Cryptocurrency is a large industry that allows everyone to get additional income. It is worth noting that today there are many opportunities to earn money in this industry, which involves financial investments. Today it practically does not matter how much capital you are willing to spend on this venture, and you can find a more or less reliable way to earn extra money.
Five strategies for earning on cryptocurrency
Each strategy involves a different number of investments, which means that the level of earnings can be different. The most essential methods include:
- Investment;
- Trade;
- Rate and lending;
- Cryptocurrency social networks;
- Mining;
Let’s take a closer look at each of these strategies.
Investment
You can purchase crypto assets if you wish, which you can later resell. It suggests that you identify more stable and reliable coins or tokens, buy them, and resell them when the price rises sharply. The most common asset is NFT. Their average cost on OpeanSea is 2 ETH. You can resell it for 7-10 ETH or more if it becomes popular.
You can also invest in various start-up projects. In this case, the costs will be much higher, but the profit will be decent.
Trade
Today, there are many cryptocurrency exchanges where you can buy various types of currency and then resell them. It is essential to understand that the cost of cryptocurrencies changes dramatically depending on multiple factors.
The difference between investing and trading is that, in the first case, it is a long-term asset that can be stored for years until the time comes. In the case of trading, you can buy a currency in the morning and resell it in the evening.
In this case, you only need a few dollars to start trading, and within a few months (with the correct analysis of the market), you will be able to increase your income at times.
Rate and lending
For the normal functioning of the blockchain, it needs some assets. Staking is a particular type of income, where a person deposits money in a specific deposit; the system uses this and gives money as a reward.
Lending in the crypto world is still not widespread, but people are already ready to lend money for a predetermined reward.
In this case, the amounts depend on the system you will be using. Moreover, you will be able to take this money along with a reward in the future.
Cryptocurrency social networks
Today, there are several cryptocurrency social networks and forums (including Bitcointalk) where you can register and receive and look for projects that offer coins or tokens for advertising or some other actions. So, by releasing a new NFT collection, creators can play tokens between subscribers. In the future, you can resell them and get real income.
Mining
Mining is a unique way of extracting coins. To implement this, you need to have special knowledge and special equipment. The average cost of one farm is from 2 to 10 thousand USD. The more money you invest, the faster it will pay off and begin to bring real income.
It is worth noting that such equipment will consume a lot of electricity, which must also be considered when calculating costs.
Conclusion
As you can see, to make money on cryptocurrencies, you do not need large amounts. You can start with a few Ethereums, and with exemplary work, you can earn hundreds of Bitcoins. The main thing is not to act impulsively, carefully study the market, and analyze the causes of sharp changes in the value of currencies.
Before you start working in the crypto industry, you should study many materials, understand how this system works, and what laws exist here. It will also be an excellent decision to find a partner who will advise you on controversial issues.