Here we are with a challenging question that concerns some newbies and inexperienced traders. We want to know whether we can take profits from crypto without selling them.
There are so many old-fashioned ways to get rich from taking the profits on this amazing market, but some traders receive benefits without selling their crypto investments.
There are many ways to take your revenue from cryptocurrency, but do you know what “Taking Profit” means?
We are examining all these questions in this blog, so if you want to learn more, let’s take the profits.
What Does Taking Profits Mean in Crypto?
Taking profits means gaining revenue from your activities, from selling your holding portion to other innovative ways you can find here.
People often sell their cryptocurrencies when they reach a certain price point or after a big event has caused the price to rise quickly.
10 Ways to take profits from crypto without selling
The following section will familiarize you with how to take your cryptocurrency revenue without selling it.
How to take earnings from crypto without selling them?
While vending your cryptocurrencies outright is the traditional method of realizing profits, there are several strategies you can employ to generate returns without relinquishing ownership of your holdings and keep them safe and sound.
These strategies generally involve earning passive income through various mechanisms, allowing you to grow your crypto portfolio without directly selling coins.
1. Staking
Stalling your cryptocurrencies in a designated wallet or platform to support the network’s operations is called stalking. In this method, you can earn rewards through additional coins or tokens.
The most popular staking platforms are included:
- Kraken
- Binance
- Crypto.com
This method allows you to earn interest on your holdings without selling them.
2. Lending
As its name represents, the crypto lending platforms enable traders to lend their cryptocurrencies to borrowers willing to pay interest to borrow their assets.
It is a reliable stream that gives you a passive income while you remain intact.
Do you know what are the lending platforms? Aave, Compound, and Nexo are the lending platforms that help you experience a residual income.
3. Yield Farming
Yield farming, known as liquidity mining, is a process of earning rewards by providing liquidity to decentralized finance (DeFi) protocols.
These protocols offer higher yields than traditional staking, which involves locking up your cryptocurrencies in a designated wallet or platform to support the network’s operations.
Suppose you want to take profits from cryptocurrency without selling. In that case, you can try this method, and for participating in yield farming, you need to deposit your cryptocurrencies into a liquidity pool, a group of pooled assets used to facilitate trading on DeFi exchanges.
In return for providing liquidity, you earn rewards through additional tokens or a percentage of the pool’s trading fees.
4. NFT Investments
NFTs offer several strategies for generating profits without selling your holdings, such as renting, leasing, minting derivatives, participating in marketplaces, leveraging for marketing, joining rewards programs, using lending platforms, exploring insurance or staking, exploring gaming and metaverse applications, and creating educational content or consulting.
5. Liquidity Pools
The other way that can be so beneficial is the Liquidity pools which are essential for decentralized exchanges (DEXs) to facilitate peer-to-peer cryptocurrency trading.
By providing liquidity to these pools, you can earn transaction fees and potentially additional rewards in governance tokens.
This means having revenue without selling anything! Isn’t it amazing?
6. Crypto Rewards Programs
Some crypto exchanges and platforms offer rewards programs that incentivize users to hold specific cryptocurrencies or engage in specific activities and, after that, gain rewards.
So, you can hold your investments and simultaneously gain profit. Look at the examples below.
Here are some examples of crypto rewards programs:
- Crypto.com: Crypto.com offers a generous rewards program for its native CRO token. Users can earn up to 14.5% APY on their CRO holdings and cashback on purchases made with their Crypto.com Visa card.
- Binance: Binance also has a rewards program that offers cashback on purchases made with its Binance Visa card and discounts on trading fees. Moreover, the traders and participants can earn additional rewards by completing specific tasks, such as staking certain cryptocurrencies or referring new users.
- KuCoin: KuCoin offers a rewards program called BurningDrop, which allows users to earn tokens from new projects by participating in initial exchange offerings (IEOs).
These rewards can be earned as additional tokens or discounts on trading fees.
7. Crypto-Backed Loans
Consider taking out crypto-backed loans if you need access to fiat currency without selling your cryptocurrencies. These loans allow you to borrow against the value of your holdings, providing liquidity without relinquishing ownership.
8. Crypto Arbitrage
Crypto arbitrage involves identifying price discrepancies between cryptocurrency exchanges and exploiting those differences to profit. This strategy requires speed and efficiency to capitalize on fleeting opportunities.
9. Crypto Derivatives Trading
Crypto derivatives are like betting on the future price of cryptocurrencies. You don’t need to own the actual cryptocurrencies to participate.
If you think the price of a cryptocurrency will go up, you can buy a futures contract or an option that gives you the right to buy the cryptocurrency at a certain price in the future.
If you make a correct prediction, you can make a profit. But if you make an incorrect prediction, you could lose money. So, crypto derivatives trading is risky but profitable if you know what you’re doing.
10. Cryptocurrency Education & Consulting
If you’re knowledgeable about cryptocurrency and passionate about sharing your insights, you can monetize your expertise by providing education and consulting services.
This can be a fulfilling way to earn passive income while contributing to the growing cryptocurrency community.
Here are some specific ways to tap into this opportunity:
A. Create Educational Content
Develop engaging content like blog posts, videos, or online courses. Use social media platforms like Instagram and YouTube to educate others about cryptocurrency concepts, trading strategies, or investing fundamentals.
Share your knowledge through platforms like YouTube, Medium, or your website. Isn’t it a great idea to start monetizing while you are not selling your crypto holdings?
B. Offer Consulting Services
Provide tailored advice and guidance to individuals or businesses seeking to navigate the cryptocurrency landscape. Assist with setting up wallets, exchanging currencies, and understanding market trends.
Offer services through platforms like Upwork or Fiverr, or build a strong personal brand to attract direct clients.
C. Hold Workshops or Webinars
If you know enough about cryptocurrency or want to share your knowledge, you can try this method! Why not?
Host educational sessions or webinars to share your knowledge with a wider audience and learn from them simultaneously.
These are the practical tips for taking profits from crypto without selling. Elevate your understanding with our deep dive into “Is Crypto a Good Long Term Investment?“
Wrap-up
Ultimately, if you seek ways to receive income yet keep your cryptocurrencies, you do it wisely. In this article, you can find 10 tips that help you take profits from crypto without selling them.
Have you ever tried one of them? Do you find them practical? Please tell us how you expand your profits by holding your investments in this market.
The comment section belongs to you.