If you invest in crypto, then you probably already know about HODLing. Short for ‘Holding On for Dear Life’, it refers to crypto users holding on to their tokens and refusing to sell them for a significant amount of time. The typical reason why people HODL is that they expect their tokens to increase in value and are waiting to sell them at a higher price.
But what do you do with your tokens while you HODL? Some users keep them in cold storage for years at a point but there are a few things that you can do with your tokens in the meantime.
Gamble
Gambling has been a thing amongst humans for thousands of years but did you know that you can gamble with cryptocurrency? All you need to do is visit an online crypto casino and wager your tokens. If you are lucky, you can win more tokens than you initially bet while enjoying different games.
The good thing about crypto betting is that you’ll likely find a casino that accepts whatever token you are HODLing. You’ll also probably find a casino that offers whatever game you like, whether it’s traditional casino games like poker or more modern ones like Plinko. There are multiple advantages of playing casino games with your crypto, including the chance to earn more tokens and faster transactions than you would normally enjoy with fiat currency.
Rather than leaving all your crypto in cold storage, consider putting them to use in a crypto casino.
Play No-Loss Lotteries
Many people like the idea of lotteries; you have the chance to essentially win money for free. The obvious downside to lotteries is that there is a high chance that you won’t win and instead, will lose whatever money you spent. Luckily for crypto users, there is the chance to make money off your tokens through no-loss lotteries.
No-loss lotteries are exactly what the name suggests- you play in a lottery where no one loses. But how is this possible? Anyone who participates has to give up some money in the form of a certain crypto. All these funds are collected and staked or loaned out to earn interest. The interest is given to a winner and anyone who doesn’t win gets their initial funds back.
No-loss lotteries can be a great way to make money off your crypto sitting in storage. You could win more funds and even if you don’t, there is no loss to you.
Loan Them Out
For different reasons, people want to get their hands on cryptocurrency and one of the ways they choose to do this is by borrowing it from others. Now, there are many sites that allow crypto owners to lend them. In exchange, you can charge an interest rate and these transactions are governed by smart contracts so no one is cheated.
Even if you don’t want to do anything with your tokens, you can always earn some cash on the side by loaning them out to others. If things go well enough, you can have ongoing relationships with borrowers and create a constant stream of revenue.
The important thing is to only sign up on reputable and well-known sites that have a history of being safe and secure. Once you do this, you’ll be well on your way to lending your tokens.
Stake Them
If you are HODLing tokens based on a proof-of-stake consensus, you can also stake them to earn interest. Staking essentially means committing your tokens for a certain amount of time to help validate transactions on the underlying blockchain. The percentage you earn for staking depends on the token itself, with some tokens offering as low as 1% and as high as 30% for staking.
There are also several different ways to stake tokens. You can stake them via an exchange or any other centralized platform or join a staking pool and share the responsibilities with others. If you decide to become a validator, you take on more work but will make more money.
Rather than having your tokens lie dormant as you HODL, you can contribute to the survival of its blockchain and earn money at the same time.
Conclusion
If you’re lucky and market forces are on your side, HODLing could mean making a significant profit from your crypto stash. But while you wait for the market to reach this point, your crypto doesn’t have to lie dormant. The different activities we’ve highlighted could help you earn some money off your stash.
They come with different levels of risk and responsibility so you’re going to find something for you, whether that’s staking or gambling. And if done right, you’ll have even more tokens at your disposal when you are ready to end your HODLing journey.
