THIS is how you can make money with cryptocurrency [2022]

A brief history of the crypto industry

The cryptocurrency industry has grown substantially since Satoshi Nakamoto published the original Bitcoin whitepaper in 2008. More than a decade later, most people are aware of the terms “Bitcoin” and “cryptocurrency”. 

In 2017, at the peak of the interest in cryptocurrencies, “How to buy BTC” was the third-ranked “How to …” Google search. While the market capitalisation of the crypto asset class has fluctuated wildly with price swings, it nevertheless increased from roughly $10bn (£8.1bn, €9.1bn) in 2013 to $237bn by the end of 2019. Similarly, over the past five years, the growth in Bitcoin unique accounts and transactions has averaged nearly 60 per cent per year.

Since 2009, the crypto space has created its fair

Since 2009, the crypto space has created its fair share of wealth for early adopters and investors. Some, like the Winklevoss twins or Changpeng Zhao, used their investment gains to build businesses in the crypto ecosystem. The Winklevoss twins, for instance, built the Gemini exchange, while Changpeng Zhao founded Binance, one of the largest cryptocurrency exchanges in the world. 

There are plenty of other examples. Valery Vavilov used his early interest in blockchain technology to start a Bitcoin miner Bitfury. Today, the company also produces and sells hardware for Bitcoin mining and generates over $400m in revenues. Anthony Di Iorio financed some of the early development of the Ethereum blockchain and has since invested in other crypto projects like Qtum, Vechain and Zcash.

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Play-to-Earn games

If you are looking for a way to earn money with cryptocurrency without actually investing any of your money while also being an avid gamer, then this is certainly the best option for you. While still not perfect, there are quite a lot of games that you can play on a casual or a hardcore level and earn some kind of cryptocurrency as a reward for your progress.

One of the best play to earn games is Axie Infinity, which is operated by a Vietnam-based company Sky Mavis. This game will also allow you to acquire some NFTs, which appear in the form of digital pets. Those NFTs can be sold for the in-game currency, which can be then traded for traditional currency.

If you are familiar with Pokemon, think of it as a blockchain version of that, with a social network built-in and an economy that goes beyond the game. So far, this game bade over $3 billion in total sales from March 2018 when it was released, and it is raising in growth every day as more people are discovering that it is a viable income option.

Axie Infinity is just one of many NFT games out there, and while these games are probably not that exciting to hardcore gamers when compared to some of the most popular games on the planet, with time, they will certainly improve on both depth and graphics thanks to cryptocurrency becoming somewhat of a standard in various online activities.

Stick to Cryptos That Serve a Purpose

There are literally thousands of cryptocurrencies you can trade, but many, if not most, of these won’t ever amount to anything. Although you may get lucky and make money trading any crypto, if you’re looking to build long-term wealth, you’ll have to invest in cryptos that have staying power.

Read the whitepapers on any cryptos you plan to invest in to see how they are tied to the blockchain, what their utility is and how they are better/cheaper/faster than any of their competitors. This is the best way to filter out the long-term winners from the losers.

Trading

Unlike investing, trading is more of a short-term strategy where you are going to make profits in bursts. To do this, you have to own some kind of cryptocurrency, to begin with, and trade them on one of many platforms for another currency. Trading involves a bit more risk since the crypto market can be quite volatile.

The prices can increase and decrease in a matter of minutes, which is why this strategy requires you to have good technical and analytical skills. Because of that, we would say that this option is recommended for those with more experience with cryptocurrencies, while the investment is much safer for newcomers, especially if they are interested in more popular cryptocurrencies.

If you want to get ahead of the curve by being able to trade 24/7, you can also use a trading bot to do all the trading for you. Setting up a trading bot is of course not a walk in the park, but once you have it up and running when the AI gathers enough information about the chars and trading patterns, they can do the job as well as you can, if not better.

Way#8. Crypto Arbitrage

The cryptocurrency sector is largely unregulated; this has resulted in a lot of variations in terms of assets valuation, pricing of products, and so on. Most exchanges decide for themselves the prices their assets at are listed, and this has brought avoid the difference in the volatility and liquidity of assets. If well researched, one can make a kill from these price variations through buying from cheap sources and selling on overpriced exchanges. This is pretty much what describes arbitrage.

