When Bitcoin was first introduced, no one expected it to blow up to the heights it is soaring in today in terms of value and popularity along with other cryptocurrencies such as Ethereum, Monero, and Maker. So, you are wondering how to make money from cryptocurrency, and if you are too late to board the money-making train that it spawned? Luckily, the time is better than ever, and investing, trading, mining, and staking are the best methods of making a profit.
INVESTING
One of the most popular strategies in making money with
cryptocurrency is investing. It essentially works the same way as you would
invest in a business, but there is a small twist. Instead of putting in your
money and seeing the business boom and making a profit back to you on its own,
it is much better to use the buy-and-hold strategy.
Of course, this is a bit risky, like any investment, since
you would be putting in your money into something that is not worth anything at
the moment, only to sell it in the time of need by others.
Looking at the past, whoever did this strategy correctly
made quite a lot of money, especially if they have been saving up Bitcoin from
the point where it was worth a couple of cents, to today, where it is worth
thousands.
If you are looking for a long-term strategy on how to make
money from cryptocurrency, investing is certainly the one for you. This is
especially the case if you have an understanding of the market and can predict
the shifts that are going to happen in it.
TRADING
Unlike investing, trading is more of a short-term strategy
where you are going to make profits in bursts. To do this, you have to own some
kind of cryptocurrency, to begin with, and trade them on one of many platforms
for another currency. Trading involves a bit more risk since the crypto market
can be quite volatile.
The prices can increase and decrease in a matter of minutes,
which is why this strategy requires you to have good technical and analytical
skills. Because of that, we would say that this option is recommended for those
with more experience with cryptocurrencies, while the investment is much safer
for newcomers, especially if they are interested in more popular
cryptocurrencies.
If you want to get ahead of the curve by being able to trade
24/7, you can also use a trading bot to do all the trading for you. Setting up
a trading bot is of course not a walk in the park, but once you have it up and
running when the AI gathers enough information about the chars and trading
patterns, they can do the job as well as you can, if not better.
MINING
The term mining is something you have probably heard a
hundred times already. Not only because it is by far the most popular method of
making money through cryptocurrency, but also because due to its popularity,
finding PC parts became rather difficult, thus you could have often heard about
it on the news.
Mining a cryptocurrency is the option that has the least
risk since you are generating the currency into your wallet via mining rigs.
The only bigger risk is if you are going to keep the currency and mine more of
it by the time it drops in price or not.
To become a highly profiting cryptocurrency miner, you do
not have to put as much effort as you would into the other methods. However,
you will have to invest some money into mining rigs, which are essentially PCs
that will do nothing but run a program that mines the cryptocurrency, and of
course, you might struggle to find the parts for those rigs as well.
If you are a risk chaser, mining can give you the biggest
boom in profit if you jump to mine a cryptocurrency that is very easy to
generate while it is also increasing in value over time. Be careful with this
tactic, because while you will not essentially lose any more mining a
cryptocurrency that might be worthless, you will still lose precious time that could
be invested elsewhere.
STAKING
The technique that is recommended only to those who are
experienced with the world of cryptocurrencies is staking. How to make money
with cryptocurrency via staking you wonder? Well, it essentially puts you into
the role of a bank.
Any coin you come by, whether it is by investing, trading,
or mining, you can lend to a network so it can use them in their transactions,
giving you a small percentage for each transaction. Finding a network that has
a lot of trading is the key element in thriving in profits via this technique,
which is where the previous knowledge is very handy.
CRYPTO ESPORTS BETTING
If you would tell anyone a decade ago if e-sports would be
as popular as they are today, they would just give you a quick laugh. However,
things have taken quite a big surprise in the gaming industry, as e-sports are
slowly becoming more popular than traditional sports. Certain events have
already had more viewers than the Super Bowl in the US, which is very
impressive.
Like with actual sports, you can bet on e-sports. Since it is quite new to a lot
of bookmakers, the odds they give are sometimes very interesting, and if you
are familiar with the e-sport scene just a little bit, you can easily make a
quick buck by crypto
betting.
There are crypto betting sites where
you can place a bet with cryptocurrency, but not all betting sites and
bookmakers will provide you options for all the events. Some of them only focus
on a certain game, and some of them do not go in-depth, only allowing you to bet on
a winning team instead of kills, towers, objectives, and all the other creative
betting options e-sports offers.
Sign Up with GG.BET here!
BUY & EXCHANGE NFTS
Before we can discuss buying and exchanging NFTs, it is very
important to understand what it is. NFT stands for Non-fungible token, which is
the latest phenomenon in the world of cryptocurrency. They are digital works of
art and collectibles that are one-of-a-kind. Because they are unique, that is
what makes them easy to trade in a blockchain.
It might seem a bit bizarre, but the payoff for a lot of artists
has been incredibly big. Many investors would spend big to own the rights to an
NFT, with the best examples for this being the “Nyan Cat” GIF which sold for
$600,000, and Jack Dorsey’s first tweet for $2.9 million.
Surprisingly enough, NFTs have been around for quite a
while, but the reason why their popularity was not as big as it is today is
that cryptocurrency was not as popular either. Since the main option of
trading is more commonly understood and used today, it only makes sense that
the NFTs have been getting the same amount of attention as well.
In essence, any digital image can be purchased as an NFT, but, for newcomers,
there are a couple of tips we can give you. For starters, carefully choose the
marketplace where you are buying from, and what type of digital wallet is
required to purchase those cryptocurrencies.
Once you acquire an NFT, you can upload the content to a
marketplace and follow the instructions to make it an NFT on that platform as
well. Then all you have to do is pick what kind of currency you are going to
sell, and you can either wait for a buyer or watch the bidding war in action.
Overall, the whole NFT situation can be looked at from the
same perspective as investing in cryptocurrency, but with a twist. It can be a
bit difficult to tell what the actual value of an NFT is, as you never know
when its popularity is going to dwindle or skyrocket in popularity.
PLAY-TO-EARN GAMES
If you are looking for a way to earn money with
cryptocurrency without actually investing any of your money while also being an
avid gamer, then this is certainly the best option for you. While still not
perfect, there are quite a lot of games that you can play on a casual or a
hardcore level and earn some kind of cryptocurrency as a reward for your
progress.
One of the best play-to-earn
games is Axie Infinity, which is operated by a Vietnam-based company
Sky Mavis. This game will also allow you to acquire some NFTs, which appear in
the form of digital pets. Those NFTs can be sold for the in-game currency,
which can be then traded for traditional currency.
If you are familiar with Pokemon, think of it as a
blockchain version of that, with a social network built-in and an economy that
goes beyond the game. So far, this game bade over $3 billion in total sales
from March 2018 when it was released, and it is raising in growth every day as
more people are discovering that it is a viable income option.
Axie Infinity is just one of many NFT games out there,
and while these games are probably not that exciting to hardcore gamers when
compared to some of the most popular games on the planet, with time, they will
certainly improve on both depth and graphics thanks to cryptocurrency becoming
somewhat of a standard in various online activities.
FINAL WORD
While we listed only four ways of making money via cryptocurrency, there are a couple of other ones such as crypto social media, airdrops, and forks, and creating your own cryptocurrency. Those techniques certainly bring profits, but the ones we presented to you are certainly better once mastered, and they are probably less frustrating to understand and deal with in the long run.