1. Trading Category
Spot Trading: Earning profits by buying low and selling high in digital currencies. This requires investors to have strong market sensitivity, be able to capture market changes in a timely manner, and pay attention to news, technical analysis, and indicators (such as mainstream coins like Bitcoin, Ethereum, and promising altcoins). Spot trading is flexible but also requires managing risks arising from market volatility.
Futures Trading: Investors can predict the future price trends of digital currencies by buying or selling futures contracts. Futures trading can use leverage to amplify profits but also amplifies losses, making it riskier.
Arbitrage Trading: Paying attention to price differences between different exchanges, buying at low-priced exchanges and selling at high-priced exchanges to profit from the price difference. Arbitrage trading requires quick reactions and high market liquidity, but the technical threshold is high, and as the market matures, the arbitrage opportunities gradually diminish.
2. Mining Category
Physical Mining: Purchasing specialized mining machines to verify transactions and generate new blocks by solving complex mathematical problems, earning block rewards. Physical mining requires significant capital investment and consumes a lot of electricity during operation, along with high equipment maintenance costs, noise, and heat issues.
Cloud Mining: Purchasing hash power contracts from cloud mining platforms and entrusting the platform to carry out mining. Compared to physical mining, cloud mining does not require purchasing and maintaining mining machines, making it easier to operate, but one must carefully choose platforms to avoid unreliable projects.
3. Investment Category
Hoarding Valuable Coins: Choosing cryptocurrencies with long-term growth potential, buying in during market lows, and holding them for the long term while waiting for their value to increase over time. This method requires a deep understanding of market trends, patience, and carries higher risks, especially as market volatility can lead to asset depreciation.
Participating in the Primary Market: Investing through private placements, seed rounds, or strategic rounds before the public sale of cryptocurrency projects. This type of investment requires investors to conduct in-depth research on the project’s team, technology, and market prospects. It carries higher risks but can also yield very significant returns.
4. Other Categories
Airdrop Grab: Participating in cryptocurrency project airdrop events to obtain tokens without fees. Common methods include filling out project surveys and engaging in social media interactions. The returns from this method are usually low but can serve as a relatively low-risk entry into the crypto space.
DeFi Mining: Earning corresponding token rewards by providing liquidity by depositing assets into decentralized finance (DeFi) protocols. This method carries higher risks, especially since the security of the protocols and market volatility can significantly impact investments.
GameFi Mining: Completing tasks, participating in battles, or trading game assets in blockchain games to earn profits. GameFi combines gaming and financial investment, has high potential, but faces fierce market competition, requiring strong gaming skills and investment insight.
