5 Less-Known Ways to Maximize Profits in This Bull Run
We are now entering the most exciting time of Bitcoin’s four-year cycle. Most investors haven’t been around long enough to feel the euphoria that comes with it. The more seasoned investors, on the other hand, still suffer from mild PTSD since the last bull market, which might cause them to sell early.
While history doesn’t repeat itself, it often rhymes, and we can see that in the money-making opportunities that present themselves. Nowadays, it is easy to find complementary ways to increase your crypto exposure with minimal risk for your funds. And this is exactly what we will focus on today.
This article will show you 5 methods that are still under the radar, to help you maximize your profits during this bull run.
Different portfolios require different tactics
Before we delve into the different ways you can use to increase your profits, it is important to classify the categories of portfolios that most benefit from each option. Doing so will help you understand which of the tactics below make the most sense to follow. Note that the categories described are referring to the amount of capital you have available.
(Semi) Large portfolios – $$$
This category consists of investors and traders that have either been around long enough, got very lucky, or have a large amount of capital to invest. Portfolios of this size are usually in the high-six to seven-figures, and their owners are (generally) less prone to high risk/reward opportunities.
Medium-sized portfolios – $$
This category describes average investors with high conviction in the market. They’ve either built a position over time using a small upfront amount or by DCA into Bitcoin over the past couple of years. The size of their portfolio is usually in the five and rarely in the low-six figures.
Small portfolios – $
These portfolios mostly belong to crypto newbies, short-term investors, or people who have only recently discovered the market. They are by far the largest category from the options above and are more prone to risk/reward activities. The size of their portfolios is usually smaller than $10.000 dollars. One thing to be noted about this category is that they are generally more willing to use their time rather than their funds to capitalize on opportunities, even if the potential returns are low (e.g. sign up for airdrops, participate in giveaways).
5 ways to maximize your crypto profits
The following money-making methods are not commonly known by the public and they have only recently started to become more promising. That said if explored to their fullest extent, you have a high chance of earning a lot of money in the next few months.
1. Explore new Layer-2 solutions
The high fees and slow transaction times of Ethereum have discouraged many investors from exploring the full potential of the network. Due to this, we have seen a rise in Layer 2 solutions.
In short, Layer 2s (L2s) are different networks that run on top of the Ethereum network in order to improve some of its lagging functions. For example, people use Polygon (MATIC), one of the most popular L2s, to send Ethereum faster and cheaper, while exposing it to additional money-making opportunities.
Over the past year, we have seen an explosion in new L2s due to the growth of Ethereum. These protocols want to test their product, grow their communities, and reward their earliest users. And this usually happens in the form of a token airdrop.
DYDX is a recent example. The protocol airdropped a specific amount of tokens to users depending on the size of their contribution before a specific date.
DYDX token distribution. Source: DYDX foundation.
The effort needed to participate was minimal and the rewards were astonishing. At the time of this writing, the amount of “free money” delivered to early users ranged between $6200 and $190.000.
What you need to understand is that, eventually, all L2 Rollups will have to create a token to further their development. And most of them do not currently have any. Hence, this created an opportunity. One that makes sense for all portfolio sizes, especially for small-sized ones since there was no minimum deposit.
Here are the steps you need to follow to get started:
- Visit and bookmark L2BEAT.
- Go through the list of L2s and try to find the ones with a high TVL and no token (e.g. Arbitrum).
- Visit the platform’s website, read the documentation and see how it works.
- If you wish to participate, connect your Metamask wallet and deposit any amount of ETH into the network.
- After your tokens are deposited, you can use them within the network to explore the product offerings.
- Follow the social media channels of the L2 you picked and make sure you stay on top of the latest news.
- Patiently wait for an airdrop to be announced and, if applicable, claim your tokens.
Note that, while theoretically, it would make sense for most L2s to release and distribute their tokens to early users, it is not given that you will be in the early pool, or that the network will choose to distribute a token anytime soon.
2. Participate and engage in Discord groups
Discord is a popular messaging platform, initially built for gamers. In time, it became the go-to app for crypto communities, and has since become one of the main channels for new crypto and NFT projects.
If you happen to work with Slack, it should be easy to understand, as it is very similar in terms of structure. That said, most new users take a while to really get the hang of it.
So why Discord?
Most new crypto projects give a lot of emphasis on building their communities in the early stage. This is especially true for NFT projects that don’t start out with a large amount of VC backing. To achieve this, they host very lucrative giveaways that are easy to be part of.
Take Alethea AI for example. The first intelligent NFT project sold its initial batch of “Revenants” for amounts anywhere between $30400 and $220.000.
