Cryptocurrency has quickly risen to popularity over the last couple of years. In fact, if you have been looking for ways to make money online, you’ve probably heard all the craze of how crypto is making millionaires. We can all admit, the possibility of getting rich is actually the main reason that attracts most people to crypto. All in all, crypto presents users with numerous opportunities to make money. And with so many options to choose from, sometimes it can be hard deciding which route to take. But to make things a little easier for you, we will discuss the top brilliant ways of making money with cryptocurrency in this article. Without further ado, let’s get started.
1. Staking
Staking is the other popular way to make money with cryptocurrency. Simply put, staking is when you deposit and hold cryptos in a staking platform or exchange. The end goal here is constantly receiving dividends and rewards at a percentage relative to your initial investment. With staking, you own coins, but you don’t spend them. Your coins are used in the Proof of Stake consensus networks to validate transactions. And by staking the coins, you, in turn, get rewards. It’s more like you are lending your coins to the network to maintain its transactions and security. When you stake your coins, the rewards that you get are similar to the interests a bank pays you for your credit balance. Validators on the Proof of Stake networks are chosen depending on the number of coins they’ve staked. The best part is that staking is more energy-efficient as compared to the Proof of Work algorithm. Also, you don’t need expensive hardware.
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2. Buying and Holding
Buying and holding crypto assets is a long-term investment in cryptocurrencies. The fact that cryptos are highly volatile in the short term, they have great potential for growth in the long term. For that reason, they are best suited for the buy-and-hold strategy. Buying and holding cryptocurrency assets requires you to identify stable assets that will not disappear after a few years. It would help if you had digital assets that will still be around in the long term, and that could potentially earn you from 5% all the way to 40% in the long term. There are a few crypto-assets that so far have shown a long-term increase, such as Bitcoin and Ethereum. Such cryptocurrencies, therefore, can be considered a safe long-term investment. While holding also comes with its own set of disadvantages, it’s one of the easiest ways to earn money with cryptocurrency.
3. Day Trading
The buy-and-hold strategies are great for long-term money-making plans. On the other hand, day trading is meant to exploit the short-term opportunities in the market. The fact that crypto-assets are volatile means that prices could dramatically increase or decrease at any time. While this may seem easy, you need the proper technical and analytical skills to be a day trader. Day trading requires you to analyze the charts to check how certain listed assets perform in the market. That is meant to help you make accurate predictions when the prices decrease or increase. What’s more, as a day trader, you have the chance to take long or short trade positions. All in all, that depends primarily on whether you expect the price of an asset to fall or rise. With that in mind, you can always make profits day trading, whether the asset is bearish or bullish.
4. Crypto Mining
Mining is the pioneer way to make money with cryptocurrency. It is at the heart of the Proof of Work consensus mechanism, right where the value of crypto is generated. When you mine cryptocurrencies, you are often rewarded with new coins. However, to mine, you need an upfront investment to purchase the hardware required for mining. Also, you need the technical expertise to solve the complex mathematical puzzles needed to facilitate transactions in the network.
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5. Earn Interest by Lending
I bet everyone knows the century-old method of depositing money in your bank account and receiving interests. This same concept applies to cryptocurrencies. Many reliable peer-to-peer marketplaces support lending and allow you to earn interest. With such accounts, you can earn up to 12% on your returns, but in the form of the cryptocurrency, you have invested in.
6. Cryptocurrency Affiliate Programs
Another easy way to make money with cryptocurrency is through affiliate programs. Many companies involved with the crypto world use affiliate programs to bring in new customers. The websites will then pay you for referring your family and friends to them. If you own a YouTube channel or blog, you can also take advantage of affiliate programs. You just have to share links to the websites, and boom! You get paid for that! If you don’t have either of the two, you can share links to the websites on your social media channels whenever you can. Many websites offer cryptocurrency affiliate programs; it’s all about finding the right ones.
7. Cryptocurrency Faucets
Last on our list is cryptocurrency faucets which are the other easy way to earn cryptocurrencies. Essentially, faucets are apps or websites that allow you to watch advertisements or play games online then you are rewarded with cryptocurrencies. While most websites will pay you in Bitcoin, others will pay in altcoins. But you can always switch your coins to Bitcoin on exchange platforms. However, you will realize that most people don’t go for crypto faucets. And that’s because the payout in these faucets tends to be extremely low. For that reason, it’s likely to take you such a long time before you can accumulate enough money.
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In Summary
The cryptocurrency world is definitely one of the most lucrative fields to make a lot of money from right now. However, not everyone automatically becomes a crypto millionaire. But with a little bit of expertise and luck, there are multiple opportunities to make money in the crypto space. And even though the cryptocurrency market is pretty small right now, there is great potential. With that said, make sure you choose a money-making strategy that suits your needs and earn big.
