In our recent YouTube video, our correspondent Mia Tam had an interview session with the CEO and Co-founder of CoinFi Timothy Tam. He disclosed how to tap into the evergreen trade leveraging the unconventional method of online money making. This article will show you the step-by-step guide on how to earn from the crypto market tapping into the earning power of the relative trade. Enjoy!
It is no doubt that a lot of crypto investors and traders alike often wallow in pains when it comes to making money from cryptocurrencies. This is because the crypto market is unstable, and as such, there is an occasional decline in crypto coin values. Because a more substantial proportion of traders and investors do not know how to earn money way down, they often partake in the heartbreak that accompanies the fall in the price of the crypto coin. A large proportion of crypto traders always focus their attention on how to make money way up which doesn’t serve them any benefits in the long run.
Primarily, the prevalent method of earning from the crypto-coin is the orthodox way of earning capitalizing on the institution finance beta which is only valid with a continuous upsurge in cryptocurrency values. However, the unpredictable fall in the prices of these coins causes painful loss to the trader.
In order to create an alternative safer way of earning, you can leverage on the evergreen trade otherwise called “The Relative Value Trade” which works in contrast to the conventional method of betting on the direction of the coin being traded on.
With the evergreen trade, investors can bet on the price if one asset or point in relative to the other.
An interesting example which readily comes to mind when discussing relative trade is Tether which can be practiced live by anyone.
Tether generated a lot of waves on the Internet around two to three weeks ago with a lot of press in dire need to ascertain it’s genuinely.
Although Tether eventually suffered a drop in value to trade about 92% on the dollar, surprisingly, Tether still trades around 2% discount to the US which denotes its efficiency on the market.
These are the highlighted steps to follow to make money from relative trade;
1. Convert Fiat into Bitcoin
The first step to take to maximize relative trade fully is converted Fiat into cryptocurrency using any crypto exchange services such as Gemini, Kraken, and Coinbase.
2. Transfer bitcoin into Bitfinex
After successfully converting Fiat into cryptocurrency, bitcoin as a case study, you follow the next step by transferring the bitcoin purchased using a medium like Kraken into Bitfinex. The reason for using Bitfinex is due to its close association with Tether which generates a premium 2% higher value compared to the other exchange services in the coin market.
3. Sell your BTC on Bitfinex
You can lock the 2% risk-free into USD and sell your bitcoin on Bitfinex
4. Transfer the earned money to a local bank account
The information derived from Reddit and Google shows that it takes relatively 1-3 weeks to transfer money from Bitfinex to a local bank. However, the fact oblivious to many traders is that with an additional payment of 0.5%, you can have the transaction completed within 24 hours.
Using the express service, you’re earning drops from 2% to 1.5%, but with a trade on $100,000 for instance, you can still earn a reasonable 1.5% profit which gives you $1,500 as income on every $100,000 investment.
Risks associated with Relative Trade
As with every other type of business and life decision, investing in relative trade has its associated risk, but the risk is minimal compared to the other methods and offers a relatively higher return on investment.
In this present downward spiral in cryptocurrency, many investors and traders are bound to lose. However, you can make a difference by employing the low-risk high-return relative trade. It’s much safer and less risky.
About Timothy Tam
Timothy Tam is the CEO and the Co-founder of CoinFi, a fast-growing cryptocurrency news website. Timothy started his professional career with institution finance where he has spent 15 meritorious years.
Timothy Tam currently works on two projects; first the coin 5 – signal where the entire parent blockchain is ingested and Ethereum transfer in and out exchange to spot and correlate it to a large Ethereum price movement.
Also, Tam works on his second project, CoinFi – a cryptocurrency news website which gathers all crypto news, headlines and updates around the world. Users can sign up and log in to get all the news related to their preferred coin.
CoinFi news comes with personalized watchlist where people can log in to access the video news on the specific coin they are interested in.
Timothy Tam’s Prediction for the Cryptocurrency Market
It is very difficult to pinpoint the exact market behavior based on years of working as a professional trader. However, paying attention to the market trends, news, and catalog with other related beneficial materials can serve as a pointer in decision making in bitcoin trading and other cryptocurrency investment.
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