Beginner's Guide to Earning Crypto: 5 Ways + Tips to Avoid Pitfalls
💸 1. Spot Trading: Buy Low, Sell High, Start Steady
How it works: Buy mainstream coins like Bitcoin and Ethereum on exchanges (such as Binance, OKX). Buy when the price drops and sell when it rises. In November 2022, I bought BTC at $16,000 and it rose to $16,500 by the end of the year, making a small profit!
Tips:
Only use spare money, invest 50% of your salary regularly, and never go all in!
Set take-profit and stop-loss orders, such as withdrawing with a 5% loss, to avoid chasing highs and getting trapped. 🚀 2. Contract Trading: High Risk, High Reward
How it works: Use leverage to amplify your profits, such as 10x leverage, where $1 becomes $10 in profit, but losses are also doubled. In 2022, the Luna crash bankrupted contract players!
Tips:
Beginners should avoid it, as the risk of liquidation is high!
Practice with a demo account first. There are large accounts on X sharing contract tutorials.
Control your position size, with 1% of your funds being the safest for contract trading.
Suitable for: Experienced traders who understand technical analysis and can tolerate high risk. ⚡️
🔒 3. Holding Crypto for Interest: Earn Interest While You Sleep
How it works: Deposit your coins into platforms (such as Binance's Staking or DeFi protocols) and earn an annual interest rate of 5%-20%. In 2022, I earned 6% on my ETH, steadily!
Tips:
Choose top platforms, as smaller platforms may be risky!
Pay attention to the lock-up period; don't lock up all your flexible funds.
Suitable for: Lazy people who want to hold long-term and don't like frequent trading. 😎
⛏️ 4. Mining: Exclusive to Tech-Savvy Users
How it works: Participate in blockchain computing power with computers or mining machines to earn mining rewards. In 2022, Ethereum transitioned to PoS, rendering GPU mining unprofitable, but BTC mining still has opportunities.
Tips:
Electricity and equipment costs are high, so calculate the return on investment first.
Join a mining pool to lower the barrier to entry. There are miner groups on X for communication.
Pay attention to policies, as domestic mining is strictly regulated!
Suitable for: Players with hardware knowledge and technical expertise. 🔧
🌍 5. NFTs and New Projects: High Potential, High Risk
How it works: Buy NFTs (digital collectibles) or participate in new project airdrops. In 2022, Bored Ape NFTs were popular, but many projects went to zero.
Tips:
Research the project background. A credible white paper and team are the most important!
⚠️ Must-Read to Avoid Pitfalls!
Safety First: Store coins in a cold wallet and only keep a small amount on exchanges. In 2022, the FTX bankruptcy left many people with nothing! 😢
Don't FOMO: The crypto market is open 24 hours a day, and staring at the price charts can cause anxiety. Spend 15 minutes a day checking the charts, and leave time for fitness and binge-watching shows!
