Binance Staking – make money by Staking tokens

General information about tokens

Cryptocurrency continues to develop. Every day new projects appear that promise their investors to replace Bitcoin, enter the market and earn billions. But not every one of them brings real benefits to their clients.

Tokens are alternative cryptocurrencies that provide added value. That is, they are used not only for making payments.

Tokens are almost all coins that are made on their own engines, and about half of those that are made on the Bitcoin engine. To become a token in the full sense of the term, you need to offer users something new that can improve business, reduce costs, etc.

Earnings from ICO

Earnings from ICOs are still not sufficiently disclosed in the Ru-segment of the Internet. In fact, this is an excellent profit opportunity for those who know how to analyze the market and know a lot about cryptocurrency. But in the long run, this will lead to a crisis in the niche.

ICO - initial placement of tokens.

There is only one way for an ordinary person to make money from an ICO - speculation. The workflow is approximately as follows:

1. We go to the Cryptomarket website.
2. Selecting a promising altcoin.
3. At the PreICO stage, we buy coins at a discount of up to 10 - 50% (try to do this as early as possible).
4. We are waiting for it to go on the stock exchange.
5. We wait until the rate rises to a certain value (usually this is the discount amount).
6. We sell.

This can be repeated ad infinitum: choose a new crypto coin, enter the preICO stage, buy at a discount and sell. It's just speculation, there's nothing new in it. Of course, at one point it will turn out that many of these speculators simply overheated the market, and it will burst, as happened earlier with the Dotcoms and the mortgage bond market. But who should care?

There are also alternative methods, but they are already suitable for ICO developers. This:

• Commission for coin promotion. Teams that put ICOs on the market take 1-10% of the profits for their own needs - marketing, advertising, promotion, product improvement. But in reality, only half of the funds are used, the rest ends up in the pockets of the team.
• They provide intermediation services: supervise teams, analyze market prospects, insure, etc.
• They create scams.

There are really many ways to make money from ICOs. But almost all of them are inaccessible to the average user. There is only one thing left - speculation.

What types of tokens are there?

Before looking for how to issue tokens, you need to choose their type. There are three types in total:

• Equity Tokens – startup bonds. Used in ICOs to attract investment, their owners can then sell them for a profit;
• Utility Tokens are means of exchange. They can be purchased or received as a reward for actions useful to the system, and then used within the platform;
• Asset-Based Tokens - sold on ICOs and on exchanges, obligations to receive goods within the system.

In the USA, Security Tokens are separately distinguished - an analogue of shares. The owner of such ST gets the opportunity to influence the company’s activities, obtain creditor status, etc.

Tokens come in three types:

• appcoins;
• share tokens;
• credit tokens.

Appcoins

Appcoins are tokens that act as a means of payment. Most ICOs have web functionality, mobile applications and require a tool to conduct transactions within the system.

For example, in the TrafficX project, a cryptocurrency analogue of Uber, you can pay for trips with tokens. On the MarchPool dating platform, you can use tokens to get premium status and advanced features, and in information storage services you can buy additional space. In computer games, tokens are needed to upgrade heroes, purchase various game items, and pay for developer services.

Tokens are issued for projects that have not yet been released, so investing in them involves risk.

Share tokens

Any token becomes an asset (share) and has its own market rate after entering the exchange. Almost all startups view their internal currency in exactly this way – as an asset.

Individual projects are initially built on the principle of investment and are investment funds for the trust management of deposits in the ICO format (SolarDAO, TargetCoin, etc.). Some platforms provide voting rights to holders of internal currency, that is, they attract their investors to participate in the management of specific virtual capital.

Accumulative or credit tokens

Credit tokens are released for sale along with the main coin of the project. The difference is that they bring income to their owners only during long-term storage. An example is Steem Dollar, the Steemit blogosphere token. It sells tokens at different rates: at 10 and 100% per annum. To receive a 100% return, investors are required not to withdraw funds for 2 years.

Pros and cons of making money on tokens

Pros of earning money on tokens:

• High liquidity of assets.
• Big profit.
• Constant price changes.
• A huge number of promising projects.

All the advantages boil down to the fact that the market is actively developing. There are many ambitious projects that could bring in a lot of money in the future. And each user has access to an exchange where you can buy an interesting token.

