Make Money in Crypto – When Bitcoin was first introduced, no one expected it would skyrocket to the heights it’s soaring today in terms of value and popularity. Since then, new cryptocurrencies such as Ethereum, Maker, and Moner have been introduced, opening up more possibilities for people to make a profit.
While it is possible to benefit from cryptocurrency, many people give up along the way or end up losing money because they don’t properly understand what to do. Luckily, a few simple methods can help you get on track and make money with crypto.
6 Proven Ways to Make Money in Cryptocurrency
Investing is one of the most popular long-term strategies for making money with crypto. The strategy works the same way as you would invest in a business but with a small twist. Instead of putting all your money into the business and waiting to make a profit, you can use the “buy and hold” strategy. It means investing your money into something that is not worth anything at the moment and selling it to gain returns from long-term value appreciation. To foolproof your investment, you should gain a better understanding of the market so that you can accurately predict the shifts that are going to happen in it.
Trading is a great short-term profit strategy. It involves using one cryptocurrency and trading them on one of the platforms for another currency. For example, you can buy and sell Bitcoin instantly for Ethereum.
However, trading involves some risk due to the volatility of the crypto market. The prices can decrease within minutes, so trading requires strong analytical and technical skills. You’ll have to analyze the performance of the listed assets accurately so you can get a better idea of the price rise and fall. Consequently, this option is better suited for those with more experience in the crypto market than newcomers.
Mining is one of the oldest ways to make money with crypto and has the least risk. You’ll be using mining rings to generate the currency into your wallet. The process involves validating and adding new transactions to the blockchain for a cryptocurrency using the Proof of Work (PoW) network.
If you mine a cryptocurrency, you’ll be rewarded with several coins. In the beginning, mining crypto was possible using a standard computer or laptop; however, you now need specialized hardware. You’ll have to invest in obtaining mining rings and specialized PCs that will run a program that mines the cryptocurrency.
Staking is recommended for those with more experience in cryptocurrency. The strategy puts you into the role of a bank. You don’t spend the coins you own, but you lock them in a cryptocurrency wallet. Then, you can lend the coins to a PoW network to use them in its transactions. In return, you get a small percentage for each trade.
To profit from staking, you need to find a network with a lot of trading. Optionally, you can also lend coins to other investors and generate loan interest. Many platforms nowadays encourage crypto lending.
#5 Earn Dividends
Dividends are a great way to earn passive income in crypto. As is the case with traditional dividends, you invest in some coins or tokens, stake them, and then get steady payouts from the network’s profit. However, the payouts are small, so you may want to apply multiple passive income streams. Also, not all types of cryptocurrencies pay dividends, so you have to do your research. NEO, Texos, VeChain, and Cosmos are some popular dividend-paying cryptocurrencies.
Airdrops are a high-risk method of making money in crypto. It’s a marketing strategy where cryptocurrency developers send small amounts of the new currency to the wallets of active members of the blockchain community in exchange for promotion. To qualify for the gift, you may be required to have a certain quality of coins in your wallet. Or, you may be asked to perform a specific task such as posting about the new cryptocurrency or writing a blog post.
You can check on the Internet when a developer runs an airdrop project. These are often promoted on social media, crypto news platforms, or the company’s website. Airdrops are a simple way to diversify your portfolio without buying coins. You can make some money and may get in on the ground floor of a new platform. That being said, keep in mind that fake airdrop is standard scam hackers use so you’ll have to be cautious.
These six techniques we’ve outlined are proven to bring profits. However, to make a safe investment, it’s essential to do the proper research beforehand. Getting to know the crypto market and thoroughly studying its ups and downs can help you make better-informed decisions.