If you get your act together, you can find anything between 5% – 30% in price spreads across various exchanges. Consider signing up on various platforms and compare asset prices to find any meaningful variations to capitalize on.

Bonus: Way#11

Incorporate cryptocurrency as one of your payment methods

If you’re a merchant, you stand a chance of earning handsomely from accepting crypto payments. Statistics show that some cryptos have risen in market value within a day by 1000s in percentage increase, very few investments make it to 100% in years.

All you need to do is to identify the best channel for accepting crypto payments; here are a few to get you started:

  • CoinBank
  • BitPay
  • CoinGate
  • SpectroCoin

…and more.

Is it Too Late to Make Money With Cryptocurrencies?

Not at all. It is still very early in this asset class. There will undoubtedly be innovations in the crypto space that we can not even imagine right now. These new directions will most likely provide even more ways to make money with cryptocurrencies.

Cryptocurrency Mining

Another way to make money with crypto is to mine for it. This option does, however, require an outlay of capital upfront. You would have to buy a miner (or miners) or build them yourself. Either way, there will be a substantial investment in equipment required. You will also incur facilities costs because miners produce a lot of heat, so you can’t just stick them in a room and turn them on without some sort of cooling. 

If you are willing to invest capital upfront, mining can be profitable depending on market conditions. A helpful website to determine what to mine and how profitable it will be is whattomine.com. The type of miner you will need will depend on what you decide to mine. 

If you strictly want to mine Bitcoin, you need an ASIC miner like the Antminer S19 Pro. However, if you’re going to mine a variety of cryptocurrencies, you need a GPU miner.

Staking earning interest on crypto owned

Earning interest and fees is preferred by those wh

Earning interest and fees is preferred by those who can afford to hold a large quantity of cryptocurrencies — called ‘locked up liquidity’ — even if its value changes. In return for taking the risk that they can’t sell their coin for a long time even if it becomes worthless, they are paid a very small ‘interest’.

One avenue of earning fees is by ‘staking’. This involves locking up a sizable ‘stake’ for a long term, to demonstrate investor confidence in a ‘proof of stake’ (PoS) based coin. The Ethereum coin, called Ether, is currently undergoing such a change, where investors — individually or collectively — can stake their holdings to validate transactions made by others, thus earning fees.

The other avenue of earning interest, comes from lending platforms and crypto exchanges. Investors can loan out coins and receive nominal interest of about 6% a year.

What is crypto mining?

Cryptocurrencies are decentralized, meaning the records of transactions are not stored on one hub server — they’re spread across the blockchain. Users’ computing power helps solve problems to make sure everything is accurate.

People who devote their computing power to the blockchain can be rewarded with some cryptocurrency in return. These users are called “miners.”

Cryptocurrencies like Bitcoin use massive amounts of power to keep systems running. Plus, there are massive "farms" full of computers mining for the coins. But some crypto companies are signing the Crypto Climate Accord, pledging to reduce their consumption and carbon emissions to a more sustainable level.

Some companies and other groups may run massive farms with lots of computing power to maximize their chances of “mining” a Bitcoin or other unit of cryptocurrency. Running this many computers and processors all at once uses massive amounts of energy, so there is a need for greener mining practices. NBCLX recently toured a New York crypto mining facility run on hydroelectricity thanks to Niagara Falls.

Long-Term and Short-Term Investment: Which One Is Better?

What is a long-term investment in crypto? 

Long-term investing is a method that typically holds an investment for more than one year. Typically, long-term investors are also passive investors. In other words, you don’t buy or sell large quantities in a short period. Long-term investors can invest in stocks that increase in value, or they can invest in funds or ETFs for the long term. But in general, long-term investing is more of a set-and-forget approach.

Strategies for long term investment:

There are a few different strategies, but the overall theme is about ‘Buy and Hold.’ Keeping this in mind, here are some strategies for long-term investors.

  • Value investing – A strategy where an investor tries to buy a cryptocurrency for lower than its intrinsic value.
  • Growth investing – Investing in companies that you believe will exceed the overall market cap.
  • Dividend investing – Investing in firms that pay out dividends.

