How To Make (Or Lose) Money With SushiSwap (SUSHI)?

Last Updated February 7th 2022
6 Min Read

Slightly over a year after its launch, SushiSwap’s ROI stands well over 40% and is expected to continue rising over the next few years. This confirms that SUSHI is a reliable crypto investment, and in this guide, we will be telling of the most common ways that you can leverage to make money with the 3rd most popular decentralized exchange.

But as is the case with both digital and traditional investment, you can lose money interacting with SushiSwap. In this guide, we will also be telling you of the most common ways through which previous SUSHI investors have lost money with the DeFi token and how you can avoid them.

Before we get to it, we must mention that the secret to making money with SushiSwap lies in maximizing on cash generators and sealing all the loopholes that cost you money with SushiSwap.

So how can you make money with SushiSwap?

Ways To Make Money With SushiSwap (SUSHI)

There are numerous ways through which you make money with SushiSwap tokens, but in this guide, we will be narrowing this list to the three most common and practical.

1. Buying and HODLing

Investing in SushiSwap is the most common and most beginner-friendly way of making money with SUSHI. It involves buying SUSHI tokens today and holding on to them for years, watching as their price rises to previously unimaginable levels. Compared to other ways of making money with SushiSwap, investing carries the least risk because the DeFi token has proved to be highly resilient by not only maintaining an overall uptrend since launch but also surviving the most volatile crypto market crashes.

Just how much do you stand to make when you invest in SushiSwap? Well, if you had invested in the altcoin when it launched, you would be 8X richer today. Moving forward, virtually all price metrics indicate that SUSHI token price will sustain the current uptrend. At CoinQuora, for instance, crypto experts are convinced of a swift SUHSI price rebound and expect the DeFi token prices to appreciate by as much as 2500% before December 2025.

2. Trading

SushiSwap is one of the most volatile crypto assets around, and the upside to this is that it creates a perfect income-generating opportunity for experienced traders. As its price moves up and down, it creates chances for buyers and sellers to make a quick buck. Traditionally, trading involved timing the crypto asset’s dip and holding on to it until its value improves. Today, you can trade SUSHI derivatives which allow you to go long (BUY) and short (SHORT).

How much can you make trading SushiSwap? Well, if you can manage to grow your trading capital by at least 5% weekly, you will have grown your initial investment by more than 250% by year-end.

3. Staking & Lending

SushiSwap operates on the proof of stake consensus. This implies that you will earn an interest in the form of extra SUSHI tokens if you stake your crypto assets and participate in verifying transactions on the network. At the moment, the SushiSwap network pays an annual interest of 9% for staked coins - distributed daily.

There are numerous other staking platforms within the DeFi ecosystem that will let you stake SUSHI tokens, and they pay relatively higher interest rates. These will, in turn, lend the tokens to other SushiSwap traders and investors. According to Staking Rewards, the current interest rate for staked SUSHI tokens starts from 10% per annum.

Note: Staking works best for long-term investors as it lets them earn doubly. This implies that you get to watch your SUSHI token prices appreciate and also earn interest from staking on the SushiSwap network or other third-party lending platforms.

Check Out: Could SushiSwap Be A Millionaire-Maker Coin?

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

Ways To Lose Money With SushiSwap (SUSHI)

There are 3 common ways through which previous SushiSwap investors have lost their capital. In this section, we will be going over each and telling you how they can be avoided.

1. Reckless trading

Just as SushiSwap’s volatility can make you money, it will most definitely lose you money - especially if you trade recklessly. You are said to be trading SushiSwap recklessly if you are inexperienced and do not have access to the necessary trading tools. You are also trading recklessly if you do not engage the different risk management tools provided by the different trading platforms.

How to avoid losing money when trading SUSHI: Start by gathering as much experience as possible before you start live trading the DeFi token. Most trading platforms will provide you with a free demo account with virtual cash that you can use to hone your skills and perfect a trading strategy. Additionally, and regardless of your trading experience, always engage such risk management risks as stop loss, take profit, and guaranteed stop loss.

2. Hacking

In the first seven months of 2021, CipherTrace reported that crypto investors lost more than $681 million to hackers and other forms of fraud. More recently, a hacker stole more than $120 million from the DeFi website BadgerDAO. Different financial regulatory agencies have raised over increasing crypto hacking cases while the CipherTrace report indicated that hackers are now targeting DeFi technologies more - the niche in which SushiSwap operates.

There typically are two forms of hacks that can you lose you the SushiSwap investment. First is the breach of the crypto exchange vaults where you have stored your SUSHI tokens - and you have zero control over it. Secondly, and the one you can control, is the breach of your exchange or digital wallet account - often associated with weak passwords.

How can you prevent the loss of SushiSwap tokens to hackers: Well, a recent cybercrime report by Verizon indicated that 80% of hacks are preventable if only individuals could use strong and unique passwords. You may also want to invest in reliable hardware or a paper wallet that stores your SUSHI token private keys offline. Lastly, you will want to vet crypto exchanges and wallets thoroughly before creating accounts with them and trusting them with both your personal information and crypto-assets.

3. Crypto scams

Crypto scams, especially the Ponzi and MLM schemes, fake websites and phishing, as well as pump and dump schemes, have also been on the rise. In the nine months to May 2021, for instance, the Federal Trade Commission (FTC) reported that Americans had lost more than $80 million worth of crypto to scammers. Adding that, as the value and popularity of cryptocurrencies like SushiSwap rises, they become more appealing to crypto scammers who are constantly devising newer ways of tricking investors of their crypto assets.

How to prevent loss of SUSHI to scammers: It is a 3-step process. Start by familiarizing yourself with the different crypto scams around. You could go through crypto crime and financial regulator reports to understand existing and newer crypto scams. Secondly, learn how to detect them. These crime reports do not just highlight the different crypto scams, they also provide guides on how to detect them. Lastly, learn how to avoid them.

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Bottom Line: How To Make Or Lose Money With SushiSwap (SUSHI)

Virtually anyone can make money with SushiSwap. Today, the three most practical ways of making money with the DeFi token are via investing, trading, and staking on either the SushiSwap network or with third-party DeFi programs. But it is equally easy to lose your SushiSwap tokens.

The most common ways through which past crypto investors have lost their investment was through reckless trading, hacking, and rapidly rising crypto scams. In this guide, we have not only gone over the different ways you can lose or earn money with SushiSwap in detail, but we have also described the measures you can take to ensure you don’t lose your SUSHI tokens.

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