3 Simple Ways How to Make Money with Crypto
For the last few years, the pace of development of cryptocurrencies has provoked the emergence of many ways to make money with crypto.
More and more people of different age groups are curious about Bitcoin and other cryptocurrencies. Still, not everyone dares to start investing. The reason is also quite simple: using crypto to work with other investment instruments, you need knowledge and start-up capital.
This article will tell you the main ways that even beginners can make a profit in digital currencies.
Airdrop
Those who do not want to invest their funds but want to get cryptocurrency can make money on distributions and perform various tasks. Some services pay with digital coins for simple actions such as retweeting a post or following social networks.
Be careful: there are good and bad crypto airdrops — beware of scams and pump-and-dump schemes. Actual crypto airdrop never attempts to attract capital investment in the currency. Its intention is entirely promotional.
In September, dYdX distributed an extensive airdrop to early users. The Ethereum Name Service gave platform users approximately $30,000 in ENS tokens a couple of weeks ago.
When trying different ways to get crypto, do not forget about security measures. We recommend you to use a hardware (cold) wallet and store it, as well as the seed phrase, in a safe place.
Stacking
Staking is a sustainable way to mine cryptocurrencies. This process involves committing your crypto assets to support a blockchain network and confirm transactions. Users store coins on the Proof-of-Stake (PoS) algorithm and thereby ensure the operability of the blockchain.
Every time a block is added to the blockchain, new tokens are minted and distributed as staking rewards. The rewards are usually the same cryptocurrency that participants are staking, but on some blockchains, this is different.
Compared to mining, staking does not require additional tools and huge computing powers.
In some cases of staking, the average yield can reach 10% or 20% per year. It’s potentially a very effective way to invest your money. However, it is worth considering the risk of a decrease in the value of tokens involved in staking. In this case, there is a possibility of losing the value of your savings.
In 2022, the second-most valuable crypto Ethereum plans to shift to a Proof-of-Stake model, where users can only validate transactions according to how many coins they hold. Lots of cryptocurrencies already support staking: Polygon’s MATIC, Polkadot, Cardano, and more.
Investment
Buying tokens for their long-term retention is considered a traditional way of earning money, which does not require a deep understanding of the crypto market. The main point of this approach is its long-term period.
When investing in crypto for the long term, adhering to a trading strategy is necessary instead of reacting to short-term changes in the exchange rate. This point is the most difficult for beginners and advanced investors since the information background affects our emotions and decisions.
It will take time, experience, and deepening knowledge to become sustainable in trading. While you are learning, you can turn to the next generation of tools, such as investment managers. Choose them carefully, keeping track of portfolio performance and user reviews.
The initial deposit also differs depending on the product. One of the most affordable (deposit from $1000) and reliable tools is an automated investment manager Stoic, which works on a hedge fund strategy. It has returned over +2120% since its public launch in September 2020.
