In recent years, the popularity of blockchain technology has become a hot topic in digital currency investment. For investors, the most interesting question is "how to make money by buying coins". This article evaluates and analyzes the logic of digital assets from three aspects: XBIT market trends, investment strategies, and tool selection. Based on innovative cases, it explores how to increase profit margins through decentralized trading platforms.
Article source: Coin World
1. Three basic strategies for digital asset investment
According to XBIT data, the cryptocurrency market in 2025 is like a crazy financial feast, with the total market value successfully exceeding 2.8 trillion US dollars as of April 13 alone. In such a market environment, investors mainly make profits in three ways:
1. Invest in long-term value
Take Bitcoin as an example. Although its annualized rate of return has suffered multiple fluctuations, it still exceeds 150% in ten years. When choosing projects with practical application solutions, such as Ethereum smart contracts or Solana with high-frequency trading, it is necessary to evaluate the initial time based on technological progress and market cycles.
2. Cross-market arbitrage transactions
If you want to use the price difference of each exchange for arbitrage, you must pay attention to the on-chain gas fee and the speed of arrival. Professional investors will use algorithms to monitor more than 20 mainstream platforms, capture instant price differences, and achieve an annual return of 30% to 80%.
3. Staking and liquidity mining
The average annualized return on staking in the DeFi field is maintained at 5% to 18%, but attention should be paid to smart contract risks and token inflation models. Liquidity providers (LP) earn fees through the AMM mechanism, and the annual LP income of the highest DEX may exceed 200%.
2. Security advancement of decentralized trading tools
When practicing the above strategies, the choice of trading platform may directly affect the efficiency of funds and operations. With its innovative architecture, XBIT (dex Exchange) has begun to gradually reshape the industry's security standards: First, it implements an asset self-custody mechanism, where users directly trade with non-custodial wallets and independently control private keys, eliminating the risk of centralized platforms abusing funds. Second, it adopts a triple audit of smart contracts, and cooperates with slow fog, certik and other institutions to complete a comprehensive review of code security, economic models and emergency response. Third, it opens zero-knowledge proof verification, using ZK-SNARKS technology to protect personal data privacy and ensure verifiability on the chain. It is worth noting that XBIT (dex Exchange) uses multi-chain aggregation routing to support transactions between 8 mainstream public chains (such as Bitcoin and Ethereum). Its original algorithm "Iceberg Order" can disassemble the transaction scale and effectively reduce the market impact cost.
Article source: Coin World
3. Basic understanding of decentralized finance
For new investors, we must establish three key perceptions: First, decentralized exchanges (DEX) automatically match transactions through smart contracts without linking custodial assets; second, the depth of the liquidity pool determines the quality of the transaction. It should be noted that the top platforms often have a single currency pool of tens of millions of dollars; third, contract audit reports and real-time on-chain monitoring are the core basis for evaluating platform security. In this field, XBIT (dex Exchange) exceeded $350 million in TVL (total locked value) in Q2 2023 alone, while maintaining a record of zero security incidents. The "bug bounty program" established by the platform attracted more than 200 white hat hackers to participate in the system, creating a new security ecosystem for community co-governance.
4. Stable investment rules in market fluctuations
Facing the recent crypto market with a volatility of more than 20%, market investors should pay attention to the allocation of high-risk assets within 30% of the total position. DCA strategies (regular investment) can be used to spread the cost and the limit stop loss function of decentralized platforms can be used to avoid extreme market conditions. The case of institutional investors shows that by using XBIT (dex Exchange) for network transactions, setting 50 waiting units in the ETH 1800-2200 US dollar range, 19 band gains were captured within three months, with an annual return rate of up to 65%.
Article source: Coin World
With the issuance of virtual asset trading licenses in Hong Kong and the promulgation of the Digital Payment Token Act in Singapore, compliant DEX has ushered in a window of development. KYC/AML mechanism platforms are more likely to be favored by institutional investors because of their transparent chain-compliant trading platforms. Perhaps in the near future, trading systems that integrate fiat currency channels and tax reporting functions will also develop into the new standard of the industry.
