However, there’s still a few ways intrepid investors can cash in on cryptocurrency even if the markets are pretty slow and tame.
Arbitrage: Some traders have taken advantage of arbitrage in order to collect small profits even as different cryptocurrency assets are moving up and down. These types of activities are not without risk since differentials in price can quickly go away while fees stack up, leaving traders with no profit or even a loss.
Covered Calls: Some choose to sell covered calls in order to get some returns on crypto assets that are already held. This strategy sees traders selling call options where the purchase would be made during a set time frame at a predetermined price.
Interest Bearing Accounts: instead of trading, some have decided to try and collect profits on cryptocurrency by placing it into different accounts. For example, BlockFi said in March that some accounts that accepted Bitcoin and Ether were offering yields that could be as high as 6.2% per year, with an interest rate that would change based on market conditions.
Staking: The process of staking, where cryptocurrency is used to confirm transactions in exchange for a small reward, is another strategy people have used to generate returns during tighter markets. Staking is only allowed on some blockchain networks, like Dash and NEO, but platforms like Tezos do offer more flexibility for traders who want to stake and trade. However, those who engage in staking are not really able to capitalize on bull runs and can’t sell in order to cap losses.
Even though crypto prices are far from the late 2017 highs, many are bullish from an investment standpoint for 2019 due to a variety of factors.
Developments like JP Morgan and Facebook getting into crypto alongside increased blockchain interest by banks could spark grater regulation, but a lot more general interest in cryptocurrency as a whole and investment into pertinent endeavors.