4 Ways to Monetize with Crypto
No matter what kind of a cryptocurrency user you are, we’ll bet that the main goal of every crypto-enthusiast is getting a profit.
CEX.IO has plenty of services to benefit from, which can overwhelm someone coming to the platform for the first time. So we decided to put together a short (and sweet) compilation of all the ways you can earn with CEX.IO.
Both newbies and advanced users sometimes focus only on one thing while losing sight of others. We want this article to be a simple guide on all the ways you can benefit from CEX.IO, so you can take advantage of them all or choose something that fits you best.
You can earn with CEX.IO directly interacting with cryptocurrency assets. Namely:
– Buy & HODL: purchase crypto and just hold it till the price goes up;
– Trading: actively buy and sell digital assets to benefit from price volatility;
– Staking: get rewards for holding specific coins.
And you can earn without a direct interaction with crypto assets. Such as:
And now, we’ll go through each point in a little more detail.
What is “Buy & HODL” strategy and how to gain profit from it?
Holding cryptocurrencies with the idea of waiting until the price goes up is the simplest way to earn crypto.
“Buy low, sell high” – is one key rule here.
And it is a great plan with an “if”. It will work if you believe in the fundamental long-term appreciation of the cryptocurrency overall and if you have the patience to live through the short-term price fluctuations that are not in your favor.
Think of March 13, 2020 Bitcoin price dip. Those who bought BTC right before the crash and had the patience to hold it through the recovery ended up with a profit. Those who didn’t – hurt badly.
Buy & HODL is not about checking the price in your phone 24/7, but about being confident in the long-term trend.
Some people worry that “this is too late” to buy Bitcoin now. However, if we look at the history, market volatility has provided plenty of opportunities to earn on the price appreciation if you held a coin long enough. But you decide for yourself!
There are several ways to get crypto on CEX.IO for holding (and all of them are easy to use 👌):
– Fast and easy Instant Buy with VISA or Mastercard (available for USD, EUR, GBP, RUB)*
When you buy crypto with a card, we use a special type of order, so-called Fill-or-Kill (FOK) order. It is executed immediately and in full or not executed at all. In practice, it means you put how much money you want to spend and see how much crypto you will get. We “freeze” the price for 120 seconds for you to complete the process. This way, CEX.IO guarantees that you receive not less than the agreed amount of cryptocurrency for the agreed price.
Buying on the Exchange is different from buying with a card via the Instant Buy. In order to buy cryptocurrency on the Exchange, you first need to deposit some funds. The ways you can deposit and the fees that apply are all laid out here: https://cex.io/limits-commissions. Be sure to save this key page as you will refer to it a lot while using the platform.
Once you’ve deposited the funds, you are ready to go.
When you buy crypto on the Exchange, you are interacting with other market participants who together form supply and demand for a digital asset. That means, when you place an order, there has to be an order on the other side for your order to fill.
If you buy with a market order, it means you prioritize the fact of the order execution over the price of execution, as the market order is filled at a current market price (which continues to fluctuate while you are placing your order). That’s why this type of order is used when the speed is more important than the specific price of the execution.
If a specific price of the order execution is more important than the timing, you use a limit order.
This way, you may need to wait for a while till your order gets fulfilled (if at all!). But if it is – it will be at the price you’ve specified.
Understanding the difference between the limit and the market orders is crucial when you use the Exchange to buy your crypto. It is a bit more advanced than using the Instant Buy service we described above. Yet, buying on the Exchange is more flexible and can save you some money on fees.
– Deposit to your CEX.IO personal account from another crypto platform or e-wallet
If you already have your crypto elsewhere – nice! Storing it at CEX.IO can give you some good benefits. The simplicity and the security of holding and managing it at CEX.IO is one example. Another is – the possible options to eventually sell it.
While, in many exchanges, there is no way to sell crypto for fiat, we pride ourselves for offering a diverse set of fiat-based payment methods. I.e., you can sell your crypto and withdraw it to your bank account later. Or you can sell and instantly top up your credit or debit cards with proceeds (a true lifesaver when you find yourself short of funds!).
*depending on the cryptocurrency asset some fiat purchases can be unavailable.
But, of course, Buy & HODL does not fit all the coins. Sometimes it is much more reasonable to “sell right now” if the prospect of the long-term storage no longer seems relevant.
How to understand which coins to keep and which to sell? Pay attention to market analytics, the Internet is full of useful information. Note, however, that it is also full of baseless claims aimed at your Fear and Greed. Know the difference!
How do they differ?
CEX.IO is a multi-functional Cryptocurrency Exchange for trading, storing and exchanging your crypto funds. There, the assets actually change hands between the participants of the market. I.e. trading of an asset corresponds with the asset delivery. For example, if you want to benefit from the expected ETH price appreciation, you actually buy ETH. In other words, you get ETH in your possession.
