Bitcoin, Litecoin, Ethereum, and XRP are some of the hundreds if not thousands of Cryptocurrencies that have been making headlines in the past few years. Apart from acting as a new kind of money, many people around the world have realized huge profits after investing in them. Having an alternative source of income is a good idea as it can help you to meet some of your financial obligations. Here are seven ways in which you could make money through virtual currencies.
1. Buy And Hodl
This is perhaps one of the easiest ways to earn through Cryptocurrencies. You only need to buy a certain amount of altcoins you feel comfortable with, hold for a given time, and sell it after it has appreciated. Under this method, however, you only need to ensure you have selected a coin you feel will appreciate. Don’t just rely on your friends’ and neighbors’ opinion. Do your research and gather information such as the project’s whitepaper, daily trading volume in different exchanges, market cap, etc.
2. Microtasks For Cryptocurrencies
Microtask involves completing some tasks and getting paid in Cryptocurrencies. Most of these tasks are short and involve activities such as online research, clicking ads, and taking surveys among others. Although you won’t make much money through this process, it is a low-risk way of earning. Earn.com, Bituro, BitVerts,io, and BTC Clicks are some of the popular sites for these activities.
3. Cryptocurrency Mining
Unlike fiat currencies, which are physical and printed, new altcoins are created through a process called mining. The main advantage of Cryptocurrencies is that everyone can participate in their creation as long as they have the right devices. To get into Crypto mining, you only need a powerful computer and some additional GPU or ASIC. Given that the process is power intensive, the cost of electricity is a major determinant in profit margins. You can boost your profits by using renewable energy such as solar and wind.
4. Trading Cryptocurrencies
In spite of the bear market, you could earn by buying and selling different Cryptocurrencies on daily basis. You only need to be good at technical charting at different day times to earn through this method. Coinbase, Coinmama, and Binance are some popular Cryptocurrency exchanges where you could buy coins when they are low and sell them when high at a profit.
5. Invest In ICO
Initial Coin Offerings (ICOs) have become a popular way of getting crowdfunding. The process is also called token sale or token generation event. ICOs enable one to invest in a project in the initial stage and sell off their share at a profit after the project launch. However, you should do enough research as there are many scams.
6. Lending Cryptocurrencies
Blockchain technology has given rise to peer-to-peer Cryptocurrency lending platforms. Lending your virtual currencies on these websites will see earn in an interest of as high as 10-12 percent. Although this area is risky since it is highly unregulated, platforms such as SALT Lending have emerged to fill this gap and make the sector appear more legitimate.
7. Affiliate Marketing
If you are a vlogger, blogger, social media influencer, or blogger, you could earn Cryptocurrencies by promoting Crypto products. Some exchanges such as Kucoin and Binance have affiliate marketing programs providing many people with a passive income.
Despite the existence of many ways to earn through Cryptocurrencies, there are also high chances of losing your funds through scams. However, a lot of progress has been made in trying to regulate the sector and eradicate these cases. Doing thorough research will minimize the chances of falling prey to these thieves.