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The concept of getting a cashback as a reward is nothing new. It comes in many forms and is implemented in a number of ways. For example, many credit card companies are said to offer cashback features to their clients to encourage them to spend more and incentivize their continued patronage.
With cryptocurrency or crypto, everyday consumers can also get the same perk without using fiat. If you already have an investment account with crypto, there are means out there that you may use to take advantage of crypto rewards. In the ever-evolving worldwide crypto market today, there are more methods out there than ever for a crypto user to get paid for just storing cryptocurrency, learning about crypto trends, or engaging with decentralized finance (DeFi) applications.
Before diving into the lucrative world of crypto rewards, it’s highly recommended that you educate yourself with all of the crucial know-how there is. Keep on reading to learn more about tips in maximizing crypto rewards that professional traders also approve.
1. Stake Some Of Your Crypto
You may receive rewards simply by 'locking' a portion of your assets into a staking pool for a certain period using crypto like Solana and others similar to it. Rewards will be given in return for your cooperation. If you expect to keep trading with crypto for a long time, this is a great way to put your assets to work for you instead of just letting them sit idle on the sidelines.
For example, the best place to stake Solana and other cryptocurrencies to look for is the best platform designed to accommodate your personal choice. However, despite the built-in security guaranteed in a large majority of crypto operators, making the wrong choice might have an unexpected influence on your stake's yearly returns and even the entire network health.
Thus, it’s highly advised to conduct research about the platform’s reputation, ask for fellow crypto investors’ feedback, and many more to make an intelligent choice. To maximize your chances of success in crypto staking, it’s recommended that you avoid increasing the stake of your chosen network's largest validators.
2. Calculate Your Return On Investment (ROI) Figures
Owning crypto is an indispensable part of crypto trading to earn rewards and grow your investment. But have you sat down and analyzed how much gains you’re poised to pocket in every dealing you undertake? Knowing your withholdings’ possible return on investment (ROI) numbers is a must for every aspiring investor.
Taking the current value of an investment and dividing it by its worth when it was first made is how you get the ROI rate. To calculate the return on your investment, the ROI is multiplied by 100. Getting the ROI is done by subtracting the selling price of a crypto asset from its initial price. Then, divide the figure by the investment's actual cost.
The ROI would be 3.0 if you originally bought USD$5000 worth of crypto and sold it for USD$20000, for instance. As a result, you were able to obtain a return of three times your initial investment or a whopping 300%. Still, there are other considerations to consider such as transaction costs and the crypto's liquidity overall.
If you're considering purchasing or selling a cryptocurrency to earn rewards, you'll want to keep transaction costs and other related expenses in mind.
3. Maximize Your Credit Card Rewards
Suppose you want to purchase crypto and other digital currencies. In that case, you'll need a credit card that comes with a crypto exchange feature. It’s a special class of credit cards that utilizes cryptocurrency tokens instead of cash or statement credits. Case in point, it's possible to get USD$20 worth of Bitcoin for every USD$1,000 you spend in one month on a card that gives you 2% back in crypto rewards.
As a result, you don't need a separate currency exchange to purchase and sell crypto. It's a much more manageable method to reap crypto rewards if you’re still a newbie crypto trader trying to test the waters. Depending on the card company, purchasing crypto directly can lead you to earn credit card rewards and save on commissions.
4. Buy And Hold Dollar-Pegged Stablecoins
Though it offers a myriad of benefits, staking crypto may have an impactful drawback. For those who don’t like much volatility, getting paid in the underlying cryptocurrency while doing staking isn’t usually advised. Nevertheless, if you purchase and hold dollar-pegged stablecoins, you may get more solid incentives.
Dollar-pegged stablecoins are digital currencies that combine the advantages of a decentralized global payment system while firmly anchored to a stable currency. While they’re very popular and enjoy mass appeal, the increasing number of launches and the variety of unique solutions available for achieving price stability may lead to varying levels of success.
Takeaway
It’s said that there's one thing that everyone knows and agrees about investing in crypto: it’s full of uncertainty. In most cases, they can go up and down dramatically. Since there's no centralized organizing body governing crypto or physical product associated with it, it's hard to point to any positive impact on the value of cryptocurrencies.
Nonetheless, there are still a large number of people out there that are enticed to the possibility of obtaining massive gains in a short period of time and earning crypto, unlike conventional trading instruments. The abovementioned pro tips can help a starting crypto trader like you to know your way around offerings to take advantage of crypto perks. Following due diligence and setting up security measures are highly advised.
About The Author
Sky Mann is a junior at the Pennsylvania State University and an avid and self-thought crypto trader on the sides. After developing an interest in the workings of the crypto market during their early high school years, they’re now able to enjoy financial freedom and share their knowledge about crypto via contributing posts to different online sites.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.