Learning the friendly way

Cryptocurrencies derive their value from supply and demand, with the buyers and sellers playing an enormous role in the market's liquidity, and ultimately, success. This rings true for stocks, commodities and forex markets too, essentially any asset markets with trading volumes.

Anyone participating in these markets will have been a maker or a taker at some stage, most likely, both. In this article, we're breaking down the concept of makers vs takers, exploring their vital role in the market and large quantities of these result in stronger exchanges. 

Liquidity Explained

Before we dive in, let's first cover an important concept: liquidity. Assets can sometimes be described as liquid or illiquid, this simply refers to how easily the asset can sell. Gold is a prime example of a liquid asset as anyone could easily trade it for cash without any hassle, while a glass statue of your neighbour's cat would be an illiquid asset as the chances of anyone wanting to own it are slim (except for the neighbour, maybe). 

Building on this, market liquidity indicates how liquid a market is. A liquid market means that the asset is in high demand, traders are actively looking to acquire the asset, while also having a high supply, meaning that traders are actively looking to offload the asset. An illiquid market then means that there is low supply and demand, making it difficult to buy or sell the asset for a fair price.

In a liquid market where there are many traders looking to buy and sell an asset, the sell order (ask price) tends to be in the same region as the buy order (buy price). Typically, the lowest sell order will be the same as the highest buy order, creating a tight buy-ask spread. 

Now that we've covered liquidity, it's time for makers vs takers. 

What Is The Difference Between Market Makers And Market Takers?

As mentioned above, any successful exchange requires a fair amount of makers and takers. Let's explore the difference between the two below. 

Market Makers

Exchanges typically use an order book to conduct trades. The order book will store offers to buy and sell as they come in, and execute the trades when the criteria are met, i.e. someone could create an offer that says when Bitcoin reaches $40,000, buy 4. When the BTC price reaches $40,000, the order book with automatically execute this trade. 

In this case, the person creating this buy order is known as a maker. They are essentially "making" the market by announcing their intentions ahead of time via the order book. While many retail investors are makers, the field is typically made up of big traders and high-frequency trading institutions. 

A market maker is a liquidity provider. ‍

Market Takers

Market takers are then liquidity "takers", removing liquidity from the market. Takers create market orders that indicate to the exchange that the trader wants to buy or sell at the current market price. The exchange will then automatically execute the trade using a maker's offer.

A taker is a trader filling someone else's order. Market makers create offers for the order book, making it easier for users to buy and sell, while market takers exercise this liquidity by buying the asset. 

What Are Maker-Taker Fees?

You might have heard of maker-taker fees before, this makes up a considerable amount of how exchanges generate an income (after all, exchanges are businesses that need to make money). When an exchange matches a maker and a taker, they will take a small fee for the efforts on their part. This fee will differ from exchange to exchange, and will also be dependent on how big of a trade it is. 

As makers are providing liquidity to the exchange (an enticing attribute for any trading platform) they will pay lower fees compared to a trader taking away from the platform's liquidity. Always be sure to check the fee structure and pricing on a platform before engaging in any trading activity, these will be outlined in the platform's trading policy.

How Do Trading Companies Make Money?

Cryptocurrency and blockchain technology was designed to provide a decentralized financial system that bypasses government control. However, to alleviate regulatory concerns, exchanges were established to provide a reliable and convenient means of operating within the crypto markets. These exchanges provide a secure way in which users can buy, sell and trade cryptocurrencies, and in return make money through the activities of its customers as it is a business after all.

While maker and taker fees make up a large portion of how a platform generates an income, the business also generates income through deposit and withdrawal fees, commissions made on trades and listing fees. These typically make up the cost of production and running the business.

In Conclusion

Market makers contribute to the market's liquidity by creating orders looking to be filled, while market takers fill these orders. Makers are typically rewarded for bringing liquidity to a platform with low maker fees, while takers pay higher fees when they make use of this liquidity, easily buying and selling the asset. 

Travailler et être payé en cryptos, c’est désormais possible

Se faire rémunérer en cryptomonnaie a ouvert les portes d’un marché du travail mondial sans frontières. Finis les freins géographiques ou les lourdeurs administratives : aujourd’hui, vous pouvez travailler pour une entreprise à l’autre bout du monde et recevoir votre salaire en crypto, en quelques minutes et sans frais bancaires excessifs.

Avant de plonger dans la liste des plateformes qui proposent ce genre de jobs, voyons ensemble les avantages que présente ce mode de paiement nouvelle génération.

Pourquoi se faire payer en crypto ?

Le secteur de la blockchain a rapidement intégré les cryptomonnaies aux modèles de travail traditionnels. Résultat : des milliers de postes à pourvoir dans tous les domaines, rémunérés directement en cryptos.

