Cryptocurrencies are in the mainstream debate since its price skyrocketed in 2017 up to $20,000 on some of the crypto exchanges. Blockchain-based cryptocurrency was launched in 2009 as an all-new concept of currency that is not backed and managed by any central authority but by a complex mathematical algorithm. Presently, crypto markets are expanding all across the world, luring the investors with huge profits associated with both short and long term investment plans. Besides mining and buying the digital coins, many of the crypto enthusiasts are exploring the other ways to own cryptocurrencies. But Is it possible in any other way? How to make money with cryptocurrency 2020? In this article, let us explain how to make millions with cryptocurrency.
Ways To Make Money With Cryptocurrency
Crypto community consists of both advanced traders who analyze the historical trends and speculate about the future prices of currencies while others are curious crypto beginners who just wish to earn profits associated with cryptocurrencies. Whether you are a professional or newbie, the next section might be useful for every person who has embraced the crypto community. Let us read how to make money with Bitcoin 2020.
Buying and Hodling
The most common method to make money with Bitcoin is to buy and hold. Besides getting involved in trading based on speculation, you can wait for a little longer after purchasing your coins to sell. As cryptocurrency is highly volatile, a long term investment plan can reap you better profits. Hodl (Hold On for Dear Life) is a term associated with the crypto community which signifies that holding coins for the long term can be profitable one day.
Staking and Lending
How to make money with altcoins? You can simply choose the staking and lending method to earn from altcoins. You just need to lock your coins in your crypto wallet and can easily receive rewards to validate transactions on a Proof of Stake (PoS) network. In this method, a transaction is validated by the people who have committed to stake their coins. You do not need mining hardware and software to validate transactions by the method of staking. This process is a kind of lending coin to the blockchain network in order to maintain the security and verify transactions. Also, you can lend your coins to other investors and earn interest over it with the help of platforms of crypto exchanges, P2P lending sites, and also DeFi Apps.
How To Make Money With Cryptocurrency 2020? Crypto arbitrage is simply a method of trading in which you can earn profits by taking advantage of the difference in prices of particular digital assets on different exchanges. Arbitrage is the approach of constantly buying and selling currency in different markets to gain the profits. Prices of particular assets differ on exchanges due to the reputation of exchanges, market capitalization and trading volume, and on many more factors. There are several tools like trading bot which can help you in easily finding the price difference and notify you for selling the coins.
Binary trading is all about setting up your options while trading. In binary trading, a trader has to purchase either of an option with a fixed expiration time. For instance, the price of BTC is $4000 now (at 9 AM), you either invest a certain amount for more or less price than $4000 by 6 PM. If at that time (6 PM), BTC is higher than $4000, you can earn “payout” of the difference of prices (means profit of the difference between the price at 9 AM and 6 PM) if you had chosen the option of “call” priorly. Similarly, you can choose the option of “put” for lower prices and can earn the profits even if the price of BTC goes down. Thus, binary trading can let you earn money with cryptocurrency even if the prices shrunk.
Masternode is another method to make money from altcoins. It is a method to earn passive income by helping in maintaining the master node of the cryptocurrencies (deploying a consensus mechanism of Proof-of-Stake) with a certain minimum number of coins of a particular currency. Master node is a dedicated node keeping the track of Blockchain in real-time. Master node not only saves, validates, and announces valid transactions but ensures smooth protocol operations, broadcast transactions, and many more. So, if you offer the services to maintain the master node by keeping certain coins at stake, you will be incentivized for the same. Some of the coins like DASH, PIVX, Coin, etc, offer you the opportunity to earn from Masternode.
In the crypto space, many of the platforms offer you the opportunity to earn passive income or income even while you are sleeping through affiliate marketing. How to make money online? When a company or organization in the crypto space allows you to earn crypto tokens for endorsing their products and services or directly selling them, it is called affiliate marketing. In crypto space, companies will incentivize you to endorse their service like online tutorials, newsletters, daily notifications of cryptomarkets, and many more. You just have to log in to their site and get the link which you can forward to others, if business comes through your link then you will be paid.
If you are traveling in the metro and done with your scrolling, and also don’t mind looking at a few advertisements and answering random surveys, you can google any Bitcoin faucet website. These websites generally earn the revenue from ads posted on their pages. How To Make Money With Cryptocurrency 2020? Any crypto enthusiast answering the short questions or doing other microtasks like downloading apps, watching videos, and many more on their website, will be paid a small percentage of the website’s revenue. Some of the sites like Bituro, Coinbucks, Microworkers, Cloudfactory and many more aid you to get paid in crypto.
Now if somebody asks you- How to make money with cryptocurrency 2020? then you might be able to answer a few of the methods which you had learned in this article. You can try them too even if you are a newbie or an advanced trader in the cryptomarkets. Besides the usual method of mining and investing in Bitcoins, you can easily earn money with cryptocurrencies with indirect methods and putting less effort. So, just get connected with crypto space and keep exploring the methods to earn more!
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Tarulika is an engineering graduate and an eloquent crypto blogger. Being a digital economy supporter, she keeps herself updated with the course of the latest innovation in the crypto industry, Blockchain Technology, and the Internet of Things. Currently, she is dedicatedly curating the simpler and interesting content for crypto guides for beginners to accelerate the movement of the financial revolution. If you want to learn more about the cryptocurrencies, latest trends of blockchain-powered AI applications, you are free to follow her on LinkedIn.