Cryptocurrencies are digital money which is used in place of traditional currency in order to make financial transactions more secure and convenient. Most of the cryptocurrencies we see today are powered by the blockchain technology which ensures the reliability, trust, and validity of the transactions performed via these digital currencies.
Now, in addition to being used as money, cryptocurrencies have another very important application - which is as a valuable investment product.
Let’s discuss some ways in which you can make money from crypto-coins.
1. Investing in Cryptocurrencies (Buy & Hold)
The first and most common way to make money via cryptocurrencies is by investing in the good ones. There are literally hundreds of currency options you can choose from. Buy a cryptocurrency with a real use case and purpose and hold (HODL) it until you can make a decent profit by selling it.
You can invest in popular cryptocurrencies like BDCC (Bitica coin) which is presently being traded on TradeSatoshi and Crex24 exchanges.
2. Staking Digital Currencies
So, what is staking? Well, staking also involves purchasing and holding of tokens for a certain time period. The benefit is that you can earn double profits, in terms of price appreciation as well as decent rewards for staking the coins/tokens and thus helping to secure the network.
3. Crypto Mining
Mining of top cryptocurrencies like Bitcoin is certainly the best way to make profits from the crypto domain. However, not many people are yet engaged in this field because of the high investment cost. An alternative is to become a part of a bitcoin mining pool or use solar energy or other economical mining options.
4. Earn free cryptocurrencies
Many blockchain-based projects and companies offer free coins through bounty and airdrop programs to the users for performing specific tasks such as the promotion of their new project/currency, testing new apps, doing online surveys, etc. If the cryptocurrency is good and has a potential future, you should miss a chance to get some free ones.
5. Day Trading
If you’ve been involved in the day trading of shares and other assets, you should certainly try your hand in cryptocurrency day trading as well. There are a number of exchanges, such as Binance and Cryptopia, that allows day trading of digital currencies. You can earn great profits from this, as cryptocurrencies are known to fluctuate a lot (20-50%) even in a single day.
6. Get paid in cryptocurrencies
With digital currencies being around for over a decade now, many organizations have already started using them in general transactions, such as paying to their employees and receiving payment from clients. If you provide a specific service like writing, designing or testing, you can get paid in cryptocurrencies in exchange for your services.
7. Cryptocurrency Arbitrage
Arbitrage is an activity where you buy currencies at a low price from one exchange and then sell them for a profit on another exchange. This is particularly feasible in the crypto space as a single token/coin may have different prices on different exchanges.