Parmi les bénéfices notables :

• Des paiements rapides et peu coûteux : les frais de transaction sont minimes, et les virements se font en quelques minutes.
• Une ouverture internationale : plus besoin d’être dans le même pays (ou fuseau horaire) que votre employeur.
• Un accès facilité aux micro-tâches : grâce à des frais faibles, même les petits contrats deviennent intéressants.

En résumé, tout le monde peut désormais accéder à un job crypto-friendly, que vous soyez développeur, designer ou assistant virtuel.

Où trouver des jobs rémunérés en crypto ?

LaborX

LaborX est une plateforme de type job board qui met en relation freelances et employeurs. On y trouve aussi bien des missions ponctuelles que des postes à temps plein. Les paiements peuvent se faire en plusieurs cryptomonnaies, selon vos préférences.

La plateforme est gérée par une entreprise blockchain spécialisée dans les solutions RH – un bon point pour la fiabilité.

Jobs4Bitcoins (sur Reddit)

Malgré son nom, cette section de Reddit propose toutes sortes de jobs rémunérés en cryptomonnaie, pas uniquement en Bitcoin.
Les utilisateurs postent soit des offres d’emploi, soit leurs compétences. Le système est libre et ouvert, mais non vérifié, donc prudence est de mise.

Blocklancer

Blocklancer est une autre plateforme dédiée aux freelances crypto. Ici, vous êtes payé en Ethereum pour des missions très variées : rédaction, analyse, développement, etc. En cas de conflit, un système de médiation est proposé. Et si vous préférez être payé dans une autre crypto ou en euros, vous pouvez facilement échanger vos ETH avec l’appli Tap.

Bitfortip

Vous aimez donner des idées ? Bitfortip permet de gagner des tips en crypto (Bitcoin, Bitcoin Cash, Tezos, NANO) simplement en répondant à des questions postées par les autres utilisateurs.

C’est un format plus informel, mais idéal pour se lancer en douceur dans l’univers des cryptos.

PompCryptoJobs

PompCryptoJobs est une plateforme dédiée aux métiers du Web3. Vous y trouverez des postes à temps plein, dans des entreprises sérieuses du secteur : UX designer, data analyst, développeur, rédacteur… le tout rémunéré en crypto.

Le site est bien structuré, professionnel, et régulièrement mis à jour.

Comment recevoir un salaire en crypto ?

Si vous ne savez pas comment être payé en cryptomonnaie, Tap vous facilite la vie.
Notre application propose un compte dédié aux indépendants et freelances, permettant de recevoir des paiements en cryptos et en devises classiques.

En ouvrant un compte, vous avez accès à :

• Des portefeuilles crypto sécurisés
• Des IBANs pour les virements en euros, dollars ou livres sterling
• Les adresses de portefeuille à partager avec votre employeur

Il suffit d’envoyer votre adresse crypto au client, et le paiement est reçu en quelques minutes.

Et pour vos dépenses du quotidien ? Avec la carte Tap, vous pouvez utiliser vos cryptos comme de l’argent classique – que ce soit pour régler un café, faire vos courses ou payer vos abonnements.

En conclusion

Le monde du travail évolue, et avec lui, les moyens de se faire payer. Grâce à la cryptomonnaie, vous pouvez travailler sans frontières, avec plus de flexibilité et de rapidité. Que vous soyez développeur, créatif ou tout simplement curieux, il y a probablement une mission crypto qui vous attend.

Alors, prêt à décrocher votre premier job payé en crypto ?

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Investing centers around making gains off of your initial capital. When determining the potential gains one could make there are a number of variables one needs to consider, such as how much capital one has put into the investment and what returns are associated with that asset class.

This led to the creation of ROI (return on investment), a measure that allows anyone to calculate the net profit or loss of an investment in percentage form. 

What is return on investment?

All investments, including stocks, bonds, real estate, and small businesses, come with the goal of making more money than you put in. The money you earn over and above your initial investment is called profit. When discussing investment profitability, people often use the term ROI, meaning return on investment. This metric expresses the amount of net profit one can earn/earned as a percentage of what the initial investment was.

ROI can help you assess if buying property or investing in a business is worth it. It's also helped companies determine the value of adding new products, building more facilities, acquiring other businesses, advertising campaigns, etc.

ROI (return on investment) is the percentage of gain or loss on an investment relative to the total cost of the investment.  In other terms, it's a way to compare different investments in order to figure out which ones are worth pursuing. For example, you could calculate ROI to decide whether selling one stock and buying another would be a good idea.

While there is no limit to a return on investment theoretically, in practice, no investment is guaranteed to have any return. If your ROI is negative, it means you not only failed to make a profit but also lost some of your original investment. The worst possible outcome would be -100% ROI, meaning you completely lost your initial investment. An ROI of 0% signifies that you at least recovered the money you put in, but gained nothing beyond that.

While ROI is often used as a marker of profitability, it isn't foolproof. There are several limitations to calculating ROI as your only measure which include the time frame in which you will earn back your investment, inflation rates, how risky a venture is, and additional maintenance costs that may be incurred.

