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Compared to stocks, there are different investment opportunities in the crypto. For example, you can invest in stocks and receive dividends, or you could go for a growth stock that has the potential to increase in value. When it comes to crypto, many more options can be explored to grow your wealth. In this article, we will discuss these methods and introduce you to the concepts, so you can start building your portfolio and move it forward.
Participate in Consensus Mechanisms
There are different ways to participate in the consensus mechanisms that are in place across blockchain networks. Typically we can make a distinction between Proof of Work (PoW) and Proof of Stake (PoS).
Proof of Work
Let’s put in the work! Through mining rigs, you can participate in solving cryptographic problems to validate transactions. In return, you will receive coins from the blockchain you are supporting. To do this you need to make sure you have enough computing power. To make this work, it is recommended to have dedicated equipment that is developed for mining. This is an investment that is easily paid off over some time.
It is recommended to participate in mining pools, which is a collection of people who want to mine crypto. Since only the person who solves the puzzle first will receive coins, it helps to pool resources to increase the chances that you will receive the rewards. These are then shared among all participants based on the computing you bring in.
Proof of Stake
This is a new type of consensus that focuses on your stake in the network to validate the transactions. Your stake in the network determines the probability of you validating the transactions and in return receiving rewards. By growing your stake, you are also growing your potential return on investment.
Trading with Different Investment Opportunities In The Crypto World
Another lucrative way to make money is through trading. There are many bots out there you can use, and you can also leverage your tools and strategies. This comes with more risks but can also bring you more profits than participating in consensus. The markets are open 24/7, making it possible to trade any time, any day.
Lending Crypto Through Wallets
Many wallets allow you to lend your holdings to other users, resulting in more gains. They provide you with an interest that is paid out weekly or monthly, allowing you to compound the amount and grow the value. This is a lucrative way of growing your holdings while having limited risk exposure.
Want to Have a Holistic Overview of Your Crypto Holdings?
You can consider the use of a crypto tracker to see the value of all your holdings. Such a tracker is very innovative and enables you to keep your crypto to work for you. The tracker can show an overview of your holdings by simply entering your wallet’s Public Address. This is a safe method, where you can continue to participate in consensus mechanisms and staking through your wallet while maintaining a holistic overview.