What is a short-term investment in crypto? 

A short-term investment is a method that is usually held for less than one year. Short-term investors are often referred to as active traders or active investors. This means you buy and sell much more often than long-term investors. This can be several times a year, several times a month, or even several times a day. Short-term investors usually want to make a quick profit and don’t plan to put an investment on hold but speculate on the market.

These short-term investors will also have long-term investment portfolios elsewhere. You are probably using it for retirement or for other companies that want to invest in stocks and keep them for the long term.

Strategies for short term investment:

Short-term investors look to buy and sell their holdings quickly to make a profit. So, here are a few common strategies for short term investing:

  • Scalping – Buying and selling promptly in a day or multiple times within the same trading day.
  • Day trading – Investing to make those small profits that add up to a fortune.
  • Swing trading – Investments for a few days or weeks or even for a few months.

How to pick cryptocurrency for long-term and short-term investment

  • First, fundamental analysis is required. The question is how to do a fundamental analysis? We also need to understand how much we have invested in cryptocurrencies. Top potential cryptocurrencies in the current market for long and short-term investments.
  • Quarterly fundamental growth analysis. For short-term or daily trading, test support and resistance levels should be understood.

Directly earning in cryptocurrency

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Those who won’t have the capital to invest
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Those who won’t have the capital to invest in cryptocurrencies or buy expensive mining equipment have the option of earning cryptocurrency directly.

One way to do this is to sign up to a crypto exchange. Some crypto exchanges like Coinbase and BuyUcoin, offer a tiny quantity of free coin to users who sign up.

Some niche employers, with remote workers across borders, find it simpler to pay salaries in cryptocurrencies rather than fiat money due to forex fees.

Specialised social media sites — most famously Reddit — encourage participants to tip or donate coins to users who share important information. Non-franchise eateries are also starting to welcome payments in cryptocurrency.

Such miniscule earnings may not net large profits on trade, but they are an example of how cryptocurrencies are used as a medium of exchange for goods and services — akin to fiat currencies like the Rupee or Dollar.

Beware of crypto scams

According to CNBC, regulators believe crypto scams are the top threat to investors and have urged caution in 2022.

The North American Securities Administrators Association told investors to be very careful and do plenty of research before buying into a crypto investment. The biggest red flag of a crypto scam is a guaranteed high return with no risk, the NASAA says.

It’s also important to secure your crypto wallet so that scammers can’t get in and send your money somewhere you’re unable to recover it.

Tips From Experts: How To Invest In Crypto Currency Safely 

Investments are always risky. Experts say cryptocurrency is one of the riskier investment choices in the market. However, digital currency is also the hottest asset.

Currently, the global cryptocurrency market cap is $2.66T and it is expected to rise impeccably. If you’re willing to invest in digital currencies, the following tips will help you make educated choices.

Research Exchanges

Learn about cryptocurrency exchanges before investing a dollar. These platforms provide a medium to buy and sell cryptocurrencies. According to Bitcoin.com, more than 500 exchanges are available to choose from. Do your research, read reviews, and speak to an experienced investor before proceeding. Various telegram communities are there guiding & sharing their personal experiences. Crypto Gaming Bulls is one of them.

Know-How to Store Your Virtual Currency

When you purchase crypto coins, you need to store them. You can choose a crypto wallet to stock up on an exchange or in a digital “wallet” (one of the cryptocurrency wallets described in the blog). While there are several types of wallets, each has its advantages, technical and security requirements. As for trading, you should research your hosting options before investing.

Diversify Your Investments

Diversification is at the heart of any correct investment strategy, and the same is true when investing in cryptocurrencies. For instance, you should not invest all your money in the Bitcoin network only because you know the name. There are thousands of options, and it is best to split your investment into multiple digital currencies.

Prepare for Volatility

The crypto market is always volatile, so be prepared for some ups and downs. You will see the price fluctuate wildly. If your portfolio or mental well-being is beyond your control, cryptocurrencies may not be your best bet.

Cryptocurrency is trending right now, but remember, it is still in its infancy. Investing in something new can be difficult, so be prepared. If you’re considering joining, start by doing your research and investing strategy conservatively.

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