DeFi Best Of

How to Make Money with Cryptocurrencies in 2021

Pinterest LinkedIn Tumblr

The crypto world has always had its own appeal, providing significant gains for those who believed in this new sector from the early days. Today, cryptocurrencies have become a mainstream investment that most people know about and that is less volatile, but the gains are still there (for those who know how to move). Let’s see today how to make money with cryptocurrencies in 2021, following some expert advice!

Making money with cryptocurrencies in 2021

1) Invest in Presales and IDOs: If you have the opportunity to get into some presales or be whitelisted in some IDOs, the gains are guaranteed! This only applies to projects with a great foundation that you know will not turn out to be SCAMs. Unfortunately, getting into presales or being whitelisted is very difficult, as there are always tens of thousands of people ‘fighting’ for a few hundred spots. To find such projects follow sites like Polkastarter, PAID Network, DuckDAO, MakerDAO, Balancer, DODO Exchange and so on.

2) Invest in projects before they are listed on big exchanges: The first point has become very difficult so most try to make money by buying tokens when they are listed on Binance or other big exchanges. And this is absolutely wrong! In order to make really good money, it is important to invest in a legitimate project while it is only listed on DEX like Uniswap, PancakeSwap, Balancer and so on. The audience on these DEXs is smaller than on the famous exchanges, so you can always buy at a discount. And if the same project is then listed on Binance or other exchanges, you will have hit the jackpot!

3) Buy DIPs in legitimate projects: This is my favourite strategy. When you have been following a project for weeks or months and see a sudden dump of 20 or 30% without any bad news (hacks, exploits etc) it is always some whale selling a large amount of tokens and the price will go up in a few minutes. Be ready to buy these dips to get 20-30% almost guaranteed gains. For this reason, always follow a dozen or so projects, don’t limit yourself to just one.

4) Diversify your portfolio: Instead of investing everything in 1 or 2 cryptocurrencies, try to make one or two portfolios. One could be of tokens listed on Binance/Coinbase and another riskier one just for tokens listed on DEXs. I tried this strategy and realised that during the days of strong dumps my portfolio still suffered fewer losses than usual. This is because there are always tokens that perform great, even during red markets. This is a great strategy for those who invest large sums of money.

5) Add liquidity on Uniswap on long-awaited projects: To give an example, the SUPER project generated volumes of around $180,000,000 on the first day, giving away fees of $500,000 to liquidity providers. And the liquidity was only $3,000,000. So the gain for the liquidity providers was 500k on a 3M investment. Not bad for a day’s work, right?

6) Hold serious projects with a good vision: HODL is always the best strategy to make money with cryptocurrencies. There are legitimate projects that are valued at 10-20-30 million at their launch but then reach a few billion in capitalization, resulting in x50, x100 gains and so on. Some of these projects are AAVE, Synthetix, SPI (Shopping.io) and so on. There will always be opportunities like this so try to follow the market to find new ones.

7) Avoid Influencer-driven tokens: These are tokens that have paid to be sponsored and in most cases are pump and dump tokens. Avoid!

Write A Comment

chainlink
Chainlink (LINK) $ 33.46
yearn-finance
yearn.finance (YFI) $ 44,217.00
ethlend
Aave [OLD] (LEND) $ 3.62
uniswap
Uniswap (UNI) $ 31.37
havven
Synthetix Network Token (SNX) $ 18.76
uma
UMA (UMA) $ 26.34
compound-governance-token
Compound (COMP) $ 450.93
maker
Maker (MKR) $ 2,300.01
wrapped-nxm
Wrapped NXM (WNXM) $ 58.94
0x
0x (ZRX) $ 2.10
loopring
Loopring (LRC) $ 0.565781
republic-protocol
REN (REN) $ 1.05
kyber-network
Kyber Network (KNC) $ 3.79
numeraire
Numeraire (NMR) $ 74.15
band-protocol
Band Protocol (BAND) $ 17.68
terra-luna
Terra (LUNA) $ 15.03
yfii-finance
DFI.money (YFII) $ 2,982.02
sushi
Sushi (SUSHI) $ 14.07
balancer
Balancer (BAL) $ 50.92
thorchain
THORChain (RUNE) $ 10.75
reserve-rights-token
Reserve Rights Token (RSR) $ 0.087350
ampleforth
Ampleforth (AMPL) $ 0.968300
nest
Nest Protocol (NEST) $ 0.057204
serum
Serum (SRM) $ 7.58
keep-network
Keep Network (KEEP) $ 0.734043
augur
Augur (REP) $ 47.88
curve-dao-token
Curve DAO Token (CRV) $ 3.04
kava
Kava.io (KAVA) $ 6.83
bancor
Bancor Network Token (BNT) $ 6.98
just
JUST (JST) $ 0.150747
gnosis
Gnosis (GNO) $ 174.44
force-protocol
ForTube (FOR) $ 0.155041
cream-2
Cream (CREAM) $ 149.84
melon
Enzyme (MLN) $ 88.58
tellor
Tellor (TRB) $ 77.21
akropolis
Akropolis (AKRO) $ 0.071753
aurora-dao
IDEX (IDEX) $ 0.187470
nectar-token
Nectar (NEC) $ 0.059139
bzx-protocol
bZx Protocol (BZRX) $ 0.847625
airswap
AirSwap (AST) $ 0.551976
switcheo
Switcheo (SWTH) $ 0.078282
orion-protocol
Orion Protocol (ORN) $ 15.77
dforce-token
dForce Token (DF) $ 0.461017
meta
mStable Governance Token: Meta (MTA) $ 2.75
pnetwork
pNetwork (PNT) $ 2.58