Calculating ROI terminology

Before we dive in, let's first cover some basic terminology.

Net profit or net income

Net profit is the amount of money left over after all operating costs, such as the cost of transaction costs or maintenance costs, and other expenses have been accounted for and subtracted from the total revenue. It is used to measure profitability. Net profit can also be called net income, net earnings, or the bottom line.

Total cost of investment

This figure will look at the amount of money invested in a particular investment.

How to calculate ROI: the ROI formula

The ROI formula is a simple equation that looks at the price change of the asset and the net profits (the initial cost of the investment minus its value when you sell it). When calculating ROI you would use this formula:

ROI = (Net Profit / Total Cost of Investment) x 100

To factor trading costs into your ROI figure, you'll use: 

ROI = ((Value of Investment - Cost of Investment – Associated Costs) / Cost of Investment) x 100

As an example, let's say you buy 5 shares of $100 each in Twitter, equating to $500. You sell them a year later for $150 each, equating to $750. Let's say you paid $5 commission on each trade, costing you $25 in trading fees. 

ROI = (($750 - $500 - $25) / $500) x 100 = 45%

This means that you made a 45% return on investment on that particular investment.

How to determine a strong ROI

A "good" return on investment is any number above 0, as this means you made some profit. However, the ideal ROI should be higher than what you could've earned had you chosen another investment (the next best thing). 

To compare this, investors often compare their earnings to what they could've made on the broader stock market or in a high-yield savings account. Using the S&P 500 as a control, over the past four decades it has made gains of around 7% (after inflation). An ROI is generally considered to be a strong one if it beats the stock market in the long term. 

It's always important to note that past performance does not equate to future results. Another pearl of wisdom to remember is that high rewards generally come alongside high risks. If an investment promises very high ROIs, consider this also means that it comes with high risks. 

Therefore, a strong ROI will vary depending on the investment's level of risk, your goals, and how much risk you're willing to take.

Where the ROI formula falls short

The main limitation of using this return on investment ROI formula as a marker of success is that it doesn't show how long it took to earn the money back. When comparing various investments, the time it takes to mature will have a significant impact on the profits you could earn.

For instance, a year loan versus a bond held for five years versus a property held for 10 years will all have varying ROIs once you've established how long it will take to earn the specified ROIs. 

In this scenario, the ROI calculations mentioned above skimp on the full story. It also doesn't account for risk. For instance, the loan repayments could be delayed or the property market might be in a slump, all affecting the potential profits earnable.

With many variables, it becomes harder to predict what the exact ROI calculation on an investment will be, so be sure to factor this in when using the return on investment ROI formula to determine how attractive an investment opportunity or business venture is. 

ROI alternatives

Although the return on investment doesn't consider how long you keep an asset, it's essential to compare the ROI of investments held for comparable lengths of time as a more clear performance measure. If that's not possible, there are a few other options.

Average Annual Return

Also known as annualized return on investment, this adjusts the ROI formula to factor in the timing. Here you would divide the ROI by the number of years you hold the asset.

Compound Annual Growth Rate (CAGR)

This option is more complicated but yields more accurate results as it factors in compound interest generated over time. 

Internal Rate of Return (IRR)

This measure factors in the notion that profits earned earlier outway the same profits earned later, taking into account interest that could've been earned and factors like inflation. This equation is quite complicated but there are online calculators one can use. 

Conclusion

A return on investment (ROI) is a formula used to calculate the net profit or loss of an investment in percentage form. The ROI calculation can present valuable information when investing capital or determining profitability ratios. The ROI equation looks at the initial value of one investment and determines the financial return. A negative ROI indicates that the investment returns were lower than the investment cost.

Did you know some chart patterns boast success rates of over 80% when spotted and used correctly? While the market often feels chaotic, decades of historical data reveal that price movements tend to repeat in recognisable ways. 

For many investors and traders, these patterns are seen as the market’s “body language,” offering clues about shifts in momentum and sentiment. Every move on a stock chart reflects what investors are thinking and doing, and once you learn to “read” those signals, the idea is that you can spot whether a stock is likely to keep running or flip directions.

The real power isn’t in predicting the future (nobody can do that). It’s about stacking the odds in your favour. Patterns help you zero in on higher-probability setups, fine-tune your entries and exits, and manage risk more effectively, meaning smarter trades and fewer costly mistakes.

In this guide, we’ll break down several reliable patterns and show you which timeframes matter.

The best timeframes for chart pattern analysis

Before diving into specific patterns, you need to understand that timeframe selection dramatically impacts pattern reliability. The same asset can show completely different patterns depending on whether you're looking at 15-minute, daily, or weekly charts.

For instance, take Bitcoin below: the very same moment in time can look completely different on a daily chart versus a monthly chart.

