Toolkits

How To Make Money On #Ethereum In 2021

Ethereum

The average smart investor ranks high in their list of top crypto projects to update their portfolios with. And this is because Ethereum surpasses all the major DeFi projects and Apps, making it one of the most sought-after altcoin. What’s more, Ethereum offers an interesting variety of ways to generate passive income however risky this may be. You just need to know the ropes.

For Ethereum, there are three major ways to leverage this platform:

  • Staking
  • Trading
  • Holding

Staking

Currently, Ethereum’s blockchain is steadily on its way to its 2.0 phase and this mega update will come to change the face of Ethereum’s consensus mechanism. the mechanism will be changing from Proof-of-Work to Proof-of-Stake and this transition would mean the end of Ethereum mining and creation due to the magnitude of computational power solving equations.

In Ethereum 2.0, validators will be mandated to secure the network by staking a minimum of 32 ETH. All validators will also be nominated by fellow validators. The purpose is this is for validators to compete to process transactions and solve equations.

Before the Ethereum 2.0 upgrade launch, its native token has been used countless on staking platforms such as Stake which allows investors to gain juicy yields on staked assets without losing custody.

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Trading

For many, trading hardly seems like the obvious way for making passive income but thank goodness you’re reading this article. All you need to succeed with trading is a thorough understanding of user trends and the market in general.

Frankly, trading is simply all about market sentiments and probabilities. There’s also the option of trading manually or algorithmically. In manual trading, you are to make time-sensitive decisions and respond accurately to fluctuations in the market and changing sentiments.

Discipline also comes in handy here, but you have the choice of algorithmic trading if you don’t fancy watching the charts all day. Algorithmic trading involves automating trades in a way that keeps you winning even when you’re away from the charts.

Hodling

This is by far the most uncomplicated and most effective to earn passively with ETH. You could choose to regularly bit dips for quick gains, or simply buy ETH at its cheapest and hoard till the price spikes.

There’s no downplaying the risk involved in cryptocurrency investments. As of writing, there are over 5,000 altcoins and cryptocurrencies circulating in the crypto market. Interestingly, the majority of these assets and projects are likely to lose their value with time.

Currently, Ethereum is easily number two in the list of largest cryptocurrencies by market cap, making it a solid foundation for a new economic phase the world is gradually transitioning to.

If you must succeed as an ETH investor, be ready to strategically manage risk and invest in only what you can afford to lose. That is, don’t put in certain amounts of money if you’re likely to keel over when you lose it in the crypto market. Be sure to do plenty of personal research and find what investor approach works best for you.

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