The cryptocurrency market is extremely lucrative, albeit risky. We all know stories of people succeeding and making fortunes just by simple and conservative crypto investments. However, in most cases there is much more going behind the scenes of such stories. There are a lot of ways to make your investment much more profitable without additional expenses, and today we will share some of them with you.
Pick the right crypto exchanger
While it is convenient to exchange crypto on exchanges, it is often much more profitable to use exchangers – platforms specialized on fiat to crypto transactions. Unlike on exchanges, in this case you won’t have to pay a fee thrice: for deposit, exchange, and withdrawal. Put together, these fees can reach 10% easily.
In addition, you can often find exchaners with a rate much better than the market average. It can be a laborious task to monitor the rate on your own, so it would be wise to use services like Changevisor. This site displays exchangers sorted from the most profitable offer to least and allows filtering by payment method, so you can find the most profitable and the most convenient offer on the market.
Make your coins work
Investments in crypto are great, but they can be much better if your coins will make you even more money while you wait for their rate to grow. You can make your coins work using p2p crypto lending services, staking or yield farming – all of these are covered by an umbrella term ‘DeFi” (Decentralized Finance)
Here are a few platforms worth looking into:
DeFi platforms are reliable, do not have a single point of failure and are not controlled by the owners. So it is much safer to invest your crypto in such services, than in centralized platforms. Moreover, unlike on centralized platforms, in DeFi you can put virtually any coin or token to work, not even a major one.
Pick the right time to purchase
It is worth it to wait before buying crypto and spend some time on studying the market. As soon as you understand the basics of price behavior, you’ll be able to purchase crypto when it is low. It is often better to wait a few days for a correction and buy more coins for the same money.
And there is no need to wait for a major price movement – a minor correction will do perfectly well, noticeably increasing your return on investment.
Don’t forget about crypto funds
If you don’t want to bother with active management of your assets, it would be a good idea to employ services of a crypto investment fund. Basically, a team of professionals will manage your funds for a small fee.
Of course, there is a risk of running into scammers and even a perfectly honest fund can have a bad investment period which will lead to losses for you. So carefully pick a fund to work with and study all the information available. Examples of reliable funds are Pantera Capital or Digital Currency Group, but they require large investments – at least $100,000. For smaller investments, Tokenbox is a decent option – it accepts investments of $100 and up, but is riskier than larger funds.
Margin trading and collaterals
It is an inherently risky option, but potentially the most profitable one. Large exchanges, like Binance and BitMEX provide favorable conditions for margin trading, but require a BTC collateral.
You can place BTC collateral, engage in margin trading of altcoins until BTC grows again, return your collateral and sell it even higher. If everything works out, you are up for huge profit, but if crypto prices drop – you’re in trouble. That’s a high risk – high return strategy.
That is just a fraction of methods to increase your return on investment in crypto. Stay in touch and we will share even more lucrative approaches!