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The cryptocurrency market is the strongest it has been in years. In addition to the sudden blossoming of DeFi and NFT’s, the market as a whole has improved its infrastructure and general usability. It’s no longer limited to cypherpunks or ardent enthusiasts.

An increasing number of hedge funds and companies are putting their capital into Bitcoin, largely because they believe it has potential as a hedge. This is a great flip from a few years ago, when many of these companies outright called Bitcoin a scam. Tyler Winklevoss was right when he said that a ‘tsunami of leaders’ would be entering the market.

And they are entering the market because Bitcoin is inherently valuable. There’s a strong feedback loop: Bitcoin is growing because of big-name market entrants and these investors are investing because Bitcoin is becoming more valuable.

Image credits: TradingView

That’s what has helped Bitcoin’s price cross the $15,000 mark in such a short span of time. Bitcoin’s ten or so years of existence itself is an extraordinary one, regardless of its price — the interest in it today is a testament to its investment potential.

But the market is maturing fast and 1 entire BTC is quickly approaching a price that is getting out of reach for most individuals. Here are few strategies to keep in mind as BTC touches some of its highest prices.

It May Not Be Good to Buy BTC Now — but Can HODLers Take The Profit?  

Most people will tell you that it’s good to buy BTC, regardless of its price right now, because there is still much room left for it to grow. It is true that you don’t have to buy 1 entire Bitcoin — one of its biggest selling points for people who are considering investing in it. But the point is that we cannot be certain that the cryptocurrency’s value has reached a new bottom level that is above $13,000.

Consider the prices that Bitcoin has held since its all-time high of nearly $20,000 in early 2018. It has seen several ups and downs since then, touching $13,000 on more than one occasion. On the flip side, it has also reached levels of $4,000 on multiple occasions. 

The takeaway is that many new investors entered when the market was on a temporary high, which results in losses as the market returns to its lower support levels. The high has dropped to actual price levels and even bottoms when profit taking has occurred or when the market has been hit with bad news. 

One could apply that reasoning to the current market state, which could be riding high momentarily. Of course, there is no guarantee for this one way or the other. But the point is that one cannot be sure that BTC is about to permanently enter new support levels.

For that reason, it may not be good to buy Bitcoin now. One option to consider, for those very keen on investing, is dollar-cost averaging. This reduces the chances of losses over time.

However, the upside is that there are now a number of alternative ways with which one can begin earning profits. Some of these don’t even require any investment, though if you want to make a decent profit, the more capital you have, the better. 

Alternatives Exist, With More On the Way

Let’s jump straight into the various options we have. The following are only some of the alternatives besides direct purchases. QDeFiRating and DefiPulse are among the best resources available and it is highly recommended that you examine the various pools on it. It also lets you sort pools, projects and yield farming profits by various criteria, making the whole process quite nimble.

Cloud Mining

Cloud mining is an up-and-coming service that lets you use cloud-based services to mine various cryptocurrencies. Mining is currently out of reach for most individuals as it requires very expensive hardware. 

The benefit here is that you need none of the hardware as the remote data center takes care of everything. Hashflare and Genesis Mining are two popular services and the pricing is relatively affordable when you consider the medium to long-term profit potential. Another benefit is that it doesn’t require technical knowledge to get started.

DeFi

The current craze of the crypto community, DeFi has been touted as the next evolutionary step for the cryptocurrency market as a whole. While its price rallies have died down in the past few months, the general enthusiasm for what it provides is still there. 

Yield farming programs and liquidity mining are the primary ways in which one can make money with DeFi. In such projects like SpaceSwap or SushiSwap you simply pour some of the idle assets you have into liquidity pools on platforms like Uniswap and it will automatically accrue funds in the form of governance tokens. These governance tokens can themselves grow to high values.

This is one of the best options one has, as the DeFi market has proven itself to be a worthwhile investment.

NFT’s

This one is a bit of an outlier, as it is not as likely to guarantee a profit. Non-Fungible Tokens (NFT’s) or NFT’s, are assets used to represent unique items. They are mostly used in gaming and art, with CryptoKitties being the most popular application. 

These NFT’s can sell for tens of thousands of dollars, should the platform become popular enough. While it is something to consider, it really depends on the popularity of the individual platform, which cannot be guaranteed. NFT’s have been growing as a niche, so it might be worth checking out. Just don’t bank on it.

What Will the Future of Profit Taking Be?

The future is going to be even more exciting as new investment products arrive on a regular basis. Remember, this space is still very young in its lifespan and has a lot of fuel left in the tank. It helps to be the early bird but that’s not always possible. The ability to know what is a good investment opportunity, just like in fiat markets, is a skill that is picked up over time.

But we will certainly see more user-friendly, one-click style investment products that function like savings accounts. DeFi is at the forefront of this but is also the newest of all the niches, so expect a lot more to happen.

These new products will likely be geared towards the lay investor — the vast retail market out there is still of the non-tech-savvy type. These would-be investors are not the kind to be able to use the complicated interfaces of DEXes. Rather, they would be more swayed with mobile apps like Dharma or Robinhood. 

Similarly, digital asset firms like Grayscale Investments are targeting high-profile investors with their custody and purchasing services. The proof is in the pudding — investors are willing to pay extreme premiums to let Grayscale handle their investments. These investors are paying higher than market value prices because they know that the assets will appreciate.

The time between now and the next Bitcoin halving in 2024 will see a tremendous amount of growth, both in terms of price and infrastructure.

Take Advantage of the Many Opportunities

One of the most important steps is to diversify your portfolio. This holds true for those investing in any market but it’s especially significant with crypto. You should make use of every opportunity available to earn a profit from the cryptocurrency market. In the long run, the holdings you have, whether BTC or some other asset, appreciate in price over time.

Platforms like QDeFiRating.com can greatly help that process as it collates all the information you need into one location. The opportunities do exist but it will be up to you to seek them out and make the most of them. Start with a few options and work your way up from there. In time, you’ll realize that there is a lot of profit to be made in the crypto market.

Dear Reader!

I am so thankful to you for reading this article!

The article is written by Alexey Usanov and Mr. Anton Dziatkovskiy, the co-founder and CEO of Platinum Software Development Company.

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