The crypto market can be very crazy. Today you are cashing out big time, and the next day, you could be all to nothing. A recent and trending case study is the Terra Luna massive crash in which many crypto enthusiasts and investors lost huge sums of money.
LUNA was among the top 10 cryptocurrencies at the time before the incident. While the crash details are not our concern, you must understand that you cannot trust the crypto market. Even if Elon Musk is the owner of the crypto/token you plan to hodl, you must hodl with your eyes open.
That said, this article introduces you to several relevant reasons why you should not rely entirely on trading cryptocurrencies; and why you should try out alternative crypto investments other than trading on centralised or decentralised exchanges.
By the end of this nice read, you will learn about Parody Coin (PARO), crypto created with a Reward System and passive income stream in mind. By holding Parody Coin (PARO), you could be holding the next Litecoin (LTC). Let’s forge ahead!
Why you must not rely entirely on cryptocurrency trading
Here are some relevant reasons you should reconsider spending your entire time, energy, and resources trading cryptocurrencies on CEXs or DEXs.
1. The crypto market is unregulated
The crypto market is vulnerable to extreme prices—and no one, not even Satoshi Nakamoto, can regulate it. A contributing factor to these extreme prices is market sentiments (greed and FUD) and the ease of access to assets. Because it is easier to access your assets, you may, out of panic, withdraw your holdings at a loss or profit.
2. Too many fees apply
Centralised and decentralised exchanges (CEXs and DEXs) primarily generate revenues through fees. For centralised exchanges, it could be spreads, trading fees, or in-house fees from product usage or sales. For DEXs, it could be through gas fees or liquidity pools. Whatever option you choose, you’ll always arrive at a fee. Depending on the market or network conditions, the fees could be outrageous and affect your net income.
3. Requires expertise, time, and energy
Trading digital currencies or even digital stocks requires expertise, time, and energy. Else you could spend the whole day at a loss or win depending on how favourable the market is that day. We could employ the time, energy, and resources to trade cryptocurrencies for other profitable activities or personal development.
Alternative crypto income streams to consider
After looking at the above reasons to consider alternative crypto-based income streams, here are a few suggestions to grow the portfolio in the cryptoverse.
Staking is popular with Proof of Stake (PoS) protocols or networks, such as Cardano, Binance, Solana, Tezos, Tron, etc. It is less energy and resource-intensive—requiring using only your asset to validate transactions on the protocol. You could earn adequate rewards when you successfully participate in staking.
Yield Farming is similar to staking, only that it runs a special smart contract for the protocol. In yield farming, you supply collateral or liquidity to facilitate lending and borrowing using liquidity pool (LP) tokens. At the end of the day, you smile at an ample interest rate.
Trading NFT is quite different from trading cryptocurrencies on CEXs and DEXs. Although, it may not be as lucrative as normal crypto trading in a P2P, CEX, or DEX. NFT trading, like many other blockchain creations, has created passive income for creators through royalties or connections on social media.
The All-In-One Solution: Parody Coin (PARO)/ Paroverse
Parody Coin (PARO) covers some of the above listed passive income streams, through its ParoReward System to help non-crypto-savvy traders earn rewards through alternative crypto investment options.
Parody Coin will achieve its reward system’s vision through the PARO token—the native crypto that will power its metaverse and NFT marketplace. Parody Coin is currently doing a live presale to usher its full launch by Q3 2022.
Learn more about Parody Coin (PARO) below:
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