chambersjr

Making An Income Through Crypto Currency: Here’s What You NEED To Know.

Added 2022-10-14 10:35:29 +0000 UTC

Making money in your sleep is no longer a dream. (Pun intended)

Cryptocurrency can be a reliable source of income for anyone who knows how to navigate the market.

However, cryptocurrency is a high-risk investment because it is volatile in nature.

cryptocurrency is a high-risk investment because it is volatile in nature.

(I did that on purpose)

The cryptocurrency market can be difficult to navigate, especially when you first enter it.

The price of a Crypto can shoot up to the highest of highs, but they can also come crashing down to terrifying lows just as quickly. It can literally happen overnight.

So if you’re looking to make stable returns, this might not be the best option for you.

Crypto has become widely known and is still gaining in popularity, it’s important remembering that it’s only been around for just over 10 years.

Nobody really knows what will happen to cryptocurrencies in the future and you need to be brave to enter these uncharted waters as an investor.

In my experience so far, I’ve yet to be involved in a crypto projects that've lasted more than 6 months. Most of them die as soon as a few days up to a few months (if you’re lucky)

Timing is also a big thing in this game. Whilst nobody can predict the future, you ideally want to get it whilst prices are low and are about to shoot up and then sell off at the highs.

A BIG LESSON I HAVE LEARNED in crypto is knowing when to sell.

I have came into this space with the mindset of a traditional investor. Where I would want to keep on reinvesting and recompounding my profits…..this has been a hard and expensive lesson I have learned so far. Because most of the projects come crashing down in short time frames which leads to me losing my money.

Which is why now, I will only be in most crypto projects for a week or 2 MAX!

What are the different kinds of ways you can make money in Crypto?

Ponzi schemes (yes)
Staking
Holding coins

Crypto Ponzi Schemes

Crypto Ponzi schemes can actually be EXTREMELY REWARDING. But it really depends on how early you get in.

Ponzi schemes work best for people who get in early because it uses the new investors money to pay off the early investors.

Ponzi schemes have such a bad reputation but that usually comes from the fact that there are unfortunately more losers than winners.

But if you go into it with a smart strategy, it can be rewarding for you.

You do not want to be in these types of projects no longer than 3 days. These types of crypto projects are notorious for rug pulls and disappearing within a week or two.

How to identify a Crypto Ponzi Scheme?

If a project is offering INSANELY high returns over a VERY short time frame, it’s most likely a Ponzi.

Example: 15% return on your investment within 24 hours.

So if you put in £10k, you will get a profit of £1,150… In 24 hours.

So if you put in £1k, you will get a profit of £150… In 24 hours.

Not financial advice but I would not recommend put in more than 1K in these types of projects.

Things like these are a blatant Ponzi scheme and that’s because there’s just no way that type of return on investment can be sustainable over a period of time.

It’s possible to get high returns, but usually that can be achieved from active day trading which is a skill that takes time to be efficient at.

If you play this strategy correctly you could earn a decent amount of extra income, depending on the amount you initially invest with.

So these work BEST for those who get in on the 1st or second day of the project being released.

You can get in, make your profit and then GET OUT ASAP! If you get in late or stay in the project too long, two things can happen…

A) The project will run out of money and it won’t be able to pay or return you your funds

B) A rug pull

A rug pull is basically when the developers decide to randomly shut down the project and disappear with all of the investors money. This happens A LOT within the world of crypto staking projects.

Usually crypto developers are anonymous and no-one knows their identity which is what makes it easy to get away with rug pulls AND crypto being unregulated, theres very little (if anything) the authorities or law can do about it.

That’s why it’s called DeFi ( Decentralised Finance)

I come across these quite frequently so I WILL 100% show some future crypto ponzis I’ll get involved in, but please be advised that these do not last long and they are very, very risky….but very very rewarding if you get in and out early.

Ultimately you want to be in a steady and stable DeFi plays over the long run but don’t sleep on these short term plays because If you have a good strategy, this can become a really profitable way build up a fast amount of cash which you can then use to put into those steady and stable ones which don’t offer a crazy high return on investment.

Staking

Staking is when you lock crypto assets for a set period of time to help support the operation of a blockchain. In return for staking your crypto, you earn more cryptocurrency.

In simple terms, staking is one strategy that can even generate a passive income. You simply deposit coins for a fixed period of time to earn interest.

Staking can offer returns that exceed what you could earn in a savings account by your traditional banking.

Traditional banks pay interest because the bank uses your funds for things like loans and other investments. In staking, your cryptocurrency is put to use as well. The term staking refers to the Proof Of Staking or “PoS” protocol, in which your deposited coins are used to verify transactions on the blockchain.

Verified transactions become new blocks on the blockchain.

For cryptocurrencies that support staking, proof of stake is necessary for that process. Whoever participates in successfully creating a new block is rewarded.

With crypto staking, on the low and safe end, you could expect anywhere between 10-20% ROI annually….On the high end, it could easily be over a 100% ROI on your investment. however it’s important to understand that more risks are associated with a high percentage ROI.

Staking isn't an option with all types of cryptocurrency. It's only available with cryptocurrencies that use the proof-of-stake model.

This Risks:

Crypto prices are volatile and prices can drop quickly. If your staked assets suffer a large price drop, that could outweigh any interest you earn on them.

Staking can require that you lock up your coins for a minimum amount of time. During that period, you're unable to do anything with your staked assets such as selling them.

Some staking programmes will not give you back your initial deposit.

