In addition to mining and trading, there are various methods to earn income from digital assets.
In addition to the already traditional ways to make money on cryptocurrency, such as trading and mining, there are also unusual methods. Let’s talk about the most popular of them.
- Creating a Masternode
In some blockchains, in addition to the first level network, where users are served by miners, there is a second level, in which the network is provided by Masternodes.
A Masternode is a crypto wallet with advanced functionality that stores the full version of the blockchain and synchronizes operations on the network in real time. For this, Masternode owners are rewarded. In general, the process is similar to mining, but it has a number of differences.
The most famous network where the Masternode system is used is the Dash cryptocurrency. To run a masternode on the Dash network, you need to have 1,000 Dash in your wallet, Masternode owners receive 45% transaction fees, proportional to the deposit amount.
At the same time, the operation of the masternode does not require large computing power and the creation of mining farms.
In addition to Dash, masternodes can be created on Horizen (ZEN), PIVX (PIVX), Energy (NRG), Sapphire (SAPP) and other blockchains.
- Landing
In the presence of cryptocurrency, it can be transferred to third parties at a percentage. This process is called landing. You can transfer digital assets to crypto exchanges to provide liquidity, or to other crypto investors. The transferred funds are blocked in the smart contract.
For example, on the largest cryptocurrency exchange in terms of trading volumes, Binance, there are two types of landing:
-Perpetual contract. It has a low interest rate, but funds from such a contract can be withdrawn or added at any time;
-Fixed contract. Usually set for a certain period of time (10, 15, 30 days, etc.). Has a higher interest rate. Funds from such a contract cannot be withdrawn until its expiration date.
Binance users have the option to invest cryptocurrency in a perpetual contract using USDT stablecoins. The interest rate on such a deposit will be 7% per annum. A higher interest rate is 12% per annum for the perpetual contract of the CAKE token.
The Axie Infinity (AXS) token fixed contract offers 25% per annum. But the funds invested in the contract will not be available for 7 days. Landing platform Celsius provides a fixed contract on Ethereum at 5.3%.
- Fan Tokens
Various sports organizations issue their own tokens that give fans access to unique content. A large number of such tokens are presented on the Socios.com platform. The application offers tokens of the football clubs Milan, PSG, Juventus, Barcelona, Manchester United and the promotion of mixed martial arts UFC.
Typically, the value of such tokens increases significantly against the backdrop of positive events taking place in sports organizations.
For example, in August 2021, the value of the PSG token increased by 160% in a few days . This happened after it became known about the transfer of Lionel Messi to the PSG club.
On February 15, Formula 1 team BWT Alpine announced the launch of its own ALPINE token.
Initially, the altcoin will be available for purchase on the Launchpad platform, later it will appear in the spot section of the exchange and it can be bought using a bank card or p2p.
A total of 4 million ALPINEs (10% of the total supply) will be allocated for sale on Launchpad. The maximum amount of fees will be $4 million, the limit for one user is $10,000.
