Bitcoin bull and crypto trader Tyler Swope is shining a light on a little-known way to capitalize on two new crypto assets.
The crypto influencer says he’s uncovered a virtually zero-cost process through which investors are getting their hands on and selling the Reddit-based community tokens Moons and Bricks.
“By being a Reddit karma farmer, you can now accumulate these subreddit tokens and get paid by doing what people already do: shatposting, memelording, or just providing solid content.”
Moons are Ethereum-based tokens that are distributed to community members of the r/cryptocurrency subreddit. The number of tokens that members receive is based on the amount of Reddit karma they earn, which is a measure of a user’s contribution to the community.
The community token Bricks also follow the same rewards mechanism. The big difference is that Bricks are earned by getting karma on the subreddit r/FortNiteBR.
Although there is a perception that the tokens can’t yet be sold, Swope says there are ways to trade the tokens on the open market. He says the first and the most liquid place for trading moons is HoneySwap, which is a clone of the Uniswap protocol.
“Now as we can see, over the past week, trading volume for Moons on HoneySwap has been pretty stable, about $30,000 per day. The liquidity for this is nearly $70,000.
So what I’m trying to get across right here is once trading volume goes nuts for Moons again, the few people in the liquidity pools are going to make bank on trading fees and it will happen again, yes again. As volume has already gone pretty nuts on HoneySwap during the launch hype wave, over $400,000 daily volume.
And then with Bricks, the opportunity is even more ripe as the liquidity pool is much smaller, seven times, under 10 grand.”
As for whether the two assets will be listed on centralized exchanges, there are rumors that Moons may come to Kraken, but so far nothing is confirmed.
Staking Simplified (2020 update)
You might have heard of Proof-of-Stake (PoS) mining and staking rewards but recent research shows that the majority of people are not very clear about what it does and how it works.
I will keep this as simple as possible, without going into the techincal aspect of it too much but will focus instead on how you can generate profits from staking.
POS is an eco-friendly method of mining that was designed in response to the growing concerns about the excessive energy consumption of the POW mining. Herein lies the key difference between the PoW (Proof of Work) and PoS mechanisms. Unlike POW- where the economic price of participation is electricity, computer power and capital, with the PoS, the cost is the “stake” – amount vested in the project/currency.
Proof of Stake makes use of the tokens/coins staked, to determine who gets to add and verify blocks (the process of mining). In simple terms, the miners here are called “Validators” and they propose a new block to be added to the chain and validate new transactions through a voting process. In order to be a validator, you have to lock-up a certain portion of coins/tokens of that cryptocurrency. This is what we call “staking”.
Staking in this sense can be compared in a way buying stocks or bonds of some form, that will then be paying you dividends. Maybe not the best example, but a close one, except, it has added benefits.
Token holders who “stake” a certain amount of their cryptocurrency also can have the right to vote and to participate in the governance of the network and since they stake their tokens without using them, they are rewarded. This is how staking can become rather profitable. The whole process is controlled via dApps, so there’s little room for error or risk involved.
Staking is evolving with time and today it has become much easier for us to engage in it. At first, users were required to stake their digital assets via specific software which in most cases involved downloading and running a full node and your stake was usually requiring a lock-in period (during which you couldn’t take your coins).
This is the fixed staking, where you are fully and actively involved in the process as you’re running a full node and supporting the network, but today we have third parties involved that create pools and use a combined staking methods to enable anyone who wants to stake and pretty much any amount they want to stake, with as little effort necessary.
This is the so-called soft staking which many wallets and some exchanges offer since 2018. It means that you simply deposit your digital assets into your wallet and allocate them to a staking validator (could be the exchange itself or a third party) and you receive your dividends accordingly. This is called Delegating and it doesn’t stop you from withdrawing your stake at any given moment. Delegating also does not give away your ownership of these coins/tokens at any point. In most cases you would be paying a small fee to the Validator service provider which is understandable give the ease-of-use they offer in return.
Some of the most popular staking digital assets are Tezos, EOS, Tron, Cosmos, Synthexis, Algorand, Band, BNB and many more, which I will review in detail in my next post, so watch out for this.
