Top Staking Platform for Generating Passive Income in 2020

[superstarsp]

SnapBots





4 ways to earn with cryptocurrencies in 2020

Everyone wants to profit from cryptocurrencies. Having been the talk of the town for close to a decade, the high returns of cryptocurrencies constantly draw new investors into it. Here are 4 ways to earn with cryptocurrencies and how SnapBots (www.snapbots.io) can assist users in one of them.

A well-documented method of earning cryptocurrencies is through mining. Mining refers to the process of rewarding miners for successfully verifying transactions and adding "blocks" to the existing blockchain. Miners have to solve a complex hashing puzzle and this is akin to guesswork where the probability that one will discover the solution is directly proportional to the total mining power present on the network.

The concept of mining can be linked back to Bitcoin's founder, Satoshi Nakamoto. Nakamoto utilised mining as a way of preventing double-spending, which was previously prevalent in digital currencies.

However, mining is a resource-intensive task that requires specialised computing devices to execute. More often than not, without utilising devices such as an application-specific integrated circuit (ASIC) miner, the energy consumption cost for mining would often outweigh the financial benefits derived from it.

An alternative method of profiting from cryptocurrencies would be through arbitrage. While there are numerous technical explanations offered, a succinct one would define arbitrage as the practice of buying low and selling high.

There are 2 distinct arbitrage methods, regular and triangular. Regular arbitrage involves buying cryptocurrencies on an exchange before selling it at a profit on a different exchange. Profits are generated due to the price differences that would occur over the close to 400 different cryptocurrency exchanges worldwide.

Triangular arbitrage refers to capitalising on the price difference between different currencies on the same exchange. For example, one can buy ETH using USD, before selling the bought ETH for BTC and finally converting the BTC back to USD. Through the 3 different price conversions, one can take advantage of the multiple price differences and profit from it.

However, one should be wary that market volatility might see the price differences revert before the transaction could be completed. Furthermore, investors should be cautious of transaction fees that might reduce the profit margin.

Day trading is another practice that generates profits in cryptocurrencies. Similar to the conventional day trader, a crypto day trader enters and exits their positions cryptocurrencies within the same trading day.

Utilising technical analysis (TA) tools such as chart patterns and technical indicators, day traders profit off market volatility. Due to the high frequency of trading, volume and liquidity within the exchange are crucial for intraday trades to go through.

Finally, we have staking. Staking refers to the holding of currencies within a cryptocurrency wallet to aid the security and functionality of a blockchain network.

The least resource-intensive of the shared strategies, staking is unique from conventional investing methods since investors earn interest on their holding. Therefore, it is often compared with the fixed deposit model, whereby the longer and greater your investment, the more interest you can earn from it.

SnapBots recently released its Staking Coins feature in July 2020. Offering 3 different staking strategies for users to choose from based on their preference of the lock-in period, one can profit up to 4.2% monthly through staking.

1. Cradle
Cradle is made up of a set of arbitrage strategies. Multiple assets listed in different exchanges are priced differently at times due to latency and market movements. The algorithms lock in the arbitrage opportunities whenever they detect them.

2. Ayers
Ayers bots seek to utilize short term trading opportunities to generate pure alpha strategy with low daily volatility.

3. Silk
Bots running the Silk strategy take advantage of the volatility and learn various trading patterns by observing them continuously. They assess the statistical significance of trading patterns to execute successful trades that generate alpha and reduce beta.

With SnapBots assisting in executing staking strategies, users can watch their passive returns increase effortlessly and reduce the risks associated with trading cryptocurrencies.

About Snapbots (powered by Snap Innovations)

SnapBots are the project of Snap Innovations (www.snapinnovations.com) , the famous AI fintech company in Singapore since 2011. Users can simply hold their cryptocurrency into SnapBots and bots will trade 24/7 on behalf of users. Users will be able to receive 2-5% a month as the passive income.
About SNAP

SNAP is short for SnapBots Token based on Ethereum and that is used in SnapBots blockchain-based AI bots’ economy.

For more information, please visit:

SnapBots- https://snapbots.io
Snap Innovations-https://www.snapinnovations.com/
Join our community- t.me/SnapB