While most cryptocurrency investors are tightening their belts in the current bear market, crypto millionaires have taken advantage of innovative decentralized finance (DeFi) products, including Uniswap, Aave, and pie swapand DAO Maker and auto-custody wallets such as metamask.
A bear market wreaks havoc on the average cryptocurrency investor. However, why not learn how the pros of decentralized finance (a challenge) Earn millions using tools you may not have heard of before?
Crypto Millionaire Tip #1: Find Uniswap Gems
Uniswap It is a decentralized exchange (DEX) based on the Ethereum blockchain that offers DeFi enthusiasts the opportunity to earn transfer fee contribute to liquidity. A person can create markets by depositing both the principal of a trading pair into a smart contract, removing the middleman in creating liquidity.
DEX charges 0.3% commission on all trades. Thus, liquidity providers earn passive income from these fees, which is proportional to the amount of liquidity they provide, less any non-permanent losses.
Let’s say you deposit 4 DAI and 4 USDC. The ratio between them is 1:1. Any change in the price ratio between two cryptocurrencies results in a non-permanent loss. Liquidity providers prefer high trading volumes and low temporary loss.
Sometimes, traders create markets with less popular altcoins, called “gems”. This is a crypto asset with a market cap of less than $20 million, but with strong fundamentals and the potential for a 100x price increase. Traders can use Uniswap to trade ahead of the market, before these coins are listed on cryptocurrency exchanges and prices rise.
a crypto trader Turn $800 into $1,000,000 by trading assets less than a day old and making a profit in less than 3 hours. Discover this merchant these assets through robots Uniswap listing and pre-sale marketing cable.
Crypto Millionaire Tip #2: Aave
In order to generate passive income, crypto millionaires also use Aave, a borrowing and lending protocol that allows dedicated users of the DeFi platform to earn passive profits.
Lenders who deposit money into a loan smart contract earn interest determined by an algorithm. Borrowers in order to ensure that a portion of a crypto-asset is deposited into a smart borrowing contract to earn returns or borrow other cryptocurrencies. They can generally only borrow assets up to 75% of their collateral.
One way to use it to their advantage is to deposit an asset like Bitcoin, which produces low returns in DeFi due to its large ownership, to borrow a stablecoin. Traders can then earn a higher return on the stablecoins by depositing them in a pool of Cash DEX. Aave also offers an 8% APR for borrowing USDT stablecoin.
If your collateral falls below a certain threshold, Aave will liquidate your position and take over your collateral. Because of this risk of liquidation, many people do not want to engage in this activity.
Crypto Millionaire Tip #3: Yield Farming
on me pie swapTraders earn liquidity provider tokens by contributing a cryptocurrency pair to the liquidity pool. Thus, the LP (Liquidity Provider) token allows them to enter a FARM on the DEX, i.e. a production farm, and where they can share their LP tokens with other traders to earn annual percentages between 2% and 200%. Then it is paid in the form of coins cake Through the process of “harvesting” or “haversting”.
To maximize profits, CAKE tokens can be harvested automatically or manually and reinvested in the same pools using puddles of syrup.
Crypto Millionaire Tip #4: IDOs
Initial DEX bid (The Internet of things) is the new method discovered by crypto millionaires. The decentralized protocol collects funds from investors by issuing a token that can represent a newly listed asset on their platform.
DAO Maker is an incubation and fundraising platform for new decentralized autonomous organizations, and distributes DAO tokens to investors in these projects. DAO token holders, who are verified investors, can participate in the sale of the IDO Strong Hold Offer (SHO) token.
Since its launch in 2021, the DAO token has generated up to 41x returns for early investors.
Crypto Millionaire Tip #5: Self-custodial wallet
To use DeFi products, it is often necessary to have a self-guarding or self-guarding crypto wallet. Pocket wallet).
wallet (or Pocket walletA crypto is software or hardware that stores, in short, unique strings of numbers and letters, called keys, that allow you to access cryptocurrencies. Every wallet contains a public key and a private key. The public key is used to send cryptocurrencies to someone, while the recipient can use a private key to spend the cryptocurrencies in their wallet.
When a user wants to spend cryptocurrencies in their wallet, they provide a public key and a signature generated from the private key. These two pieces of information tell the blockchain network that the spender owns the money they are using.
While some crypto users cede control of their keys to companies like Coinbase, Binance, or Kraken, users who are highly involved in DeFi generally retain control of their keys. Thus they store it in a self-custodial wallet instead of a company-managed custodial wallet.
Then the responsibility for controlling and managing these switches rests exclusively with those users. If they lose their private key, they lose access to their cryptography because they cannot generate a public signature to spend the digital assets they receive. Hence the slogan “Not your keys, not your encryption”.
The most common bodyguard wallet
Once installed, the program metamask It will ask you to enter a password and create a wallet for you. It will then display a 12-word memorial allowing you to get your money back if something happens to your device. It is critical that you store this phrase securely, as anyone who finds it will be able to access your wallet.
Arbitrage Nano is a USB-based hardware wallet that works through an additional app. You can buy it from Amazon or directly from Ledger, although the latter is a much safer option.
After installing the app, you will be prompted to answer a few questions to ensure that the device still has the same security that Ledger was programmed into the factory. After that, the device will offer you a mnemonic code that you must store in a safe place.
As for metamaskMnemonic is the only way to access your money. Once stored, you can transfer your crypto from the exchanges by creating an account on the partner app for each of the coins you want to transfer.
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