Right now, the easiest ways to stake digital assets are exchanges which offer soft-staking, like Binance and Kucoin, Poloniex and Bitfinex, or wallets such as Metamask, Trust Wallet, Ledger, Trezor, Cobo Vault, Exodus and Atomic Wallet.
The Ledger hardware wallet is one of the most popular ones in the community when it comes to digital asset storage. It provides two options for staking – using the Ledger Live or external wallet apps.
Staking is not the only way to earn passive income from your crypto holdings. If you are looking for more ways to grow your crypto capital, here are some options:
- Lending and Borrowing – this is the most recent trend in cryptocurrencies that is gaining momentum with Ethereum-based DE-FI projects (decentralized finance).
- Trading – a risky option, but could be quite rewarding when done right. You can check out my review on Token Metrics which is a hell of a tool when it comes to helping you with what coins to trade and finding the right time to enter or exit a trade.
- Mining – there still some altcoins worth mining, albeit it’s not my personal preference as it involves investment that sees a return over a long period of time and in most cases, you will see a bigger return from trading or simply hodling in the same period.
- HOLDing – Purchasing and holding a cryptocurrency in any crypto wallet while hoping it will appreciate in price with time. This will not grow your crypto, but it will most likely grow your fiat value, so for those who are still hanging on to the conventional currencies, it can be a profitable alternative.
Staking of course, is about growing your crypto holdings, so in my next post, I will review the top 10 staking coins, make sure you’re following this blog (go to the top of the right menu on this page.)
Welcome to another article from these series called “Crypto Jargon”. This article is about the following types of digital proofs in relation to blockchain technology and cryptocurrencies. POA POB POC POD POE POI POP POS POW POST dPOW dPOS I will begin with the most commonly used ones, so I will not follow alphabetical order. … Continue reading POA, POB, POC, POD, POE, POI, POP, POS, POW, POST, dPoW, dPoS Explained
Trust Wallet is one of these cool hybrid wallets that you have on your mobile for quick and easy access to your crypto holdings, while at the same time remaining in full ownership of your digital assets. What I mean by that is – you have a seed phrase that protects your wallet data and … Continue reading Trust Wallet Review – stake, buy & sell crypto from your phone
Ledger Nano are the most popular wallet device series to date. Their “S” model which was released in 2016 was the first hardware wallet that sold over 1 million units worldwide and now they come up with an upgraded version, the Nano X model which has some very cool improvements. It’s truly a One-Fits-All type … Continue reading Ledger Nano X unboxing + complete set up guide (tutorial)
“LEARN CRYPTO” – THE ULTIMATE BEGINNERS GUIDE TO SAFELY INVESTING IN BITCOIN AND OTHER CRYPTOCURRENCIES
Author: OJ Jordan
Ethereum to See “Price Discovery” in 2021; Analyst Targets $750
Ethereum’s price action has been somewhat lackluster as of late. It has been closely tracking Bitcoin and recently declined beneath the key $380 level after making several attempts to flip it into support.
Because Bitcoin has been closely tracking the stock market, where altcoins like Ethereum trend in the near-term will likely depend largely on key macro developments like a phase 2 stimulus package, as well as the upcoming November elections.
One analyst is noting that bulls will likely prevail over bears in the coming few months.
He expects Ethereum to enter price discovery mode in 2021, sending it rallying up towards $750 or higher.
At the time of writing, Ethereum is trading up just under 2% at its current price of $375. This marks a slight run from its recent lows of $365 that were set just a couple of days ago.
The selling pressure that pushed ETH below $370 has since subsided and shows continued signs of alleviating as the entire altcoin market begins catching some momentum.
Unless BTC sees a sharp move lower in the near-term, it does appear that Ethereum bulls may be able to recapture $380, which would be a positive short-term development.
While sharing his thoughts on where the market might trend next, one analyst explained that he is watching for Ethereum to enter price discovery mode in 2021.
He believes that this will catalyze a move up towards $750, which would mark a roughly 100% climb from where it is currently trading at.
“ETH: Price discovery 2021. Glaringly obvious only the patient will win but there’s trades to be taken within,” he said while pointing to the below chart.
Image Courtesy of Pentoshi. Source: ETHUSD on TradingView.
How Ethereum reacts to $380 in the coming few days should offer investors with some insight into where ETH will trend in the mid-term.
Author: By TeamMMG