More and more people started to make money with cryptocurrency today and it is integrating into commercial and financial systems. The innovative nature of cryptocurrency can be used to grow wealth and start or scale your business. There are multiple legitimate methods of making money with cryptocurrencies other than trading. That’s why we decided to analyze all pros and cons of these methods.
Investing is the easiest way to make money with cryptocurrency though it requires a long time to get the revenue. Cryptocurrency is perfectly suited for buying and holding assets. They have an extremely profitable potential because their value constantly increases. The biggest advantage of this method is that it’s suitable for beginners and you don’t need special skills to start. Just buy a certain amount of coins and put them into your wallet, after some time the price will rise and you will make a profit. We recommend choosing safe and liquid currencies (e.g. BTC, LTC).
The only big difference between trading and investing is the waiting time. Investing provides long-term opportunities and the purpose of trading is short-time profit but it requires certain skills and experience. An understanding of the blockchain and the ability to predict future prices will help. You can trade using a contract for difference (CFD).
Mining cryptocurrency is different from the above-mentioned methods but it’s also the oldest way of making money with digital currencies. It means verifying transactions and securing the Proof of Work (PoW). Though you will need to pay for special mining hardware and this way to earn money can be more difficult but also more profitable if you mine successfully. However, mining is a highly specialized industry and is not easy to use for individual investors but this sphere has high earning potentials. Mining can be ordinary or cloud-based. The ordinary method requires serious computer equipment and the ability to use professional programs. Often, miners are grouped to increase the electric power of equipment.
It is well-known that the cryptocurrency sector is mostly unregulated, therefore, there are multiple terms of assets valuation, etc. Comparing different assets (the price can vary between 5-25%), choosing the cheapest sources, and then selling it on another crypto exchange is the actual meaning of arbitrage. The main advantage is that you can get an instant profit but probably it won’t be super high.
Not the most popular way to generate income. Faucets mean a reward system for qualified users that complete certain tasks. Each accomplished task provides you with a small part of Bitcoin. It doesn’t require any special skills but you will need a lot of time to get a real income.
While lending cryptocurrency your money is protected by a smart contract. You can lend money without risk because these contracts will be performed in any case. You can get 10 to 15% per annum for a top 25 cryptocurrency.
Work for cryptocurrency companies
You can be a digital marketer, content creator, programmer, web designer, etc. Many crypto platforms (e.g. Angle.co, XBTFreelancer, Coinworker) pay in digital money, which means that your earnings can raise anytime.
The principle of Initial Coin Offerings is similar to crowdfunding. This method allows entrepreneurs to make money by creating and selling cryptocurrency. The ICO project is the production of your own cryptocurrency, which is subsequently exchanged for long-running virtual currencies. ICO usually has a huge ROI but at the same time it highly volatile and risky. Only, if you are sure that the project is profitable, it’s worth investing.
Quite a common way to earn crypto money, after completing the game, you will receive a certain amount of chosen digital currency.
The sphere of cryptocurrency has gained wide popularity. Many related tokens showed growth of hundreds of percent. When planning to trade on the cryptocurrency exchange, you should keep in mind that this activity allows you to earn considerable revenue, but at the same time, without knowing the rules of the game, you can go bankrupt and lose all your investments. Therefore, in order to avoid disappointment, all newcomers should pass at least a minimal study of this industry and listen to the advice of experienced participants.