There are several main ways to make money in digital money. Some imply quick income and high risk, others are designed for a long term, but more stable earnings
There are four main ways to make money on cryptocurrency: investing, trading, mining, and DeFi. To make a profit of a million rubles or more, each of the options requires special knowledge and experience, and most importantly, large start-up capital.
Despite the fact that cryptocurrencies are extremely volatile, investing in them is a process designed mainly for a long time. Over a period of several years, for example, bitcoin shows high returns. Five years ago, BTC was trading at $ 242. Since then, its rate has grown by almost 4340%. This means that it was possible to earn a million rubles on BTC by buying a cryptocurrency in October 2015 for approximately 23,053 rubles.
However, past growth does not guarantee a future. The likelihood that the value of bitcoin in the next 3-5 years will rise by a similar, even close value, is extremely small. Now the capitalization of bitcoin is already $ 200 billion. This means that an increase of even 500% will raise the market value of the asset above $ 1 trillion. Finding such liquidity will be extremely difficult. The higher the value of an asset, the more difficult it is for it to keep showing X's.
There are cryptocurrency supporters who believe in such an increase in its value, and even more. For example, according to analyst Willie Wu, there are currently 35,000 public companies with $ 5 trillion in free reserves. Wu argues that if such companies decide to place 1% of their capital in Bitcoin, this will be enough to raise the capitalization of the cryptocurrency to $ 2 trillion.
At the same time, companies have already begun to actively invest in bitcoin. On October 8, payment company Square, founded by Twitter creator Jack Dorsey, invested 1% of its total assets in bitcoin – $ 50 million. Not long before that, MicroStrategy invested $ 425 million in the first cryptocurrency.
If we talk about active management of the crypto portfolio and additional intraday margin trading, a profit of 2-3% of the deposit is quite achievable per month, said lead analyst at 8848 Invest Viktor Pershikov. Thus, if there is a goal of 1 million rubles per year, then with a similar profitability with capital reinvestment, three million rubles are enough at the start to get a million on top at the end of the year.
“At the same time, it is not worth withdrawing profits, so that reinvestment is also taken into account. We should also not forget about active portfolio rebalancing and hedging with monthly BTC put options. Intraday margin trading will compensate for the portfolio drawdown, and should not be the basis of profitability, the bet should be placed on portfolio growth, ”the expert advised.
He concluded that the top 10 cryptocurrency market in terms of capitalization is currently quite capable of providing 30-40% profitability by the end of next year.
Speculation, especially in cryptocurrency, is an extremely difficult and risky path. Many users begin their acquaintance with the digital money market precisely through trading. However, most often the first lesson is the complete or partial loss of the deposit. To earn such an amount as 1 million rubles, trading with leverage may be suitable. It allows you to borrow capital from the exchange, but in case of an error, it burns the deposit.
Many traders do not recommend working with leverage, as it turns trading into a gamble. The higher the leverage, the less price movement it takes to get rich or lose everything. A volatile market like the cryptocurrency market presupposes constant strong movements in the exchange rate within the day. If you are lucky, then with a high leverage you can earn a million rubles extremely quickly. But in most cases, the exchange is more likely to work than the trader.
The CEO of Xena Financial System Anton Kravchenko, in addition to trading, called the search for a promising project a way to earn a million rubles. This means finding a strong team with funding from market leaders. The main difficulty will be finding a way to buy tokens before they hit the exchange. In this case, get 1 million rubles. will be released with a start-up capital of 0.5-1 million rubles.
“The second way is to join a good algorithmic crypto fund with reliable people and a legal structure. Then you can count on 1 million rubles. income with a capital of 4-5 million rubles. ", – advised Kravchenko.
The most controversial and risky way to make money on cryptocurrency is decentralized finance. In the summer, DeFi tokens showed growth by hundreds and even thousands of percent. This means that the investment is about 727 rubles. into the YFI token at the time of its appearance at the rate of $ 32 and selling at the peak at a price of $ 44,000 would have made it possible to earn a million rubles in a little more than a month.
Now, many traders are on the hunt for DeFi tokens, looking for opportunities similar to YFI. To earn a large amount, you need to buy a promising coin as early as possible, preferably immediately after its release. To do this, you can use special services, for example, astrotools.is and dextools.io.
The main risk of such a strategy is that no one can guarantee growth, and in most cases after it, the value of coins drops to near zero values. For example, this happened with the Hotdog token. It appeared on September 2 and grew by 120,000% within 24 hours, from $ 5 to $ 6200. In a few minutes, it practically depreciated.
The DeFi market is now in a correction phase. Many projects received high marks in the past months, their capitalization reached a billion dollars, but then steadily fell down. Vadim Koleoshkin, co-founder of fintech startup Zerion, explained that many DeFi players are waiting for the development of the situation in the stock markets, the results of the US presidential election and the decisions of the Federal Reserve.
“If someone has been eyeing the DeFi market for a long time, now is a good time to start monitoring when it hits the bottom,” concluded Koleoshkin.
Bitcoin mining is considered one of the easiest and most stable ways to make money on cryptocurrencies. It does not require trading knowledge or investment ability. The miner can immediately sell all the mined coins, thereby fixing the profit. The most important rule is that the BTC price must be above the break-even point. And it is different for everyone and depends on many factors. For example, the cost of renting premises, electricity prices, maintenance, and so on.
According to BitCluster estimates, for modern S17 Th / s devices, the break-even point is about $ 6000, for the top model S19 110Th / s – about $ 4000. The greater the difference between this amount and the average market rate of the cryptocurrency, the higher the profit. However, you should not count on quick and easy earnings.
Now the average payback period for mining is 15 months. In order to receive 1 million rubles of net profit per month, 135 devices of the S17 type will be required, each of which costs about 100 thousand rubles. After the full payback of the project, the net profit will come in the 16th month, calculated Dmitry Shuvaev, Development Director of BitCluster.