You surely have heard about cryptocurrency millionaires’ stories. Probably these stories have been the reason for you adopting cryptocurrencies but you are not earning profits the way you thought. It might be because you do not have enough information about how you can earn in this industry. But no worries! In this article, we will discuss the strategies that will help you increase your budget if you own cryptocurrencies and you will learn how to make money with cryptocurrency easily.
So, let’s get started.
How To Make Money With Cryptocurrency?
1- Buy and Hold
It is the traditional method of increasing the budget by making money in the crypto industry. It involves buying a crypto asset from a crypto exchange when prices drop-called as buying the dip. After several months or years of HODLing, the asset may be sold at a significantly higher price than the price.
For example, those who purchase Bitcoin in previous years, let’s say in 2013 when the maximum price of 1 Bitcoin was $1,000 and sold in 2021 for $65,000. The same is the case with Ethereum.
You can search the market to find crypto with the potential to give you a huge return in the future if you purchase it now. Also, consider what experts say about which crypto to purchase in up coming years. Buy and Hold is an easy way to know how to make money with cryptocurrency.
Trading is another option to increase your budget with cryptos. Though trading with volatile cryptos is tough but not impossible you have excellent analytical skills. For a successful trader, you should have good technical and analytics skills. You should be able to analyze performance on technical charts to make accurate predictions about rising and fall of the price of an asset. You can earn or lose depending upon your predictions and regardless of the market.
If you are a beginner, do not go for this strategy. However, if you already have been in trading and now opted for cryptos then you must give it a try. Trading is an advanced way to know how to make money with cryptocurrency.
Nowadays lending has become one of the most popular services for having passive income. You can find many lending platforms such as P2P lending, Staking Tokens, and Crypto lending which are pretty famous. Crypto lending is one of the hottest topics in the crypto industry these days.
In crypto lending, investors lend their cryptos to the borrowers in exchange for interest payment. The interest rate can be up to % for cryptos and up to 1% if you have stable coins For lending out, investors lock their assets for a particular duration. The longer the lockup period, the higher is the interest payment. Borrowers have to stake their cryptos as collateral which is always higher than the actual loan amount. It is because if the borrower fails to pay back the loan, investors can sell it to recover their losses.
It means through this strategy; you can earn passive income with your idle cryptos instead of waiting for value appreciation and it is not that much risk as well.
Read also: How Bitcoin Works?
Staking is also an option to increase your budget with cryptos. In staking users lock up their assets to provide liquidity to the blockchain network. It allows crypto holders to earn some rewards in the form of interest payments.
It is considered similar to crypto lending except crypto lending involves a borrower and staking does not.
Users also have the option to earn through airdrops which are free tokens distributed by crypto exchanges for raising awareness. These are done for creating a larger user number for a project. The tokens earned through airdrops can be used for purchasing cryptos and you can later trade, hold or lend them.
Try to earn airdrops from different exchanges to increase your budget.
6- Social Media
Social media is the fastest mean of communication and creating awareness. It takes only a few hours to reach out to millions of people around the globe. All cryptocurrency exchanges or anything launched in the industry tend to create awareness about it through content via social media. Many startups reward people for creating content for them. The reward is usually in the form of a native crypto coin of the platform.
If you have a social media account with a large number of followers then you can start promoting any specific startup and can earn rewards. But make sure you are promoting the right startup. Do your research first and then talk about it. Social media will help you to know how to make money with cryptocurrency.
The Crypto industry offers many opportunities to its users for making money and increasing their budget but is risky at the same time. To be successful in this industry you must have enough information to tackle any situation. Educate yourself through reading, learning from the experiences of others and trying out different strategies to know how to make money with cryptocurrency. One thing that you must know is never invest more than you afford to lose because the crypto industry is highly volatile.
Read also: How to use cryptocurrency in Swiss Banks