How to Earn Up to 40% of Your Crypto Investment
The primary goal for any investment is to see the value of an asset grow or generate maximum returns. However, what you make from some of the assets are at times, pretty low. What if we told you there is a way of getting more than 100% return on investment? One of the best ways to make such high returns is through crypto coins.
Take the example of a person who bought 100 Bitcoins (BTC) between 2009 and 2010. Between 2009 and early-2022, the value of BTC grew from less than 1USD to more than USD33000. Now the crypto coins have grown to over 6000 and a lot more investment opportunities are opening. In this post, we take a closer look at how you can optimize returns, hitting up to 40% of your crypto investment.
What are Cryptocurrencies?
Before looking at the best ways to invest cryptos, let’s take a step back and determine what they are. Cryptocurrency, at times only referred to as crypto or crypto-currency, is a type of virtual currency that only exists digitally and relies on cryptography to keep transactions secure. Unlike fiat notes and coins, cryptocurrencies do not have a regulating or issuing authority but rely on a decentralized system to issue new units / coins and record transactions. When we talk about new coins, it is important to appreciate that most networks have specific numbers. For example, only 21 million BTC will ever exist on the Bitcoin blockchain.
To use cryptocurrencies, say, for sending value, both the sender and recipient must be on the same blockchain network. Then, the nodes on the blockchain system validate the details of the transactions and complete the process in seconds or minutes. Finally, they add the information to the blockchain, where it becomes permanent.
The Best Investment opportunities with Cryptocurrencies
When it comes to investing in cryptos, there are a number of methods that you can select. We will look at the two options that come with the highest yields; buying & holding and staking/ yield farming.
- Buying and Holding Cryptos
Today, more people are becoming receptive to cryptocurrencies. Unlike about one decade ago when governments and central banks were opposed to crypto coins, they are now embracing them. For example, some states in the US are now allowing people to pay taxes using Bitcoin. Another example is El Salvador, a country in Central America that has already made Bitcoin (BTC) parts of its legal tender. This means that the demand for cryptos is expected to continue growing and coin holders are likely to enjoy high returns on investment.
To take advantage of this expected growth, you should consider buying and holding your coins. If you select a high-potential coin, such as Ethereum (ETH), experts are in agreement that it is only a matter of time before the price surpasses that of Bitcoin. This potential is driven by an aggressive team that keeps on developing new features. For example, they introduced smart contracts, non-fungible tokens, and have recently shifted from proof of work (POW) protocol to proof of stake (POS) consensus mechanism.
NOTE: It is important to be patient when targeting to make more through buying and holding strategy.
- Staking Cryptocurrencies
Instead of simply leaving the coins in their wallet waiting for them to gain value through price shifts, you can plug in another revenue generating channel. One example is staking. It is a process of committing your coins so that they can be used to validate transactions on proof of stake (POS) networks. In return, you get rewarded with a portion of the fees paid by users. Depending on the decentralized finance (DeFi) platform that you select, the coins can also be used for yield farming, which pays interest.
To get more from your investment, it is important to be smart. Crypto coins and blockchain technology have opened a new way for you to make more. Remember that the industry is still nascent, and every development that raises the demand and value of cryptos will generate some returns for you. Visit hi.com now to learn more about crypto investing and enjoy up to 40% in returns.
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