If you’re looking for alternative ways to grow your crypto portfolio, perhaps reviewing your investment strategy can save you from scratching hair off your head. Cryptocurrency real estate has in-house diversification opportunities you can capitalize on and expand your asset base.
Probably you’re busy with other vital matters but wish to get some crypto action. Worry not, you can still participate passively in the game while earning and growing your portfolio. All you need is to reconfigure your approach to the crypto market, set it to your preferences, and wait for the returns.
Interestingly, the cryptocurrency markets can operate on autopilot and increase your bottom-line figure at the close of the trading business. However, the underlying support units like cryptocurrency and exchanges must agree to work in your favor.
In addition, you must consider your capital and determine if it’s sufficient to revolve around the current opportunities in the crypto market. You can select a perfect strategy to match your portfolio growth goals.
Further, passively investing in the crypto market doesn’t mean ignoring your portfolio. You must periodically appraise your new techniques and ensure they generate income or you can check over here for more online tutorials.
If you’re contemplating how to passively grow your crypto portfolio, here are some feasible ways to do it:
- Become A HODLer
HODL is a term coined for misspelling the word ‘hold.’ It’s used in the context of buying and holding cryptocurrencies.
If you’re already in the crypto market, ignore the hype noise in the crypto fields and keep hiding your cryptocurrency portfolio. The market swings will pass while the value of your assets grows due to price action.
Experts consider hodling the easiest way to amass your crypto portfolio, however, it also has its limitations. Doing this can trap your capital in a set of digital currencies and miss other lucrative opportunities in the market.
- Become A Crypto Creditor
Cryptocurrency copied the best financial lending and borrowing practices and refined the processes by removing restrictions like credit controls to enhance financial borrowing. You can give loans according to the cryptocurrency available in your portfolio and collect interest while cryptos are circulating in the network.
Smart contracts or proof-of-stake are supporting evidence that gives details of agreed interest rates of a unit supplied to the network. Once complete, you’ll lock the funds in the system and earn passive income to grow your crypto portfolio.
Interestingly, your loan to the crypto network has higher interest rates than what banks collect from credit customers. And it grows every 15 minutes while in circulation within the network.
Mining might be the best passive way to grow your portfolio if you’re good at solving mathematical problems and have sophisticated computers. But that avenue is highly competitive and may take considerable time to realize gains.
Alternatively, you can rent space from established rigs and earn through cloud mining. Cloud mining is not capital intensive as the original crypto mining and has the potential to grow your portfolio through validating crypto transactions.
However, mining is scandalous and has a bad reputation in the crypto community because people have lost substantial investments. So, cautiously approach this strategy.
- Yield Farming
High risk, high returns can be the best expression to describe yield farming in the cryptocurrency world. It entails consolidating staking, lending, and borrowing to form one unit of risk and trading it in the crypto market for a price.
The unit of risk is fungible, and you can swap it for well-performing tokens in the market. After that, use the token as loan security.
As it may, yield farming can bring passive returns, but it exposes your portfolio to significant risk. Rethink using this strategy to grow your portfolio since market volatility disregards well-crafted plans.
- Crypto Freebies
The crypto arena is constantly releasing new digital assets through several channels in crypto real estate. Looking out for such promotion stunts as airdrops, forks, or buybacks from tech developers can help grow your portfolio.
When you collect large volumes of crypto freebies while they’re fresh and low-priced, you can hold on to them and sell them at a high price in the market.
Reinvesting your earnings is a priceless strategy that can grow your portfolio ten-fold. You must set up your passive income systems to contribute to your growth goals, and it all depends on time and your choice of cryptocurrency.
In addition, crypto market price action will determine the growth rate of your portfolio. You must ensure that it can withstand the waves to reach your desired targets.
There are several possible ways you can passively grow your portfolio in the crypto market. You just need a strategic approach to safeguard your interest while the market runs wild. In addition, your risk appetite and the digital asset in your wallet can determine how you can diversify your cryptocurrency portfolio.