DavidWhen looking for the best ways to earn money online, cryptocurrency probably doesn’t even hit your mind. But, it should because right now, it’s practically impossible to go a few days without hearing about the latest cryptocurrency craze. If you are interested in cryptocurrency trading, you must have thought, Can I make money with cryptocurrency? How to make money with cryptocurrency? What is the best way to invest in cryptocurrency?
Well, let’s delve into these questions and explore possible means of making money trading cryptocurrencies.
What are Cryptocurrencies?
Cryptocurrency is one of the fastest-growing digital assets. Backed by the blockchain and enabled for trading, it effectively offers multiple means for anyone looking to make a good income online.
Truth be told, there are quite a handful of methods you can make legitimate money with cryptocurrencies other than the obvious way of trading, some of which you do not even have to invest anything but your time and effort. We, therefore, decided to explore some of the proven ways of how to make money with cryptocurrency; we found quite a few, but be assured that you’ll find them very impressive.
Without much ado, we will be looking at the 7 best ways of optimizing the cryptocurrency scheme in the aspect of wealth creation.
How to Make Money With Cryptocurrency
1. Run a Cryptocurrency Master Nodes.
What is a crypto master node?
These are full nodes that motivate operators of the various nodes to execute their roles in operating a blockchain. In other words, a master node is a cryptocurrency full node or computer wallet that maintains a real-time record of a blockchain’s activities.
The idea behind master nodes is a bit technical, but below is a simplified explanation:
Running crypto master nodes is one of the most popular ways of earning passive income in this space. But how exactly do you make money from this?
Many cryptocurrencies pay node operators to maintain a real-time record of their activities on their native blockchains. Since the process is complex and requires one to maintain a certain minimum number of coins under their master nodes, crypto platforms prefer outsourcing the service to master node operators at a fee.
Examples of proof of stake cryptos that have master nodes include DASH and PIVX.
2. Buy and HODL
This is the most common way of earning money from cryptocurrencies. Most investors buy coins such as Bitcoin, Litecoin, Ethereum, Ripple, and more and wait until their value rises. Once their market prices rise, they sell at a profit.
This investing strategy requires one to identify more stable and volatile assets that can shift in value rapidly, resulting in regular profits. Assets such as Bitcoin and Ethereum have been known to maintain regular price fluctuations; they can, therefore, be considered a safe investment in this regard. However, you’re welcome to trade any asset you feel is going to rise in value; all you need to do is to analyze each asset you invest in before committing to HODLing it.
Also, you don’t need to buy the most expensive assets for you to make profits. There are thousands of small altcoins that have decent price shifts; consider having a mix of all coins that have a promising future value and are not just popular in the exchanges.
3. Stake Cryptos
This is another method of earning money from cryptocurrencies; it offers a double earning potential through price appreciation and dividend payout from selected coins for staking (or proof-of-stake) their digital assets.
Staking involves holding coins in a live wallet, thus allowing you to earn additional coins for securing that particular crypto network.
Some examples of coins that can be staked include NAV Coin, PIVX, Neblio, Decred, and many more.
4. Referral
A crypto referral program is a very common and really good way to earn cryptocurrencies. Most often, you’ll not even need to invest anything to refer and earn with a project. You can simply register on the website, get your unique referral link and start referring and earning.
WISE and many other cryptocurrencies offer you good profits for referrals. With WISE, both the referrer and referee get 10% bonus tokens for every successful staking through referral.
5. Dividends
Cryptocurrency dividends work more or less like stock dividends. You invest in a dividend cryptocurrency and earn fixed interest on your investment. You will need to buy and hold cryptocurrencies for the period you wish to earn interest.
The top dividend cryptocurrencies that you can invest in for interest are BNB, NEXO, among others. Most of these coins don’t require you to stake to earn interest.
6. Accept Payment in Cryptocurrency.
Another way to make money with
Cryptocurrencies are to accept them for payment. If you have a business where you sell products or services, you can accept payment in the cryptocurrency of your choice. You need a digital wallet, and to work with people who are willing to pay in cryptocurrency.
With a little research, you can find clients or customers that use cryptocurrencies and are willing to pay you by transferring the coin through the blockchain. You will have to be able to calculate a rough estimate of what a service might cost, though, based on the value of the coin.
After you receive the payment, you could either use it to pay others for something or hold onto it until it rises in value. If the value of the coin goes up, you could see a solid profit by selling for U.S. dollars later.
7. Develop Your Own Cryptocurrency
Last but not least, you can make profits with cryptocurrencies by creating one of your own. Yes, you can build your cryptocurrency, and it’s not as scary as it may sound.
Creating and launching your cryptocurrency will, however, need you to be some kind of expert in blockchain. You must have the basic knowledge of how blockchain and cryptocurrencies work. Then, you need to evaluate various possibilities and come up with the type of coin you wish to build. You may alternatively hire a blockchain expert or team for the job.
Once your coin is developed, you can start selling it through ICO or exchanges. Of course, you’ll need to promote a lot in the beginning so that users know what your coin is all about and why they should invest in it.
Conclusion
So, can you make money with cryptocurrency? Well, there, you now have your answer.
You now have 7 ways of how to make money with cryptocurrency; try the ones that work for you and see their impact.
No matter what method you use to make money with cryptocurrencies, though, you have to be aware of market conditions. If a coin drops in value, you might have to wait until it rises again to sell or it might be a coin that doesn’t pan out and then your losses are permanent. Make sure you understand the risks before you start.
mitrobe
Innocent Benjamin
