You can earn crypto in a vast variety of ways—from regular day trading and arbitrage trading to even margin trading. Most of these methods, as you can gather, hinge on some sort of trading, i.e. actively exchanging assets and funds in a designated environment. However, it’s not the only way to make a profit.
CoinDepo offers several powerful and unusual ways of earning money from cryptocurrencies—from interest on crypto fixed deposits to lending. Employing these methods in a good, thought-out strategy enables you to massively expand your crypto operations without taking on any additional risks.
So, what are these strategies and how can you incorporate them into your investor routine?
Regular Trading Explained
To understand what you’ll be supplementing with CoinDepo solutions, it would be wise to first realize what day trading is like, as well as its main dangers and benefits.
Day trading is basically a way of making a buck from buying and selling cryptocurrencies on an exchange day in and day out while they are open. You can try visualizing a typical way that somebody would invest into crypto—speculative, often short-term, ‘buy low sell high.’ That’s day trading.
It has its benefits:
+ Diversity potential. Day trading isn’t really a strategy. It’s a broad catch-all approach that can mean anything. One of the few unifying factors is that you need to trade actively and during the day—basically, be a regular trader. This obviously presents a lot of opportunities.
+ Profit opportunities. The thing about day trading is that you can do anything with your money and time. If you have the skills and the necessary information, you can absolutely let your money work for you. That’s why so many people join the crypto world in the first place. Its price fluctuations allow for great profit.
+ Exponential growth. While risky and demanding, success in day trading can be accumulative. You can make a good move after a good move and gather an ever-bigger capital to move it back into the market. One great decision can be an entryway into a great career.
Unfortunately, there are also dangers:
– Need for know-how. You can’t really be a proper day trader unless you’ve spent countless hours learning—from your own mistakes, manuals, or professionals.
– Market risk. While continuous success on the market is a possible story, it’s also possible to lose capital fast if you aren’t careful.
– Active participation required. This is something that traders have been trying to minimize for a long time. While automated orders and trading bots exist and thrive, you still need to focus your attention constantly on the market.
– Risk of fraud. Fraudulent crypto exchanges are less common than fraudulent stock brokers, but being cheated on by a provider is still possible.
– Instruments. Tools, graphs, and indicators all need to be understood and constantly monitored to provide results. Trading without them is something people do, but large profits are only attainable through technical (and fundamental) analysis.
So, it is still one of the primary ways of making money off crypto. The problem is, however, that you are dependent on so many small factors. Even people who entrust their funds completely to a professional investor with payoff promises can’t be 100% sure of success. This is why you can’t always be absolutely independent while trading.
CoinDepo offers several services that help alleviate many of these concerns. Through the combination of crypto lending and interest on a crypto FD, it’s possible to achieve a much larger degree of financial independence and stability. How? Let’s find out.
Crypto Fixed Deposits
Fixed deposits are a brand new way (for crypto) to create revenue. It’s been a staple banking product since many centuries ago, but the decentralized world has its limitations. One of them is the inability to fully implement banking solutions with the same speed as centralized providers do.
It wasn’t until recently that CoinDepo finally implemented these in the crypto world, as well. They work like savings accounts – basically, a single deposit can be left in the care of a banking institution to accumulate interest. The company gets access to more funds, rewarding you for your trust with an annual yield.
It works like this:
1. You deposit digital assets, selecting a cryptocurrency and payoff period. The longer your compounding period, the higher the annual yield rate will be.
2. When the payoff time comes, you receive a return on your crypto deposit. The interest rate is calculated annually based on the compounding period you choose. The returns are simply divided into smaller pieces if you want them more frequently (daily, weekly, monthly, etc.)
3. You keep receiving passive interest income until such a time when you don’t want to anymore.
As a result, you can earn up to 24% APR + compound interest on your stablecoins (USDT, USDC, DAI) or up to 18% APR + compound interest on BTC, ETH, or other regular crypto. All this time, you don’t have to do anything, even monitor the market. Your returns don’t depend on any market performance—they are guaranteed and fixed. That’s the benefit of working directly with a company in a symbiotic relationship.
Crypto Lending without Collateral Account
The Instant Credit Line is another primary service offered by this provider. It doesn’t need a collateral account, which is new for the industry.
By ‘collateral’ one typically means collateral for margin trading or a crypto loan, which is your crypto assets frozen in a collateral account on a cryptocurrency exchange or crypto lending platform. Your loan depends on the size of your crypto savings, and you will be penalized if you decrease those below a certain total worth.
The CoinDepo style of lending, on another hand, is more civil and humane. The loans are smaller in size, but the active usable portion of your margin amount wouldn’t be much bigger.
You’ll still have to deposit digital assets if you want to take on a loan, but it’s not a typical collateralized loan. Your loan amount will be 50% of your crypto portfolio, thanks to which you aren’t penalized in any way if the loan is lost. It’s just paid off using your deposited funds. While your deposits are active, you will also earn interest according to the terms of crypto fixed deposits in CoinDepo Compound Interest Accounts.
That’s also why you don’t pay any interest on these loans. They are covered by your own interest, and then some.
These two methods ensure a much higher degree of financial independence—both by enabling passive interest income and by offering you a way to increase your livelihood without any particularly penalizing strings attached. It doesn’t have all the same benefits as day trading, but doing business with CoinDepo is a very viable alternative, as well as a great contribution to your portfolio.