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The obvious way people make money off cryptocurrency is by trading it. But that’s not the only way. Given that crypto assets are volatile, making money off them involves a high level of risk as well as knowledge or expertise on cryptocurrencies. Whichever is the case, always remember that there are many known available cryptocurrencies you can buy.

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As well as several platforms where you can buy, sell, and invest. This means you have many opportunities to make money off crypto.

However, you can only make money off crypto in three different ways

Invest in the crypto exchange market: This is just like investing in the stock market. But you don’t have to own crypto to invest.

Stake or lend coins: This means staking your coins or lending them to users or the system. But, you must own coins to be able to stake or lend.

Mining: when you mine on the blockchain system, you can receive coin rewards for work done in the system. 

Based on these three ways, here are six strategies for making money with cryptocurrency:

InvestingInvesting is not a short-term process. This means you can buy and decide to hold cryptocurrency assets for a long time. For instance, if you invest in a coin in January, you can decide to leave it till December or more. But since they are volatile, the coins can either decrease in the short time or grow in the long term. Besides, not all coins will be around for a long time. Assets like Bitcoin and Ethereum are around for a long time. The price can also increase in the long run. So they are considered safe investments.

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Trading: Trading in crypto maximizes short-term opportunities. The crypto market is volatile. This means the prices of assets can increase and decrease in price dramatically in a short period. For example, when prices fall, you can decide to buy coins at that point with hopes the prices increases and vice versa. However, you must be able to analyze the crypto market to utilize these opportunities. This will help you predict price increases and decreases accurately and ensures you make profits regardless of volatility.

Staking/Lending: Staking your coins means you won’t get to spend them. Especially now that there are crypto debit cards you can use for payments. When you stake your coins, they are still yours but you don’t spend them. Instead, they are locked in a cryptocurrency wallet. Then, a Proof of Stake network uses the coins to validate transactions. And In return, You receive rewards for doing so. Staking coins simply means you are lending coins to the network. For it to maintain its security and verify transactions. You can also choose to lend coins to other investors and generate interest on that loan.

Crypto Social Media: These are social media platforms powered by blockchain. These platforms allow you to create and curate content. And in return, you will be rewarded with the native coin of the platform. Some of the platforms you can check to include waves platform, Sola.Ai, Steemit etc.

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Mining: Mining cryptocurrency enables you to earn money with cryptocurrency like its original pioneers. It is through mining that the value of a cryptocurrency is generated. When you mine a cryptocurrency, you get rewarded with new coins. However, you need to have technical expertise in mining. As well as invest in specialized mining hardware.

Airdrops/Forks: These are free tokens shared with users to create awareness for a coin. They are a little bit like initial coin offerings which are given to investors with hopes they become popular and have an increased value. However, Airdrops are not distributed by investors. They are distributed by a crypto exchange to amass a large number of users for a project. If you are part of an airdrop, you can get a free coin that you can then use to buy things or to invest or trade. Forks occur when there are changes or upgrades in a protocol that create new coins. If you hold coins on the original chain, you will typically get free tokens on the new network.

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This article was first published on 8th July 2022


I am an accomplished content creator and recently delved into technical writing. I enjoy using my skills to contribute to the exciting technological advances and create awareness of evolving technological trends in Nigeria.

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