“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.
- These people buy crypto in USDT, for instance, to avoid any fluctuations in price.
- They log into a tab called P2P in Binance.
- 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
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.
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