Cryptocurrency is the future of finance, but presently, Crypto investments are making more billionaires than you can count. Furthermore, other billionaires are buying Crypto every day. This shows cryptos have more showing it has more potential than some people thought. But can you make money from cryptocurrencies?
Like every investment, cryptos investments are subject to high risks and high volatility. But you can make money from them.
Here are a few ways to monetize cryptocurrencies:
Investing Cryptocurrency
Investing is a long-term strategy that involves buying and holding crypto assets for an extended period. This is based on the principle that assets will typically appreciate with time.
Bitcoin, for example, was trading at $320 in 2014. Currently, it is trading at $57 362. This is a value increase of more than 17800% in 7 years. Similarly, Ether, in July 2014, sold for less than a dollar. Now it’s around $3785. This is a value increase of more than 378500%. People who bought these crypto in 2014 and held it to date are investors.
Many Crypto are very volatile in the short term but have excellent long-term potential for growth. To invest long-term, look for stable assets that show potential growth, then buy and hold them in your wallet for a couple of years.
Trading Cryptocurrency
Another trendy way of monetizing Crypto is trading. Trading is a simple strategy of buying an asset when its prices are low then selling at a profit when the prices soar. Also, it can involve selling an asset at high prices then repurchasing them when the prices are lower. Trading is a short-term stake.
On the day of this writing, for example, Ether opened at $ 3630. By 4 pm, the prices had moved up to $3785. A great trade today would have been to buy the Ether then sell it at 4 pm.
On the other hand, Bitcoin at 7am today was trading at $ 58120, but at 4 pm, it was trading at $57586, giving a great sell/ short position.
For you to succeed as a trader, you have to learn the proper technical and analytical skills. You will need to analyze market charts to predict if the prices will rise or fall.
To start trading, open an account with a trading platform that has listed cryptocurrencies. This includes Etoro, coinbase and Binance.
Mining Cryptocurrency
Mining is the proof of work for many cryptocurrencies, and the only way for more coins to be added to the blockchain is by mining. Most Blockchains award the miners with coins. To mine, you need to have proper hardware and mining software.
Crypto Social Media and Awareness
Several Crypto companies will reward you for creating content for them on social media. They will also pay you to generate awareness about the coins. A blockchain might do a campaign to expand its user base. Being part of these campaigns might get you a few digital coins.
Gaming
Recently, Floki Inu released a game that runs on its blockchain. This game will allow players to have fun and earn money while playing. Every item in the is a NFT. Thus the exploits you do in the game you might sell to other players for the Floki. In the game, you can steal a ship and sell it for the Floki. Also, plant crops and sell to the players the Floki.