Home » Cryptocurrency trading: what it is and how to make money on it

Cryptocurrency trading: what it is and how to make money on it

    The advent of cryptocurrencies has significantly expanded the possibilities of making money and given many new ways to multiply capital. One of the most significant is cryptocurrency trading. With a well-thought-out approach, the band can bring more than 350% per annum, which is quite a high rate of return.

    What is a cryptocurrency landing page

    The principle of earning on a landing page appeared together with the development of electronic payment systems, and with the advent of cryptocurrencies, the landing schemes got a new branch and began to be implemented through blockchain projects or cryptocurrency exchanges.

    Lending is a kind of leasing of digital assets. In other words, the process can be described as lending in cryptocurrencies at a certain interest rate. Its essence is that the user already owns or acquires an N number of coins, then leases them to a third party (platform), which will put the funds into circulation and act as a guarantor of their return.

    Lending is one way to make cryptocurrency “work.” It is an opportunity to get real money without having to sell your coins, but by lending them to someone.

    It should be noted that earning from lending is considered high-risk, but a promising high income in a good case can completely compensate the degree of risk. At the same time, do not forget about the cold and sober calculation. If you run after easy profits, without thinking everything through thoroughly, you can not only lose the income, but also lose the capital invested.

    Investing in digital coins is not only associated with high profitability, but also with increased risks, so it is recommended to buy coins for the bandwagon only for free money, the loss of which will be significant, but will not be fatal.

    Cryptocurrencies will be traded by special robots according to a predetermined strategy. Such trading does not always allow for profitable investment, especially with non-standard situations in the cryptocurrency market, so the exchange can become both a source of income and a source of loss.

    Also, cryptocurrency funds can be used by a real borrower, taking them at an interest rate for the needs of his business – almost like a normal bank loan.

    Having decided to engage in trading, an investor must know a few basic rules:

    • It is important to be careful when choosing a trading platform, as there is a risk of running into scammers who simply decided to make money on gullible investors.
    • Not all cryptocurrencies have a sufficient level of liquidity and are suitable for further trading.
    • It is possible to give cryptocurrencies for interest not only on exchanges and special platforms, but also through investing in cryptocurrencies that support banding.

    Average performance and requirements of the banding:

    • Minimum deposit amount: no.
    • Term of placement of funds: from 30 days to a year.
    • Interest for use: from 1% per month on exchanges and 1% per day through platforms.
    • Commission: from 0.2 to 1% of the transaction amount.

    Often cryptocurrency exchanges offer a lower percentage of earnings from the banding, but you can be sure, at a minimum, that the conditions will be met. Because all users are subject to strict verification, and the exchange values its reputation and acts as a guarantor of transaction integrity.

    For lending platforms that have their own token issued for this purpose, it is not only a way to earn money, but also a good marketing move that allows you to build capitalization.

    How to make money on a cryptocurrency landing page

    Currently, there are several tokens with a lending option. Most of them allow you to borrow money against cryptocurrency for personal needs:

    • ETHLend is the token of a decentralized lending platform powered by blockchain and smart contracts. It allows depositors to earn about 24% p.a. by lending their cryptocurrency for anything from buying a gift to growing a business.
    • Nexo is a token of the wallet of the same name, which allows you to take out instant loans secured by cryptocurrency in 45+ fiat currencies. The interest earned is deposited into the wallet’s account daily. The peculiarity is also that the depositors of this wallet are insured.
    • SALT is a platform that allows you to earn on your assets and get real money on the card. Using the service, you do not need to sell cryptocurrency – you can “pledge” it to get the necessary cash amount today.
    • Ucoin cash. Holders of this cryptocurrency have the opportunity to make money from lending, storage and mining. Approximate profits from leasing Ucoin cash bring owners about 45% of the investment each month.
    • Homeblockcoin. Buying cryptocurrency, the user transfers it to a bot, which is engaged in trading on the exchange. Many experts predict that the value of this digital currency in the future will show positive dynamics, which gives investors the prospect of additional capital increase.
    • Falconcoin. Lending of this cryptocurrency is possible for a certain period of time under several tariff plans. The ability to choose the term is an attractive option for investors, allowing them to manage risk. The longest term plan allows you to earn up to 45% of the investment placed every month.
    • Binarycoin. A cryptocurrency developed by OPBinary. It differs from its competitors in that its value is backed by the company’s real products. Investors are offered several investment options, and the profitability and interest on the deposit depends on the term of the investment. Investment programs are designed for 30 and 90 days.

    Exchanges that support the banding

    The easiest way to start earning from a banding is to take advantage of the functionality of cryptocurrency exchanges. Cryptocurrency landing page is supported by many such resources, but it is recommended to use proven platforms that have official status and registration. The main ones are:

    • Poloniex;
    • Bitfinex;
    • Liqui;
    • Coincheck;
    • YoBit.

    Users who wish to engage in banding through these platforms will have to undergo a fairly serious background check.and identity verification.

    Advantages and disadvantages of cryptocurrency banding

    Advantages:

    • High passive income for investors;
    • the possibility of additional earnings when the value of the cryptocurrency increases;
    • The ability to get a quick loan in fiat currency, without the need to sell cryptocurrencies or go to the bank;
    • cryptocurrencies that support banding, often attract the attention of users and actively increase the capitalization;
    • for developers, the banding is an opportunity to attract investment and popularize their product.

    Disadvantages:

    • High-risk, long-term investment;
    • requires the freezing of capital for a certain period;
    • there is a risk to run into scammers.

    Conclusions

    In itself, the banding is attractive for both investors and developers of cryptocurrencies. It allows to establish mutually beneficial relationships, as well as investments, which contributes to the rapid growth of capitalization. But despite all the simplicity and attractiveness, investors should be careful when placing deposits in this direction. The limits are often quite high, and there is also a high risk of getting caught up in fraud or of losing capital in the case of sudden closure of the project or because of the insufficient level of security.