Minuses:

• High risks.
• Inability to predict earnings.
• Lack of regulators on the market.
• Unstable situation in legislation.

This is a market with crazy risks and a lack of regulation, which means that anyone with huge capital can collapse or inflate the rate in one move, as he pleases.

There is one more disadvantage for the Russian-speaking segment. Most information about tokens is in English: company websites, presentations, information and analysts’ opinions.

Just look at examples of foreign crypto-millionaires. They once invested money in a project that seemed nothing more than fun. Moreover, people invested small amounts, which, with growth of more than 10,000 times over the past 9 years, yielded huge profits. Many crypto millionaires simply do not know what to do with the amounts they receive. There are plenty of such examples in the foreign segment of the Internet.

Tokens are a promising, fast-growing market where you can easily and quickly (within 2-3 years) earn up to 1000% of net profit. But at the same time it is extremely risky.

Concept and purposes of using tokens

Today, a new era of development is dawning in the cryptocurrency market. New design solutions appear every day that are promising and allow you to predict profits in no time.

However, not all resources are worthy of attention, since not all of them allow you to earn good money. However, with the right approach, a token can bring significant growth.

What is this technology? In fact, a token is usually understood as an alternative cryptocurrency that gives the user some added value. Such money usually includes almost all coins made on their own “engines”, as well as about half of those invented on the basis of the notorious Bitcoin.

For a project to be called a token, it needs to offer users something qualitatively new that can improve business performance and lead to lower costs.

Currently, many entrepreneurs are talking about the so-called tokenization of business, trading activities on exchange sites, as well as competition between these monetary units.

However, not every subject in this niche can explain what a token is and why this particular word is used, and not one that is more firmly established in everyday life, for example, cryptocurrency.

Tips for earning and accumulating tokens are contained in this video:

If we consider the meaning of this concept in more detail, we can conclude that a token is usually understood as a digital asset issued to an investor in exchange for cryptocurrency. This is a virtual unit of accounting, digitized information about an asset that is entered into the blockchain.

Based on these words, it is customary to distinguish between the concepts of token and cryptocurrency:

• the token is capable of executing almost any option that the developer has put into it;
• Cryptocurrency is an internal means of payment within a public blockchain. Here you will learn how to create and use a blockchain wallet.

If we talk about the literal translation of this word, it means “token”. Quite a logical analogy!

That is, having a certain amount of funds on hand, an individual can purchase a token, say, in the subway. In the situation under consideration, the token is assigned the option of the currency of internal circulation in the metro. To receive the service, a person needs to send a token to the turnstile.

Conventionally, all tokens are divided into three basic categories:

• utilitarian;
• promotional;
• credit

They differ in purpose, operating principle, investment attractiveness and a number of other parameters.

The process of making money on ICO

Despite its long existence in the Russian segment of the Internet, this method of making money in the domestic space is not well disclosed. The opportunity is suitable only for people who are able to analyze and evaluate the market.

If we are talking about long-term investing, there is a possibility of encountering crisis phenomena in the niche.

Earning money from ICO technology is available to the average person only through one method – speculative actions. The principle of operation is the following:

• visiting a site where altcoins are offered;
• choosing the optimal currency;
• purchasing coins at a cost reduced by 10-50%;
• waiting to enter the exchange space;
• waiting for the rate to rise to the required level;
• direct implementation.

You can repeat this complex an unlimited number of times. That is, the user selects a coin, buys it, and then sells it with a markup, which will amount to his profit.

It would seem that the method is simple and clear. But there is a “fly in the ointment” here: there is a possibility that speculators will flood the market so much that it will overflow and disappear altogether.

How to earn tokens using ICO?

Along with speculation, there are several alternative options suitable for ICO developers. Here is a rough list of them:

• commission charged for the fact of moving a coin (its size is 1-10% of profit, expenses are needed mainly for advertising activities and product improvement);
• provision of intermediary services, in particular, we are talking about supervising teams, conducting analysis of market prospects, insurance, etc.;
• organization of scans.

As you can see, there are plenty of ways to generate income through ICOs. However, almost each of them is inaccessible to the average user without money and experience. Therefore, the only thing left to do is speculative activity.