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Source: TradingView | 1 day vs 1 month trading charts

Daily charts

For most investors, daily charts often hit the sweet spot because they balance short-term noise with more reliable signals. Patterns that take weeks or months to form on daily charts tend to be more trustworthy because they reflect genuine shifts in market sentiment rather than momentary blips.

4-hour charts

If you’re swing trading (holding positions for days or weeks) 4-hour charts are likely going to be your best friend. They capture medium-term trends and provide more opportunities than daily charts, while still being reliable enough for professional traders to use when sharpening their entries and exits.

15-minute charts

Then there are 15-minute charts, the playground of active traders. They can be exciting, but here’s the catch: shorter timeframes often mean more false signals. You might spot plenty of patterns, but their accuracy drops fast. Only use these if you can stay glued to the screen and stick to strict risk controls.

Many traders chose to blend their timeframes in a layered strategy. Starting with daily charts to lock onto the bigger trend, then zooming into shorter ones to pinpoint their entry.

The 5 most well-known chart patterns for timing

1. Head and Shoulders 

The Head and Shoulders formation is one of the most widely studied and discussed reversal patterns in technical analysis. It’s often described as the market’s way of “topping out,” suggesting that an uptrend may be running out of steam.

Structure of the pattern

• The left shoulder: An initial rally creates a peak, followed by a decline.
• The head: A stronger rally pushes prices to a higher peak than before, but the move is not sustained.
• The right shoulder: A final attempt to rise falls short of the head’s height, showing reduced momentum.
• The neckline: A line connecting the two low points between the shoulders and the head, often used as a reference for when the pattern is considered “complete.”

When this sequence appears, many analysts view it as a sign that bullish pressure is fading and that selling interest is beginning to dominate.

Why it matters
The head and shoulders pattern is so closely followed because it reflects a psychological shift:

• The first rally shows enthusiasm.
• The higher peak shows overextension but also reveals strong optimism.
• The final, weaker rally shows that buyers no longer have the same conviction. This shift from strength to weakness is why the pattern is often considered a reliable reversal signal.

Variations

Inverse Head and Shoulders: The opposite version, often seen at market bottoms, where the formation suggests a shift from selling pressure to renewed buying interest.

Complex Head and Shoulders: In some markets, extra shoulders may form, reflecting prolonged tug-of-war before momentum reverses.

Caveats
Despite its reputation, the head and shoulders is not foolproof. False signals are common, particularly in thinly traded assets or during periods of high volatility. 

Many traders treat it as a useful warning sign rather than a guarantee, and they often combine it with other forms of analysis (such as trend strength, support and resistance zones, or macro factors) to build confidence in their interpretation.

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2. Double Bottom/Top

Double Bottoms (bullish) and Double Tops (bearish) are among the simplest and most recognisable reversal patterns in technical analysis. 

They occur when the price tests the same level twice and fails to break through, creating what looks like a “W” (double bottom) or an “M” (double top) on the chart. 

Analysts often interpret these formations as signals that a prevailing trend may be losing strength.

Structure of the pattern

• Double Bottom:
  
  
  
  • The first trough forms after a decline, followed by a rebound.
  • A second trough appears at or near the same price level as the first, showing that sellers were unable to push prices much lower.
  • The interim peak between the two troughs creates a resistance line that observers often watch as a reference point.
    
    
• Double Top:
  
  
  
  • The first peak forms after an advance, followed by a pullback.
  • A second peak occurs at or near the same level as the first but fails to exceed it, showing reduced buying strength.
  • The interim valley between the two peaks creates a support line that analysts watch for signs of confirmation.

Why it matters
Double tops and bottoms are considered significant because they capture a classic battle between buyers and sellers. The first test establishes an important price level, while the second test highlights the inability of the market to push through that level a second time. This repetition signals a potential turning point:

• In double bottoms, the failure to break support is often interpreted as a sign of strengthening demand.
• In double tops, the failure to break resistance is seen as evidence of weakening demand.

Variations

Broad or Narrow Spacing: The distance between the two peaks or troughs can vary. Wider spacing often indicates a more meaningful shift in sentiment.

Multiple Tests: Sometimes prices test the same support or resistance level more than twice before a trend change occurs, creating what some analysts call “triple tops” or “triple bottoms.”

Caveats
Like all technical formations, double tops and bottoms are not guarantees. False signals are common, especially in highly volatile markets where short-term noise can mimic the shape of a pattern without any true shift in momentum.

Analysts often combine this pattern with other tools, such as volume trends, broader market direction, or momentum indicators.

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3. Ascending and Descending Triangles 

Triangles are continuation patterns that appear when prices start moving in a narrower range. This usually signals a pause in the market before the existing trend continues. The two most common types are Ascending Triangles (often seen as bullish) and Descending Triangles (often seen as bearish). 

