In case you wondered how to make money with cryptocurrency, 2021 is not too late to start.
By the time you finish this blog post, you’ll have no doubts left that crypto is a serious branch of modern economics. A lot of experiments are going on around it right now, and it is destined to become mainstream at some point. While it is not massively adopted, you have a perfect chance to learn, adapt, invest, and possibly make some money.
Can you make money with cryptocurrency right now, considering that it is a relatively young domain of finance technology? Yes. Liquid cash. We’ll show you how.
Take care of both fiat money and crypto
First, we advise taking the necessary precautions to properly secure your digital funds. There’s been a lot of stories about hackers breaking into “trusted” exchanges. Harvest Finance accident, or STEEM token hack (actually carried out with a benevolent purpose), or $400,000 Stellar Lumens theft are some notable examples.
Are cold wallets more fail-proof then? No. Storage drives fail sooner or later, they just do. Run diagnostic utilities every so often and backup your PC wallet. Ledger and Trezor wallets are great solutions to this. It would be heart-breaking to lose a precious bitcoin because of an HDD failure.
That said, using a Trustee wallet is a good idea.
Ways to make money with cryptocurrency
Who wouldn’t love to make a fortune from the comfort of their home, engaged in the trade they enjoy? Here is the list of possible ways to make money with cryptocurrency for those who enjoy playing around decentralized finance technologies.
Mine, upgrade the mining equipment, repeat
Note that ETH 2.0 will merge EIP #1159, which will effectively cut the earnings about in half, and miners must be ready for the turns like this. Even after it happens and profits dwindle, the miners will have RavenCoin, GREEN, Zcash, and whatnot as the next best candidates for mining.
The residents of countries with cheap electricity have all the reasons to be interested in mining.
Buy and hold
Or HODL is you so prefer. It’s actually a smart move if you lack the skill to sell a coin while it’s on the highs. But please learn to recognize when it’s on the lows at least. One day you may wake up, check your exchange account, and think to yourself, ‘Oh my… I’m rich!’. All because that 0.5 BTC bought for $350 years ago has turned into $25,000.
Consider re-investing it into cheap promising coins; we’ve done a great article on that.
Buy and stake
It’s one of the easiest ways to make money with cryptocurrency. You don’t need to run a full node or calculate zillions of gigahashes.
Staking works differently in each proof-of-stake coin. In any case, owning coins guarantees a solid proportional income of more coins, plus extra powers to govern the network.
For example, in Trustee you can earn by staking a Tron.
Invest in graphics card manufacturers
Think not about how to make money with cryptocurrency but how to make money on the companies that support cryptocurrencies. GPU manufacturers are surely one of them.
This trick originates from the times of the gold rush when selling pickaxes was sometimes more profitable than failed attempts to mine gold.
There are a lot more ways: convoluted, simple, fast, slow, boring, exciting… Find the one that looks the most appealing.
Best way to make money with cryptocurrency
It wouldn’t be ethical or professional to point you to a particular cryptocurrency-related project and assert that it’s best for you. How do we know what’s best for you?
Miners think that re-investing most of the earnings back into the equipment is the best way to make money with cryptocurrency. Mining activities coupled with trading (plus occasional YouTube vlogging) substitute a full-time job for some people.
One might prefer day trading because burning hundreds of kilowatts of electricity with ASIC and GPU systems that constantly emit noise and overheat is not the most interesting job on earth, per their opinion.
Blockchain art creators, bloggers, and gamers don’t even have to bother how to make money with cryptocurrency. Their primary concern is the creation of content. After they earn crypto or tokens for selling their creations to the community, they may turn it into cash on any of the available exchanges or wait and see if its price goes up.
Similarly, investors who have enough fiat money think that it’s best just to buy a coin while it is still cheap and forget about it for a time. They don’t actively trade or mine, neither they earn crypto, like content creators crypto gamers; they just make money.
Thus, the best way to make money with cryptocurrency is always up to you.
Can you make money with cryptocurrency?
Yes, this blog post makes it clear that those pondering over the question, ‘Can you make money with cryptocurrency?’, have all the opportunities laid out before them. It does not require any additional equipment if you already have a mid-tier PC or better. Tokenomics is not rocket science or neural surgery: it is easy to learn (though perhaps hard to master) and totally possible to dive in right now.
Keep an open eye for more awesome blockchain projects and become an early adopter. The world of crypto is so wild!