Altcoins, which refer to digital currencies or cryptos other than Bitcoin (BTC), are becoming more popular since they’re more affordable than BTC. They make up most of the supply in the crypto market, and many investors and traders use them because of the opportunity to get high returns. However, investing in altcoins has risks, so it’s best to understand and check the trend before investing your hard-earned money into it.
Once you’re knowledgeable about the industry, you may want to start making money with altcoins. Here are a few tips that can launch you into the world of cryptocurrencies.
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Try Play-to-Earn Crypto Games
Play-to-earn crypto games are one of the ways to earn crypto when you have none to start with.
A perfect onramp, the so-called P2E games have introduced billions of dollars to digital assets that gamers can buy, earn, and own. As its name suggests, gamers can earn altcoins, cards, skins, and other valuable in-game assets by engaging in play-to-earn crypto games.
By choosing the best play to earn games, you can collect more altcoins or in-game assets, which can translate to high revenue. After earning the altcoins from these games, you can transfer them into your crypto exchange wallet or platform. Then, you can sell it in the market for real money or another cryptocurrency. By doing this, not only are you enjoying playing games, but you’re also earning from it.
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Consider Staking
Another way to earn from altcoins is to collect fees and interest from holding a cryptocurrency in your account. This is more technically known as staking.
When blockchain validators facilitate transactions, you’ll receive payment from them through fees. For instance, when you keep an altcoin in your account, you’ll receive an annual interest rate depending on what that altcoin offers. Generally, your earnings can range from 0.15% to 6% per year.
While this may be inviting, you still need to check the contract terms for better and safer transactions. Some altcoins or mainstream crypto dealers require you to lock your account for a specific period, which means that you may be unable to withdraw or deposit whenever you want. Moreover, some may set a minimum amount before you can draw interest from the altcoins.
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Buy And Sell NFTs
Here, the concept is simple in theory but risky in practice.
You only need to buy an NFT at a lower price, hold it until its price goes up, and sell it when you are sure to make profit. However, it is not guaranteed that the price will indeed go up. Also, there are stories of even very expensive NFTs vanishing from people’s OpenSea accounts - and not through a heaist.
Still, buying and selling altcoins or NFTs is a convenient way to earn because you can do it anytime and anywhere since crypto transactions don’t require third-party interventions. All you need is a registered account with a crypto exchange platform to buy and sell in its market.
Before buying any token, you need to weigh the pros and cons. Don’t settle for the cheapest option. Instead, focus on the value and how it affects its trading environment. They’re more likely to become more valuable if it has a concrete project or mission. Once you guarantee if a token is worth the investment, go ahead and buy.
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Venture Into Day Trading
One of the most profitable ventures that you may also want to try is day trading. To become profitable in this arena, you must have the proper technical and analytical skills. This means you need to know how to analyze the altcoin’s performance through their charts. By understanding the price movements of the altcoins, you can better decide what trading position to make.
Trading positions include going short or long. It means you’ll place a short position if your technical analysis anticipates the altcoin price going down. On the other hand, you’ll be placing a long position if your analysis shows that the price will increase. If your bet or position is correct, you’ll earn a considerable profit. However, remember that you could also lose your money if your analysis goes south. That’s why learning to conduct technical analysis is vital to becoming a profitable altcoin trader.
The advantage of day trading is that you don’t have to have thousands of dollars as capital when starting. You can begin on an amount you’re willing to lose in the market. Especially if you also know how to conduct fundamental analysis, you can use it together with technical analysis to improve trading positions.
Moreover, you don’t have to hold your altcoin for a long time and wait for its price to go high before you can sell it to earn. Whatever the price of the altcoin is, you can earn by trading as long as your technical analysis is correct.
Conclusion
Making money with altcoins is still feasible these days, as long as you know what you’re doing. Start by finding an altcoin or an NFT with an excellent value proposition, so you can buy or invest in a token that could stay valuable for years.
Then, choose whether to stake, trade, or play crypto games that could give you some sizable revenue. Whatever path you end up choosing, the right mindset and exceptional analytical skills can lead you to success in crypto investment.