Cointime

Download App
iOS & Android

I Have Seen People Make Money From Crypto in All Methods — I Bet You Don’t Know That One

“A person’s misfortune creates another person’s fortune.”

Person: Hey! why don’t you buy crypto with this link? you will make a free $10.

You: Where’s the catch?

Person: There is no catch. Just use this link, not the usual website. It’s an official one too. You can also just use my referral code, if you’re worried.

Now let’s assume we live on another planet called Planet Honesty.

Person: Hey! I want to convince you to buy crypto and I will make money from that, just so that you would know.

You: I appreciate your honesty, tell me more.

Person: You buy cryptocurrency from this website. You have to put a specific amount, probably $100 there, and keep it there for a month or more without touching it. During which there could be fluctuations in the price, and you might lose some of that, but you also might gain. It depends on the market. Additionally, after this month, they will put a free $10 in your account and $10 in my account.

You: Umm, how much could it actually drop to?

Person: A good case scenario for example if you did that for bitcoin on 15 July 2021. In this case, a month later, you would have $150 instead of $100 (Excluding the $10).

You: Wow! thats a huge return. What’s a bad scenario?

Person: May 7th, 2021 — Your invested amount would convert to $60 (excluding your gift of $10 of course.)

Some people out there are making fortunes with crypto referrals. Yet, this monetization method has become very common.

Additionally, there is crypto trading, or hodling, which almost every crypto investor has heard of.

While on my travels, I noticed a different method some crypto enthusiasts use to make a good amount of money.

Some countries are against cryptocurrency.

While, again, this is quite obvious, its extent is not. In several countries, residents are not allowed to purchase cryptocurrency.

For instance, if a person logs into Binance and uses their credit card from their home country to purchase crypto, the transaction would be declined because the government orders banks not to do so.

Multiple countries are still banning the use of cryptocurrency. Hence, they might have such restrictions. According to Euronews, a few are Algeria, Bolivia, China, Colombia, Egypt, Indonesia, Iran, India, Iraq, Kosovo, Nepal, North Macedonia, Russia, Turkey, and Vietnam.

Then a new role emerged; you can call that person the foreign currency exchanger.

Simply put, this person has access to a credit card accepting crypto transactions, wherever that country of the credit card is from (for instance, if you live in the US, then your credit card is probably allowing you to purchase cryptocurrency directly on websites like Binance.)

Here is how it could go.

  1. These people buy crypto in USDT, for instance, to avoid any fluctuations in price.
  2. They log into a tab called P2P in Binance.
  3. They sell their USDT to others in those countries for a surge in price and receive them on other standard payment methods like Paypal.

You: “Alright, what is it? a 5%? 7%? I will need hundreds of thousands to make profit from this.”

You decide on your percentage because you have to keep in mind that a credit card transaction would probably also result in a tiny commission extracted from you already.

Here are a few examples of people doing this on Binance (the current price of BTC at the moment of this writing is $39,500.)

A) 2.5% Profit

Screenshot from Author’s Binance Account

This is the least I’ve seen. It would result in a reasonable amount of money over time with high volumes. If this person sold on an average volume of $100 per person for his 757 orders, then his profit would be almost $2,000 for an investment of $75,000 (meh, you can look at it as an easy $2k in all cases.)

B) 134% Profit

Screenshot from Author’s Binance Account

This is the most I’ve seen. This person also trades with a very low minimum. Hence, making a 134% profit of $5 requires many transactions to accumulate that profit. Think about it this way, though, each $5 he puts there. He makes $12 (not bad.)

P2P (Peer-to-peer) is all about volume.

The above two examples are the lowest and the highest rates. However, there is an average in between.

However, some multiple unseen small transactions and commissions are to be studied well to assess whether a person could profit from them.

For instance, a commission will probably be involved if one takes the transactions via PayPal and then sends it to one’s bank account. If this exceeds the average profit, it wouldn’t be worth it. Hence, it’s not for everybody.

I thought of talking about the ethical aspect of this in this article, but I am quite hesitant as I believe this is how bank loans operate in the first place. So, I keep this to the reader’s personal evaluation.

The final challenge is the currency involved. This is in USD, but some countries do not have access to the US dollar. Hence, they would only be able to pay in the Colombian peso (if in Columbia). If a person does not know how to handle such a currency, it could limit the whole volume of operations.

It is always optimal for dual citizens as they would have access to and use both currencies.

Note: This is not financial advice, merely stating a monetization method of crypto used by some people. I consider this to be quite interesting and could educate the reader. Optimally, I hope those countries would allow the use of cryptocurrency and make it easier for everyone.

