How to Earn Money From Cryptocurrency

May 12, 2021 Mr. Meher

How to Earn Money From Cryptocurrency

Cryptocurrency Staking, Pooling and More

Earn Money From Cryptocurrency

With every season and cycle of cryptocurrency comes a flood of new users. Many come from the traditional market. Many have never invested before. Each one of us is here to earn money from cryptocurrency revolution that’s unfolding right before our eyes?

So did you start in cryptocurrency because of Elon Musk memes on Twitter about a Dog named coin (Doge-coin)? Are you new to crypto, or you have some experience but are not comfortable yet? Are you not comfortable trading crypto for living or earning?

Some of you have been through a cycle of crypto and have experienced the winter. In comparison, many of you are still experiencing the 1st Bull cycle, where most coins move up. But some of you have lost money in the Pump and Dump Scheme. Many of you might think the only way to make money in crypto is through trading, But what if you are not a trader or don’t have time to trade?

Are there any Options?
Buying and Holding(HODL) for a few years is one of the best and simplest option to make big money. But, cryptocurrency adds another layer of value to your holding by putting your coins to work for you. You can earn money from cryptocurrency in multiple ways without trading. Today we will list some of the options. Read till the last to check the detailed comparison of each savings.

 

 

Flexible Terms

 

1. Savings Accounts ( VAULD )

Let’s start with the basics. So banks offer you interest on money in a saving account sometimes called a high yield interest saving account. However, the High Yield is hardly a 2-3% interest in the US and 4-6% in India, which barely cover inflation. Some crypto exchanges give you interest when you buy and hold crypto, just like Bank.

Vauld - Cryptocurrency Exchange.

Vauld gives the highest saving on Interest. The payout for Vauld is weekly in the same token. 

Investment: No minimum
Fees: Zero fees
Returns: Fixed (1% – 10% YOY)
Rewards Distribution: Weekly
Risk Level: None, guaranteed capital earnings
Coins: Most major coins supported (30 as of Writing)

 

 

2. Flexible Saving ( BINANCE )

Binance Offer a concept of Flexible saving. Go to savings and click on the token, and subscribe.
You can redeem the savings anytime, but the interest is lower than Vauld. The good thing is the payout is daily.

Investment: No minimum
Fees: Zero fees
Returns: Dynamic (0.5% – 5% YOY)
Rewards Distribution: Daily
Risk Level: None, guaranteed capital earnings
Coins: More than 50 Coins

 

 

3. BNB Vault ( BINANCE )

BNB Vault, a unique feature of Binance, should not be confused with VAULD. You can find the option under Finance->BNB Vault.
BNB Vault is a Capital guaranteed Product. BNB is Automatically Allocated to multiple finances product from Binance and maximising the returns without user intervention.
Suppose you hold BNB and do not wish to trade. BNB Vault might be a good product for you.

You can Watch the BNB Vault tutorial video here.

 

Investment: No minimum
Fees: Zero fees
Returns: Dynamic (Minimum will be Flexible Saving APY)
Rewards Distribution: Daily
Risk Level: None, guaranteed capital earnings
Coins: BNB

 

4. Launchpool ( BINANCE )

When Binance Launches a New Coin(Cryptocurrency) to promote the use of the coin, Launchpool is used to distribute some of it.
Which can either be through :

  1. Farming: Where you put your BNB or BUSD for a period on a Launchpad. Based on the
    Total Amount: New Coin / Total Amount of BNB or BUSD you have staked, hourly coins are distributed.
  2. Discount Sale: Based on your BNB or BUSD on your wallet at the time of purchase, you are offered a certain amount of coin at a discounted price from 20-50% of the listing price.

We can directly access Launchpool on the Mobile App homepage.

Investment: Based on individual Launchpool offers
Fees: Zero fees
Returns: Dynamic depend on the amount of BNB or BUSD Staked at the given hour.
Rewards Distribution: Hourly, but have to withdraw at the end manually.
Risk Level: None, guaranteed capital earnings
Coins: BNB, BUSD

 

Fixed Term – Lock Your Assets and Get Higher Yields

5. Fixed Deposit ( VAULD )

Like what banks offer, you lock your collateral for 30 Days, and you get % as interest. You can save the most Popular Tokens like BTC, ETH, BNB, USDT, BUSD, USDC and more for 30 Days. And generate income. The Returns is higher than the regular deposit.

Minimum Investment: No minimum
Fees: Zero fees
Returns: Fixed (3-12% YOY)
Distribution: Weekly
Risk Level: None, guaranteed capital earnings.
Coins: 30 Coins.

You can withdraw halfway through, but you lose the majority of the payout. i.e. Maturity payout.

Staking
All blockchains have one thing in common: transactions need to get validated. Bitcoin, for example, does this in a process called mining which is known to use a lot of electricity (Proof-of-Work). There is another method that many Defi(Decentralised Finance) Coins use. It’s called Proof-of-Stake (PoS). It is one such consensus mechanism where people get decision power in the network by staking coins. By staking, your coin is used to vote for the transaction’s validity, and, in turn, you get a fee, also called Gas fees. The amount is calculated by your total Coins/Total Coins Staked. This is how staking generates revenue. 

