How to Make Money with Cryptocurrency
10 Ways to Make Money with Cryptocurrency
When it comes to the question of how to make money with cryptocurrency there are several avenues available, below are 10 ways to make money with cryptocurrency.
- Day Trading Crypto
Day trading in crypto coins is an investment strategy where the business model is based on trading cryptocurrency as a short-term trading strategy. Here crypto assets and trading tokens are bought and sold on the same day. A successful trader will rely on tools and resources to keep track of market trends such as investor optimism, stocks, bonds, and other commodities and currencies. If you do not want to be a full-time trader you might opt for swing trading where you can make investments for a few days or weeks at a time.
Lending
You can also make money by opting to lend crypto the same way, banks pay interest on some savings accounts. For offering loans you earn interest from your loans every month or week- depending on the agreement you enter. One variation is a crypto-based savings account, where your crypto keys are lent out to other people who can use the crypto for a certain period of time and in return, the borrower pays you interest on the crypto that you lent them.Crypto Market Mining
Crypto mining entails the core process that keeps the cryptocurrency’s network up and running by helping to solve complex mathematical problems. It is a process where specialized computers, also known as nodes or mining rigs, validate transactions on the blockchain for a specific crypto coin and, in turn, receive a mining reward for their computational efforts. Cryptocurrency mining can be conducted by an individual or organization provided that they have the necessary hardware and software resources to cover the computing power needed.Cryptocurrency Dividends
This is a profit-sharing scheme offered by cryptocurrency companies. By holding a crypto network’s native cryptocurrency, you help keep the system secure and as a reward, you get a share of the profit of the work.Become a Crypto Broker
A cryptocurrency broker is similar to a traditional broker but in this case, a crypto broker acts as an intermediary between the cryptocurrency markets and investors and facilitates the buying and selling of cryptocurrencies. In some cases, a crypto broker may offer derivatives products to traders, where traders can enter contracts to speculate on the price of cryptocurrencies.Making Cryptocurrency
You can also create your own cryptocurrency by building it on an existing blockchain. For example, the Ethereum blockchain offers an easy step-by-step process that you can follow to build your cryptocurrency. Once you created your own crypto all you have to do is bring together a group of people to help promote it and push for its mainstream adoption.Promote Cryptocurrency Exchanges
Cryptocurrencies appreciate value based on their demand and mainstream adoption. As such cryptocurrency networks are willing to reward individuals that create and curate their content.Airdrop
A cryptocurrency airdrop is a marketing method employed by crypto startups to promote the debut of a new cryptocurrency. Here startups offer crypto wallet holders in their platform free coins or tokens either for free or in exchange for a small promotional service. It is important to note that all cryptocurrencies obtained through airdrops are also taxable income for more read our article do you have to pay taxes on cryptocurrency.Buy and Hold
Through the buy and hold strategy investors purchase cryptocurrencies of their choice from a crypto exchange and hold them until prices appreciate to make a significant profit. In some cases, they would even purchase more when prices of the cryptocurrencies drop in a bid to acquire as many crypto coins in anticipation of a future rise in the value of the crypto-coin.
- Invest in Cryptocurrency Companies
This is a straightforward investment scheme where you can buy stocks of companies that use or own cryptocurrencies and the blockchain that powers them.
