7 Ingenious Ways to make Money with Cryptocurrency
Cryptocurrencies are even compared to Aladdin’s magic lamp as it has the power to make investors rich overnight. But patience and the right investment are very important to earn high benefits and make you rich instantly. Bitcoin has already proved it, which is rarely seen in financial history. A person has earned 300% more within three years through bitcoin trading, which has attracted more people into crypto investment.
However, crypto trading is not as simple as it used to be. But good analytical skills and patience can be beneficial. As the market has become highly unpredictable, here are some ingenious ways recommended by experts that will help you to earn money using cryptocurrency.
- Lending and Borrowing
Crypto lending is a good way to earn money with the interests earned from the borrower. The procedure includes a lender, borrower, and the agreement between these two on terms of the repayment period and the interest to be paid. Crypto exchanges like SALT Lending, Nexo, Celsius, Oasis, and BlockFi support crypto lending. Mostly two parties involved in cryptocurrencies will be individuals and not institutions like the banks.
- Buy and Hold method
Crypto trading is a highly risky process. Popular cryptocurrencies like Ethereum, Bitcoin, Litecoin, etc rise and fall instantly. But their growth chart shows that they have an upward trend all year round. So, the best idea is to buy crypto coins and hold them until they are at their peak to earn good profits. You will have to hold your assets for weeks, months, or even years. But this strategy involves less risk compared to the other alternatives.
If you are looking for short-term options to earn money, trading is the best option. As the crypto market is volatile, the price of assets can rise and drop quickly. To become a successful trader, you need to have good analytical and technical skills. Thus you can predict the variations in the price and trade accordingly to make profits. If you are a beginner in trading and do not have in-depth knowledge of trading, it is best to choose trading bots like Chain Reaction, as they automatically execute trades on behalf of traders. You can also check out the chain reaction erfahrung blog to learn more about the site.
Airdrops are a highly risky method among all. When a new cryptocurrency is launched, developers offer free coins as a part of the promotion of the new currency. The company will be announcing airdrops through its website, social media platforms, crypto news platforms, etc. However, there are many scams related to airdrops. Most of the coins issued through airdrops are worthless and do not bring in any profit. Therefore, experts suggest newbies use popular cryptocurrencies.
Mining is a traditional way to earn cryptocurrencies. Miners receive cryptocurrencies as rewards when they successfully validate and add a new block of a transaction on the blockchain network. Mining requires special hardware and great skills. It is also a highly competitive field and the chances of becoming successful are low.
Earning dividends is a good way to earn money. Small payments to shareholders can be called dividends. This is a good way of making money with the crypto assets you own already. However, you need to do good research to find the cryptocurrencies that pay worthy dividends.
Staking is similar to lending, but the difference is that no loans will be involved in staking. When the user is successful in strengthening the stability of a network, he/she will be rewarded with crypto coins.