Once you enter the Algorand ecosystem you can very easily start making money with all the Defi opportunities available. I had myself received an Akita Inu Airdrop that made me a thousand dollars and would have made me 10 grand if I had timed my sale better. So yes, the space has been very exciting the past year. So much to explore that I did not even have time to blog about it.
How to make money with cryptocurrency?
- Investment in Algorand and ASA
- Trading Algorand Standard Assets
- Liquidity Pools on Tinyman
- Develop Web3 on the Algorand Blockchain
- Blog about your Algorand Web3 experience
Investment in Algorand and ASA
The easiest way to make money on the blockchain is by just buying Algorand on Coinbase. You earn rewards just by holding it in your wallet. So you can create an Algorand browser wallet and even a mobile app-based Pera Wallet. Considering the fixed 10 billion supply and the growing use cases of the token, buy and hold Algorand is good advice for the medium to long term considering the Governance feature. You can stake for higher governance rewards by voting on the future of the blockchain every 3 months.
However, in the short term, the risk of holding cryptocurrency can be devastating. The market is mostly driven by Bitcoin and in spite of Algorand´s superior smart contracts the prices of all crypto are quite correlated. A crypto bear run can lead to big losses in the short term.
How does Algorand add value to Bitcoin?
El Savador Banks are using wrapped Bitcoin on Algorand to transact.Cryptosrus News on Algorand
Algorand transactions are carbon negative while Bitcoin may rely on second layer protocol lightning technology to keep fees low. Hence, with a 0.001 Algo fee for transactions, minting Bitcoin value on the Algorand Blockchain with wrapped Bitcoin increases its business use case.
What are Algorand Standard Assets (ASA)?
Algorand’s Standard Assets (ASAs) provide a standardized, Layer-1 mechanism to representAlgorand
any type of asset on the Algorand blockchain.
Examples of Algorand Standard Assets include:
Yieldly.finance is a Defi platform that gives you access to various staking and liquidity pools. Moreover, you have a weekly lottery where you can stake your ALGOS and win big rewards. You also earn YLDY for participating in the lottery.
Opulous brings decentralized finance to the music industry by helping artists access funding.
aSHIB.finance aims to add value to the growing ASA ecosystem by utilizing machine learning and automated trading to balance its many liquidity pools.
You can buy major ASA like Yieldly and Opulous on centralized exchanges like MEXC, but most smaller but exciting projects have their tokens available on a decentralized exchange like Tinyman.
After buying some Algorand from Coinbase and ASA from Tinyman, you can view all your ASA holdings on ASA Stats. Investing in ASA for the long term can be a great way to invest in exciting web3 projects. But there are a lot of risks involved and long-term patience and trust in the team are crucial.
Trading Algorand Standard Assets
Trading crypto is very tempting with all the price volatility. While Tinyman allows you to trade ASA, Tinycharts provides great charts to analyze ASA prices. You could always trade on the ALGO/USDC or ALGO/USDt pairs to minimize your risks. Moreover, you could make a bot trader and try trading strategies programmatically on Tinyman. I hope to post more on this ahead.
Liquidity Pools on Tinyman
While trading ASA with a Bot Trader on Tinyman and the Algorand Blockchain is a great idea, you can also earn from the Liquidity Pools. The tip here is that most ASAs have heavy trade volumes only with their main Algorand pair. But adding liquidity to these pools may not give you a big share of the trade commissions.
So invest mainly in the top ASA Liquidity Pools with high Trade Volumes. You can slightly diversify into smaller Liquidity Pools like the aSHIB LPs to gain a bigger share. aSHIB or AlgoShibaInu has a strong “Promoter” holding that ensures stability. The down risk in holding aSHIB seems to be low now as all the weak hands from the initial airdrop receivers have left. aSHIB aims to stabilize liquidity on Tinyman and provide a safer way to make money on the Tinyman Liquidity Pools.
AlgoShibaInu on Tinyman
Machine Learning for price prediction and Mathematical Risk Management for rebalancing Liquidity Pools.
- Stabilizing: aSHIB can rebalance LP allocation unlike other bigger ASA pools
- Automated: aSHIB automated airdrops for new users, Development of Smart Contract Web3 App, AI/ML apps, Financial Risk Management
- Trustworthy: Trust is built over time. aSHIB LPs kept running amidst the Tinyman hack and numerous rug pulls by others. Slow and steady we will deliver more.
Develop Web3 on the Algorand Blockchain
You can mint your own ASA but it requires a lot of work. It is best to collaborate to succeed. For example, ASA like AlgoStake, allows other ASAs to create a staking plan. While Yieldly had a few staking pools with top ASA, AlgoStake has a wider range of options. Web3 developers must aim to add value to the ecosystem to succeed here. ASA Stats and Tinycharts tokens are some recent examples of value addition to the Algorand ecosystem.
You need not worry about deploying your software as you can also benefit from a range of bounties and grants announced by the Algorand foundation on a regular basis. Think of it like Kaggle for Blockchain development.
Blog about your Algorand Web3 experience
Learn from the Californian Gold Rush where merchants selling to the miners made a lot of money. While developing Web3 can be challenging, you can always blog about your progress and thoughts. Your knowledge can help others to fast track their progress in similar endeavors. Moreover, the clarity of thought that you gain from blogging can ensure that you keep progressing.
Few Algorand Blogging topics:
- Algorand Web3 Developer tutorials
- The user experience of Algorand projects
- Tips on analyzing ASA for investments
- How to build a crypto community on Discord, Reddit etc?
- Best practices to airdrop ASA
In a nutshell, the Algorand blockchain is promising and a lot of Web3 Developers are building on it. Firstly, you can make money by Investing and Trading crypto. Secondly, you can also try other Defi options like staking and liquidity pools. Thirdly, you can develop on the Algorand blockchain and finally, you can just blog about what you learn. The market capitalization of Algorand may be small right now, but it has great potential considering steps like the quarterly governance votes that aim to ensure long-term value for the blockchain ecosystem. Whatever option you choose, you should benefit from the growing adoption of the Algorand Blockchain and Technology.
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