Structure of the pattern

• Ascending Triangle: Price makes a series of higher lows while repeatedly testing the same horizontal resistance. This shows that buyers are becoming more aggressive, steadily bidding prices higher, while sellers defend a key level.
• Descending Triangle: Price makes a series of lower highs while testing a horizontal support. This suggests that sellers are increasingly dominant, though buyers continue to defend a price floor.
• The breakout level: The horizontal line of support (in descending) or resistance (in ascending) is the critical feature analysts watch, as it represents the point where supply or demand may finally give way.

Why it matters
Triangles reflect consolidation: a period where the market pauses, often as traders wait for new information or a decisive shift in sentiment.

• In ascending triangles, the sequence of higher lows highlights persistent demand, hinting at underlying bullish pressure.
• In descending triangles, lower highs point to mounting selling pressure, often seen as bearish.

Variations

Symmetrical Triangles: Unlike ascending or descending, both highs and lows converge toward a point. These are sometimes called “bilateral” patterns, as they can break in either direction.

Time to completion: Many studies suggest that triangle patterns typically resolve before prices reach the tip of the triangle; if not, the pattern may lose significance.

Caveats
While widely followed, triangles are not predictive in isolation. Breakouts can and do fail, particularly in choppy or news-driven markets. Analysts often seek confirmation through trading volume or other trend indicators before treating the pattern as meaningful.

4. Cup and Handle 

The Cup and Handle is a long-term bullish pattern named for its resemblance to a teacup. It is frequently studied in equity markets and is often associated with extended uptrends when it completes successfully.

Structure of the pattern

• The Cup: Prices decline gradually, bottom out, and then recover in a rounded, U-shaped curve. The depth of the cup reflects the extent of the pullback before sentiment recovers.
• The Handle: After the cup completes, prices typically consolidate sideways or drift slightly downward in a shorter, shallower formation. This pause is seen as a “shakeout” of weaker hands before a new advance.
• The Breakout Level: The top of the cup, where prices previously peaked before declining, becomes a reference level for confirmation.
  
  

Why it matters
The Cup and Handle is often interpreted as evidence of a market shaking off selling pressure and regaining strength. The extended base (the cup) suggests long-term accumulation, while the smaller handle shows short-term hesitation before renewed buying. This blend of consolidation and recovery is why the pattern is often associated with continuation of an uptrend.

Variations

Deep vs. shallow cups: Shallow cups are generally considered stronger, as they indicate lighter selling pressure. Very deep cups can signal weaker underlying demand.

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No handle: Occasionally, prices break out directly after forming the cup without creating a handle. Some analysts treat these as valid, while others consider the handle an essential feature.

Caveats
Because cup and handle formations often take weeks or months to develop, they can be subjective. False signals are common if the “handle” drifts too low or if volume patterns don’t align with expectations. As with other patterns, context (i.e. broader market trends and sector strength) is critical.

5. Flag Patterns 

Flag patterns are short-term continuation formations that occur after sharp price movements, known as “flagpoles.” They are named for their resemblance to a flag on a pole: a rapid advance or decline, followed by a small rectangular consolidation sloping against the trend.

Structure of the pattern

• The Flagpole: A sudden, strong move in one direction, often accompanied by high trading volume.
• The Flag: A brief consolidation where prices move sideways or slightly against the prevailing trend, usually within parallel lines that slope modestly.
• Resolution: If the pattern holds, the prevailing trend resumes after the consolidation.
  
  

Why it matters
Flags capture the rhythm of momentum markets. The flagpole reflects urgency, often from institutional buying or selling, while the flag represents a pause where the market digests the move. This pause is considered healthy in a trend, as it can prevent overextension.

Variations

Bullish vs. Bearish Flags: Bullish flags slope downward after an upward flagpole, while bearish flags slope upward after a downward pole.

Pennants: A related pattern where consolidation takes the form of a small symmetrical triangle rather than a rectangle.

Caveats
Flags are short-term patterns, often lasting only a few sessions to a few weeks. Because they form quickly, they are prone to producing false signals, especially in volatile markets. Analysts stress the importance of volume dynamics and overall market context before giving weight to a flag formation.

Pattern categories: continuations vs reversals

Not all patterns tell the same story. Some hint that the market is just taking a breather before carrying on, while others warn that momentum is running out and a reversal could be around the corner.

Continuation patterns - think triangles, flags, and pennants - pop up roughly 70% of the time when a market is trending. They usually mean the pause is temporary and the trend is about to resume.

Reversal patterns - like head and shoulders or double tops and bottoms - are less common but pack more punch. When they appear, they often mark a major turning point.

Then there are bilateral patterns such as symmetrical triangles. These are trickier because they can break either way. They tend to shine in volatile, uncertain markets where direction isn’t obvious.

The secret is context. Continuation patterns work best when the trend is already strong, while reversal patterns are most powerful after a long, extended move. Match the pattern to the bigger picture, and you’ll read the market with far more accuracy.

