Invest in new altcoins
Major cryptocurrencies like Bitcoin and Ethereum have already earned dozens of millionaires and may continue to do so for years to come. However, altcoins offer higher returns than these popular cryptocurrencies because they have more room to grow.
For example, the value of Binance Coin (BNB) has grown by more than 1,300% in the past two years, while that of Bitcoin has only grown by about 120%. This is because newer cryptocurrencies have more room to grow than established cryptocurrencies like Bitcoin and can therefore generate higher returns.
The trick is to find the most promising new cryptocurrencies, because most new cryptocurrencies tend to fall into oblivion. Of the roughly 20,000 cryptocurrencies listed on CoinMarketCap, only a very small number will be successful and it is necessary to identify which ones have the most potential for success. Preferably those benefiting from the support of venture capital firms.
Bet your cryptocurrencies
Did you know that you can make money simply by holding your cryptocurrency in a blockchain network? If not, you should really familiarize yourself with the concept of stakingwhich consists of locking your cryptocurrencies in a blockchain and earning rewards.
It’s the same concept as cryptocurrency mining, except that you don’t need to have any hardware. Furthermore, the returns can be very high, reaching as high as 18% for some tokens, which is much higher than the return of any savings account.
However, you should be careful, as the collapse of TerraUSD (UST) has shown that staking carries risks.
Invest in decentralized finance (DeFi)
What’s the point of keeping cryptocurrencies in a wallet waiting to sell them when you can put them to work? This is what DeFi allows you to do, essentially by providing banking services on the blockchain. For example, you can lend your cryptocurrencies and earn interest that can reach 20%! Again, the higher the return, the more risky it is.