If you’re looking for ways to make money with cryptocurrency, trading isn’t the only option available. Although the daily average volume of cryptocurrency trades is only 1% of the foreign exchange market, the crypto market is highly volatile. To turn your bitcoin into big money, you’ll need to explore other strategies.
While everyone enters the cryptocurrency market to make money, not everyone succeeds. Many people either give up or lose money because they do not properly understand how to make money with cryptocurrency. As the value of crypto-assets rises, more people enter the market, constantly attempting to figure out how to profit from cryptocurrency.
Here are 6 strategies to make legitimate money with cryptocurrencies:
Investing is a long-term strategy that involves purchasing and holding crypto assets for an extended period of time. Crypto assets are well suited to a buy-and-hold strategy as they have enormous long-term growth potential, despite being extremely volatile in the short term. The investing strategy requires identifying stable assets that will be around in the long run, such as Bitcoin and Ethereum.
Some popular exchanges where you can purchase and hold cryptocurrency for the long term are Coinbase, Binance, and Kraken.
Trading in cryptocurrency is a short-term strategy that capitalizes on price fluctuations. To be a successful trader, you’ll need strong analytical and technical abilities to predict price increases and decreases accurately.
If you’re interested in trading cryptocurrencies, you can sign up for an account on exchanges such as Binance, Bitfinex, or Kraken. You can also use trading platforms like eToro, which offers social trading features and allows you to follow and copy the trades of successful traders.
Staking and Lending
Staking involves validating cryptocurrency transactions by securing your coins (assets) in a cryptocurrency wallet, which rewards you for lending coins to the network. The Proof of Stake algorithm selects transaction validators based on the number of coins staked, making it energy-efficient and eliminating the need for expensive hardware.
Some popular platforms for staking and lending cryptocurrencies include Celsius, Nexo, and BlockFi.
Crypto Social Media
Creating and curating content on blockchain-based social media platforms can reward you with the platform’s native coin, making it one of the simplest ways to earn in cryptocurrency.
You can earn cryptocurrency by creating content on blockchain-based social media platforms such as Steemit, Hive, or Minds.
Mining involves creating the value of a cryptocurrency by rewarding you with new coins, requiring technical expertise and an initial investment in specialized hardware.
If you want to get into mining, you can join mining pools on platforms such as NiceHash or Mining Pool Hub. You can also purchase mining hardware from companies like Bitmain or Canaan.
Airdrops and Forks
Being part of an airdrop can get you a free coin that you can use to buy things, invest in, or trade with. A blockchain fork occurs when a protocol changes or upgrades, resulting in the creation of new coins. If you have coins on the original chain, you should be able to get free tokens on the new network, giving you a free coin for being in the right place at the right time.
You can find information on upcoming airdrops and forks on websites like airdrops.io, CoinMarketCal, or Forkdrop.io. However, be cautious of scams and fake airdrops that ask for personal information or require you to send cryptocurrency to receive tokens.
If you’re looking to make money with cryptocurrency, explore these 6 strategies to diversify your portfolio and maximize your earnings potential.