How traders often approach chart patterns

Spotting a pattern is just the start. To trade them successfully, you need a clear set of rules for when to act, how much to risk, and when to walk away. These rules will be specific to your personal needs, and should be discussed with a financial advisor if you’re unsure. 

Confirm your entry. Analysts generally stress the importance of waiting for confirmation (like a breakout or changes in volume) before treating a pattern as complete. Set alerts at key levels so you don’t waste hours glued to charts.

Protect yourself with stop-losses. Most traders place their stop just beyond the pattern’s critical level. For breakouts, that means just below the breakout point; for reversals, just beyond the highest high or lowest low.

Set realistic profit targets. The measured move gives you a solid first target. Many traders take partial profits there (say half the position) and let the rest ride with a trailing stop, locking in gains while leaving room for more upside.

Size your positions wisely. Risk management is often discussed in terms of position sizing. For example, some traders limit risk on a single trade to just a small percentage (e.g. 2-3%) of their account, so that several losses don’t cause major damage.

Respect the clock. Patterns don’t work forever. If the move hasn’t unfolded within the expected window (usually 2-3 weeks on daily charts), it’s often best to exit, even if your stop hasn’t been triggered.

Do chart patterns really work?

Chart patterns aren’t crystal balls, but they can give you a genuine statistical edge when used properly. Studies show that well-formed patterns on highly liquid stocks deliver success rates between 60-85%, far better than pure chance.

That said, no pattern is bulletproof. Around a quarter to nearly half of them will fail. This is why risk management and position sizing aren’t optional; they’re your safety net. You need to be able to take several hits without blowing up your account.

Patterns also don’t exist in a vacuum. They’re much more reliable when they line up with the bigger picture - things like the overall market trend, sector strength, or even key fundamentals. A bullish setup in a weak sector or during a bear market has the odds stacked against it.

And remember: context is everything. Chart patterns work best in “normal” market conditions. In periods of extreme volatility, major news events, or panic-driven trading, emotions often override technical signals.

Level up: advanced pattern techniques

Once you’re comfortable spotting the basics, a few advanced techniques can take your timing to the next level.

Watch the volume. Real breakouts usually come with a surge, at least 50% above recent average volume. Volume should also “fit the story”: tapering off during consolidation, then expanding sharply when the breakout hits.

Use multi-timeframe confluence. When the same pattern shows up on both daily and weekly charts, or when shorter-term setups align with longer-term trends, your odds of success might climb.

Validate with support and resistance. The strongest patterns often form at levels the market has respected before. Multiple past tests of support or resistance add weight to the signal and help filter out false moves.

And always remember: chart patterns aren’t fortune tellers. They’re tools to tilt the odds in your favour, not guarantees of profit. Combine them with sound risk management, diversification, and realistic expectations. With practice and discipline, pattern recognition can become a powerful part of your trading toolkit.

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Let's get one thing straight: most "make money while you sleep" crypto promises are complete nonsense. The internet overflows with schemes promising $10,000 monthly returns that usually end with empty wallets and regret.

But you actually can earn passive income with crypto in 2025. The keyword here is "can," not "will automatically" or "guaranteed to". The difference lies in having realistic expectations. We're talking 3-12% annual returns through legitimate methods, not the 300% fairy tales that flood social media.

Thankfully, the crypto passive income landscape has matured since 2021's wild west era. Those 20,000% APY farms that vanished overnight? They're mostly gone (though some still lurk if you fancy yourself some financial Russian roulette). Today's opportunities are more modest but actually sustainable.

This guide covers seven common methods for earning crypto passive income. You'll find beginner-friendly options yielding 3-8% annually, plus riskier strategies that could hit 15-50% if you know what you're doing. We'll also cover the less exciting but crucial stuff: taxes, risks, and how to avoid losing everything to market volatility.

If you want get-rich-quick schemes, look elsewhere. But if you're interested in building a legitimate income stream while participating in the future of finance, let's explore what's actually possible in 2025.

Let the record state that this is educational only and should not be considered financial, investment, or tax advice. Crypto yields are variable and can result in loss of principal. Verify availability, legality, and rates in your jurisdiction before participating.

Understanding crypto passive income

Before diving into specific methods, let's clarify what we mean by "passive income" in crypto. Traditional passive income might be rental properties or dividend stocks - you invest money, then collect regular payments without active work. Crypto passive income works similarly, but with a digital twist and significantly more volatility.

The fundamental difference? Traditional investments might fluctuate 5-10% annually. Your crypto holdings can swing 50% in a week. This means your "passive" income can be passive in name only if you're constantly checking prices and panicking over market moves.

Here's the reality: crypto passive income exists on a risk spectrum. On the safer end, you have crypto savings accounts offering 2-8% APY - similar to high-yield savings but with crypto. 

On the riskier end, there's yield farming, where you might earn 50-200% returns, but you could also lose everything to smart contract bugs or market crashes.

