. However, some stocks request verification but there are some where it’s not needed if fiats are not used.
- Value is not guaranteed. Crypto is not supported and it’s one of the reasons of a strong currency fluctuation. Price forms on the supply/demand situation. News and some other factors have indirect effects.
- The importance of technical analysis. To have a stable crypto income is important to get technical analysis basics. It’s based on Dow theory including four principles: the price is not chaotic, history always repeats, actual developments are important only, not reasons, and finally market is influenced by past, present and future.
Any trader will say that the most important is keeping the strategy strictly. It’s important to act out of emotion. Getting and keeping the strategy should be done beforehand and followed strictly, even the intuition tells different. Such approach gives much better results in long-term perspectives.
Arbitrage
Arbitrage trading means crypto exchange among stocks to gain on exchange rate differences. Arbitragers not only do earn themselves, but also contribute to community a lot. It’s them, who keep the balance of coin rate on different platforms. Otherwise, stocks with law liquidity might have overvaluation or undervaluated currency (depends on demand or supply prevail). Arbitrage also might be intramarket. When asset prices on stock are not exactly accurate this kind of situation might appear:
- 40 000 USDT = 1 BTC.
- 1 BTC = 774 NEO.
- 774 NEO = 40 800 USDT.
Currency rate and sums are taken for example. In this case after USDT – BTC, BTC -NEO and NEO-USDT exchanges, the arbitrager’s profit is 800 USDT. For counting net income bear in mind expenses for commissions.
Trading bots
Crypto exchange online might be eased if particular soft for automated trading is used, in order to earn. A trader can set up bot in line with their strategy and that bot would conduct transactions on the stock automatically on their behalf by logging API. It is convenient as there is no need to be at computer all the time, it is possible to earn at night. However, bot needs managing.
The examples of relevant bots for earning crypto are — Cryptorg, 3Commas, RevenueBot. First two bots have fixed subscription fee, while the last takes its fee by percentage of the of the profits. According to this if there is no profit, you pay nothing.
Earning on devaluation
Experienced crypto enthusiasts know that it is possible to earn both on appreciation and devaluation. “Shorting” is the strategy to use. How it works:
- You get Crypto Loan on the stock market — a lot of stocks provide the leverage.
- Then you sell them at current value.
- During appreciation you buy the number of coins equal your first purchase but already with a lower rate.
- Return the loan in crypto.
Profit is the differential. Bear in mind that it is quite risky and newcomers without any experience are not recommended to use such way to earn, only in cases with little sums and without a pity to lose.
Ways of passive earning
Besides best crypto exchange in India, there are some other ways of how to earn free cryptocurrency. There are many ways of passive earning online, that let use effectively unused coins. Let’s have a look:
| Type of earning | description |
|---|---|
| Deposits | Binance stock allows to have flexible and fixed deposits. The first gives lower interest rate, but they could be unblocked any time. The second have certain retention periods of crypto but gives a better profit. Also “yield farming”, disposed on platforms of decentralized finances (DeFi) might be referred to deposits. When the user invests assets into liquidity pool and receives passive profit. |
| Lending | The term lending connects with Crypto Loans without collateral. The user gives their assets to use by other users or centralized platform at interest as a bank. Examples of platforms: Nexo, Salt, Blockfi, Bitbond and DeFi protocols (as Aeve). |
| Staking | With the help of staking PoS-crypto (working on Proof-of-Stake algorithm) is received. To receive assessments with each new block, added to blockchain, to the wallet it’s needed to block the assets there. The staking function is met in many popular crypto wallets and crypto wallet hardware, e.g., Atomic Wallet. |
| Cloud mining | Proof-of-Work crypto needs mining equipment and which need to be cared; instead, you can buy a contract on renting the computing power from crypto loan companies that equipped with the certain data-center, and get profit depended on quantity of the computing power. Examples of cloud mining platforms: ECOS Mining, IQ Mining. |
| Masternods | Some coins (DASH is spread the most) allow to run on PC fully-functional server for transaction processes. The bail for running the server is needed; however later it gives steady profit out of blockchain transactions. |
Can you earn without investments?
Crypto earning without investments is possible but a minimal. Faucets as examples. These are websites giving cyber coins away in certain periods of time. To receive them the user needs to watch an advert or solve CAPTCHA. Majority of Faucets send the profit onto best hot crypto wallet 2021 for microtransactions, e.g., FaucetPay.
Freelance earning refers to this category as well if paid with crypto. With the crypto sphere development more and more clients are ready to pay to designers, programmers, copywriters and other freelancers in cyber assets. Having received the payment, it might be exchanged to fiat or held as an investment.
We examined the most popular variants of crypto earning and its exchange. All variants are different and each is good in its own way. The newcomer should choose carefully the investment ways, starting with the safest ones. Also, choosing the best cold crypto wallet 2021 for long-term coin held should be minded.