Making money with cryptocurrency is possible. Many analysts say that the time of digital money is gone since BTC fell to $10,000 in 2019, which is 2 times less than its price in 2017. However, this fact is not enough to draw any conclusions.This has already happened, and more than once. For example, in 2014, BTC fell from $1100 to $500. Many people said it was the end of Bitcoin. However, in 2017, it hit $20,000 with the capitalization of $320 billion.
As the world of business expands, cryptocurrency trade emerges as one of the most popular trading businesses across the world. Cryptocurrency is considered to be one of the most profitable commodities in financial markets and everyday more and more people are looking to get in on it. Bitcoin, Ethereum and Litecoin are among the most popular cryptocurrencies in the world.
It is possibleto make money with these cryptocurrencies. Within this post, we shall not cover any fraudulent schemes. Alternatively, the approaches outlined below are legal and straightforward and allow you to earn your own money and support the community. It is among the most lucrative and successful long-term market strategy.
As a matter of fact, Cryptocurrencies are a typical combination of economics and modern technology. While these fast-paced digital currencies evolve exponentially, crypto trading becomes a game of probability where every trader pushes the ratios in his favor.
Digital Currency Trading
Digital currencies are the biggest source of trade in the world currently. With the creation of blockchain, digital currencies have become a new a source of income for investors and stock brokers. Like the traditional stock exchange, digital currency trading platforms allows you to trade stocks and different digital currencies. Here are some of the trading styles most traders follow:
Day Trading Cryptocurrency
With day trading we mean you buy and sell cryptocurrencies the same day or the days that follow. This is a tool that cryptographers and stock traders use commonly. For example, where you buy low and wait for higher sales.
For day traders, it is common for them to learn more, to try short strategies and to step beyond low and high-strategy buying. This means you bet the price of this cryptography to fall if you go short. If you shorten a cryptocurrency, then you can benefit from a drop in the cryptocurrency price and you can sell it for profit.
Day trading could be one of the most lucrative ways to make money out of the crypto in 2019. Yet higher risks do come along. In the long run few traders are actually effective trading. So research is critical before you step out into the day-to-day trade.
Buy-and-Hold Strategies (HODL)
Some of the most common ways of making money and less risky is by simply buying crypto, like Bitcoin, and waiting for its price to increase. This approach is the easiest, by far. What you need to do is buy crypto at a crypto exchange and store your cryptos and wait in a secure crypto wallet.
Consider purchasing 1 Bitcoin (BTC) back in July 2010 for just 8 cents and selling it today for 8092$. Or bought some Ether back for 71 cents in August 2015, and today it sold for $171.And the list continues. And you could invest in one of those and in a few years ‘ time it will be a wise investment. But you might look to investing in the next Bitcoin or Ether as well.
It is crucial that you analyze which cryptocurrency to buy before ahead of time. You’ve already heard of Bitcoin before. But other than Bitcoin there are hundreds of cryptocurrencies.The Ether, Ripple, Stellar are among the popular ones.
Some coins go up on their own. The economic essence of this phenomenon is that the issue of cryptocurrencies is different from the issue of ordinary money. There are coins that are constantly being issued – for instance, Ethereum. In such systems, the creation of each transaction block comes with a reward (the coins that were not in circulation). Hence, their total amount is not limited.
A different approach is implemented in Bitcoin. For the creation of a block, the system generates a reward as well, but every 4 years its amount is reduced. Eventually, the emission will cease when the number of BTC in circulation hits 21 million. After that point, miners will receive only user commissions.
In addition to Bitcoin, the creators of Dash, Ethereum Classic, NEO, IOTA and many other coins have implemented such a scheme in their projects. These coins exist in limited quantities, so they will begin to rise in price eventually. That is why it makes sense to hold them in cold wallets – autonomous products for secure offline storage of cryptocurrencies.
Renting Cryptocurrencies
A new way that you can use to make some money from cryptocurrencies is by lending them out to others. Often if you don’t day trade your cryptocurrencies just sit there in a wallet. And you might hope that their value will increase one day.
But there is another thing that you could do with them in the meantime. Lend your cryptocurrencies out to others! In this way, you earn interest from the users that you lend them out to.And don’t worry there are companies that facilitate this whole process. And they will also secure your cryptocurrencies when they’re lent out.
Mining cryptocurrencies
Cryptocurrencies are independent because of miners. The main concept of blockchain is that every transaction form blocks of data containing the details about the transaction. All of it requires highly specific and powerful calculations and relies on miners have to calculate a hash code (key) for each block. The miners use computational powers to calculate these codes. The first one to find the key puts the block into the blockchain that complete the transactions and every miner receives a reward from the network in form of a commission.
Calculating the key requires a lot of computing power. It is usually provided by GPU or application-specific integrated circuit (ASIC). ASICs are more expensive, but much more powerful, for they were created specifically for mining. By connecting your device to a pool (a union of miners), you can start calculating the key and getting your rewards.
Back in 2009 and in the first few years mining, Bitcoin was something everyone could do with their home computers. It was really easy back then to do it with cheap equipment.
But as Bitcoin’s price continued to rise more got interested which meant that miners started using better computers and equipment. Soon the days were over when you could mine with your graphics cards.And today mining Bitcoin is done by companies and people with expensive mining rigs.There are of course other cryptocurrencies that run on a PoW model. But most need a more advanced mining rig in order to be profitable.
Initial Exchange Offering Bounty
During the height of 2017, when the interest in cryptocurrencies was at its highest investing in ICOs and making a profit was easier than ever. There was so much hype in new cryptocurrencies. Everyone hoped that they would find the next Bitcoin or Ether. So, with this hype and interest surrounding cryptocurrencies investing in an ICO meant that you could easily earn 2-20x your money in just a few days or weeks.
IEO stands for Initial Exchange Offering. This process implies that a previously private coin appears on the market for public sale for the first time. Users can buy it, and creators receive funding from sales. Depending on demand, this process forms the coin price.
Most projects start raising money before IEO. This allows creators to receive funds for development. First investors receive coins at a lower price, so that later they can benefit from its growth. Since the rate depends on demand, creators and investors are trying to promote a coin by all means.
A bounty program helps with that. It is a project promotion campaign. IEO creators give away coins to bloggers, translators, commentators and other people who help make the coin better known. The types of work that will be rewarded are indicated in the conditions of each particular campaign. Thereby, it is possible to earn cryptocurrency without investments by performing simple tasks.
Crypto AirDrops
A crypto airdrop is usually a promotional marketing effort to gather people’s interest incryptocurrencies, by ‘airdropping’ out cryptocurrency funds for free.Usually, you don’t need to do much to participate. The companies might require you to follow them on social media or retweet a post of theirs.Participating in crypto airdrops are a great way of getting some extra cash in for doing very little.
The nice part about an Airdrop is that you’re getting free coins without any investment. However, there is a caveat with that because usually to receive the airdrop you normally have to own a specific token already.In the crypto community space, Airdrops are also known as crypto freebies.The main purpose behind an Airdrop is to distribute crypto assets to people so that they start using them. Holding and trading can be the best choice for those who already have funds and knowledge in the crypto industry. Beginners and newcomers are most likely going to fail here and should proceed with preparations and care. This also concerns IEO – you should not invest in a project without thoroughly studying and analyzing it.
