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Is it Possible to Earn on Crypto in 2021?
In the first six months of 2021, the world faces a difficult economic situation caused by the Covid-19 pandemic.
The cryptocurrency market witnessed erratic ups and downs that confused many investors.
Will we be able to earn interest on crypto? Here are our assessments of the cryptocurrency market in the last six months of 2021 that will help you make a good and suitable investment decision.
The long-term profit potential of the cryptocurrency marketExperienced investors are familiar with the dizzying fluctuations in the price of cryptocurrencies.
However, to be fair, most of the costs of cryptocurrencies have increased many times over the previous years.
Bitcoin value surged to a record over 1000% in 2017, up 300% in 2020 despite the epidemic spreading worldwide.
Many experts are still optimistic when forecasting "shocking" that the world's largest digital currency will reach $ 100,000 by the end of 2021, possibly even climbing to $ 1.2 million within the next five years.
The higher demand and supply of cryptocurrencies, the higher adoption of cryptocurrencies in the market.
That helps the coins' value continue to increase over time.
Besides Bitcoin, the crypto market also attracts many long-term investors due to the development of the DeFi - decentralized financial system.
The decentralized financial system has grown enormously since the end of 2020 with dApps, smart contracts, and lending services on the Ethereum Blockchain. DeFi guarantees investors to receive extremely high interest on the amount of ETH lent, even cash interest. DeFi is forecasted to have the potential to develop into an independent financial application industry.
DeFi is one of the hot topics right now, as the number of tokens has skyrocketed over the past several months.
Especially a complete game-changer when it comes to the "lending and borrowing" market.
From there, experts say DeFi will thrive shortly.
Many liquidity providers continue to earn high returns by lending as different liquidity protocols continue to attract investors.
The total value locked in DeFi protocols has reached nearly $10 billion.
Yield Farming tokens have created a lot of madness as their valuations skyrocket.
The possibility of a rebound in the price of the crypto marketInvestors continue to make transactions under the risk of the Covid-19 epidemic wave that has taken place from 2020 to the present.
However, with the arrival of a vaccine and government stimulus measures, it will help increase liquidity, increasing investor confidence in the cryptocurrency market.
They were followed by the possibility of the coin's price increase again.
- BTC officially becomes legal currency in El Salvador.
This is the first step for several other countries to accept cryptocurrencies as a lawful means of payment.
The price of BTC, in the long run, will remain bullish.
- The birth of Ethereum 2.0: Investors transfer ETH deposits into the system.
When the system has transactions (borrow/buy/sell), investors will receive an estimated -13% commission per year.
Keeping ETH deposited on the system will ensure the safety of the network.
Experts claim that Ethereum 2.0's stable operation will increase scalability, security, and sustainability.
It leads to a sharp rise in Ethereum's value shortly.
Investors will continue to expect a steady commission income from staking and short payback periods.
- USDT continues to be the stable coin with the largest market capitalization.
They own 1 USDT means that the investor has 1 USD in the Federal Reserve Bank.
This ensures USDT has strong competitiveness against other cryptocurrencies and continues to be the preferred stablecoin of investors who prefer stability and appreciation in the long term.
How to invest in crypto for beginners?
- Buy and holdThis is the most popular and easiest way to invest. Most newbies will buy traditional and famous coins like BTC, ETH and wait for the price to rise. Then investors sell to take profits.
Although the advice for this way of investing is to choose currencies whose prices change quickly to be profitable regularly, you don't have to buy and hold the most expensive cash to make a profit.
There are many small coins on the market, which have frequent price changes.
Investing in a variety of small coins is also a way to maximize profits.
- TradingWhile a buy-and-hold strategy is a long-term investment, a trading strategy should be an investment that exploits short-term profits.
The volatility of the cryptocurrency market makes the prices of assets rise and fall suddenly in a short time.
Being a successful trader requires you to analyze the market, asset performance and predicting price rises or falls.
Regardless of whether the cryptocurrency market is rising or falling, investors can still profit as long as the selling price is higher than the buying price.
- Deposits and loansThis strategy is suitable for investors who own several coins and do not plan to use them for a while.
Investors stake several coins in the e-wallet. The system will use these coins to validate transactions (proof-of-stake).
Each transaction will bring the investor a reward similar to the interest paid by the bank on the credit balance.
Investors can also actively lend money to other investors and earn interest on that loan.
ConclusionSo is it possible to earn crypto in 2021? The above answer is a sure affirmation for investors interested in the field of cryptocurrencies.
Try out investment strategies that fit your needs and financial resources.
Apple, Google, Tesla, Samsung, Facebook, PayPal, and Deutsche Bank are typical companies that have recently included cryptocurrencies in their long-term plans.
Investors always hold high expectations for the potential of the digital currency market.
To sum up, given the popularity of cryptocurrencies, investing in them should be done with extreme caution.
Although not everyone who participates will make a lot of money from the cryptocurrency market, there is still huge growth potential.
With enough knowledge and hard work, there are ways to help everyone make money with cryptocurrencies.
Before investing in a cryptocurrency, investors must carefully evaluate its potential prospects to make their own decisions.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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