Comments

All Comments

Recommended for you

  • Saudi Arabia Depletes 86% of Patriot Missile Stockpile

    According to British media reports, within the first 38 days after the outbreak of the war, Saudi Arabia launched approximately 2,400 PAC-3 (Patriot-3) interceptor missiles, accounting for about 86% of the country's total stockpile of 2,800 missiles. By April of last year, Saudi Arabia had only about 400 interceptor missiles remaining. Other Gulf Arab states also consumed missile reserves on a similar scale, highlighting the military crisis facing the region. (Jin Shi)

  • Experts: The Strait of Hormuz 'Will Never' Return to Pre-War Status

    Ali Akbar Dareini, a researcher at the Iranian Strategic Studies Center, stated that Iran and Oman are about to reach an agreement on the future management of the Strait of Hormuz, with the main obstacle being U.S. pressure on Oman to adopt a position more aligned with Washington. Dareini emphasized that Iran considers future control of the strait crucial for its national security. In recent months, the U.S. has conducted strikes against Iran, which Iran claims were launched from bases in the region. Dareini noted that the ongoing negotiations between Iran and Oman present the U.S. with a 'good opportunity to extricate itself from this quagmire' by recognizing Iran and Oman as the countries that will determine the 'future' of the Strait of Hormuz. 'However, the Strait of Hormuz will never return to its pre-war status,' he continued. 'The geopolitical landscape of the region has changed.'

  • Iran: Negotiations with Oman Unrelated to Reopening of Strait of Hormuz

    On August 8, a spokesperson for the Islamic Revolutionary Guard Corps of Iran stated that the reopening of the Strait of Hormuz is unrelated to negotiations between Iran and Oman, but rather depends on whether the United States fully accepts Iran's conditions and ceases interference in regional negotiations. "Once the United States accepts Iran's conditions, the Strait will undoubtedly reopen." (CCTV News)

  • Whale Shorting $102 Million in Bitcoin Faces Partial Liquidation, Remaining Liquidation Price Around $65,300

    On August 8, TheDataNerd reported that a whale using 40x leverage to short $102 million in Bitcoin recently faced partial liquidation, incurring a loss of $1.46 million over the past week. Currently, the margin call has reduced the short position to approximately $60 million, with an opening price of $64,212.5 and a liquidation price of $65,310.2.

  • BTC Falls Below $65,000

    Market data shows BTC has fallen below $65,000, currently reported at $64,999.23, with a 24-hour increase of 1.01%. Market volatility is high, please exercise risk control.

  • Hedge Fund AISituational Awareness's Mysterious $400 Million Investment Targets Chip Startup Source Foundry

    On August 8, sources revealed that the hedge fund Situational Awareness, managed by former OpenAI researcher Leopold Aschenbrenner, made a mysterious $400 million investment in the chip manufacturing startup Source Foundry just days after facing imminent collapse. Previously, Bloomberg reported that the hedge fund invested in a private company backed by Sequoia Capital, but did not disclose the name of the specific company. The Wall Street Journal had earlier reported that the recipient of the investment was Source Foundry, unveiling the target of this mysterious funding deployment by Situational Awareness.

  • US Spot Bitcoin ETF Sees $101.79M Net Inflow Yesterday

    On August 8, according to Trader T's monitoring, US spot bitcoin ETFs saw a net inflow of $101.79 million yesterday.

  • US Official: Ukraine Agrees to Avoid Strikes on Non-Russian Tankers and Black Sea Oil Facilities

    On August 8, according to a US official, Ukraine has agreed not to target certain non-Russian tankers and Black Sea infrastructure vital to Kazakhstan's crude oil exports. This follows ship attacks last month that caused loading disruptions. The US official said Ukraine has set up contact points so commercial shipping companies can communicate information and ensure safe passage. The commitment was reached after meetings between senior US government leaders and Ukrainian leadership, marking a potentially significant step toward increasing regional oil shipments. Previously, activity in the region had cooled significantly due to several recent attacks near the Caspian Pipeline Consortium terminal in Russia's Novorossiysk. (Jin Shi)

  • U.S. July Nonfarm Payrolls Fall by 23,000, Missing Market Expectations

    On August 7, U.S. nonfarm payrolls decreased by 23,000 in July, compared with market expectations of an increase of 80,000, and the previous value was an increase of 57,000.

  • US May and June Nonfarm Payroll Additions Revised Down by 103,000 Combined

    On August 7, the US Bureau of Labor Statistics: May nonfarm payroll additions were revised down from 129,000 to 63,000; June nonfarm payroll additions were revised down from 57,000 to 20,000. After the revisions, the combined additions for May and June were 103,000 lower than previously reported.