Cryptocurrencies can be called digital cash for this technology-savvy world. They are managed by a network of computers that run on open-source codes. Unlike regular money, they are not controlled by governments or banks but are verified by networks of computers. Some popular cryptocurrencies are Bitcoin, Litecoin, Bitcoin Cash, Ethereum, etc.
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The value of these currencies entirely depends on their supply and demand. You can use Cryptocurrencies to shop, invest, gift someone, or pay for expenses. There are almost 100,000 merchants that accept Bitcoins as payments such as Microsoft, Overstock, etc.
You might be wondering how you can earn money using Cryptocurrency when it is not tangible and cannot be seen. Well, let us look into some ways which will help you to make profitable returns from your cryptocurrencies.
1. Buy and Hold
This is one of the easiest ways of earning from cryptocurrencies and also gives good returns in favorable conditions. You have to buy the currency, hold it for some time and sell it when the prices are higher so that you earn profits.
A few years ago, Bitcoin was priced at $13 in 2013, touched $20,000, and now it has a value of around $10,000. Prices of these currencies are expected to rise in the coming future if they become more acceptable.
2. Buy and Hold to earn dividends
You can also earn by buying and holding the currency for a specified period. There is no need to save it in a wallet, and you don’t get ownership over the coin, you will be paid only for holding it.
3. Stake it
Here, you combine the previous two methods of buying, holding, and selling of the Cryptocurrency. And you also earn dividends for holding the coins 24×7 in a live virtual wallet and thus keep the Blockchain code secure.
4. Day trading
This method is suitable for those who are good at forecasts of the market by studying the trends and ups/downs of the economy. Since Cryptocurrency is still a volatile asset, its value fluctuates a lot. You can involve in day trading by calculating the prospects of earning through various coins.
It is not recommended for beginners, and you need to have a good insight into the fluctuations going on in the market.
Just like real money, if you have crypto coins, it can be lent to another party for a certain sum of interest. Lending can be done with the help of various sites that deal with cryptocurrencies.
But it may also be risky, as these coins are not under the regulation of any government, which makes their existence questionable. So, lending should be done to trusted individuals and after proper verification.
6. Mining of coins
This is another way of earning from Cryptocurrency, but it needs some initial investment. You need to have access to better computer hardware and software that can deal with solving complicated mathematical problems fast along with an uninterrupted supply of electricity. Once you solve a problem, you get rewarded in Bitcoins. But if someone else answers the same problem before you, then you won’t get paid anything.
This area has become more competitive and may lead you to losses if you have a slow infrastructure.
7. Accept Cryptocurrency
If you are a merchant, you can easily collect crypto coins by accepting them as payments for your goods sold. Even E-Commerce giant Amazon accepts Bitcoins as payments for purchases.
8. Writing blogs
Certain sites pay you in Cryptocurrencies for writing articles. If your content is good, then you can submit the rights of the article to the website and get paid in Cryptocurrency.
9. Crypto faucets
You can find several apps or websites that pay you in Cryptocurrency for the completion of some menial tasks. The designated tasks may be as simple as watching a video, clicking an ad, solving captchas, playing a game, etc.
These sites pay a very small part of a cryptocurrency in the form of Satoshis, which is the hundredth of a millionth Bitcoin.
10. Micro tasking
If you want to earn in Cryptocurrency, involving simple tasks, then you can consider multitasking. You are paid in crypto coins after you do a specific job for the site, such as debugging a website, test an app, or do an online survey.
11. Working for crypto coins
These days, you will find employers who are ready to pay you a salary in Cryptocurrency. If you are interested, then you can work in such firms and get paid like everyone else but in digital money.
12. Dealing with currency exchange
Cryptocurrencies have online platforms where they can be sold and bought. You can own an account, log in, and buy or sell currencies in these websites. The rates of Cryptocurrencies fluctuate all the time, and they also vary from one site to another.
If you carefully study the price differences of the currencies, then you can buy from one site at a lower price and sell it for a higher rate at another site.
13. Hosting Masternodes
It is another excellent way to earn money from Cryptocurrencies where you have to host a master node for a network, and they pay you in crypto coins.
A Masternode is a computer that keeps the entire blockchain of a currency online updated with real-time data. Blockchains are digital ledgers that record the transactions of buying and selling of every Cryptocurrency, and it can be viewed publicly.
But there is a catch in this; to host a master node, you need to hold a certain number of coins yourself, which may range from 10000 – 25000 coins. And you also need a fast server and technical know-how about the operations.
Cryptocurrency may be getting popular among a few, but they are still not considered legal in many countries. Their fate is still uncertain, but experts believe that Cryptocurrency is going to change the face of financial transactions. At least for now, they are gaining attention and living up to their expectations.
With their verified dealings, encouraging equality among all classes of people, and smooth transactions, they may become the currency of the future.