All in all, the crypto passive income market has grown substantially. By 2025, over $150 billion is locked in various DeFi protocols, and some major institutions now offer crypto earning products. This legitimacy doesn't eliminate risk, but it does mean you're not dealing with fly-by-night operations (mostly).

Why do people choose crypto for passive income? Beyond potentially higher returns, it offers 24/7 market access, global opportunities, and the ability to start with small amounts. Plus, there's something satisfying about earning yield on assets you believe will appreciate long-term.

Top 7 common methods used by market participants to earn crypto passive income 

Low-complexity options (recommended for beginners)

1. Crypto savings accounts

Think of these as high-yield savings accounts, but for crypto. You deposit your coins in custodial yield products from compliant exchanges (availability varies by jurisdiction), and they lend them out or use them productively, and you earn interest. 

How it works: Platforms take your deposits and lend them to institutional borrowers or use them in DeFi strategies. You earn a percentage of the profits.

Realistic returns: Expect 2-8% APY depending on the cryptocurrency and platform. Bitcoin typically offers lower rates (2-4%), while stablecoins might yield 4-8%. Each platform’s APYs will vary, ensure you read all the Ts and Cs.

Getting started: Most platforms require simple KYC verification. Deposit your crypto, choose your earning product, and start accumulating interest daily or weekly.

The catch: Your funds aren't FDIC insured like traditional banks. Platform risk is real (remember Celsius and BlockFi's 2022 collapses). Only deposit what you can afford to lose, and research platform stability before committing any amounts.

2. Staking

Staking is like earning dividends for helping secure a blockchain network. Instead of energy-intensive mining, Proof-of-Stake networks rely on validators who "stake" their coins as collateral to process transactions and secure the network.

Popular staking options:

• Ethereum (ETH): typically around 2-4%
• Solana (SOL): commonly 6-8% effective rate over time (depends on inflation & stake)
• Cardano (ADA): typically around 3-5%
• Polkadot (DOT): unbonding is 28 days; rewards vary (often high-single to low-double digits).

*for accurate, real-time staking rewards, see here. 

Two approaches exist: Direct staking requires technical knowledge and sometimes significant minimum amounts. Delegated staking through platforms is simpler but typically offers slightly lower returns due to fees.

Important considerations: Many staking arrangements have lock-up periods, so factor in liquidity needs before committing funds.

Getting started: For beginners, exchange-based staking offers the easiest entry. More advanced users can stake directly through wallets or run their own validators for maximum returns.

Medium-complexity methods

3. Crypto lending

Crypto lending involves loaning your crypto to borrowers in exchange for interest payments. It's more hands-on than savings accounts but potentially more profitable.

Platform lending: Services like Aave, Compound, and Kava allow you to supply liquidity to lending pools. Borrowers pay interest, which gets distributed to lenders minus platform fees.

Expected returns: Highly variable based on demand. Stablecoin lending might yield 5-15% APY, while volatile assets can range from 2-25% depending on market conditions.

Risks to consider: Smart contract vulnerabilities, platform hacks, and borrower defaults can impact returns. The 2022 DeFi winter showed that high yields don't always last.

4. Liquidity pools and providing liquidity

Decentralised exchanges (DEXs) like Uniswap and PancakeSwap need liquidity to function. By providing paired assets to liquidity pools, you earn a share of trading fees.

How it works: You deposit equal values of two cryptocurrencies (like ETH and USDC) into a pool. Traders pay fees to swap between these assets, and you earn a portion based on your pool share.

Earning potential: Returns vary widely based on trading volume and fees. Popular pairs might yield 5-30% APY, but this fluctuates with market activity.

Impermanent loss: The biggest risk unique to liquidity provision. If one asset's price changes significantly relative to its pair, you might end up with less value than if you'd simply held the original assets. 

It's "impermanent" because prices could return to original ratios, but it becomes permanent if you withdraw during unfavourable price relationships.

Higher-complexity methods (for experienced DeFi users)

5. Yield farming

Yield farming is DeFi's high-stakes game. You move funds between different protocols, chasing the highest returns through complex strategies involving multiple platforms and tokens.

The appeal: Returns can have a wide range - advertised headline APYs can occasionally exceed 50% for short periods, but are highly unstable and often decay quickly. 

The reality: Most high-yield farms are unsustainable. They often rely on token rewards that lose value quickly, or they're simply Ponzi-like schemes waiting to collapse.

Who should try this: Only experienced DeFi users who understand smart contract risks, token economics, and can afford total losses. Consider this speculation, not passive income.

6. Dividend-paying tokens

Some crypto projects share profits with token holders, similar to stock dividends.

Examples include:

• KuCoin Token (KCS): pays a bonus from trading fees to eligible holders (terms/eligibility apply)
• NEO: generates GAS for on-chain usage
• VeChain (VET): Produces VTHO tokens for network usage

Returns: Highly variable and dependent on platform success. KCS might yield 2-6% annually in fee sharing, while others provide minimal returns.

