In this article, 12 ways to make most out of cryptocurrency depending on what type of investor you are. Also, the possibilities are growing over time!
Cryptocurrency is the new digital wave. Comparatively, you can put it in the same class as woo-commerce smart coupons, woocommerce mix and match products. It is to the world of virtual money as woocommerce smart coupons, woo-commerce mix and match are to e-commerce. Thanks to the effect of bitcoin, more cryptocurrencies are emerging daily.
You may be wondering what makes this form of exchange special. Well, it is decentralized. This means that no government or central bank can make policies that can directly influence it. Additionally, it is very safe as it is virtual and secure. Also, it protects your privacy by keeping your identity secure. It is a global form of exchange and you can send money from one end of the world to another via your bitcoin wallet.
The demand for cryptocurrencies is getting higher. In addition, there are more outlets and stores that accept cryptocurrencies as a medium of payment. We will not be talking about the benefits or characteristics of using cryptocurrencies. No.
Today, we will be looking at ways you can make most out of cryptocurrencies. For you to be able to spend them, you have to earn them. Below are some ways how you can make most out of cryptocurrency.
1. Buy prominent cryptocurrencies
It is almost as though a new month, week, or day sees the birth of a new cryptocurrency. I believe that almost all crypto have the potentials to gain. However, you may want to buy prominent crypto especially if you are a newbie to the cryptocurrency world. There are different stages in the cycle of any cryptocurrency. It is safer if you opt for cryptocurrencies that have scaled most stages. They may be more expensive but they guarantee more insurance than some budding cryptocurrency. A good website to visit would be Coinmarketcap.com which lists and ranks all cryptocurrencies in order.
2. Holding cryptocurrencies
The experts call this staking cryptocurrencies. I decide to use a term you can relate to. You can simply buy and store cryptocurrencies. Just like a strict savings account, you can also store crypto. Even if you do not have plans for using it anytime soon, you can still store it. You may not have to worry about their safety and value especially if you buy the prominent ones. Moreover, as this young market grows the asset you are holding will automatically gain in value, however, if you are staking cryptocurrencies from a wallet you also earn additional cryptocurrency dividends.
3. Cryptocurrency trading
Just like Forex, you can also trade in cryptocurrencies. You should entrust this to the experts. If you are familiar with Forex, you will understand why I am emphasizing the need for necessary expertise. This is even very necessary considering that the prices of cryptocurrencies are very volatile. There are no opportunities for mistakes. To help you out, you can subscribe to trading bots or copy traders(see below). They will reciprocate the move the expert makes in a significant amount in your trading account. You will not have to learn about everything. In general, the trading platforms that are the most reliable are Coinbase, Bitfinex, and Binance.
Another way of making most out of cryptocurrency is copytrading. Copy trading is a new online phenomenon that was being introduced by stockbrokers in the traditional financial world. At these platforms, inexperienced stock traders can copy successful traders and have the opportunity to learn. As a matter of fact, a very low-risk opportunity to get some profit out of your cryptocurrency investments.
Also, the successful stock traders are rewarded with commissions for sharing their trades. This way both parties have the ability to benefit from it.
Setting up a free demo account at E-toro is an example to start and getting to learn the platform. Beginning with trading requires a minimum deposit of $200.
5. Cryptocurrency arbitrage
At cryptocurrency exchanges, traders login and have the ability to buy or sell cryptocurrencies in their accounts. Moreover, this trading goes against prices that are made up by the market at that specific time. However, the price of a currency in one exchange might be different to that in another, and the prices of all the currencies are also always changing. Especially with all those different trading pairs going around, for example BTC/USDT, LTC/BTC, EOS/ETH, ETH/BNB.
Make most out of cryptocurrency with arbitrage
All these trading pairs could be a little bit overwhelming. However, there’s a big chance that the market price of these trading pairs differs over several exchanges and it could be an interesting opportunity to make a profit: You might buy low on one exchange and sell high on another. You could also buy one cryptocurrency and then invest in another that has a lower dollar per coin value.
This way you’d own more coins overall with the hope of the higher number of coins making you a profit compared to if you had stayed with the other coins, and owned less of them. If you are interested in making money on arbitrage, use our crypto checker tool that scans the 10 biggest exchanges in the world.
6. Earn crypto by learning
Another way of making money out of cryptocurrency is by educating yourself first. If you already are familiar with this young industry, you also may have witnessed the extreme volatility of the markets. Especially altcoins(coins similar to Bitcoin with its own use case) can be subject to volatility and should, therefore, be treated with care. Moreover, if you are a starting cryptocurrency investor these altcoins with their volatility could be considered as a risky investment and therefore avoided at first glance.
