Layer 2 is a scaling solution built on underlying blockchains like Ethereum. It solves the problem of network congestion by processing transactions off chain, at lightning speed and extremely low cost, while still ensuring security. And here are some ways you can make huge profits on Layer 2.
š¹ Hunt for Airdrop in the ecosystem
This is the most popular way to make money on Layer 2 when you become an early user of new ecosystems.
Next by making transactions and interacting regularly with dApps, you have the opportunity to receive free tokens worth thousands of dollars when the project launches.
šø Providing Liquidity Mining for the Ecosystem
With the incredibly low gas fees on Layer 2, you can participate in providing liquidity for DEX or lending protocols even with a small capital.
You won't have to worry about transaction fees eroding your profits like on Ethereum, thus receiving attractive interest rates from transaction fees and project reward tokens.
š¹ Investing in Ecosystem Tokens
Instead of buying the governance tokens of Layer 2 itself, which are often highly valued, look for promising native projects built on it.
Leading DEX or derivative protocols are often the first places where money flows in when the ecosystem explodes.
šø Hunting for low cap gems
Layer 2 is a haven for new, low capitalization startup projects that havent yet received much attention.
Finding and investing early in tokens not yet listed on major exchanges can offer the opportunity to multiply your account if you know how to filter quality projects.
Are you ready to move your funds to Layer 2 to optimize profit, or are you still willing to pay the expensive fees at Layer 1?
This article is for reference only, this is not investment advice. Please read and consider carefully before making a decision.
