Maybe you’ve heard many crypto success stories, and so you are also interested in getting in the wave of success by getting into cryptocurrencies.
Most often than not, people who jump into the cryptocurrency space want to make money just like other crypto enthusiasts who are making millions of dollars. However, not everyone ended up getting the results they are expecting.
Some gave up on cryptocurrencies along the way. Some lose quite a big amount of money because they don’t have a prior understanding of what they are entering in, they don’t understand how to make money with cryptocurrencies. And some keeps falling into the trap of fake crypto investment schemes
The cryptocurrency or digital currency industry is still at the dawn of its development. Yet, as crypto investing becomes more and more widespread, a greater number of people come into the industry, trying to pocket some money.
Since 2011, there is a coherent growth in cryptos social media activity, developer activity, and the number of start-ups brought into being in the cryptocurrency industry.
The good news is…there are more ways than one to make money with cryptocurrencies this 2021!
Let’s take a closer look at how you can improve your cash flow with the famed cryptocurrencies.
Buy and Hold
Buying and holding is a type of long-term strategy in crypto investing.
You buy crypto of good value and quality, then hold it for quite some time. Technically, cryptocurrency assets are extremely volatile and risky once invested short term. This is why the buy-and-hold strategy is the best way you could battle head-on with the volatility of the market.
Cryptocurrencies, despite the highs and lows in the chart, are consistently growing over the past years since their launching. They have gone up in price considerably and will probably do so in the coming years. Crypto assets have a massive long-term potential for growth.
To store your cryptocurrency assets, you could use a platform like Coinbase.
The real-world currencies use up banks to keep their money. Essentially, Coinbase works just like banks in the crypto space. You can buy cryptocurrencies, sell, trade, or do whatever you want with them through the platform.
When you buy and hold a cryptocurrency, you don’t have to check it every day. You can just let your cryptocurrencies be, and just wait until it grows over time.
Cryptocurrency Mining
Mining is a critical component of cryptocurrencies. It is vital in the development and maintenance of the blockchain ledger, as well as inputting new coins into circulation.
Cryptocurrency mining is executed through computers (nodes) that solve complex mathematical problems. There are various blockchain-based platforms that give rewards for curating and creating content, and the reward that is given is the native crypto of the platform.
For you to easily understand, you can use your graphics card to mine coins, and then you earn money. Sounds easy, right?
The best way to easily mine coins nowadays is MinerStat. Once you’ve signed up, you are eligible to mine Ethereum, Bitcoin, and other cryptocurrencies.
Mining coins at MinerStat is pretty easy. All you have to do is to look at the GPU your computer has, find it in the lists of GPU hardware in the platform, and you will be able to see how much your GPU can make for you every single day.
Stake Cryptocurrencies
Staking is a way to make your cryptocurrency work for you.
Once you stake a coin, you are locking it within a cryptocurrency wallet. Technically, you still own the coins, but you won’t be able to spend and use them during the locking period.
Your coins will be used in validating cryptocurrency transactions, and you will be rewarded by giving them permission to do so. Staking is like lending cryptos to a network.
Staking enables maintenance insecurity within the network; thus, they give good rewards to stakes. The rewards given are almost similar to the interest the banks would pay for a balance in credit.
You can consider staking as what we know as time-deposit.
To stake coins, you could go to a website called BlockFi. Create an account and fund it with crypto or USD.
Day Trading
Again, the cryptocurrency market is highly volatile, and so crypto prices can increase or decrease drastically in just a short period of time.
While buy-and-hold strategy is for the long-term endeavor, day trading intends to make use of short-term opportunities. However, unlike the ways mentioned above, day trading is quite complicated especially for beginners who were just starting their journey in the crypto space.
To become a lucrative trader, technical and analytical skills are necessary. You need to examine market charts thoroughly and see the performance of the itemized assets. This will allow you to make an accurate and concrete prediction on the rise and fall of prices.
Day trading is all about buying at low, then selling at high. You can do it on a platform called Bittrex.
Basically, you can buy coins when their prices are down, and sell them when the prices go up. Doing this will be your daily routine, unlike the buy-and-hold strategy where you have nothing to do but wait.
Depending on your expected price analysis, you can alternatively or simply take a short or long position. Regardless of if the cryptocurrency market is bearish or bullish, you will be able to make a profit.
However, day trading is very risky and there’s a big chance that you will lose a substantial amount of money, especially if the crypto space is not in a good state.