Advantages and disadvantages of earning income on tokens

Like any other niche, this line of activity has its pros and cons. Among the advantages of earning income from tokens, the following areas should be highlighted:

• high level of asset liquidity. Here you will read what liquidity is and how to calculate it correctly;
• constant price fluctuations;
• decent income in the future;
• variability of proposed projects.

All the advantages of this niche are due to the continuous development of the market. Even now, there are many popular projects that can bring in a considerable amount of money in the future. And each user has access to an exchange with a large supply of these “goods”.

Speaking about the shortcomings, the following points should be highlighted:

• high level of risk;
• inability to predict profits due to market unpredictability;
• absence of any regulators;
• work primarily on English-language resources;
• instability of the situation in the field of current legislation.

After all, the token market involves enormous risk factors and the absence of any regulation. Accordingly, any person who has capital behind him can fail in one move and suffer a serious loss.

It is enough to pay attention to the experience of foreign colleagues who own millions of dollars. They once invested in a project that they viewed as fun. And no one imagined that today they would be the owners of such large sums. On the other hand, you can invest large sums and lose; unfortunately, no one is immune from this.

What cryptocurrencies and tokens are most in demand?

Which tokens are promising?

First, you should familiarize yourself with five types of promising cryptocurrencies.

1. Bitcoin. This is the first known currency that gave humanity the possibility of confidential transactions without intermediaries.
2. Ethereum. Thanks to this cryptocurrency, there has been an improvement in some Bitcoin positions. Thus, the developer has eliminated the volume limitation (in BTC it is 21 million), and also reduced the interval between the creation of blocks.
3. Ripple. Its creation was carried out exclusively on its own code key. Thanks to the efforts of the creator, it became possible to eliminate almost all links in the chain.
4. Litecoin. This is an alternative to Bitcoin that operates on its code. The key advantage is the number of blocks created every two and a half minutes, as opposed to ten for BTC.
5. Dash. The currency is 100% anonymous. After all, Bitcoin has the ability to track a user’s wallet and monitor transactions. Dash lacks this nuance due to the lack of a set of open access transactions.

As you can see, tokens are a common way to earn money – both for beginners and professionals in this business.

Which tokens are promising?

In order to understand which tokens may be promising, let's look at 5 examples of the most popular cryptocurrencies and try to understand why they interest users.

Bitcoin is the world's first cryptocurrency. Allowed people to conduct transactions anonymously, excluding intermediaries in the form of banks and global payment systems from the “User - Money - User” scheme. A radically new approach to payments.

Ethereum has improved some aspects of Bitcoin. Removed the 21 million limit on the amount of currency issued, reduced the interval between block creation, and made a more reliable transaction confirmation system. But this is not the most important thing. The popularity of this cryptocurrency was brought by the system of smart contracts, which completely eliminates the human factor from the chain “Conclusion of a contract - Intermediary - Verification of conditions - Execution of the contract.”

Now the role of “intermediary” is performed by an automated system - a direct benefit for real business.

Ripple was created entirely using its own code. Allows you to eliminate almost all links from the transaction chain. The system was initially conceived as a cost-saver for bank transfers. Allows you to reduce costs by 70%.

Litecoin is an alternative to Bitcoin, created on its code. Like many others, he uses the source code, trying in every possible way to “upgrade” the current version of the cue ball system. The most important advantage is that the number of blocks is created every 2.5 minutes versus 10 for Bitcoin. Allows you to conduct transactions faster. To mine cryptocurrency, the computer's RAM resources are used.

Direct benefit for miners. Other resources are used to mine cryptocurrency.

Dash is also written in the Bitcoin source code, with only one difference - the cryptocurrency has complete anonymity. In Bitcoin, you can find the owner of a wallet and track all his transactions. If you know all the final recipients, you can see the whole picture of operations. There is no such thing in the Dash cryptocurrency system: transactions are not published publicly. Even knowing the owner of the wallet, you can never find out who he sent and what he sent.

Direct benefit for anonymous payers. There is no information about transactions.

As we can see, the popularity of tokens has its own reasons. Each of these cryptocurrencies has improved life for one fundamental category. Bitcoin is for all people, Ether is for businessmen, Ripple is for banks, Litecoin is for miners, and Dash is for people who need anonymity.

We recommend reading: What is cryptocurrency mining and where to start making money from mining.

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