Earning cryptocurrency is not just a trend, this is a real opportunity to increase capital or even provide the primary source of income. Of course, there are certain risks in this sphere. But that’s why we prepared this article for you, in which we have broken down the main ways of making money from cryptocurrency.
But before we go any further, we recommend an excellent bitcoin mixer, which is almost a must if you are going to get into cryptocurrency seriously. Bitcoin is far from an anonymous medium as many people used to think, and it is vulnerable to hacks and data leaks.
That is why it is recommended to mix bitcoin wallet funds in blenders periodically. This way, you can achieve complete anonymity. If you need more information, check out this blog. Well, we proceed to the analysis of ways to earn on cryptocurrency!
One of the most common and reliable ways to make money from cryptocurrency is mining. How does it work? Miners on unique farms, consisting of video cards, calculate special blocks, which give the right to receive a certain amount of virtual coins. The very first miners who mined bitcoin received the most generous rewards.
But this cryptocurrency’s algorithm implies that its mining will become more complex every year. Moreover, the number of coins is limited: the last bitcoin must be mined in 2140. But if you don’t want to buy graphics cards and spend a lot of money to be able to mine a couple of coins, you can try mining in your browser.
Investing usually means buying and holding assets for an extended period. Cryptocurrency assets are well suited to this strategy because they are highly volatile in the short term and have enormous long-term potential.
Fundstrat research has shown that most of the profits in bitcoins come from the top 10 trading days of the year, and ignoring these days can reduce potential profits by as much as 50%. Because of this high volatility, long-term investing can be one of the best approaches to generating income from cryptocurrencies.
Staking allows you to make quite a lot of money on altcoins and to do so relatively quickly. If we talk about the essence of staking, it means blocking coins in a cryptocurrency wallet and getting rewards for checking transactions in the Proof-of-Stake (PoS) network. Instead of mining, the PoS algorithm selects transaction validators based on the number of coins.
This approach does not require expensive and complex software and is also quite energy efficient. But what we said above refers to the hot staking type. Another option, cold staking, allows you to earn money from tokens by keeping them in an offline wallet. Tether, NEO, and Stellar are the most famous examples of coins you can store with this type of staking.
What can staking be so helpful for? It’s versatile. With it, you, as an investor, lend the network a coin to keep it secure and verify transactions. But you can also lend to other investors and earn interest on the loan. Many platforms promote the phenomenon of cryptocurrency lending. Such platforms include exchanges, peer-to-peer lending platforms, and DeFi.