Nowadays, it’s practically impossible to go a few days without hearing the latest news about the Cryptocurrency “mania”. But what is really “Cryptocurrency”? It is a digital and virtual currency designed to work as a medium of exchange. The fact is, when you hear about it, the first thing that probably comes into mind is the terms “Bitcoin” and “Litecoin”. By now, Bitcoin is something that most people are aware of, even if they aren’t exactly sure what it is. The cryptography system helps you secure and verify transactions, as well as control the creation of new units of a particular cryptocurrency. The main thing is: this type of currency are limited entries in a database that no one can change unless specific conditions are fulfilled and, therefore, are a pretty reliable process
Using Cryptocurrency can be a great alternative to help you start your business, whether you sell physical goods or digital ones, but listen up! This doesn’t necessarily mean that you need to invest in Bitcoin, for example.
Truth be told, a lot of people get into the cryptocurrency business, but not all of them stay there for a long time. Some give up along the way or fall into some trap of crypto scams. To be honest, there are quite a handful of methods you can make legit money with this, as an alternative to the stock trading convencional ways. However, like any other investment, you need to be careful and make sure you know where you’re getting yourself in!
In this article, hopefully, you’ll learn everything you need to know about the Cryptocurrency universe, without being scammed. Here are some of the best and most popular ways that can help you get started.
Buy or Trade a Cryptocurrency
Let’s start with the basics. If you have no prior experience with Cryptocurrency, one of the most popular exchanges is Coinbase, as it offers a clean user interface. Once you’ve created your account, you’ll pay the market rate for the coin and then hold onto it until you’re ready to sell.
The easiest way is to just buy coins, such as Bitcoin, Litecoin, Ethereum, Ripple, etc… Most investors buy them and wait until they reach higher values. Reaching that point, they sell them at a profit. Most of them, because they are constantly on the move, also use apps that allows them to efficiently make those actions. If you’re interested in knowing the best ones, on the market, at the moment, click here.
This investing strategy requires one to be able to identify more stable and volatile assets that can shift in value rapidly, resulting in regular profits. Nevertheless, like in any other investments, these prices fluctuate, meaning that your hope is that you can efficiently predict when the price goes up. Bitcoin and Ethereum have been known to maintain regular price fluctuations – they can, therefore, be considered a safer investment in this regard.
You can also trade any other asset you feel is going to rise in value. You just need to analyze each asset you invest in, before committing to holding it. You also don’t necessarily need to buy the most expensive assets for you to make profits. There are thousands of small altcoins that have reasonable price shifts and can have a promising future value.
Accept Payment in Cryptocurrency
Another profitable way to make money with Cryptocurrency is to accept them as payment. This means buying cryptos and holding them for the dividend. There are a number of coins such as COSS, CEFF, NEO, KUCOIN, that will get you income by simply buying and holding their digital assets. If you have a business (whether you sell products or services), you can accept payment in the cryptocurrency of your choice. You’ll need a digital wallet, and work with people who are willing to pay in cryptocurrency. Don’t forget to calculate a rough estimate of what a service might cost, based on the value of the coin. The idea is to understand how your products and services translate themselves into the cryptocurrency of your choice. But just like the conventional stocks, not all of these coins are suitable for your portfolio. You’ll need to analyze and pick out what seems to align with your investment goals.
After you receive the payment, you can go back to stage one – “Buy or trade a Cryptocurrency”. You can use it to pay others for something, or hold onto it and wait, until it’s value rises. If the value goes up, you can earn a solid sustainable profit by selling for U.S. dollars later.
Mine Your Own Cryptocurrency Coins
Miners are the single most important part of any cryptocurrency network, and much like trading, mining is an investment. They provide a bookkeeping service for their respective communities and contribute their computing power to solving complicated cryptographic puzzles, which are necessary to confirm a transaction and record it in a distributed public ledger called the Blockchain.
There are so many miners working with their rigs, that it can become pretty difficult to get into that game. But first, let’s start by explaining how the mining of digital currencies works.
Bitcoin mining is performed by high-powered computers that solve complex computational math problems. They are so complex that the work required by a computer to solve one of these problems, might actually be the digital equivalent of a miner striking gold in the ground, metaphorically.
The result of “bitcoin mining” is twofold. First, when computers solve these complex math problems on the Bitcoin network, they produce new ones and second, by solving computational math problems, bitcoin miners verify the transactions of the Bitcoin Market, making the payment network trustworthy and secure.
The main thing is: the more computing power they manage to accumulate, the more chances they have of solving the cryptographic puzzles. One interesting thing, though, is that the difficulty of the puzzles is constantly increasing, and once a miner manages to solve the puzzle, they receive a reward as well as a transaction fee.
Usually miners invest in graphics cards and the right setup and then wait for the best chance. Some coins might be faster and easier to mine than others, but aren’t worth as much. These ones, you can get a lot of them faster, but then you’ll have to be able to sell them on the exchanges, and you might reach a point where there isn’t enough demand for you to sell all your coins.
Work for Cryptocurrency Companies
This is a common way of earning from the sector, meaning you can work for a cryptocurrency company at any capacity, whether you are a digital marketer, content creator, web designer, among other things. All you need to do is identify the needs of the company in question, and offer your services in a way to respond to them. One of the main advantages is that, in most cases, you can work from your own home at any time you want. Also, most of the crypto firms offer very competitive packages, and if you happen to come across a chance of working for any legit ones, don’t hesitate to take up the opportunity.
Here are some of the crypto companies and platforms that pay in digital assets for services rendered:
- Coinality
- bitWAGE
- JobsforBitcoin
- co
- XBTFreelancer
- Coinworker
- co
These companies offer their compensation in terms of cryptos – this means that the value of your earnings can be worth more than double in value within days if not hours (or, unfortunately, the opposite).
Bottom Line
If you started this article with the question: “Can I make money with Cryptocurrency?”, hopefully, by now, you know the answer. But no matter what method you use, you have to be extremely aware of the market conditions, and know exactly when is the right time (in most cases the right hour) to invest. If a coin drops in value, you might have to wait until it rises again to sell — or it might be a coin that doesn’t pan out and then your losses are permanent.
So, as a friendly advice, I’ll leave you with this: Try going for the ones that work for you, study their impact and make sure you understand the risks before you start. If you follow that thought, there’s no limit for what you can achieve!
