Earning with Crypto is the thing nowadays. Lots of people are thinking of how to get into it. Cryptocurrency is all about making money but not everyone is lucky due to the many cases of a scam arising every day. On the other hand, others become impatient and give up along the way. With all this said, no one wants to be left out on another spike in cryptocurrency.
Everyone is talking about cryptocurrency. With all this attention it’s getting, it has become very expensive to obtain Bitcoin and other digital currencies. It is very simple to buy crypto but earning can be a bit difficult.
Many cryptocurrency companies started offering services that easily enable us to safely enter the market.
For those who would like to earn crypto and have no clue on how to go about it, here are some ways one can earn cryptocurrency.
Earning by Staking Crypto
This is one of the easiest ways to earn cryptocurrency. It is whereby you buy crypto and store it in a wallet and hold on to it for a while. When you stake your coins, you are lending your coins to the network to validate transactions. By doing so, you earn more crypto for securing that particular cryptocurrency network.
The longer you hold onto the crypto the more interest you earn. This is a way a very patient and potential investor would enjoy.
Just like traditional currency, staked coins are stored in a special pool and hence are available for everyday spending. An individual getting started with cryptocurrency staking is required to invest just a minimum amount.
Staking avoids inflation and stays current with the value.
Not all coins can be staked though. Some examples of those that can are NAV coin, Decred, PIVX, just to mention but a few.
This is a well-known way of earning crypto. Many investors purchase crypto such as Bitcoin. Ripple, Etherum, and many more and wait for the prices to spike. then sell the coins at a profit after a specific period.
It is an investment strategy that requires one to identify more stable and fraught assets that shift in value rapidly resulting in regular profits. On the other hand, the cryptocurrency market is volatile. The same way the value rises it’s the same it can drop hence you suffer a loss.
We are always advised to invest money that we are only comfortable with and you would afford to lose. Be careful not to get to unnecessary risks of losing money.
Earning Profit by Mining Crypto
This is a process where an individual uses his computer to solve complex mathematical problems, verify and validate cryptocurrency transactions. It also provides a “proof of work” for blockchains. The validation process allows cryptocurrency to become available in the market.
The first person that validates the crypto, receives a fragment of the virtual token that he validated as a reward.
Some cryptocurrencies like Bitcoin are expensive to mine for they require high-end types of equipment such as Graphic Process Unit (GPU). Others just require a regular computer. The more powerful your machine is, the faster you verify hence more rewards.
Airdrops offer an awesome way to receive cryptocurrency for free and promote them. It is a process where the cryptocurrency development team distributes cryptocurrency. This distribution can be done in small tasks. Some of the tasks that you can take include downloading software app, signing up on social media platforms, sharing posts on social media, and following social media platforms. They are not as common as they were a few years ago.
These are awesome opportunities you should not miss because they are free money. Do not let anyone trick you into sending crypto, private keys to your wallet, or money to any platform to get airdrops in return.
Airdrops are risk-free and you can learn how crypto works from them. Their values can be extremely high and can be part of a cool project.
Microtasks are one of the simplest ways of earning cryptocurrencies. Most companies offer cryptocurrencies as a reward for completing simple tasks. These tasks can be done in a very short time.
Microtasks are a bit more complex than airdrops as they require completing more difficult tasks compared to airdrops. The tasks are mainly promotional. They include writing a press release, editing, taking transcriptions, clicking advertisements, promoting a product via short videos, and many more.
They do not bring huge earnings. For them to be valuable you can combine them with other sources of earning.
The hard fork is a situation that occurs when the developer of a coin and decides to split it into two different coins. This is referred to as a hard fork.
The split coin developers then develop their different idea of the coin and hence the coins will not be complete copies.
When this happens the owner of the original coin now has two coins instead of having just one. This is considered the easiest way of gaining a cryptocurrency since the owner does not have to do anything to get an extra crypto
Defi yield farming
This is a method of earning by locking up cryptocurrencies to gain rewards. This method uses a reward system similar to the bonds market in a way.
As you lock in your funds and grant liquidity to a DeFi token you get more rewards and also interest.
Some projects can earn you more tokens other than yields.
A variety of online games pay you crypto just for playing. The reasoning behind this is to promote awareness and also promote some of the new cryptocurrencies being developed. This is an interesting and easy way of earning crypto for those who enjoy playing games online.
You download and play a game on your smartphone, tab, or laptop and you get rewarded in cryptocurrency. As a beginner, you might not earn anything until you get to a certain level. This is a fun way of earning.
Earning Crypto through Day trading
This is a buy low sell high situation. This is one of the most profitable and also very popular. This method is easy to learn and can also lead to very huge losses.it is advisable to invest what you are comfortable losing.
This is one of the most widely used methods of earning cryptocurrencies currently.
Create your cryptocurrency or token
Individuals and developers can create their blockchain. Similarly, any developer can take the open-source code of their favorite cryptocurrency and use it as a base for their blockchain or leverage it against existing platforms.
This is a method of earning cryptocurrencies by buying them and waiting for them to gain dividends. The dividends are usually small and passive.
It is very important to research before investing because not all cryptocurrencies pay dividends. Some of the cryptos that give dividends include Cosmos, Tezos, Neo, and Vechain. All these crypto are available through Coinbase.
The disadvantage of earning crypto through dividends is that they have small payouts compared to other passive income opportunities. The advantage is that this income is usually steady. Another advantage is that they do not dilute the overall value of the coin.
Find out other ways investors are earning with Crypto by joining the conversation.