How to make money with cryptocurrency?
The majority of
opportunistic investors who jumped on the cryptocurrency bandwagon did so for
one reason: to make money.
Unfortunately, whether
due to multiple industry scams, bad timing or otherwise, the vast majority of
them lost more than they won.
However, do you know
that there are a few legit ways to make money from cryptocurrencies?
In this
article, we'll explore a few that we particularly like.
How to make
money with cryptocurrency?
Here are 5
ways to make money with cryptocurrency:
1. Invest in
cryptocurrencies for the long term
The majority
of cryptocurrencies were launched to achieve a specific and very ambitious
goal. And while these cryptocurrencies may see success in the short term, these
goals can only be achieved in the long term. And, if you are one of the
investors who have adopted cryptocurrencies, you have a good chance of getting
rich in the long term.
However, to
achieve this long-term success, the cryptocurrencies in question are going to
have to achieve widespread adoption in our society.
Is it worth investing in Bitcoin?
Yes! Often
called “digital gold”, Bitcoin is the best known and most widely used
cryptocurrency.
The more
Bitcoin is prevalent in our society and the more companies adopt it as an alternative
payment system, the higher the price of Bitcoin will rise.
Bitcoin
investors consider that in the long term, the price of cryptocurrency will
necessarily increase because the supply of digital currency is limited. Indeed,
only 21 million Bitcoins are available on the market. This is not the case with
government currencies which can be printed by the government at any time.
If you
believe Bitcoin has the potential to become the future long-term digital
currency, Bitcoin is an extremely good investment for you.
Is it worth investing in Ethereum?
Ether is the
cryptocurrency of the ethereum platform and can be purchased by investors on
several trading platforms. If Bitcoin is seen as digital gold, Ethereum is
rather a giant computerized system that supports several other cryptocurrencies
and decentralized ecosystems.
The platform
enables the creation and use of “smart contracts”, which automatically execute
once the terms of the contract are met.
This
technology makes it possible to create decentralized applications with millions
of possibilities.
Network
technology has the potential to innovate the financial markets, the real estate
market, as well as several other markets.
The huge
number of cryptocurrencies that have been built on Ethereum increases the
long-term value of Ether as well as increases its utility.
2. Do day
trading
If you like
risk, day trading is for you!
Advantages of day trading
In the
cryptocurrency market, traders can take advantage of several market advantages.
Here are a
few:
Markets operate 24/7
One of the
aspects that advantages traders in cryptocurrencies versus other financial
assets is the fact that this market is open 24 hours a day, 7 days a week. It
is therefore possible to make money at all times.
The volatility of cryptocurrencies
Volatility
is the norm for cryptocurrencies. Indeed, if you follow some cryptocurrencies,
you have surely already noticed price jumps or drops of 10%, 20%, 30% and,
sometimes, even more. However, it also means that you have a lot of opportunity
to make money.
Data transparency
Cryptocurrency
markets are transparent and everyone has access to real-time information and
prices and most importantly, this information is available for free!
And yes, you
don't need to pay thousands of dollars in Bloomberg fees to find out the price
of Bitcoin, Dogecoin or any other cryptocurrency.
In addition,
there are several interfaces such as Binance that will allow you to do
technical analyzes for free!
The markets are not mature
Although
many investors consider the lack of maturity in the cryptocurrency market to be
a negative point, this is not the case.
The
immaturity of the markets is a huge advantage for cryptocurrency investors.
Why? In fact, it is mainly because your competition does not have years and
years of advantage over you and, in addition, the amount of newbie investors in
the markets gives you a huge advantage over others.
To take
advantage of immature markets, it is super important to be as informed as
possible about the current cryptocurrency market.
Markets are unregulated
As you
probably know, the stock market is highly regulated. And, often, regulations
can limit the actions of investors.
The same
cannot be said about cryptocurrency markets. These are almost unregulated, so
you can invest any way you want.
3. Generate
Bitcoins
Generating
Bitcoins (or mining them) is the process by which new Bitcoin enters the
market. Moreover, it is also a critical step in the functionality of the
blockchain.
The
generation of Bitcoins is done through sophisticated computers that replay
complex computer problems.
But do you
know that it is possible to generate Bitcoins without having technological
equipment for hundreds of thousands of dollars?
And yes, in
the world of Bitcoin generation the important thing is to be able to make your
cost of equipment and electricity profitable, to do this calculation there are
several websites including NiceHash.
4. Create your
own cryptocurrency
Another
great way to make money with cryptocurrency is to create a new one.
However, it
is also a much harder method to perform than the others on this list.
If you are
interested in learning how to create your own cryptocurrency, you will easily
be able to find all the necessary information by doing a quick search on google.
There are
several ways to create your own cryptocurrency. The easiest would be to use an
“open source” code of an exciting currency. This way, you will be able to cut
production time a lot!
Although
this method is faster and allows you to deploy your cryptocurrency more
quickly, it is probably not going to stand out from the others. And, while you
will surely be able to make some money with this one, it would not be a good
method to earn money in the long run.
If, however,
you are willing to go further and develop a cryptocurrency based on an
innovative technological concept, you will definitely make a lot of money while
being useful to your decentralized/cryptocurrency platform users.
A good
example of this method is the founder of Ethereum Vitalik Buterin, who has fter innovating the
decentralized application industry is now worth well over US$1 billion.
5. Lend your
cryptocurrency
Another way
to make money with cryptocurrency is to lend your cryptocurrency and earn
interest on your loan.
But how to
do it? As you can imagine, if you lend your cryptocurrencies to someone, there
is a good chance that this person will disappear with your digital currency.
That's why
we recommend using the lending platform BlockFi. This
American platform is one of the only decentralized platforms that allows you to
lend your cryptocurrency effortlessly while collecting interest!
To get
started, you just need to create a free account on BlockFi, deposit one of the
cryptocurrencies supported by the platform and voila!
The platform
will start lending your cryptocurrency and send you monthly interest.
And, in
addition, you will be able to withdraw your cryptocurrency (as well as your
interest) at any time!
Conclusion
If you
wanted to learn how to make money with cryptocurrency, we hope you found an
answer.
Although
this is not all the possible methods of making money on new digital currencies,
it is definitely a good base.
If you have
any tips, comments, or just something to share, feel free to write it in the
comment section below.