7 Ways to Increase Your Crypto Income
When you’re first getting started with cryptocurrencies, it’s tempting to simply invest in the biggest coins, such as Bitcoin and Ethereum, and then wait patiently for them to increase in value. If you do this, however, you may find that your investment doesn’t grow nearly as quickly as you want it to. Instead of waiting around for your investments to appreciate in value, why not actively work to increase your income from cryptocurrencies? Here are seven ways to increase your crypto income today.
1) Earning Cryptocurrency
If you’re holding cryptocurrency, staking it is a nice way to increase your passive income. When you stake crypto, you have to lock up your holdings in a specific wallet and allow them to accumulate interest over time. The more crypto that accumulates in your account and rots away, the more value you will earn. Check out our guide on how to set up staking wallets for various coins.
2) Making Money From Trading Cryptocurrency
Exchanges, as well as individual owners of large cryptocurrency holdings, are always looking for talented traders. Not only does trading cryptocurrencies offer an opportunity to generate income on a daily basis, but it also teaches users how markets operate. Learning more about financial markets from a crypto perspective is an invaluable skill that will allow you to make smart investments and trades long after you’ve stopped day trading. Here are some tips on making money from trading cryptocurrency.
3) Mining Cryptocurrency
This is, without a doubt, one of the quickest ways to make money with cryptocurrency. If you have powerful hardware, and access to cheaper power (or free/cheap electricity), then mining Bitcoin or other coins can be a good way of earning coins quickly. But it’s not very feasible on a small scale; if you need more than 1.5 BTC worth of currency per month (and have substantial electricity costs), it won’t take long until you turn into a net loser.
4) Cashing out Cryptocurrency
Just as you would if you were investing in any other currency, it’s wise to diversify your crypto holdings. In other words, don’t be all-in on Bitcoin—invest in Bitcoin, Ethereum and a few more altcoins. Remember that crypto is still in its infancy; there will be many winners and losers.
5) Gambling with Cryptocurrency
Cryptocurrency gambling can be a very lucrative hobby, but only if you know how to approach it. You need an understanding of why you’re doing it, when you should stop and what you can do if things get too hectic. If you’re starting out in cryptocurrency gambling, these tips will help keep your funds secure and provide profitable gains.
6) Investing in Tokens
A new way of funding projects and companies is taking over: through blockchain-based tokens. Investing in tokens can be a great way to increase your income, but there are some things you should be aware of before you get started. Consider these six tips for getting into token investing now.
7) Staking
Holding your coins in a staking wallet allows you to take advantage of Proof-of-Stake (PoS) and earn dividends when you’re not using your coins. The rewards come from transaction fees and new coins generated, but they can be significant. I’ve earned close to 200 percent annual returns by staking Dogecoin; other popular PoS networks include Waves, NXT, Bitshares, and Komodo.