As a result, the bigger trading platforms out there are offering training programs to its users to educate them about these kinds of investments. As a cryptocurrency investor, the first step is to know exactly what kind of asset you are buying. Therefore, Coinbase has launched an education platform that incentivizes its users by watching videos about cryptocurrency projects. The idea is that you can earn cryptocurrency while watching simple educational videos.
How does Coinbase Earn work?
- Watch videos – They made some training videos about different cryptocurrencies(Stellar Lumens, Basic Attention Token, Zcash, and 0x)
- Quiz – After each video, you’ll receive a simple quiz as an exam about the subject
- Earn crypto – The final step is that you will receive crypto(the one you did the training) in a generated wallet
7. Decentralized social media(new)
How is it possible to make most out of cryptocurrency with social media? I think that’s a good question that needs a little explanation. The traditional social media channels like Facebook, Instagram, or Twitter ‘reward’ their users with the number of likes or retweets. Also, these platforms are centralized, and very often certain subjects that are considered controversial are blocked by censorship reasons.
Blockchain technology fundamentally differs from those centralized networks with no central authority being in control over the network. To summarize, with the use of this technology some decentralized social media platforms have recently launched. Additionally, these platforms are rewarding its users with cryptocurrency. In other words, users that add content to the network with blog posts or videos are rewarded by its readers with cryptocurrency. Good examples of these platforms are Steemit and Publis0x.
8. Mining cryptocurrencies
I am sure you may have heard about cryptocurrency mining. The talk of mining was one of the reasons people doubted the value of cryptocurrencies. Most cryptocurrency platforms have measures in place to curb this issue. There can only be a certain amount of cryptocurrencies in circulation. With that in mind, let us get back to mining. You can mine your cryptocurrency to make most out of it.
Nowadays, it’s also very easy to join online cloud-mining services. These online services allow you to hire hashing rate for a certain subscription on a monthly basis. How higher the hashing rate, the higher the possible reward will be. One of my favorite online services is genesis-mining. You can get a discount of 3% by using this action code(PJOqFD) when setting up a new miner.
Airdrop is when free coins are distributed. Yes, the coins are really free. On one hand, it may look too good to be true but there is business sense even in giving away free coins. These coins are distributed in various ways and their distribution depends on various factors. But it is essentially free tokens.
To participate in an airdrop you already need to own some cryptocurrency tokens. But if you are holding cryptocurrencies(see point 2) this would perfectly fit your strategy. To be able to participate in such projects the biggest chance is owning some crypto from within the top 20 on Coinmarketcap. Good examples are Ethereum, NEO, TRON, EOS, and Syscoin.
10. Joining a cryptocurrency project
If you are very enthusiastic about this new revolutionary technology and want to be part of this, why not joining one of these cool projects out there?
The cryptocurrency future is calling for you! Nowadays, it’s very easy to get in contact with the developers on social media or by tools like Slack or Discord. Most of these developers are already paid in the native tokens and this gives you the ability to earn some crypto also.
How to do this? Check the current Blockchain projects which are listed on Coinmarketcap and try to contact the team by visiting the links on the website. It’s really that simple!
If you have free time then you can do some microtasks for anyone or some assistance and make Bitcoin or other cryptocurrencies in exchange. These microtasks include downloading new apps for testing, watching videos, taking online surveys, etc.
As the description suggests, a microtask will pay you a very small amount in cryptocurrency in return. On average, a single microtask will pay out 0.00001426BTC, or around $0.90 (as of April 2020), for around 10 minutes of work. Good websites that offer these services are BitforTip or Bituro.
12. Transact using cryptocurrencies
What is the essence of acquiring what you cannot use? Long are the days that you have to exchange your cryptocurrency into fiat currency before you can use it. Your cryptocurrency tends to lose value when you sell it to an exchange dealer for fiat currency. That is no longer the case as you can now trade directly using cryptocurrencies. More e-commerce platforms are accepting cryptocurrencies as legal tenders.
As listed above, the crypto sphere allows all kinds of users to make most out of cryptocurrency. To name a few, you can complete certain micro tasks for cryptocurrency rewards. You can also join platforms that allow you to buy, sell, and trade in cryptocurrencies. If you are looking for a career it’s also possible to join a blockchain project and getting paid in cryptocurrency.
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