How To Earn Money Through Cryptocurrency?
What is Cryptocurrency?
Simply put – it’s digital currency. Specifically, decentralized digital currency that’s based on blockchain technology, a system that records information and heightens its security such that the system can’t be changed, cheated or hacked.
Two of the most popular types of cryptocurrency in circulation are Bitcoin and Ethereum, but as in actuality, there are over 5000 versions in existence.
The Hype
Although it’s old news by now, cryptocurrency functions pretty much as regular money, which makes the hype surrounding it self-explanatory. Apart from regular goods and services, they can also be used to invest in other assets, such as stocks or gold (or any precious metals). As enticing as that sounds, its ultimately risky business and thorough research is required before trying to acquire it since its value as currency is also determined by internet users. There’s no central authority to determine its value, unlike regular currency (the value of which is determined by any nation’s central bank).
How can I Make Money through Cryptocurrency?
Risky? Certainly. But could the risks be worth it? That’s a gamble anyone wishing to invest will have to take based on how worth it is to anyone. As it stands, cryptocurrency’s value and durability is questionable at best.
Direct acquisition of cryptocurrency – simply buy it. Buying directly usually leads to the best value and one source of buying it is Coinbase.
Mining with your PC/Laptop – The reason for the current exorbitant prices of GPUs, you can mine cryptocurrency for free with a powerful computer. Ever since mining bitcoin has become profitable, everyone wants a powerful computer. That said, if you can afford to grab one, and wish to attain cryptocurrency without any additional charges, that’s the route to go. You may not get much though.
What to Avoid:
- Cloud mining. Some state that it is nothing but a waste of money.
- Technical trading.
How can I utilize the crypto I’ve bought/mined?
Time is your friend – spend, say, $5000 on mining. As an example, within a year, you’ve mined $15000 worth of your chosen cryptocurrency. That’s a $10000 profit.
Based on Value – the risky business. You are betting on the value of your chosen cryptocurrency to go up. A year and a half ago Bitcoin was valued at $18000 but now it’s about $63000. That’s a pretty hefty profit. Based on that, you’re making a $45000 profit. Within this category falls trading wherein you can sell the cryptocurrency you’ve been holding onto for a while and as soon as prices start going up, you can get rid of it. You need to be able to predict price fluctuations, however.
Through Staking – when you invest or lock up funds inside a crypto-coin, that’s called staking. Once you do that, you can earn further cryptocurrency through the interest you make off of that investment. Furthermore, when you hold onto your coins for a certain period of time you can also benefit from increasing value of your coin (and sell it to make profit, as explained above). There are many cryptocurrency versions that’ll allow you to make good money with staking. Some options are WISE, PIVX, Tezos, DASH, NAV Coin, etc.
Lending – this can be done when you’re staking. Basically, much like the real world, you can simply lend out your coins to other investors as loan and put up an interest rate onto it. That interest will be your earning/profit.
Social Media – a more unique method of earning crypto-coins is through blockchain-based social media platforms. An example is 2016’s Steemit, which rewards users with its native coin STEEM for creating and curating content on the site. Although the site has since gone into decline, multiple others have borrowed the concept.
Consequently, it is up to the user what to make of cryptocurrency. Some might say that it’s a job for those who have spare money laying around, or some might simply strongly believe in its future, and he future of society as a whole wherein we may go cashless eventually. Regardless, whatever one’s choices, caution must be exercised.
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