Trading is the most obvious way to be able to make money with cryptocurrencies. However, there are quite a few other methods and ways that you can make more legitimately with crypto coins. In this blog post we look at some of the top strategies for making money with cryptocurrencies.
If you are looking for ways that you could earn money with cryptocurrencies, then look no further. This is a must-read blog post for you.
The 3 Mechanisms For Making Money With Cryptocurrencies.
All strategies for making money with cryptocurrencies rely on three main mechanisms. These are as follows:
1. You can invent in the cryptocurrency exchange market. It can be done without owning any crypto coins yourself. It is a very similar investment opportunity as investing in gold that is on the stock market for example.
2. If you own your own crypto coins, these can be used to stake and lend, this will earn a passive income while your holding.
3. You could also participate in the blockchain system yourself. This can be done by mining or receiving crypto coin rewards for the work that is done within the cryptocurrency platform or system.
Based on these three mechanisms for making money with cryptocurrencies, some strong strategies follow. We have shared these below for you.
Below we share some of our top strategies that you can use for making money with cryptocurrencies. Have a read through the options and chose the one that best suits your money making or investment needs, tastes and goals.
The key strategies that we share for making money through crypto are Investing, Trading, Staking and Lending, Crypto Social Media, Mining, Airdrops and Forks. We explore each of these money-making crypto strategies in more detail below.
• Investing – If you are looking for a longer-term money-making strategy for making money with crypto, you may want to try investing in the crypto market. This is the strategy of buying and holding crypto coins for a length of time.
However, investing in crypto can be incredibly volatile. That said, investing in crypto does have really good long-term potential for growth on your initial investment.
If you were to choose to invest in crypto as a way to make money, you will need to identify more stable crypto assets. These will be crypto assets that have been around for the long-term and are more established crypto coins.
To invest in crypto as a way to make money, it is recommended that you choose a crypto coin that shows a long-term price increase. Therefore, it can be classed as a safe investment, within this regard.
• Trading – If you would prefer a short-term opportunity to make money from crypto, instead of a long-term opportunity like investing, then you may want to try trading. Cryptocurrency trading is designed to be a way of exploiting short-term opportunities within the crypto world.
When looking to trade crypto coins to make money, it’s important to note that the crypto market is extremely volatile. This means that the price of crypto assets has the ability to increase and decrease in price dramatically. This can also happen in a very short length of time.
If you would like to be a successful crypto trader and make money from crypto in this way, you will need to have the proper analytical and technical skills. You will need to be able to analyse crypto market charts. This will involve looking at the performance of the listed assets.
From this, you can then make accurate predications about crypto coin price increases and decreases.
When you are involved in crypto trading, you can either take and long or short position. This is dependent on whether you expect the price of the crypto asset to rise or fall. In turn, this means that you will make a profit through crypto trading, whether the crypto market is bullish or bearish.
• Staking and Lending – Staking is another strategy for making money with crypto. It is a way of validating crypto transactions. When you are crypto staking, you own your own coins, but you don’t spend them. Instead, you will keep your crypto coins locked in a crypto wallet.
A Proof of Stake crypto network will use the crypto coins that you stake. This is done to validate transactions. As the user staking crypto coins, you will receive rewards for staking them. Generally speaking, you are lending your crypto coins to the network. The network then uses these crypto coins to maintain the security of the platform and to verify transactions. The reward that you will receive as the user staking is similar to the interest a bank would pay you with / reward you with, for your credit balance.
The Proof of Strake algorithm chooses transactions validators. This is done based on the number of crypto coins that a user is willing to stake. The staking and lending process is much more efficient, energy wise, that crypto mining. It also doesn’t require you to own expensive hardware which you would need to if you were mining for the crypto assets.
When you are staking your crypto coins, you can choose who you lend your crypto coins to and where to. For example, you can choose to lend your crypto coins to other investors. This will then enable you to generate more interest on that crypto coin loan. Many crypto trading platforms will facilitate crypto lending and crypto trading.
• Crypto Social Media – There are multiple blockchain based social media platforms out there. Many of these will reward using for creating and curating content. This is what can make crypto social media a strategy for making money through cryptocurrencies.
It is important to note than the payment for the creation and curation of the content will often be in the form of the native coin of that social media crypto platform.
• Mining – The original way to earn money through cryptocurrencies was through mining. If you want to be like the original pioneers in the crypto world, then mining could be for you. While mining has been around for as long as crypto coins, it is still a crucial component of the Proof of Work mechanism and a way of making money through crypto. This is where the value of a cryptocurrency is generated.
If you mine a cryptocurrency you will be rewarded with new crypto coins.
However, to be able to mine you will need technical expertise. You will also need an upfront investment in specialised hardware that will enable you to mine cryptocurrencies.
It is possible to run as a master node. This is a subset of mining. However, once again it will require expertise as well as a significant upfront investment, and ongoing investment too.
• Airdrops and Forks – Cryptocurrency platforms will sometimes offer and distribute airdrops and free tokens. This is done to generate awareness of a crypto coin. A crypto exchange may do an airdrop as a way to create a larger user base for a new project, for example. By being part of an airdrop, you can get a free crypto coin. This can then be used to buy things, or to invest and go on and trade.
Blockchains will fork because of changes or upgrades in a protocol. These changes or upgrades will create new coins. If you are a user or holder of the original chain, you will often get free tokens on the new network. Basically speaking, you will get a free crypto coin simply for being in the right place at the right time.
This can make this strategy a tricky or unreliable way to make money with cryptocurrencies. However, it is possible.
Overview Of Making Money With Cryptocurrencies.
If you are looking for ways to make money with cryptocurrencies, it is important that you take your time to know, learn and understand the strategies we have spoken about above. As always, doing your own research is essential. It will also help if you have a good grasp of the concepts around cryptocurrencies. Being aware of things like how crypto coins gain value. What an ICO is, how to pay taxes on your crypto gains and how to read cryptocurrency charts will help you when looking to make money through cryptocurrencies.
Take the time to check out our blog posts which cover a selection of things you should know about cryptocurrencies before beginning your journey into crypto investments and making money through crypto coins.
Here at KODA one of our three core values is educate. We don’t want to bamboozle you. Instead, we want to help our users really understand cryptocurrency investments and how they can work for their investment portfolio.
If you have any questions about investing in crypto or making money with cryptocurrencies, call our team. We have a UK based head office and we will be happy to take your call or meet you in person to answer any questions that you might have.