Certainly you’ve heard of cryptocurrency, even if you haven’t dabbled in it. With 500+ exchanges, there are actually 20,000+ cryptocurrencies bought and sold daily! Bitcoin is the OG, launching in 2009.
Now then, a liquidity pool is when people add assets (aka money) to a decentralized exchange so traders who are swapping currencies have liquidity to do so.
The way you can make money in payment pools is by collecting transaction fees as income when other people buy and sell crypto.
Basically, when you participate in liquidity pools, you’re allowing a crypto exchange to use your money temporarily to help facilitate trades, and you earn a portion of the fee income that exchange collects.
And let me tell you… the opportunity is significant!
So, read on for a high-level overview of this exciting passive income strategy.
Advantages of Liquidity Pools in Crypto
Here at Awesomely, we love liquidity pools, and these are just some of the awesome reasons why:
- people newer to crypto can learn this strategy
- it works with any amount of money — $10, $100, or $1,000s
- on a typical day, one of the most common exchanges, Uniswap, pays out over $3 million in fees to people in automatic payment pools
- you control how active or how passive you wanna be
- you control how risky you wanna be
- you can profit whether the market’s up, down, or sideways
- this is a very real opportunity to participate in a newer financial system as an automatic payment pool provider
Disadvantages of Liquidity Pools
You might experience some challenges along the way with liquidity pools…
But!
You can also overcome any of these possible issues with some trial and error AND education (which we happen to provide in one of our stellar training programs — more on that below):
- The crypto world is vast — you’ve gotta learn what an automatic payment pool is and how it all works before you start participating.
- There are many exchange platforms, wallets, and coins/tokens to choose from, which can be overwhelming.
- Impermanent loss is when coin pairs move out of your set range, resulting in the principal being entirely in 1 coin temporarily. While it is manageable, it’s a risk associated with liquidity pools that you need to be aware of.
Things You Need Before Getting Started with Liquidity Pools in Crypto
Before taking a splash in liquidity pools, a basic understanding of Bitcoin, blockchain, altcoins, stablecoins, and decentralized finance is super helpful.
You don’t necessarily need to gain comprehensive knowledge of each of those, though you can if you want to. The better informed you are, the better you’ll be, of course.
One thing I think is cool and good to know is that we’ve noticed a predictable 4-year market cycle pattern with Bitcoin: 3 years of a bull market, followed by 1 year of a bear market, starting from 2011. Of course, there’s no guarantee this pattern will continue forever, so keep that in mind.
This is a neat stat too: compared to other asset classes — like the Nasdaq, gold, REITS, and others — Bitcoin has earned the highest return in 10 of the past 13 years. Hello, opportunity!
And know this: Short-term volatility creates the opportunity for automatic payment pools for passive income.
How to Invest in Liquidity Pools in 8 Steps
Investing in automatic payment pools is actually a pretty straightforward process…
- Follow some simple setup & security steps
- Create an exchange account
- Set up a wallet
- Choose a pair of coins
- Select a fee tier
- Select a price range
- Create your first automatic payment pool!
- Start earning passive income!
Interested in learning more?
Well, we’ve got you covered!
Just check out our incredible, easy-to-follow training program: Automatic Payment Pools. In this comprehensive training, you’ll learn everything you need to know to begin investing in automatic payment pools quickly and easily, following detailed step-by-step guidance to begin growing passive income.
It’s a beautiful thing, I tell ya!
Final Word: Liquidity Pools
Crypto adoption is growing… individuals, households, and institutions are joining in. Here are a few examples as we wrap up:
- Harvard & Yale & Brown University are investing their endowments into crypto
- Florida accepts tax payments in crypto
- Mark Cuban has said that “80% of every dollar” he’s investing is going to crypto
And other countries have already jumped in the crypto market, as the U.S. government begins to have policy conversations.
Seems like now might just be the right time for you to give automatic payment pools a go.
And remember, this post is kinda like an intro to payment pools.
To get the full picture, take a looksie at our Automatic Payment Pools training program.
