The crypto market is volatile and relatively small, and so is the potential in short-term trading. However, there is a great growth potential to make money in long-term crypto investments.
Essentially, other than the typical ways of trading, there are few good ways to make money with cryptocurrency mining. Here are some ways you can make money with cryptocurrency.
You can Buy and Hold Cryptos
Buying and holding cryptos is the most common method of earning money from the cryptocurrency business. Investors buy cryptos such as Bitcoin and Etherreum and wait for a rise in price so they can trade at a profit.
Buying and holding strategies require identifying more volatile and stable assets that can shift in value rapidly. In the end, this shift will result in regular profits.
Cryptos such as Bitcoin and Ethereum have been known to maintain frequent price fluctuations, and therefore, can be considered a safe investment in this regard.
Crypto Staking and Lending
Another way of making money from cryptocurrencies is through price appreciation and payment of dividends. Investors earn by staking their virtual assets, which can be selected coins in this case. It’s also known as Proof-of-Stake, a complete opposite of PoW, where there is a chance of earning additional cryptos.
Staking allows you to lock coins in the digital wallet, but you don’t spend them. Here the network validates the transaction and rewards you in return. In a nutshell, an investor is lending coins to the Proof of Stake network at a price.
However, you can as well earn interest on the loan by lending coins to other investors. This model is slightly more efficient than investing in mining.
Cryptocurrency mining is an essential part of all the crypto PoW mechanisms. Miners earn a reward by verifying transactions and protecting the whole PoW network. The prize is usually a block, and it is given after performing these tasks.
In addition, it is also profitable to run a master node: a typical wallet hosting the entire network’s copy. Both models of making money require ongoing investing, technical skills, and a significant upfront.
Crypto Social Media
Like many only businesses, the cryptocurrency sector also relies much on digital marketing. This marketing strategy is practical by the fact that most projects are now virtual.
Therefore, creating content about cryptocurrency and posting it on effective social media platforms is a deal for making good money.
The opportunity arises when you make a video for a particular crypto brand to reach a targeted audience. Several social media sites offer occasional gigs for content creators about crypto business. You just have to ensure you understand cryptocurrency well so you don’t mislead people.
Airdrops and Forks
Crypto holders stand a chance to get free tokens when there is an upgrade in a network protocol. So, to create awareness about new digital currency, a marketing stunt is pulled by sending coins or tokens to wallet addresses.