A must-read for newcomers to the crypto world: in-depth analysis of ten digital asset profit models + Binance referral code【BTC45】
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Hello everyone, I am your old friend, an editor who has been navigating the world of digital assets for many years. Many new friends often get dizzy from various terms and dazzling investment opportunities when they first enter this circle. It is said that the crypto world is 'full of gold', but how can one truly seize opportunities instead of becoming 'chives'?
Today, let's discuss the reliable and practical ways to make money for newcomers entering the industry. What we need to do is not to blindly chase highs but to establish a clear investment logic and risk awareness.
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First, it is important to emphasize: no matter which method you choose, the high returns of this market are always accompanied by high risks. Please invest with idle money and maintain a learning mindset at all times. Do not borrow to invest; this is the foundation for us to go far.
Here are ten common profit models for digital assets that we have sorted out, covering different levels from low risk to high risk, hoping to provide you with a comprehensive 'wealth map.'
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Stable foundation: Entry-level profit models
For most beginners, starting with the most basic and easy-to-understand models to establish a fundamental understanding of the market is crucial.
1. Long-term holding (HODL)
This is the most classic strategy, especially suitable for investors who are optimistic about the long-term value of leading assets (such as Bitcoin and Ethereum). After selecting assets with recognized value, hold them patiently for the long term. This tests your faith and ability to withstand market fluctuations. The core logic is: wait for the infrastructure to improve, and the overall value will rise.
2. Regular fixed-amount investment (Dollar-cost averaging)
Regular investment is a tool to restrain human weaknesses. Invest a fixed amount at fixed intervals without considering short-term market fluctuations. The benefit of doing so is to disperse the risk of 'buying at the highest point' and reduce the average holding cost. For beginners, it is the best defense against market emotional fluctuations.
3. Spot swing trading
Analyze short-term market trends to buy low and sell high. This requires a certain level of technical analysis knowledge, such as candlestick charts and trading volume. Although profits may come quickly, it requires high speed and psychological quality, so beginners are advised to start with small amounts of funds and prioritize risk control.
Low-threshold passive income: The art of making money while lying down
If you do not want to stare at the screen every day, there are ways to earn additional income while holding assets.
4. Asset staking and lending (Staking/Lending)
You can stake the digital currencies you hold on platforms to participate in the verification and maintenance of blockchain networks, thus earning rewards. Alternatively, you can lend them to those in need of funds, earning interest. This is similar to a fixed deposit in a bank and is a relatively stable source of passive income.
5. Liquidity mining (Yield Farming)
By providing trading pairs of two assets in decentralized exchanges (DEX), become a 'liquidity provider' (LP) and earn trading fees along with additional incentive tokens. **Risk warning:** Be sure to understand the concept of 'impermanent loss,' as asset price fluctuations may result in the value of the tokens you receive being lower than simply holding them.
High risk, high reward: Emerging and frontier fields
These methods often bring huge profits, but they also mean greater uncertainty and potential losses.
6. Participate in new coin offerings (IEO/IDO)
Invest funds during the initial public offering of new projects. If the project performs well after launch, early investors can achieve returns of dozens of times or even higher. However, this requires strong project screening abilities, as most new projects will ultimately fail or go to zero.
7. Discover highly potential non-fungible tokens (NFTs)
Invest in unique digital artworks, collectibles, or virtual land. The key to success lies in judging trends, community culture, and the value of artists. Unlike speculative hype, finding projects with long-term value and strong community support is the right path.
8. 'Play to earn' (GameFi/X-to-Earn)
Participate in blockchain-based games or lifestyle applications, earning tokens by completing tasks, competing, or contributing data. This model is both entertaining and can generate income. However, be wary of 'Ponzi scheme' games, as their returns depend on the continuous influx of new users.
Community contributions and technical exploration
9. Actively participate in airdrops and testnets
Some new blockchain projects distribute tokens for free (airdrops) or invite users to participate in testnet interactions for promotion and testing. Although they require time and effort, the cost is minimal, and once the project succeeds, the returns can be very considerable.
10. Ecosystem development and tool provision
If you have a technical background, you can write smart contracts, develop applications, or provide necessary tools for the existing ecosystem. This is a direct way to create value and the talent most needed in the industry.
Editor's note: Stay calm, continue learning.
No matter which method you choose, remember that in this fast-changing market, there is no everlasting 'wealth code.' All profits stem from your deep understanding of risk and accurate judgment of information.
Investment logic summary: Stick to 'idle money investment,' diversify allocations, and establish a suitable exit mechanism for yourself. Do not change your pace because of others' wealth stories. The market is an amplifier of emotions; the noisier it gets, the more we need to remain rational.
Wishing everyone can find their own rhythm and direction on their journey in digital assets!