While “Revenants” are the rarest types of the collection, the project has a total of 10.000 NFTs, all of which became available to the public shortly after. Before their release, however, the team gave away more than 1000 of these iNFTs for free on their Discord channel to users who actively participated in the chat.
Now, Alethea AI may have distributed its free iNFTs, but there are dozens, if not hundreds of projects that have not yet done so. If you have the time and motivation to learn about new projects and are willing to spend time being active on Discord groups, you will definitely come across exciting projects with valuable giveaways. Here is how you can get started:
- Download Discord on your smartphone and/or desktop
- Research new projects and find out which ones have potential
- Join their Discord groups through buttons found on their website or Twitter channel
This tactic is ideal for investors with small portfolios as there is no upfront capital requirement and all you need to do is participate in the community.
3. Keep track of hard forks
Even though we haven’t seen any significant Hard Forks over the last few years, there are certainly some to look out for. Similar to the way Bitcoin (BTC) holders received Bitcoin Cash (BCH) in 2017, you could earn a large paycheck from network changes of large cryptocurrencies in the next few months.
The most notable network change comes from Ethereum, which will transition to PoS (currently PoW). This means that miners will no longer be able to mine ETH, and the distribution of rewards will become less democratic (more holdings, more rewards).
As such, many investors expect that a large part of Ethereum developers will come together and fork the network in order to maintain a Proof Work consensus model.
What does this mean for you?
In short, it means that all Ethereum holders might potentially receive a new, forked token as soon as the ETH 2.0 upgrade gets implemented. Currently, estimates point to January 2022 for the month of transition, which means that a potential token distribution could take place shortly after.
It’s hard to estimate how valuable such a fork could prove to be for Ethereum holders. However, if it is anything like the value we saw from Bitcoin Cash in 2017, it is certainly an opportunity worth exploring. That said, it is yet too early to give out a precise step-by-step process on how exactly you can track the process and claim tokens.
Since forked tokens are generally distributed based on one’s holdings, this tactic would be most rewarding for medium and large portfolios that hold ETH.
4. Make your coins work for you (farming)
Yield farming is a relatively new way to earn money on assets that would otherwise remain dormant in your wallet. It is mainly seen with Ethereum and ERC-20 tokens, and users need to be aware of the opportunities and risks that come with it.
That said, bull markets are an excellent opportunity to put your funds at work, since you won’t be selling them, and any additional cash flow can be used to increase your position.
Bull markets are for deleveraged farming
Bear markets are for buying
It’s that simple
— TΞtranodΞ (💎, 💎) (@Tetranode) May 29, 2021
Defi platforms like AAVE, and Compound offer such opportunities. By participating in liquidity pools on these platforms you can earn tokens based on the amount you choose to stake. After doing that, there is a simple yet effective method to deleverage risk:
- Find a pool that you like and start by staking your ETH (most common option)
- As tokens start to be paid out to your wallet collect a sizeable amount over time
- Sell half of the token stack to buy ETH
- Now add both the newly acquired ETH and the remaining tokens into a new pool where the two need to be farmed in equal amounts to receive a much larger APY.
- You can now withdraw your initial ETH deposit (step 1) and let the remaining funds generate cash flow.
Naturally, the steps described above are most applicable to large portfolios that can allocate a significant amount of ETH. If the amount you can allocate is smaller, you might jump to step 4 directly. Keep in mind, however, that doing so comes with higher risk, as you will need to convert part of your ETH into the token you choose to farm.
5. Don’t disregard meme tokens
Meme tokens are cryptocurrencies without utilities or fundamentals. What makes them interesting is their ability to “go viral” and appreciate much more in % terms compared to more popular options. Paybis has several such coins, including the popular Dogecoin and Shiba Inu.
Both of these coins have seen a large appreciation in value due to their growing communities, and new users can still acquire a large number of tokens for a relatively small price. While this is not an indication of a token’s value, it does seem to work in the project’s favor.
Meme tokens are high-risk, high reward opportunities. In other words, a gamble. They are most interesting for users with small to medium-sized portfolios. By allocating a small number of their funds to such coins you get to keep a “moon bag” that may grow significantly in value.
To summarize the tactics you can follow to maximize your bull market profits, here is a quick overview to keep in mind:
- Participate in Layer 2 networks – Great for all portfolio sizes
- Participate in Discord groups – Ideal for investors with small portfolios
- Track and participate in Hard Forks – Best for (semi) large portfolios
- Yield Farming in DeFi protocols – Safest for large portfolios
- Don’t disregard meme tokens – High risk/reward for small to medium portfolios
Make sure you research each option in further depth before choosing to invest your funds, and keep in mind that the information in this article is only meant to be seen as educational material, not financial information.