Making money with cryptocurrency is a matter of detailed discussion. Earning money with cryptocurrency is the most important part while trading. Many of the people are not familiar with this concept that how can they make money through cryptocurrency. Bitcoin and other variants of bitcoins are gaining much popularity now. Many of you must have given it a thought that how actually can you make money with crypto. To earn, you have to invest first in digital currencies.
You need to have the expertise, great skills, and deep analysis.
Can beginners earn through crypto investments?
One can make an enormous profit if he invests in crypto. But there are also chances that it is a great risk as you can lose or make money in a few minutes. You will have to put great effort if you are willing to make an investment and earn money.
Process of making money:
Now let us dive into the main purpose of this article and at the end of it, many of your misconceptions will be cleared. Below we will be discussing the ways through which you can earn money with cryptocurrency.
The term investment means that you buy and hold some assets. The buy and hold strategy is the best strategy for crypto assets. Their long-term potential is great. If you want to make money through crypto then long term investing is a good thing.
2) Trading for Profit:
The time horizon is an important factor while trading in crypto. It differentiates it from investment. Short-term opportunities are exploited through trading whereas investment is long-term. One should be an expert and have greater skills if they want to be a successful trader in crypto.
Technical indicators should be understood. They should have the ability to read the charts. It is not mandatory to know about blockchain or other projects. For trading purposes, investors can buy and sell crypto coins.
If investors want to make money with altcoins then they can use staking. The concept of staking is rather new to you people so let us explain it. Locking of coins in a cryptocurrency wallet or getting rewards that validate the transactions on a PoS (proof of stake) network is known as staking.
Unlike mining, transaction validators are chosen by PoS algorithms, based on the number of coins that they have committed to the stake. It is energy-efficient and does not have the requirement of expensive hardware. Investors can stake coins offline as well by holding the coins in a secure offline wallet. This is known as cold staking.
4) Social media for crypto:
Steemit emerged as the first social media platform based upon blockchain. It was launched by Dan Larimer in 2016. When users create and curate content then this platform provides them with STEEM, its native coin. In 2017 the users on Steemit started to decline due to some problems. Other rewarding platforms have also been built such as Scorum, Sapien, or Narrative.
It is an ancient way of making money through cryptocurrency. It verifies transactions and secures the PoW (proof of work) network. New coins are rewarded to miners via black rewards when they perform these functions. Earlier mining could be done on a desktop when Bitcoin started. But now specialized mining hardware is required. Miners are auditors. Previous transactions are verified by them. They prevent the double-spending problem.
The problem of double spending can be understood as that a bitcoin owner cannot spend the same block twice that will be illegal. This type of fraud is possible in the digital currency because the owner may create a copy of the token and send it to some other party and keep the original with himself.
Satoshi Nakamoto set the limit of rewarding the miners with a quantity of bitcoin when they have verified 1 MB bitcoin transactions which are collectively known as a block. Some miners mine different currencies and exchange them with bitcoin.
6) Earning of a miner:
When four years pass, bitcoin mining rewards get halved. In 2009 the bitcoin was mined for the first time and the reward was 50 BTC. It was halved to 25 BTC in 2012. It was halved further to 12.5 BTC in 2016. In 2020 this amount will be reduced to 6.5 BTC. Completing a block in 2019 would earn you $116,250 because the price of bitcoin was $9300 per coin. So 12.5 x 9300 = 116,250.
Pros of earning through mining:
The earning potential is much higher
Cons of earning through mining:
The initial cost is very high.
It is relatively difficult
7) Forks and Airpods:
The upgrades or changes in a protocol that are used to create new coins are called forks. Coin holders of the original chain get free tokens if a blockchain forks. An exchange distributes free tokens when they want to raise awareness or draw a larger user base for any project. These free tokens are known as AirPods.
In this technique, coins are bought from one exchange and can be sold to another exchange at a higher price. It is a rare process and does not help much in getting rich earlier.
9) Blockchain development:
The process of developing a blockchain is similar to developing a website. Money can be made through purchases, displaying ads, subscriptions, etc. Programmers can invade easily in it because the code is initially visible to everyone and this exposes the vulnerabilities of the code and make it much easier to be exploited or damaged.
10) Crypto advertisement through marketing:
You can earn money easily if you own a blog or website about crypto. There is not much content available related to bitcoin on the internet. You can post tips and instructions for trading bitcoins.
Contents about variants of bitcoins can also be posted which you think are being searched by users. If the content is compelling you will attract a great audience to your site which will increase the chances of earning.
Hope that most of your doubts are now clear.