The 5 best ways to make money on a cryptocurrency exchange
Cryptocurrency exchanges have a major place in the digital asset market. Cryptocurrency exchanges have come a long way before becoming comprehensive platforms. Now, users are offered different ways to earn money. These ways are suitable for customers with different skills, experience, and capital. We look at the most popular ways to make money on crypto exchanges.
Earning from crypto exchanges is good, but earning from affiliate marketing of crypto is even better. We have prepared an article describing 5 popular strategies for making money from crypto affiliate marketing. Follow the link and read the publication.
In simple words about cryptocurrency exchange
Digital currencies (Ethereum, bitcoin) can be sold, exchanged and bought. Users perform all these actions on a cryptocurrency exchange. The online platform acts as an intermediary between sellers and buyers, provides them with tools for trading. Assets can be stored, invested and traded on the platform.
Cryptocurrency exchanges come in 2 types:
- Decentralized (DEX) platforms. Users trade without identity verification, they control their assets on their own. Trading can be difficult for beginners, and the exchanges do not have national currencies.
- Centralized (CEX) platforms. Users like the exchanges' user-friendly interface, high liquidity, and access to popular tokens. After verification, customers will be able to use fiat money.
You can learn even more information about the different types of crypto exchanges. In detail, we consider CEX exchanges, which are safe even for beginners.
5 ways to earn money suitable for experienced clients and beginners
Centralized cryptocurrency exchanges are full-fledged platforms with multiple ways to make money. These ways are available to both beginners and experienced crypto investors. The top 5 ways include the most popular options.
Trading
A common way to make money is by trading on a cryptocurrency exchange. On any platform, there is such a popular feature. The method includes different directions: leveraged trading, affiliate marketing, P2P direction. To trading include trading bots, spot trading, copying transactions. All of the above directions have certain pros, cons, risks.
Lendings and deposits on crypto exchanges
Exchanges offer clients a great income in case of locking cryptocurrency for use on leverage. The user gives their cryptocurrency to get interest in return. If the time period is small, the interest will not be maximized. Investors earn extra income by holding the cryptocurrency on the exchange.
Experienced users successfully cooperate with decentralized lending platforms. Profit depends on the market conditions of the exchange and the chosen currency. You need to learn all the information about the work of DeFi services to start making money.
Steaking
This method has similar characteristics with bank deposit. Users blockchain cryptocurrency to earn rewards. Rewards are offered for keeping the network secure.
Blockchain-based digital currencies can be blockchain-based, although cryptocurrency exchanges have created a user-friendly interface. Beginners will not have to create noncustodial wallets and search for information for a long time. The average yield on crypto exchanges is 1-5% per annum, but the percentage is affected by market conditions and the specific network.
Liquid staking is offered on some cryptocurrency exchanges. Users lock their assets and in return they receive tokens. The tokens can then be used to generate additional income.
Tokensails
Over time, the format of token sales has transformed. Centralized exchanges now host launchpads, in which users buy coins on the pre-market. Launchpads are often held on Binance, and customers with verified accounts can participate.
The main principle is that the user buys a token at a discounted price. After listing, the coins can be sold at a higher price. This method is profitably provided that the price of the token increases after listing.
Using referral programs
Another popular way to earn money is special referral programs. This opportunity can be used by people who have their own audience and know how to promote products well.
The user brings potential clients to the crypto exchange and receives some kind of reward. It can be a part of the commissions of new clients. After creating a special referral link, it is promoted on any platforms. If the user follows the link and performs actions, its owner receives a certain reward.
Referral programs can be promoted without direct financial investment. This method will appeal to beginners who are not ready to spend their money.
Conclusions
Cryptocurrency and crypto exchanges are elements of the digital economy. Exchanges have turned into multifunctional ecosystems that give people the opportunity to earn good money. In the crypto industry, adult users will be able to find the best way to earn money. When choosing a method, you need to consider your level of knowledge and experience.
Centralized platforms are relatively safe to use. Beginners should be well aware of the principles of cryptocurrency exchanges, the mechanisms of virtual services. If a person takes into account all the risks, he will avoid unforeseen financial losses.
