Cryptocurrencies have made a name for themselves the past few years, with endorsements from some pretty influential names like Bill Gates, Richard Branson, and Chamath Palihapitiya.
The most famous, of course, being Bitcoin after it soared over $19,000 in December of 2017 before eventually coming back to earth and settling around $10,000. The question many are wondering is this: Will it ever reaches those price levels again?
Considering the state of different currencies, and with another fiscal stimulus bill looming overhead, many investors are looking for alternatives.
Luckily, there are several different ways to make money with cryptocurrency. If you are interested, keep reading this guide to discover the methods individuals are using to generate crypto money.
The simplest way to make money with cryptocurrencies is by investing in it. You can invest in different cryptocurrencies by simply buying and holding for an extended period of time.
The only real reason to invest is if you believe it will increase in value in the future. You will have to go into the investment knowing that cryptocurrencies can be extremely volatile, and you may be in the red for a period of time. However, if it’s truly an investment you want to own, you’re looking longer term.
Deciding which digital currency you will invest in is the real question. Some individuals believe altcoins are the best investment, while others believe tokens is the way to go. Whichever way you ultimately decide to invest, keep in mind market leaders are typically leading the market for a reason – no need to invest in a cryptocurrency because it seems “cheap.”
2. Day Trade
The volatility that cryptocurrencies experience make favorable conditions for day traders. Trading cryptocurrency can generate a significant amount of money for those who know what they are doing.
According to a 2019 study, about 51 to 52 million people are considered active crypto day traders. To become a crypto day trader, the first step is to sign up with a cryptocurrency wallet that can support trading, such as coinstash.com.au.
Then, from there, you will have to decide which digital currency you want to trade. It’s best to trade cryptocurrencies that have higher market caps.
Higher market capitalization = more money invested = easier to convert
Bitcoin, Ethereum, and Ripple currently claim the top three highest cryptocurrency market caps. Trading digital currencies require a high amount of attention to the following:
- Economic policies
Keeping up with the news is critical for day trading, especially with a fiscal stimulus bill looming. Margin trading allows you to leverage your capital for more buying power. Still, it can also be detrimental if the trade goes against you – always practice risk management, especially when trading on margin.
3. Mine for It
Believe it or not, there is such a thing as mining for cryptocurrency. No, you won’t be digging in the dirt, but you will be digging through something – a lot of numbers.
What cryptocurrency miners do is verify transactions or audit them. They are basically verifying that nobody is using the exact same digital currency on multiple transactions. Once they verify a certain amount of data, they are rewarded with bitcoin. However, there is a catch – you must be the first to verify that specific data.
The problem is, if you want to go this route, you will need a lot of computing power as it is a very competitive task. Miners from all over the world are essentially competing to verify the data the fastest and collect the reward.
4. Work for It
Here’s another option: You could always work for it. There are multiple ways to work and earn cryptocurrencies, like completing microtasks, for example.
Cryptocurrency faucets are real websites that will generate small amounts of cryptocurrency for users willing to complete a task. There are several different tasks, such as the following:
- Watching videos
- Viewing ads
- Playing games
- Taking surveys
The tasks are typically fairly easy and straightforward, giving users a chance to earn real cryptocurrency.
5. Earn Dividends
Just like with certain stocks, specific coins offer investors a chance to receive dividends, but with a certain spin on it.
Instead of giving shareholders a share of earnings, cryptocurrencies pays dividends through what is known as staking. Staking cryptocurrencies involves holding your position in a digital wallet to allow for the company to utilize the resources for certain operations.
6. Create Content
If you own a blog already and are looking to make some extra crypto money, consider connecting with companies within the cryptocurrency industry and become an affiliate marketer.
Becoming an affiliate marketer can give individuals a chance to earn digital currency on their own time. It is easy to get started and doesn’t take much capital to begin.
You can create your own content and promote it in the way you would like, giving you the freedom to be yourself still. Even if you don’t have a blog already, it is super easy to get started and will give you a chance to take earn some passive income.
The content can be anything:
- How to’s
- Breaking news
- Blog posts
- Trading tips
- Even videos
Bitcoin is the king of content on the internet that needs more creative content generated as investors look to keep up with the digital currency. When creating crypto content, consider how you can provide value to the readers.
Another thing to keep in mind is your audience. Who are you speaking to? If you generate content for new traders, it’s best to use simple terms and break them down whenever possible to avoid a higher bounce rate.
Try to see if you can master a certain aspect of cryptocurrencies such as day trading, investing, or researching. By mastering a certain aspect, you can corner the market and keep readers coming back for more.
Looking for Other Ways to Make Money With Cryptocurrency?
Cryptocurrencies are becoming the newest (old) trend of 2020, with investors looking for alternative investments. There are so many ways to make money with cryptocurrency – the only thing holding you back is deciding which one to start with.
After making your first dollar with cryptocurrency, you will see why so many investors are talking about it. For more information on cryptocurrencies, check out the rest of our website!
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