With some of the Staking projects, they will only pay you back your profits or interest earned on your deposit. This is something I will most likely NEVER involve myself in again.

The first ever project I got involved in was a project called ’Strongblock” and this project offered great profit returns however, the money you invest, you don’t get back and this was a very expensive project to get into.

I had deposited around £12,000 initially and about £5,000 the following month, bearing in mind, this deposit I will never get back, due to the promise of receiving a “consistent” return on investment for the long term. At first it was performing REALLY well, which is what actually motivated me to deposit more into the project.

Well about 4 months later, this project started to CRUMBLE. Leaving me with no profits AND I couldn’t get my deposit back. A very hard and expensive lesson I have learned so far in crypto.

So if you are going to be staking your crypto, I (personally) would not recommend getting into projects where you won’t be able to get your initial deposit back.

If you’re wondering what’s a good staking platform, then check out FreewayFI:

https://twitter.com/FreewayFi?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

FreewayFi offers a 43% ROI.

but I have found a really good article where the author really goes into DETAIL about this project.

https://captainaltcoin.com/freeway-crypto-review/#:~:text=Freeway%20is%20a%20completely%20legit,the%20most%20famous%20EU%20institutions.

I would highly recommend checking out this company on YouTube and hearing different opinions about it as well.

To me, It’s a GREAT project, however I am a crypto DEGEN, so 43% is a bit too conservative for me, I am after the 100%+ returns 😂🙌💎

Crypto Degen = Someone who has a VERY HIGH risk tolerance and wants the BIG GAINS.

I’ve written an article on understanding your risk tolerance, read this before you invest Into ANYTHING!

Risk tolerance article : https://www.patreon.com/posts/article-your-66279707?utm_medium=clipboard_copy&utm_source=copyLink&utm_campaign=postshare_creator

Holding Coins

Now when the average person hears about crypto, this is what they often think crypto is all about.

Buy bitcoin, hold it and hope it prays it someone shoots up.

Many people are even unaware of how many crypto coins there even is. (Theres more than 12,000 coins)

This strategy of crypto is actually not a bad way of investing, ESPECIALLY during a bear market. During a bear market is when a lot of crypto coins decrease in value

So, many crypto investors will be using this as an opportunity to to buy, buy and buy some more. They will usually allocate most of their money towards Bitcoin and ETH

In November 2018, Bitcoin was worth £3,000

In November 2021, Bitcoin was worth £48,000

In November 2018, ETH was worth £150

In November 2021, ETH was worth £3,000

Currently in October 2022, Bitcoin is fluctuating between £15,00 - £20,000

Currently in October 2022, Ethereum is fluctuating between £1,000 - £1,500

Many people are using the current low prices to buy more (Not financial advice)

Sebastian Ghiorghu, on youtube has spoken about this quite well on a few of his YouTube videos, he’s got a good YouTube channel too. I enjoy his content

In this video linked below he talks about his strategy on how he plans to buy and hold certain coins which have a lot potential to sky rocket when the crypto market recovers.

https://www.youtube.com/watch?v=LMu9w7iSPcc&ab_channel=SebastianGhiorghiu

Holding coins is not a strategy I PERSONALLY will do simply because I prefer the higher risk plays and I don’t want to be sitting around and “WAITING” for the crypto market to recover which is why Im usually investing into higher risk projects due to receiving high and quicker returns.

When I have about 500K excess cash, then I will most likely use the strategy of buying and holding coins because being a 10x return on 500K is much more rewarding than seeing a 10X on 50K. (For me…for you it may be different)

So my strategy is to invest 5K - 10k into these smaller and higher risk projects…get high returns (losses will happen) and grow it to a couple hundred thousand. Then dump those hundred of thousands into holding certain coins OR putting it into a low risk staking platform.

Iman Ghazi speaks about this….

He is a 21 year old who grew his networth to $30M in 2 years within crypto. But Theres a video where he speaks about using smaller money to put into higher risks projects to get rich ‘faster’ and then using the high profits and putting it into lower risk investments.

No, I didn’t “copy” this idea from him, I have always thought this way so it is very refreshing to hear someone who shares a similar opinion back this up.

(Most of these kinds people on the internet think very similar to myself, so it makes me laugh when bitches be making posts talking about how I “copy” people…I even remember how people started to say Im trying to copy Kevin Samuels and Andrew Tate simply because we share similar opinions…..dickheads fr 😂)

*I will link the video where Ian Ghazi talks about it but hear me out first*

I want to make it VERY CLEAR, that this strategy is VERY - VERY risky! It’s a high risk, high reward strategy. Please read the risk tolerance article to understand your risk tolerance.

This idea may seem cool but you have to understand that people like Iman Ghazi run a business that makes him A LOT of money PER MONTH, which allows him to be able to carelessly play around with the extra cash.

These kinds of videos an information can pass you up and spike up positive emotions which leads to you not thinking straight and doing something stupid, so If you are someone who has a job and very important responsibilities, you don’t want t be carelessly throwing around cash like that.

Play around with a comfortable amount, the returns may not be astronomical….but, it is STILL an ROI and you can slowly build up from there.

You can easily come up with a comfortable amount of cash to play around with: just quit spending money on bs, you’ll be surprised at how much you will save, this way, when good financial opportunities come, you can take advantage of them 😊

The man Ghazi video:

https://www.youtube.com/watch?v=yG27e6TfW0E&ab_channel=ImanGadzhiMoments

https://www.youtube.com/watch?v=5D33B1n991s&ab_channel=ImanGadzhi