CEX.IO Broker is a platform for digital assets margin trading platform based on Contracts for Difference (CFDs). On this platform, you trade with an instrument that exposes you to the price changes of an asset, whereas you do not have to own that asset per se. By the analogy with the example above, to benefit from ETH price appreciation, you would open a LONG position with ETH/USD pair, whereas your trading account can be in BTC or USDT. That means you do not need to possess ETH to benefit from its price movement.
Active cryptocurrency trading involves more time and specific knowledge than simply holding coins. There is no “right way to trade” – there are many different trading instruments and strategies for different traders. Strategies can depend on what coins you own, how much time you spend on trading, or whether you use one platform or several, etc. But the most important rule of trading – “Buy low and sell high” – still applies here just as much as it does to Buy & HODL.
Similarly, the distinction between the Market and Limit orders remains crucial when you trade actively instead of just holding coins.
Some interesting facts about trading from the CEX.IO team:
Over the years of work in the cryptocurrency industry, we have noted quite curious trends:
– If you wonder how much time you need to spend on trading: Apparently, the time spent working with the platform has quite an importance. According to our data, clients who are active 70% of the business time are successful in almost 75% of cases, which is pretty good statistics!
– If you ever tried to define the best time to buy BTC: According to the 2020 year’s data, Tuesday was the best day to buy Bitcoin, while Thursday is the worst. It may seem strange and illogical, but the closing BTC price on Tuesday was higher than the open price in 60% of cases! Go figure!
What is Cryptocurrency Staking and how to earn using it?
Staking process is somewhat similar to bank deposits: you earn a reward, just like you earn interest, over the deposit time. However, staking and deposits are also very different. Staking rewards you for delegating your coins to participate in the governance of a blockchain (read more here: CEX.IO Will Enable Automated Staking for Its Clients). Banking interest rewards you for letting the bank use your funds (for example, to make loans to other customers).
Usually, participating in staking requires either running a node or delegating your coins to a node. Both need your time for research and some technical wits to do it right. More so, depending on each specific blockchain, your coins would be locked for a period of time, while they participate in staking.
CEX.IO did it differently!
CEX.IO has its own approach to Staking – all you need to do is to buy the supported staking crypto or deposit it to your personal account. Your staking reward will be added to your balance automatically. No additional actions and technical knowledge are required. Rewards are calculated every hour and sent to your account once a month (more frequently soon! ;)).
Fun facts time:
– Love TRX or hate it: 30% of all staking rewards that CEX.IO paid out was TRX staking rewards. More so, every other person who gets staking rewards from us, gets them for staking TRX! Announcing the announcement: TRX seems to be hot for staking.
– Every day is best for something: remember Thursday is the worst for buying BTC (statistically!)? Well, Thursday also seems to be the most active day for staking! Kind of makes sense: when you are bored on the market and BTC is not doing well – what could be a better time to get some staking going?
Affiliate program – making money by referring your friends
Every CEX.IO user has an opportunity to get rewards for the invited users to the platform. How? By participating in our affiliate program (just a fancy name for the referral program). We align our interests with yours. So, you’ll get 30% of every commission from all the transactions performed by people you refer for as long as they use the platform.
Want to participate? Just generate your link here and start sharing it.
If you have an audience, big or small, our affiliate program is surely a way to put some extra money in your pocket. Some of our super-referrers have been with us for as long as 5 years!
Here are some good practices we’ve seen:
- Share the link with your friends or acquaintances.
- Incorporate it in your blog, guest article, YouTube, or social media channels.
Also remember, there is some ethics around sharing your referral link. Dropping it into the chats of all crypto telegram groups is just not the way. Don’t be that guy…
When it comes to the rest – it’s your business, literally. In other words, refer your 3rd cousin, your grandma, your Facebook friends and Instagram followers and get the referral rewards flowing. Well, maybe profiting from your grandma is too much, but what a nice way to positively influence your 12,346 Facebook friends, even if you do not know them!
Keep your eyes open
Now we’ve been through the four basic ways to monetize with CEX.IO. Which one is closer to your heart – you decide! Or don’t choose: try them all and see what works best for you.
And we are not stopping here. There are more ways to earn with CEX.IO coming through the pipeline soon. For now, we are keeping our mouth shut, but we cannot wait to share them with you!
Finally, as our industry evolves, more opportunities to earn are becoming available. With these growing real opportunities, also grows the number of fraudsters that try to present a scam as some hard-to-pass enrichment scheme. Beware of those. Know how to tell the difference. Keep your password and login secure. And remember, the free cheese is only in a mousetrap.
You have your tools you can work with. What you make with them – is up to you!
We wish you profitable operations! Thank you for being with us ❤️