Cryptocurrency investors can look back at the year of 2023 with fondness. This was a year for settling. If the buzzword for 2022 was ‘fear’, then the buzzword for 2023 was ‘neutral’.
At one stage, it was almost outlandish to suggest a world as volatile as cryptocurrency could come back into balance, but after the hectic whirlwind of 2022 – in which crypto prices began to fall across the board – that is exactly what’s happened.
In October, Bitcoin even began to rise, beginning in 2024 at around the $42,000 mark.
According to cryptosoho.com, it is now sitting at around $45,000 – which is a whole $14,000 more than where it was in July 2023.
Naturally, this has generated a bit of excitement. Not only can cryptocurrency survive inflation and various other macroeconomic situations, it can come back stronger than before.
Suddenly, the thought that Bitcoin could reclaim its mantle of $68,000 – and perhaps even go beyond that – doesn’t seem like a mad one.
And with the first crypto winter lasting two years, it’s not out of the question that we could be nearing the end of the second one.
Getting Invested in Crypto
Along with this excitement, there has been a noticeable shift in public perception, leading to many people wanting to jump on board. Many of these people, however, are not quintessential crypto investors.
That is to say, they do not want to be scanning the market every day, or spending an extortionate amount of time working mining computers.
These are the people who want to invest their cash, but not their attention. So can you do that?
Yes and no. It is not altogether common for investors to earn cryptocurrency by doing nothing in particular.
Typically, crypto is earned through mining, staking, and trading – you have to do at least one of those things if you want to see a return! On the other hand, there are plenty of strategies that can work for the more passive investor.
Passive Investment in Crypto
One of the most popular ways that people make passive crypto income is by lending crypto tokens. This is essentially like being a moneylender, only without the hassle of collecting payments yourself.
It is done by depositing cryptocurrency into a pool and lending it to borrowers, with regular principle and interest payments being given in return – almost like a landlord of crypto, rather than real estate.
Yield farming is another strategy that is growing in popularity. Like being a farmer, crypto holders lend or borrow cryptos on a DeFi platform and earn more crypto for their services.
Trading Cryptocurrency
Outside of these strategies, there are plenty of trading strategies that can work for a more passive mindset. Hodling, for instance, is a good decision for traders who want to sit on coins, waiting for the market to change over a substantial period of time.
This could be one year, two years, or more, depending on the investor and whether they’re comfortable with holding off.
Dollar-cost averaging – or DCA – can also be a calmer trading strategy. It involves buying cryptocurrencies for a fixed amount over a time interval and then averaging out the price paid for the assets over the term, reducing the impact of short-term volatility.
It may not be as hands-off as HODLing, but it is certainly beneficial for investors who don’t want to get too involved.
However you look at it, there are ways for anyone to get involved in crypto.
Whether you want crypto to take up your every waking second, or to simply be something that goes on in the background, you can make the market work for you.