How To Make (or Lose) Money With 1inch (1Inch)

Last Updated February 3rd 2022
7 Min Read

The internet is currently awash with tales of individuals who got insanely rich after buying digital assets and others who went bankrupt chasing the elusive crypto fortunes. Featured heavily in these stories is Bitcoin, popular meme coins, and highly useful but new/undiscovered tokens like 1Inch. We include Inch because both the coin and its underlying DEX aggregation protocol have massive potential for growth.

In fact, it has also maintained an overall positive ROI. It has also been featured on the watchlists of the most promising tokens by many crypto experts. Not to mention that technical analysts are confident that its value will skyrocket over the next few years, earning its investors massive returns. 

But how exactly do you make money with 1Inch token? Importantly, how do you retain most of what you earn from 1Inch investing?

We will be telling you the 3 most popular ways of making money with 1Inch. We will also be looking at how you can retain as much you earn with 1Inch by learning about the different ways through which a 1Inch investment can be lost and how to avoid such losses.

Read on.

How To Make Money With 1inch (1Inch)

Before we can look at the 3 ways through which you can make money with 1Inch, we need to observe that, like most other cryptocurrencies, the DeFi token wasn’t created to serve as an investment product. Instead, 1Inch is intended to serve as the utility and governance token for the 1Inch network. Nevertheless, it has been largely embraced as an investment product by speculative investors/traders.

So how do you make money with 1Inch:

1. Investing

The most popular and most beginner-friendly way of making money with 1Inch has to be through investing. Also known as Buy and Hold or HODLing, investing involves buying 1Inch tokens today and holding on to them for a long time as you watch their value appreciate. But to be a long-term investor, you need to have a near-absolute conviction - backed by thorough research - that 1Inch token prices will continually rise over time.

To understand how you make money investing with 1Inch, we will start by assuming that you just bought $1,000 worth of 1Inch at the current per token price of $1.60. Next, we will assume that 1Inch token prices will reach $95 by December 2030 as forecasted by technical analysts at CryptocurrencyPricePrediction. Such a momentous jump would, in effect, push your investment up by more than 5800% to reach $59,325.

2. Trading

You could also earn a fortune trading 1Inch. Also known as short-term investing, trading involves buying 1Inch tokens at the dip and selling them as soon as the trade becomes profitable. And when trading derivatives, it could involve shorting the altcoins by entering into a position at their peak price and exiting when the price dips. But unlike investing, trading carries a significantly higher risk and is, therefore, a reserve of highly experienced and risk-tolerant investors.

So how much can you make trading 1Inch? We start by assuming that you have started trading 1Inch with $1,000, and you make 10% gains consistently on a weekly basis - compounded. By the end of the first year, you will have grown this investment by 300%+ to reach $3,000.

3. Staking

You could also choose to secure and contribute to improving the 1Inch network through staking or delegating your 1inch tokens. You could also stake your 1Inch tokens with third-party liquidity pools and other investment-focused DeFi programs. In both cases, you will receive interest on your stake, which is oftentimes in the form of more 1Inch tokens.

According to StakingRewards.com, the interest rate for staking 1Inch on the 1Inch network starts from 0.92%, while the interest rate for staking 1Inch on a third-party lending platform starts from 1.51%, per annum.

Check Out: The 5 Best Ways To Buy 1inch (1INCH)

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

How To Lose Money With 1inch (1Inch)

We have already mentioned that in order to retain as much as you make with 1Inch, you will need to learn the possible ways through which the investment can be lost and how to avoid them. Here are the four most common ways of losing money with 1Inch and how each can be avoided.

1. Reckless trading

You are trading recklessly and are bound to lose your 1Inch investment if you trade without a solid strategy. You are also trading recklessly if you go into 1Inch trading without enough trading experience, without access to advanced trading tools, if you aren’t making use of enough risk management tools, and if you make your trade decisions based on emotions.

How to prevent this loss: Start by accumulating as much experience as possible before venturing into 1Inch trading. You also need to create and perfect a trading strategy, embrace as many risk management protocols as possible, and eliminate emotional bias in your decision-making process.

2. Hacking

Hacking has become a thorn in the flesh of crypto investing/trading and is quickly spreading its tentacles to the DeFi space. In the first half of 2021, for instance, CipherTrace reports that crypto investors lost $681 million to hackers. It then adds that 60% of these were DeFi related crimes. True to this world, Badger DAO - a DeFi program - was recently compromised and more than $120 million in user funds was stolen from multiple smart contracts.

How to prevent this loss: You could start by embracing multi-factor authentication for all your crypto-related accounts and wallets. Where possible, keep your 1Inch tokens off exchanges and hot wallets. Instead, store them in offline hardware and paper wallets. There is little you can do to prevent hacks to a decentralized investment program or crypto exchange - maybe just don’t invest what you cannot afford to lose.

Don't Miss: Is 1inch (1Inch) Safe?

3. Crypto Scams

Crypto scams are also on the rise. By scams, we are referring to any con game aimed at defrauding you of your 1Inch investments. These include crypto pump and dump schemes, MLM, Ponzi, and Pyramid schemes, fake websites, malicious emails, fake social media promotions, and even rug pull scams.

To understand what a menace these have become to the crypto industry, the Federal Trade Commission (FTC) recently issued a report indicating that between October 2020 and May 2021, US residents lost more than $80 million to scammers - with the median loss standing at $1900.

How to prevent this loss: The typical scammer preys on crypto investors/traders’ greed and lures them in with the promise of above-average returns. Most particularly have their guns trained at new to intermediate traders/investors. You can, therefore, avoid most of these by first learning the ropes about 1Inch investing before trusting any investment program with your assets.

Similarly, eliminate the get rich quick mentality when interacting with 1Inch and virtually any other crypto asset. But even more importantly, follow crypto crime reports from the likes of FTC and CipherTrace to learn about the different scams as well as how to detect and avoid them.

4. Password loss

You will also lose your 1Inch investment if you forget the password and recovery seed for the hardware wallet holding your funds.

How to prevent this loss: Use a memorable but unique password for the digital wallet. You could consider maintaining several copies of the recovery seed but in a highly secure environment.

Conclusion: How To Make Or Lose Money With 1inch (1Inch)

There three most common and highly practical ways through which anyone can make money with 1Inch include investing, trading, and staking. This 1Inch investment can, however, be lost to hackers, crypto scammers, reckless trading, or even to forgotten passwords and misplaced recovery seeds. The art of making money with 1Inch involves mastering all the different ways you can earn with 1Inch, familiarizing yourself with all the different ways this investment can be lost, and then learning how to prevent such losses.

Read More:

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