 

6. Locked Staking ( BINANCE )

Similar to FD in Vauld. Binance lets you lock your coin for a finite time to get a higher return than flexible staking. If you withdraw in the middle of the period, you have to with all your accumulated interest.

Minimum Investment: Starting at 10 USDT worth of tokens
Fees: Zero fees
Returns: Dynamic APY determined by the total staked pool volume
Distribution: Daily
Risk Level: None, guaranteed capital earnings.
Coins: >50 Coins

 

7. ETH 2.0 Staking ( BINANCE )

Ethereum will move to ETH 2.0 in the future and move to a Proof-of-Stake (PoS) mechanism that we read above.

All you need to is stake Ethereum(ETH) and get rewards supporting the Eth 2.0 network upgrade. The biggest challenge is your Eth will get locked for at least a period of 2 or more years, but you will continuously get rewards on your staking for the same.

Cons: Long Locked period where you cant move the coin.

 

Minimum Investment: 0.001 ETH
Fees: Zero fees
Returns: Dynamic APY determined by the Ethereum network
Distribution: Daily
Risk Level: None, guaranteed capital earnings.
Coins: ETH.

 

 

High-Risk Terms – Maximize Your Earnings

8. Defi Staking ( BINANCE )

Earn passive income without technical knowledge, hardware, or the need to manage your private keys and wallets. Stake BTC, BUSD, DAI, USDT, or BNB, and start yield farming.  All funds and monitored by Binance’s real-time systems. Select between fixed and flexible terms.

Minimum Investment: Depending on different staked tokens (as low as 100 USD)
Fees: Zero fees
Returns: Dynamic APY of up to 60%
Distribution: Daily
Risk Level: High
Coins: BTC, BUSD, DAI, USDT, or BNB.

Read More:   What is DeFi Staking?

 

9. Liquid Swap ( BINANCE )

Liquid Swap Provides you income making your coin temporarily available on a liquidity pool.

Liquidity Pool: This is a collection of funds locked in a smart contract and is used to facilitate decentralized trading, lending and more.

Your coins are put on the market (Liquid) temporarily and can be withdrawn at any time. You get a margin in real-time based on the total liquidity available in the market. You have to stake in pair. If you stake one coin, it is equally divided into two coins based on the pair you choose. The risk is the price ratio between coin pair plays a role. The interest you get is highest here.

Eg: BNB / INJ:     Entry Price: BNB: 500$, INJ: 20$.                  You stake 1 BNB

Exit Price(30 Days): BNB = 600$, INJ – = 21$. You make 583.5 $.
Extra 83.5$ But You actually lose on BNB. From 1 to .97 BNB.

So Risk is HIGH.

NOTE:     Always stake the pair equally 50% each and not 1 coin

Minimum Investment: $10 for USDT/BUSD
Fees: 0.04%
Returns: Depend on your Share in the pool and can go up to 50-80%
Distribution: Real-time distribution
Risk Level: High
Coins: Multiple Coin Pair Available.

 

 

Airdrops

Airdrops are a cheap or free way to earn money from cryptocurrency. The concept of airdrop refers to the widespread distribution of cryptocurrency free to the public to gain the userbase. Recently a friend of ours got 6000$ worth of coin free. Binance recently airdropped 100 TWT tokens for all the holders, which is around 100 USD right now. Even the popular coin TRX was airdropped, which now worth thousands of USD.

You can keep track of Airdrops here:- https://airdrops.io/

 

Hardfork

Hardfork happens on the blockchain. Sometimes it’s hard to put an update on the existing chain due to the lack of consensus. So developers split a totally different chain, and the investor receives equivalent holdings on the new chain. (it’s like benefitting from an error). Ethereum Classic forked from Ethereum.

Another Example is BCH, which is forked from Bitcoin. It was given as free in the same amount to people as per their Bitcoin holdings. They keep happening from time to time and even have a positive impact on price action.

 

Buybacks or coin burn

It means a cryptocurrency is bought to be destroyed or ‘burnt’ afterwards. Coin Burn decreases the supply and hence directly increasing the price. Buybacks are generally coin brought to burn and adjust with inflation. BNB coin burn is a classic example. Read here- coin burn

So that’s it guys, hope you’ve learned something here and wish you good luck in your crypto pursuit. And feel free to drop any questions or suggestions.

 

 

VAULD vs other  Major Lending Platform

Vauld offers better and safer returns, but Binance offers more opportunity to earn.

Competitors for Vauld are BlockFi, Ledn, Nexo. Check them out too.

 

Risk VS Return Graph and Conclusion

 

  • Saving has no advantage.
  • A Fixed deposit is the safest option for someone who does not want to take risk as it’s liquid enough and gives a good return.
  • Launch pool is a good place to have a decent and sometimes greater reward with less risk.
  • Eth 2.0 Staking makes sense for farming and earning long term returns on ETH.
  • Liquid Swap is highly risky and should be avoided unless you are advanced level. Trade smart and you can quickly grow.
  • You should follow Airdrops when possible as it’s free coins. Not all are great but some are big.
  • Hardfork is more following the news and being up to to date.
  • Coin Burn or Coin Buy Back is again a rare event but happens from time to time

 

Be Smart and you can Earn Money From Cryptocurrency

 

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