Grow Your Crypto | Ledger (2024)

Mar 9, 2021 | Updated May 12, 2023

Crypto offers vastly better opportunities to grow your assets than fiat money – and here we give you a guide to a few of those. Here’s how to grow your crypto.

We all want to maximise what we have. Financial independence isn’t just about having wealth, it’s about gaining more control over your life, having options for the future, and being free to live autonomously.

Why look beyond traditional finance?

You most likely do not remember when was the last time your bank credited your quarterly interest to your savings account. That’s because an interest of less than 1% every three months is something you probably won’t notice.

We’re not sure if the term “savings account” still makes sense considering the value of your savings in your bank account depreciates with time. It fails to stand the thrust of inflation and shrinks year on year.

Stocks, on the other hand, are ruled by market whales. The whales know the markets. They can influence it per their will and make their profits while you keep pondering for opportunities. Common people like us barely make a fortune there.

And oh, the good ol’ commodities may act as a decent hedge but their rate of return is nowhere close to making it a great investment asset for most. We can go on talking about every other asset and still end up with the same conclusion: it’s time we find ourselves a better alternative.

Don’t get us wrong, we are not saying that these are poor investments or that you shouldn’t have a savings account or invest in stocks. But while doing so, it is worth noting that cryptocurrencies bring you a completely new way of owning and growing your funds.

Crypto has better returns

In the past ten years, many cryptocurrencies like Bitcoin (BTC) and Ether (ETH) have outperformed most traditional assets. That is the reason why retail and renowned institutional investors are moving billions into cryptocurrencies.

In addition, many cryptocurrencies are deflationary like gold. Their total quantity is hardcoded into their base infrastructure, the blockchain, which cannot be manipulated. This limited-supply formula enables such cryptocurrencies to gain more value as their demand increases.

What makes cryptocurrencies interesting is that they are meant to be decentralized. This means that no central entity should be sitting in the shadows.

Furthermore, when you buy cryptocurrencies, you are the true owner of your assets, not a company, not a bank. You. Which opens more possibilities to grow your funds. Let’s see how.

Ways to Grow your Crypto

It’s true. You keep your crypto. Click a few buttons. And cha-ching. You have a stream, or maybe three, of earnings. So what are the options?

Crypto Lending

If you are aware, banks use the money we store with them to sanction loans at high rates of interest. And the interest we earn is only a tiny fraction of what they make from our money.

In the world of cryptocurrencies, there are no banks. There’s only you, the other individuals, and decentralized lending and borrowing platforms. These platforms enable you to lend directly to borrowers and earn interest on your funds.

This power. The control. It sounds fun, doesn’t it? But wait! There’s more.

Staking

Staking is one of the hottest topics in crypto and you can do it directly through the Ledger ecosystem. It’s a way of making money that’s available exclusively for proof-of-stake based systems on the blockchain – you won’t find staking in traditional banking.

When you stake your crypto, you essentially allow it to be locked up (until you take it back) within a blockchain. Your crypto will then help that blockchain to run (you can find out more about how that works here) and in exchange, you’ll get some pretty handsome staking rewards. So in effect, it’s a great source of passive income, which is the other reason why people are so interested in finding out more.

In addition, it allows you to be an active participant in the safe and efficient running of a network simply by delegating your idle crypto funds for a while…so you get to feel good too.

…and Staking directly Through Ledger Validator Node

Did you know, you are now able to stake directly from your Ledger hardware wallet, through Ledger’s own validator node? So you can enter the rewarding world of staking securely, via a platform you already know and trust. Find out how to access staking through Ledger validator node for yourself, right here.

Yield Farming

Much like in the real world, big crypto liquidity pools, such as those on exchanges, are constantly seeking liquidity providers. That means people like you and me can be rewarded for contributing our holdings ot the pool, which makes it it quick and easy for the users to make their exchanges. This is known as yield farming.

In return, we get interest (or APY, in crypto) as well as a token to hold in the meantime that we can also use on other platforms for a return – this ability to earn from both your principal sum and also the token you get in return is one of the most advantageous parts of owning crypto, and it’s known as “composability” or “money legos”. Why would you miss an opportunity like that??

HODL

Beyond all that, the value of cryptocurrencies is subject to market demand, which may increase over time and impact the value of your holdings. Thus, you might also grow your assets just by securely holding your crypto.

It’s worthy to note that when you stake or lend your cryptos with a wallet provider such as Ledger, you still own your cryptocurrencies while they’re out there growing.

Crypto – the Obvious step for Financial Freedom

All in all, crypto can triple your earning stream: assets’ value appreciation, staking rewards, and interests from lending.

Still here? Enjoyed it? Next time, we go for another one and learn the first of the three strategies we’ll be sharing in this guide to growing your crypto.

Knowledge is power.

Trust yourself and keep on learning! If you enjoy getting to grips with the advantages of crypto, check out our School of Block episode all about parrive income.