Yellow Capital Blog/Investments/Making Money With Crypto

Making Money With Crypto

Wednesday, April 26, 2023

When it comes to making money with crypto there are several common options, such as: trading, investing early in new projects, mining, crypto market making, and yield farming. Read on here to learn more about the details of each.

Since its rise in 2009, cryptocurrencies have become one of the fastest-growing industries of the 21st century. Billed as the future currency of the internet and a money replacement, crypto has emerged as one of the top industries that mint millionaires. With its meteoric rise, more investors are being drawn to crypto as a means of making money.

Although the crypto market is relatively small compared to its predicted potential, it offers multiple means for people to make money.

Below are some of the most common ways to make money with crypto:

Crypto Trading

This is one of the most talked-about–if not the most talked-about–means of making money with cryptocurrencies. With most crypto coins capable of gaining double digit percentages in hours, trading presents one of the most lucrative ways to make money with cryptocurrency.

Although day trading of crypto is one of the biggest ways of making money in crypto, you will need to have knowledge of trading strategies and understand how to analyze the markets to predict whether the price of the tokens will rise or fall in value.

Investing Early in Promising Projects

This is one of the major selling points of a crypto project–each new coin could be the next coin to reach 100x. For example, if you had invested $100 in Ethereum at its launch in 2015, you would have approximately $240,000 at Ethereum’s current price of $1,800 per coin.

While the high volatility of crypto assets makes it possible to make huge sums by investing early, finding the next project to make quantum leaps in price can be daunting.

Staking and Mining

Staking and mining are integral in securing cryptocurrency projects on proof-of-stake and proof-of-work blockchains, respectively. While miners use computers to solve complex mathematical problems, stakers lock their crypto to validate blocks without math. Although they take different routes, stakers and miners are rewarded with crypto, often in the native token of the project they secure.

Crypto Market Making

Crypto market making involves buying and selling large amounts of a particular digital asset to provide liquidity and ensure the smooth running of financial markets. As a reward for making the market, these large liquidity providers make profits by including charges on the spread between the bid and offer price of every crypto transaction. Understanding liquidity in crypto is key if you're thinking about getting into the realm of market making.

Drive organic growth for your tokens with Yellow Capital's Crypto Market Making services.

Our team of experts specializes in creating a sustainable and profitable crypto market for your tokens through our proven strategies including crypto market makingalgorithmic trading, liquidity provision, token growth, and crypto exchange listing.

Yellow's algorithmic trading infrastructure can connect to over 100 exchanges, and our constantly evolving architecture is compatible with all major Blockchain protocols.

Schedule a Call now with Yellow Capital

Yield Farming and Lending

One of the easiest, passive means of making money with crypto is yield farming and lending. Yield farming involves staking or lending your digital assets to individuals or a project for high returns or rewards in the form of additional cryptocurrency.

Yield farmers who stake their crypto in liquidity pools can get up to 50% or more Annual Percentage Yield (APY). The percentage rewards depend on the amount you stake in the liquidity pool and the project.

Non-Fungible Tokens and Play-to-Earn

This list would be incomplete without non-fungible tokens (NFTs), one of the biggest trends in the crypto industry today. NFTs are digital art–you can make money with NFTs by minting artworks or collectibles and selling them on marketplaces. Conversely, you can collect the NFTs of other artists and sell them for higher prices to other collectors.

Play-to-earn (P2E) games are also fast becoming a reliable source of making money with crypto. These blockchain games reward gamers with NFT cards, digital collectibles, and crypto for completing in-gaming challenges and competing against other gamers.

In a Nutshell

Given the inherent volatility of crypto assets, investing in any of the above sources involves a high degree of risk. So, we advise that you do your diligence before investing in any project or crypto investment opportunity with your money.

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Hi, I am Alexis Yellow

Chairman of Yellow Capital

Are you ready for a wild career transition? I went from launching rockets into outer space at the European Space Center to helping Token Issuers launch their Crypto Projects!

Yellow Capital provides advisory services, strategic investments, and prime crypto market making.

Join me on this journey as I share my experiences and expertise in the crypto world, and maybe we'll even launch a few successful projects together!

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Our investment strategy involves providing deep liquidity crypto market making to the projects we invest in. This approach allows us to ensure continuous and substantial liquidity in exchanges. By doing so, we aim to increase market efficiency and reduce price volatility. We help to stabilize prices and reduce the bid-ask spread, which can lower transaction costs for traders. This usually attracts more traders to the markets, by making it easier and less risky to trade your token which can help to increase the overall liquidity and trading volumes both for the benefit of traders and issuers. However, we recognize that providing liquidity also comes with potential risks, which we carefully evaluate and manage as part of our investment decision-making process.