How can I earn money with cryptocurrencies?
- In addition to investing or buying bitcoins, how can I trade with cryptos?
- Can you offer loans in cryptocurrencies?
- What are all the ways to make money thanks to cryptocurrencies?
- What are the best bitcoin investment strategies?
Tricks and Tips to earn money with Cryptocurrencies
Cryptocurrencies are on everyone’s lips. Especially the most well-known ones, like bitcoin and ethereum.
Without embargo, the most popularly known of them is that they can be bought and sold to generate income in traditional currencies; however, you can make money in many ways with cryptocurrencies, and generate cryptocurrencies as well.
Next, we explain 9 ways to make money with and in cryptocurrencies:
Manual or automated trading
Due to the high volatility of cryptocurrencies (at least the vast majority of them), trading or buying and selling them has become one of the most popular activities to generate money with cryptocurrencies in the short term .
Trading takes advantage of variability and unpredictability of virtual currencies to generate micro purchases and sales that gradually add up to a large amount of capital.
There are several type of trade or investment depending on the amount of time that passes between the purchase and the sale, but the most popular are:
- Scalping: buy and sell on the same day or several times on the same day (intraday operations)
- Daily Trade: it consists of investing and carrying out small operations with low returns that add up little by little
- Swing Trade: buy-sell investments made in a few days, weeks or even months.
For this type of trading operations, especially scalping, es important to take into account the commission per operation that exercises the trading platform chosen to carry out its operations.
The ideal in these cases is a reliable application or platform that does not have commissions or the percentage of the same low seas. bitiq.org/es/, for example, is one of the easy-to-use and intuitive commercial applications that offer zero processing fees.
Most of these platforms or exchanges have tools like Stop Loss and Limit Orders so that you don’t have to be checking every hour and watch out not to miss the opportunity:
It can also be very trying to use cryptocurrency bots to perform your trades automated and autonomous way 24 hours a day, 7 days a week.
The best thing about this type of bot is that you don’t have much idea of crypto trading and you don’t want or you can invest your time in learning, you can choose predefined strategies which have been studied and tested based on previous tests.
Oh, and they can be used on multiple cryptocurrency exchange platforms like CoinBase Pro, Binance, Kucoin, Gemini…
Hold (buy and hold)
The longer-term investment strategy is the “holdeo”. It’s about buy cryptocurrencies and hold them until, after a specific time, the desired profit is generated, and only then do they sell.
The literal translation from English would be to buy and sustain or endure.
This may involve holding your cryptocurrencies even though they fall below the value you bought them at, hoping that they will eventually bounce back.
The strategy of the holding company is a medium or long term.
Staking consists of maintain a cryptocurrency portfolio without moving the same money. In other words, it is about making a “buy and hold” for a certain period at least.
In return, you get a fairly high interest rate (as banks used to do), simply for having the money on the platform.
It’s a way to validate cryptocurrency transactions: if you’re staking, you have money but you don’t spend it; and this allows the network of proof of participation (proof of stake) use their coins to validate transactions, and reward you financially for doing so.
In other words: staking consisted of lend cryptocurrencies to the network to maintain your security and verify transactions.
Cryptocurrency mining is what allows them to perform encrypted operations so excellently and securely.
To mine cryptocurrencies, such as bitcoin, ethereum or other altcoins, it is necessary to have one quite advanced technical equipmentespecially with multiple high-performance graphics processors.
It is a fairly passive way of earning money, since once you have joined the mining network you only have to have your computer connected 24/7. In return, you get one I pay in the form of the cryptocurrency that is being mined.
It must be pointed out that the gains are not fast or overwhelming, and that it takes quite a bit of time to amortize the equipment (unless you already have accounts with it), as well as the cost of electricity.
Some investment platforms offer the possibility of lend cryptocurrencies in exchange for a fee or interest.
Typically, the loan is for individual people and is not a one-to-one loan, instead your money goes to an exchange where it is mixed with the cryptos of other users who have loaned their currency, so none of people who want a loan obtain their totality from the same source/person, rather your loan comes from multiple lenders.
This ensures that your money can be available when you want it, already done through centralized exchanges such as Binance.
Decentralized Finance (DEFI)
DeFi is a system born from the Ethereum network or blockchain.
It allows to carry out a multitude of operations in a decentralized way like request credits or exchange currencies. It also includes digital assets, protocols, smart contracts and decentralized applications (dapps).
Within DeFi, small-scale financial tools and services can be built, all of them decentralized.
Air Drops, ICOS and Free Tokens
Airdrops and free tokens it is distributed to generate demand and so that people know about the existence of new cryptocurrencies.
A cryptocurrency platform can offer an airdrop and give away units of a new cryptocurrency that has just hit the market and wants to boost, to incentivize its buying and selling and increase its value.
I have to be very careful with this, as there are many scams with cryptocurrencies, especially with new projects; and one of them is the one carried out by some hackers, consisting of offering fake Airdrops and ICOs (initial coin offering)
You can check online for upcoming airdrop projects, as they are often promoted by users of the business platform, on social networks and blogs and websites specialized in cryptocurrencies and altcoins.
Dividends or stock market
Another more traditional option is that of invest in a cryptocurrency platform in the stock market traditional or buy dividends of a cryptocurrency developer company with projects backing it.
Dividends are paid in the cryptocurrency in question and are not particularly buoyant, but it is another way to diversify, create profits and invest in cryptocurrency projects.
Invest in NFTs
The NFTs, or tokens without fungible is a type of token encrypted by the blockchain has a differentiating characteristic that, unlike the rest of cryptocurrencies, it is not divisible, but unique.
It is part of the Ethereum chain and is also known as “cryptoarte” since it is mainly used for collecting.
Its heyday has been in 2021, and there has been no shortage of opportunities that have inquired to register as an NFT anything, apparently worthless, but which is physically created and numbered as unique or limited. All in order to speculate on the futures market.
Thus, the way to make these non-fungible goods profitable is to create them or buy them to sell later with a higher value (if they revalue).
You can also see other articles similar to How to Earn Money with / in Cryptocurrencies: 9 Ways in the ➡ section Tricks to make money