Do you wish to learn how to make money online? Especially with cryptocurrencies like Bitcoin, Ethereum, Dodgecoin, Cardano, AMP, Elongate, Iota, Moonshot, Polygon, etc., Are you tired of getting your head stuffed with confusing terminologies and new innovations about crypto, and now want to start making money from cryptocurrency?
In this explainer article, you will learn 5 ways you can make money with cryptocurrency.
1. Cryptocurrency Mining
2. Cryptocurrency investment
3. Cryptocurrency staking
4. Cryptocurrency Trading
5. Cryptocurrency Content Creation
1. Cryptocurrency Mining
This is the process of validating cryptocurrency transactions, and minting new coins from block. This is where all the different mining hardware are used, i.e., the GPU, FPGA, ASIC, etc. In Bitcoin mining, you use the Bitcoin mining hardware to solve randomly generated complex puzzle using electricity and computational power, and then you will get compensated in Bitcoin if you successfully solve the puzzle first before any other person in the network, that is why most times it is referred to as Bitcoin mining. This requires the use of cutting-edge hardware that can solve computational problems pretty fast.
One of the challenges associated with how to make money with cryptocurrency through cryptocurrency mining, is that, it consumes power, and it requires high-end hardware devices to get the best out of the process. you can go for that if you think you have what it takes. To get started, there are lots of tutorials on the internet you can fetch, a simple google search will produce tons of results.
2. Cryptocurrency Investment
This is long-term strategy of buying and holding cryptocurrency assets for some time.
The buy-and-hold strategy is generally well suited for cryptocurrency assets. Crypto assets are volatile in the short run, but have immense potential growth at the long-run. Two cryptocurrency assets that are known to show long-term price increase are Bitcoin and Ethereum, you can consider any of the two if you intend investing long term in cryptocurrency.
3. Cryptocurrency Staking
This is a way of validating crypto transactions. When you are stake, you definitely own coins but you don’t spend them. You can lock this cryptocurrency asset you own in a wallet; a Proof of Stake network can then use your coins to validate transactions. Once this is done, you will receive a reward for it.
What this means is that, you are lending coins to the network, which allows the network to maintain its security and verify transactions. The reward you receive is similar to the interest a bank would pay you for a credit balance.
The Proof of Stake algorithm chooses transaction validators based on the number of coins a person has to stake. It is much more energy-efficient than crypto mining and does not require expensive hardware.
4. Cryptocurrency Trading
Another way of making money with cryptocurrency is through trading. Investing is a long-term endeavor based on the buy-and-hold strategy, while trading gives a short-term opportunity to make money with cryptocurrency.
With the volatile nature of the cryptocurrency market, the prices of assets can increase and decrease dramatically over the short term, hence you can buy and trade and make money. With good analytical and technical skill, you will make a successful trader. All you need to do is, analyze market charts on the performance of the listed assets so that you can make accurate predictions about price increases and decreases, just like it is done in the FOREX market. Online platforms like Binance, Coinbase, Robinhood are good for cryptocurrency trading.
5. Cryptocurrency Content Creation
This article you are reading now is a content I have created on how to make money with cryptocurrency. Having google AdSense on my website, when people like you visit my website to learn about cryptocurrency, some of them might click an advert on my website and I will be paid by google for just clicking an ad on my website. Since Cryptocurrency and blockchain technology is still in its infantile stage, you can create a website and start blogging about cryptocurrencies, within a short period of time you can start making money with cryptocurrency.
