Top Cryptocurrency Investing Strategies

How to Make Money with Crypto

Making money in crypto can be fun and easy. Our favorite digital assets investment strategies are listed below from our most favorite to least favorite, and much of the ranking has to do with the ease of investment. We got our keyboards dirty while in the trenches experiencing all these investments first-hand so that we could share them with you. We hope you profit from all of them (even our least favorite ones).

Best Digital Assets Investing Strategies

– Funds
– Cryptocurrencies
– Staking
– Lending
– Validator
– Mining
– NFTs

Invest in Digital Assets Funds

Digital assets funds have experience in investing in crypto just like hedge funds have experience in the stock market. For this reason, it is wise to use a professional when trading large sums of money in the crypto market. Digital asset funds also have an advantage because they have access to many more cryptos than offered via crypto exchanges. This provides funds with more investment and hedging opportunities.

We invest with Kingsly Digital Asset Fund because of their depth of knowledge and experience with investing in crypto and decentralized finance (DeFi).

Cryptocurrency Revenue Strategy

Cryptocurrencies, also known as cryptos, coins or tokens, have seen significant growth as an asset class over the last decade. Likely because these assets are easy to buy, trade and sell via a crypto exchange like Binance, Gemini or Coinbase. Bitcoin (BTC) and Ethereum (ETH) are the two largest cryptocurrencies by market capitalization.

We typically use Binance and Gemini to invest in crypto.

Staking Investing Strategy

Staking is similar to dividend stocks. People can buy Proof of Stake (PoS) blockchain cryptos on an exchange and earn an APY for storing them with a validator.

We stake tokens like Ethereum (ETH) and Cosmos (ATOM) with crypto exchanges and crypto funds.

Digital Asset Lending Investment Strategy

Crypto lending platforms like Nexo and Compound Finance let you borrow and lend cryptocurrencies. Crypto lending provides steady interest payments for lenders.

Stablecoins like USD Coin (USDC) and Tether (USDT) are pegged to the US Dollar and can also be lent to people for an APY.

Validator Node Investments

Validator nodes are where people stake their crypto on Proof of Stake blockchains. These nodes, which are computer servers that can be owned and operated by individuals or businesses, authenticate and approve blocks on the blockchain to keep it running properly. Validators are rewarded with in-kind payments that are shared with its stakers. Meanwhile, validators that act maliciously get penalized.

Some Proof of Stake blockchains, like Binance Smart Chain (BNB) and Cosmos (ATOM), provide stakers with sizable APYs. For example, BNB stakers can get around 4% APY while ATOM stakers around 17% APY. DeFi strategies can provide even higher APYs.

Crypto Mining Investing Strategy

Cryptocurrencies like Bitcoin (BTC) and Dogecoin (DOGE) are on blockchains that use the Proof of Work (PoW) consensus mechanism. On Proof of Work chains, computer servers known as “miners” race to authenticate and complete the next block on the blockchain. When successful, miners receive an in-kind reward.

The easiest investment for mining is to invest in a publicly traded crypto mining company. Alternatives are to buy your own mining equipment and start mining or rent a server from mining companies that offer leases. These mining companies handle the mining infrastructure and operations for you.

NFTs

A non-fungible token (NFT) is a permanent record of a digital asset on a blockchain that represents ownership of a property or security such as an image, audio, video, home, art, jewelry, in-game item, etc. Most NFTs’ value come from perceived value, similar to art. However, some NFTs represent items like a property or a character within a blockchain game, and the thousands of people playing those games put a “real world” value on those NFTs.

Games like Axie Infinity and Craft Economy are examples of tokenized blockchain games that incorporate NFTs.

Getting Started with Digital Investing

Retire Early with Digital Investing (REDI)
What Is Digital Investing?

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