One way to earn passive income by betting on your cryptocurrencies or NFTs
What is a bet in simple terms?
You may have heard of crypto staking as a means of passive income. Crypto staking is a process used to validate cryptocurrency transactions on-chain through a staking mechanism. This basically means that you deposit funds on-chain to help support the blockchain network and confirm transactions that reward you for supporting the chain with returns. If the token you own uses a confirmation stake mechanism, you can stake multiple tokens and earn passive income. Just like a savings account, you can earn between 5 and 20 percent per year of the amount of tokens you stake.
Cryptocurrency betting is the same thing people do in the “traditional financial world”. Instead of keeping money in banks, they keep a certain amount in a cryptocurrency wallet and earn high returns. In turn, they participate in the operation of the proof-of-stake blockchain system. Different cryptocurrencies have different yields and maturities.
NFT bets are bets on the prospective profit from the subsequent sale of the token. In fact, this is an investment that can increase its value in the future. There are many factors that influence the future value of an NFT, and it is important to study these factors before buying in order not to lose money if you invest in a particular NFT. Factors include, for example, popularity, author, history of creation and further development given by the creator. You can learn about many of the nuances from social networks and communities, as well as on the creator's website.
What is multi-asset placement?
Multi-asset staking is a consensus where cryptocurrencies are locked in wallets and crypto-currency rewards are earned. DeFi exchanges typically have governance tokens that allow participation in staking pools. These native tokens are cross-chain and therefore can be exchanged between blockchains. DeFi exchanges have introduced multi-asset staking to reward investors for using crypto assets. When you provide liquidity on these exchanges, you become eligible to receive rewards throughout the chain.
Risks when placing crypto bets
Losses are not uncommon, which is a disadvantage of crypto betting and represents a risk to the crypto industry as a whole. By its very nature, the crypto market is highly volatile, which means that the value of tokens can rise and fall quickly over the course of several hours. Therefore, if you wager a coin and its value plummets during your wagering period, this can lead to problems.