how to earn money with crypto || how do you make money on cryptocurrency
How to Earn Money With Crypto - A Beginner's Guide
Crypto mining is seen today as one of the easier ways to make legit money even whiles as sleep .In the last few years, cryptocurrency has become increasingly popular as an investment opportunity for those looking to earn money with crypto. Many people first start out by buying and holding onto bitcoin, ethereum, or other popular cryptocurrencies in the hopes that their value will rise and they can sell them later at a profit. While this strategy can work, it’s not terribly efficient. Instead, you’re likely better off using a wallet like Coinbase to buy small amounts of cryptocurrencies on an ongoing basis, just as you would buy stock shares of your favorite companies over time. Lets dive into the world of crypto now !
What is cryptocurrency?
Cryptocurrency as said is a digital or virtual currency designed to work as a medium of exchange. It uses cryptography to secure and verify transactions as well as control creation of new units of a particular cryptocurrency. Essentially, it is a means of transferring money digitally from one person to another without involving any financial institution. Cryptocurrency has been in existence since 2009, however its usage dramatically increased after Bitcoin (its most famous example) was created. In 2018, there are more than 1700 types of cryptocurrency that are currently in circulation. However, many people who seek information about how to earn money on cryptocurrency don’t understand what exactly it is and how it really works out for them.
Why should I earn my own cryptocurrency?
There are several reasons why you should earn your own crypto . Cryptocurrencies are extremely volatile. This means they can go up and down quickly, but it also means that there is an opportunity for substantial gains. If you’re smart, you should look into earning some of your own crypto so that you can take advantage of these opportunities. Note: remember what I said about cryptocurrency volatility? Be ready for rapid changes in your wealth. Even if you’re successful now, it might not last forever for, that is the reality.
Where can I earn it from?
You can earn crypto in some few legit ways . Cryptocurrency is currently a high risk/high reward asset class. As such, there are very few easy ways to earn it from. If you want crypto, then buying it with fiat (or another cryptocurrency) is likely your only option. However, if you want to go beyond that and make a profit, it will be down to two things: trading and mining. Mining simply refers to using your computer’s CPU/GPU power to generate new blocks for whatever coin you're mining ,usually in exchange for some of that cryptocurrency. As block difficulty increases over time though, mining becomes less and less viable as an income source but there is still value in being part of a blockchain network since it has a handsome reward to drive home.
Cryptocurrency exchanges
Exchange is about buying and selling your crypto .If you want to buy and sell cryptocurrencies, like Bitcoin or Ether, you’ll need a place to do that. That’s where cryptocurrency exchanges come in. Cryptocurrency exchanges are online platforms where you can buy, sell or exchange cryptocurrencies for other digital currency or traditional currency like US dollars or Euro. Popular exchanges include Coinbase, Bitfinex and Gemini and others that are available.
Note very well that, each cryptocurrency exchange works a little differently, but they all function pretty much the same way. You sign up for an account, deposit your money and then use that money to buy a particular cryptocurrency. Some exchanges allow you to trade fiat currency like US dollars or Euro for cryptocurrencies like Bitcoin. Other exchanges allow you to swap one type of cryptocurrency for another , say Ethereum for Bitcoin and vice versa which allows you make huge sums in exchange .
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Cryptocurrency faucets
What are crypto Faucets? If you want to make money with cryptocurrencies, one of your best options is through cryptocurrency faucets. Faucets are sites that will pay out tiny amounts of cryptocurrency in exchange for completing a captcha or task as simple as clicking a button. You can earn anywhere from $0.70 cents per hour up to $25 per hour in some cases, which is much more than you’ll make with most other side hustles. If you have high traffic and large audience, there are even faucets that will pay thousands per month just for having their affiliate link on your site. For instance BitClix rewards viewers for watching videos about Bitcoins with small amounts of Bitcoins (between 170-350 satoshis per 5/6 minutes). If you don't have money in hand to invest you can still mine crypto by doing some task in exchange.
Mining, staking and masternodes
Have you heard of mining staking and masternodes ? If you're reading up on ways to make money from crypto, chances are you've heard of mining, staking and masternodes. These terms sound like a new language, but they're just different ways for cryptocurrencies to distribute their tokens and provide an incentive for people known as miners to help keep the network secure. Each method is built on top of blockchain technology with its own set of rules that keep it balanced and fair. Read our guide here and follow this blog to get more insights or for more information about each method and be sure you know what kind of hardware and expertise is needed in the process.
Earning by investing in other cryptocurrencies
You also earn by investing in other crypto currencies a swell. As with many financial markets, investing in cryptocurrencies is subject to volatility, which means that things can get dicey. When you’re trading cryptocurrency on an exchange, try using limit orders , try not to use market orders . On some exchanges you may be able to set alarms for when price drops below a certain level. As with any investment or market speculation, diversification is key and you should never put all your eggs in one basket. Learn to diversify in other not to loose.
Conclusion
We conclude here by saying that, Cryptocurrencies have received a lot of buzz over the past year or so. Like stocks, they’re also used as investments. Some investors use them as long-term holdings, while others treat them like cash and buy low and sell high based on market conditions. In either case, you will need to buy cryptocurrency at some point to grow wealth.
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