Important Ways To Earn In The Cryptoworld #001

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Hello Great minds,

I count a wonderful opportunity to appear before you all today again to discuss another issue of great importance on the cryptospace.

The blockchain technology and the concept of cryptocurrency is very wide, we must admit.

The improvement the blockchain technology has on the financial system is mind-blowing.

The cryptospace has introduced various ways in which crypto specialist/newbie can earn and today, we shall be discussing just a few.

• STAKING:

Staking can be explained to an earning process whereby crypto currency holder lock up their funds inorder to be a participant in the validation and consensus mechanism of a selected blockchain.

By becoming a validator, they contribute to the security of the network and the transaction processing of the network.

Staking is mostly linked to the POS (Proof Of Stake) consensus mechanism.

The proof of stake system unlike the proof of work mechanism do not make use of computational power, rather validators are usually selected for the creation of new blocks and validation of transactions.

In this system, the more coin an holder stakes, the higher his chances are of being selected as a validator and receiving handsome rewards.

• INVESTMENT:

Investment can be explained to be the process of allocating, funds, resources and time to a particular project with the hope of generating income in the future.

Crypto investors make investment with the goal of getting a profit on their investment which kind be in the form of income or capital appreciation.

The most popular form of cryptocurrency investment is done by taking advantage of the volatility of the cryptomarket.

Here you purchase a crypto asset when the price is low and then you wait for a long time before you sell off at an higher price, this is usually known as a long term investment.

Before embarking on this form of money making, it is very important that use make an extensive research on the project you intend to invest in.

Examine the use cases and the fundamentals of such projects.

• CRYPTO LENDING:

Crypto lending is another practice of earning in the cryptospace whereby institutions or individuals are allowed to lend cryptocurrencies such as Bitcoin, steem, to borrowers in exchange for interest payment.

It also refers to a form of defi which uses the blockchain technology to facilitate lending transactions without the need of middlemen like the central authorities.

It is also good to note that cryptocurrency lending carries a level of risk, in the sense that the cryptomarket is very volatile and this volatility affects the price of the collateral.

Before one engage in cryptocurrency lending, he should find a trusted project where he can lend the money to