Since its inception in 2010, Bitcoin was the first digital asset or perhaps the stepping stone towards an ecosystem of highly volatile yet lucrative opportunities called cryptocurrencies. For quite some time, it managed to grow an underground following of investors that seemed very intrigued and interested in its future as a possible replacement to the physical monetary system.
With their prices skyrocketing a couple of times in the past few years, cryptocurrencies have managed to attract a significant amount of attention over recent years. With better and bigger developments in the financial technology sector, a growing number of investors are finding ways to earn huge profits through cryptocurrencies. There are a great many methods that an investor can adopt to make money with cryptocurrency and generate income within the crypto space. Below are just some of the strategies that can be employed with your desired cryptocurrency in order to earn money.
Staking and Lending
Staking and lending are quite similar and both of these allow investors to make money with the use of altcoins.
Staking essentially involves locking your coins in a digital wallet and receiving different rewards to validate transactions on a PoS network. A proof of stake (PoS) network allows blockchains to operate more energy-efficiently all the while maintaining a decent degree of decentralization.
Cold staking is another option that lets investors stake coins while holding them in a secure offline wallet. Tether, NEO and Stellar (XLM) are some examples of the coins that an investor can stake. With this method, investors are basically lending coins to the network, so it can maintain its security and verify transactions.
Lending is another option for investors to earn money with crypto. As evident by the name, the process involves lending coins to other investors and generating interest on that loan. A number of platforms facilitate crypto lending and it is increasingly being opted by investors to earn money.
Crypto trading is very similar to stock trading; you buy and sell tokens/coins (in case of cryptocurrencies) in the hope of profit margins. There are a number of exchanges and platforms where you can buy your desired cryptocurrency. After that, you have the option to either hold them for a while or sell them off immediately, depending on the changes within that specific crypto market.
However, trading is usually meant to exploit short-term opportunities but rest assured, it is no walk in the park. Trading cryptocurrencies requires special skills as well as experience in order to identify opportunities and react to possible threats. This could include the ability to read charts and a good understanding of technical indicators.
Since not every investor has relevant skills and knowledge or expertise advice available at their doorstep, there are a number of platforms, websites and apps such as https://insidebitcoins.com/bitcoin-robot/bitcoin-system that utilizes bots to trade cryptocurrencies automatically and take advantage of volatility resulting from crypto booms.
Investing is considered to be one the easiest way to earn money with cryptocurrencies. This can be done in a number of ways: through exchanges, ICO (initial coin offering), or direct investment/partnership.
Investing is generally associated with the long-term buying and holding of assets. Also, crypto assets are usually well-suited to a buy and hold strategy. This is because they are incredibly volatile in the short term but can have tremendous long-term potential.
You can earn returns from crypto investment not only through the price appreciation of the relevant coin/token in your possession but also through your specific share in the project. You can get the access to the relevant project or can use the coin for payment, depending on the type of cryptocurrency you have invested in.
A crypto referral program is a great way to earn cryptocurrencies. In some cases, you might not even need to invest anything in order to refer and earn with a project. This can simply be done by registering on the website, getting your unique referral link and then begin referring and earning.
WISE and various other cryptocurrencies offer good profits for referrals. In the case of WISE, both the referrer and referee get about 10% bonus tokens for every successful staking through referral.