7. Masternodes

Masternodes are specialised servers that perform network functions beyond basic transaction processing. They require significant upfront investment but can provide steady returns.

Requirements: Most masternodes need substantial token holdings - often $10,000-$100,000+ worth. You also need technical knowledge to maintain server uptime and security.

For example, Dash requires 1,000 DASH collateral while realised ROI varies with network conditions.

Barriers to entry: High costs, technical requirements, and ongoing maintenance make masternodes unsuitable for most passive income seekers.

Reality check: how much can you actually earn?

Let's crunch some hypothetical numbers based on current market conditions:

Potential $1,000 investment scenarios:

• Crypto savings account (5% APY): $50 annual income
• ETH staking (3.2% APY): $32 annual income
• Stablecoin lending (8% APY): $80 annual income

Potential $10,000 investment scenarios:

• Diversified approach (mix of staking/lending): $400-800 annual income
• Higher-risk DeFi strategies: $1,000-2,000 annual income (with significant loss potential)

Potential $100,000 investment scenarios:

• Conservative crypto portfolio: $4,000-8,000 annual income
• Aggressive yield farming: $10,000-20,000 annual income (extremely high risk)

Compare this to traditional passive income: a 4% dividend stock portfolio on $100,000 yields $4,000 annually. Crypto can potentially beat this, but with much higher volatility and risk.

The volatility factor: Your $10,000 crypto investment might earn $800 in interest, but if the underlying assets drop 30%, you've still lost $2,200 overall. This is why many successful crypto passive income earners focus on stablecoins and accept that they're speculating on both yield and price appreciation.

Tax implications you ought to know

Crypto passive income isn't a tax-free lunch. Most tax authorities treat crypto earnings as regular income, taxed at your ordinary income rate.

Key tax considerations:

• Staking rewards are taxable when received, based on fair market value
• Lending interest counts as ordinary income
• DeFi yields are also taxable, even if paid in obscure tokens

Record-keeping is crucial. Track every reward, airdrop, and interest payment with dates and values. Many platforms provide tax reports, but you're ultimately responsible for accuracy.

International complexity: Tax treatment varies by country. Some nations offer crypto-friendly policies, while others impose heavy taxes or outright bans. Research local regulations or consult professionals for significant amounts.

When to worry: If you're earning more than a few hundred dollars annually in crypto passive income, consider professional tax help. The penalties for getting crypto taxes wrong can be severe.

Risks and how to alleviate them

Crypto passive income isn't just about earning, it's about not losing everything to avoidable risks.

Platform risk: Centralised platforms can fail, get hacked, or freeze withdrawals. Celsius and FTX's collapses wiped out billions in customer funds. 

Mitigation: diversify across platforms, research financial health, and never invest more than you can afford to lose.

Smart contract vulnerabilities: DeFi protocols run on code, and code has bugs. Multi-million dollar hacks happen regularly. 

Mitigation: stick to audited, established protocols and understand that "decentralised" doesn't mean "safe."

Market volatility: Crypto's wild price swings can eliminate passive income gains quickly. 

Mitigation: consider stablecoins for pure yield plays, or accept volatility as part of the crypto investment thesis.

Regulatory risks: Governments can ban or heavily regulate crypto activities overnight. 

Mitigation: stay informed about regulatory developments and be prepared to exit positions quickly.

Practical risk management:

• Start small while learning
• Never invest emergency funds
• Diversify across methods and platforms
• Keep detailed records
• Stay informed about protocol changes and risks

Getting started: your first steps

Ready to dip your toes in crypto passive income? Here's a sensible approach:

Start with education: Understand the basics of crypto, wallets, and the specific methods that interest you. Rushing in with poor knowledge is the fastest way to lose money.

Begin conservatively: Try crypto savings accounts or exchange-based staking with small amounts. These offer lower returns but also lower complexity and risk.

Portfolio allocation: Financial advisors often suggest no more than 5-10% of investable assets in crypto, and passive income strategies should be a subset of that. Don't bet the farm.

Platform selection criteria: Look for established companies with good reputations, proper licensing, insurance if available, and transparent fee structures. Avoid platforms promising unrealistic returns.

Security basics: Use hardware wallets for significant amounts, enable two-factor authentication, and never share private keys. The decentralised nature of crypto means lost funds are often gone forever.

Conclusion

Earning passive income with cryptocurrency in 2025 is definitely possible, but it requires realistic expectations and careful risk management. The days of guaranteed 20% returns are over, but legitimate opportunities exist for those willing to do their homework.

The sweet spot for most people lies in conservative strategies: crypto savings accounts, established staking, and perhaps some stablecoin lending. These won't make you rich overnight, but they can provide steady returns while you learn the ecosystem.

Remember that "passive" income in crypto often requires more attention than traditional investments. Stay informed, start small, and never invest money you can't afford to lose. The future of finance is evolving rapidly - earning while you learn might be the smartest approach of all.

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