If you are one of the people who bought during the peak of the crypto market, chances are you became a forced HODLer. It hurts to see your wallet balance down 80% or more but selling is just not an option. In addition, prices are so low they make you wish you had money to reinvest. Depending on your financial and technical expertise there are some options that can help you change that. They rank from low to extremely high risk and some require a substantial investment. Here are some choices: flipping coins, passive income, Farming, and entering into a “Proof of Weak” high risk investment.
This is the simplest and lowest risk option which doesn’t require any expertise; just attention and some money ready to invest. Despite the major price drops, the market stabilizes long enough to make some profits. It’s a matter of choosing the right coin and the right time. For example, Verge coin (XVG) is a top ten, very stable coin that stays within a predictable price range. For the time being its price swings within a predictable range of $.02 to $.07. On March 14th it was at two cents; ten days later, on March 24th it was at four. It doubled in price. On March 26th it was at three cents; four hours later it climbed to five cents.
Which means, if you invest $1,000 at two cents and you ‘flip it’ at four cents, you practically make $1,000. And if you continue this process, the profits are incremental. However, you have to be aware that price volatility risk can drop prices even lower and tie up your money.
This option is a little more involved as it requires some technical knowledge. A number of coins offer a program called “Masternodes.” Masternodes are like a server in a network. Where nodes serve to verify transactions through mining, masternodes enable specific adjudication and voting services on network changes. In addition, they serve to protect the network from attacks as owners will be protecting their own investment.
In return for owning a masternode, the owner receives steady revenue for providing the service. According to Masternodes.online a daily income for a DASH masternode is $57 and $21,158 per year for the life of the coin. In general, all you need is some mining computing equipment in your home, learn a little bit of Linux, get an IP address, and make sure it works 24/7. Sounds easy? Not so fast.
The biggest obstacle to overcome will be buying the required number of coins. For example, in order to own a Dash masternode, you must own 1000 Dash coins. At current price that would be an investment of over $300,000. And that is not including the cost of hardware, electricity, and internet hosting for an IP address. There are cheaper coins you can buy. But, keep in mind the more stable and reliable the coin, the lesser the risk and higher the gains. The amount of money you’ll make depends on the coin you choose.
Major cryptocurrencies like Dash, Stratis, and Pivx have dedicated websites to assist in the technicalities involved in setting a masternode. They have partners like Vultr or Coin-server that offer cloud hosting services according to specific needs.