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EARN MONEY FROM CRYPTO CURRENCY

WHAT IS THE BEST WAY TO MAKE MONEY WITH CRYPTOCURRENCY?

By Gayan IndikaPublished 3 years ago 7 min read

WHAT IS THE BEST WAY TO MAKE MONEY WITH CRYPTOCURRENCY?

No one expected Bitcoin, along with other cryptocurrencies like Ethereum, Monero, and Maker, to fly to the heights it has today in terms of value and appeal. So, you're wondering how to earn money with bitcoin and if it's too late to jump on the money-making bandwagon it's spawned? Fortunately, the present is better than ever, and the best methods of profit include investing, trading, mining, and staking.

INVESTING

Investing is one of the most popular ways to make money with cryptocurrencies. It works in a similar fashion to investing in a business, but with a slight difference. Rather than putting your money in and waiting for the business to grow and earn on its own, it is much preferable to employ the buy-and-hold method.

Of course, this is hazardous, as is any investment, because you would be putting your money into something that is currently worthless, just to sell it when others are in need.

Looking back in time, whoever executed this plan well made a lot of money, especially if they saved up Bitcoin from when it was only a few pennies to when it is worth hundreds of dollars today.

If you're seeking a long-term way to profit from cryptocurrencies, investment is undoubtedly the way to go. This is especially true if you have a good understanding of the business and can anticipate market shifts.

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.

You can also employ a trading bot to conduct all the trading for you if you want to get ahead of the game by being able to trade 24 hours a day, seven days a week. Setting up a trading bot isn't easy, but once it's up and running, and the AI has gathered enough data on the stocks and trading patterns, they can do the job just as effectively as you can, if not better.

MINING

You've most likely heard the term "mine" a hundred times before. Not only because it is by far the most popular way to earn money with cryptocurrencies, but also because, as a result of its widespread use, getting PC parts has become increasingly difficult, and you may have heard about it on the news.

Because you are creating the currency into your wallet using mining rigs, mining a cryptocurrency is the choice with the least risk. The only risk is deciding whether or not to keep the cash and mine more of it when its value lowers.

To become a highly profiting cryptocurrency miner, you do not have to put as much effort as you would into the other methods. However, you will have to invest some money into mining rigs, which are essentially PCs that will do nothing but run a program that mines the cryptocurrency, and of course, you might struggle to find the parts for those rigs as well.

If you are a risk chaser, mining can give you the biggest boom in profit if you jump to mine a cryptocurrency that is very easy to generate while it is also increasing in value over time. Be careful with this tactic, because while you will not essentially lose any more mining a cryptocurrency that might be worthless, you will still lose precious time that could be invested elsewhere.

STAKING

Staking is a strategy that should only be used by individuals who are familiar with the world of cryptocurrencies. You may be wondering how to make money with cryptocurrencies through staking. It basically puts you in the shoes of a banker.

You can lend any coin you obtain, whether by investing, trading, or mining, to a network so that it can utilize it in its transactions and pay you a tiny proportion for each transaction. Finding a network with a lot of trade is crucial to making money with this method, which is where the previous knowledge comes in handy.

CRYPTO ESPORTS BETTING

If you had told someone a decade ago that e-sports would be as popular as they are now, they would have laughed at you. However, in the gaming business, things have taken a surprising turn, with e-sports slowly gaining popularity over traditional sports. Certain tournaments have already surpassed the Super Bowl in terms of viewership, which is quite astounding.

You can wager on e-sports the same way you can bet on traditional sports. Because crypto betting is still relatively new to many bookies, the odds they offer can be rather interesting, and if you are familiar with the e-sports industry, you can easily earn a quick buck by crypto betting.

There are crypto betting sites where you may bet using cryptocurrency, but not all betting sites and bookies will offer you cryptocurrency betting alternatives for all events. Some of them just focus on a single game, while others don't go into great detail, letting you to bet on a winning team rather than kills, towers, objectives, and all of the other innovative betting possibilities available in e-sports.

BUY & EXCHANGE NFT

Before we can talk about purchasing and selling NFTs, we must first grasp what they are. Non-fungible tokens, or NFTs, are the most recent craze in the cryptocurrency world. They are one-of-a-kind digital works of art and collectibles. They are easy to exchange in a blockchain since they are one-of-a-kind.

Although it may appear strange, the payback for many artists has been enormous. Many investors would pay a lot of money to possess the rights to an NFT, with the biggest examples being the $600,000 "Nyan Cat" GIF and $2.9 million for Jack Dorsey's first tweet.

Surprisingly, NFTs have been around for a long time, but their popularity was not as high as it is today due to the fact that bitcoin was not as popular. Because the main trading option is now more widely recognized and employed, it's only natural that the NFTs would receive the same level of attention.

In essence, any digital image can be purchased as an NFT, however there are a few pointers we can provide novices. To begin, carefully consider the marketplace from which you'll be purchasing cryptocurrencies, as well as the type of digital wallet you'll need to do so.

You can upload the content to a marketplace and follow the instructions to make it an NFT on that platform as well once you've obtained an NFT. Then all you have to do is choose the type of currency you want to sell and wait for a buyer or watch the bidding war unfold.

Overall, the NFT situation may be viewed through the same lens as bitcoin investing, but with a twist. It's impossible to determine the true value of an NFT because you never know when its popularity will wane or explode.

PLAY-TO-EARN GAMES

If you want to make money with bitcoin without having to invest any of your own money while also being a gamer, this is undoubtedly the greatest choice for you. While not perfect, there are a plethora of games you may play on a casual or serious level in order to earn cryptocurrency as a reward for your efforts.

Axie Infinity, which is operated by the Vietnam-based firm Sky Mavis, is one of the top play-to-earn games. You will also be able to obtain some NFTs in the form of digital pets by playing this game. Those NFTs can be exchanged for in-game currency, which can subsequently be exchanged for real money.

Consider it a blockchain version of Pokemon, with a built-in social network and an economy that extends outside the game. Since its release in March 2018, this game has grossed over $3 billion in total purchases, and it continues to expand every day as more people realize it is a realistic source of income.

Axie Infinity is just one of several NFT games available, and while they may not be as interesting to dedicated gamers as some of the most popular games on the market, they will undoubtedly increase in content and graphics over time as cryptocurrency becomes more widely accepted in various online activities.

FINAL WORD

While we only covered four ways to make money with cryptocurrencies, there are a few more, including crypto social media, airdrops, and forks, as well as developing your own cryptocurrency. Those strategies are profitable, but the ones we've shown you are better once you've mastered them, and they're probably less frustrating to grasp and deal with in the long term.

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