Surely you have heard about cryptocurrencies and the great benefits that many people are obtaining thanks to these assets. NFTs, metaverse, trading, exchanges,… All these concepts that have emerged thanks to blockchain technology and that offer a wide range of possibilities for all those amateurs who want to enter this world.
The opportunities are huge, and a lot of people are taking advantage of this blockchain technology and everything around it to make huge amounts of money. Short or long term profits, small investments or simply through video games, the rewards you can get are endless, as well as the options that exist in the crypto world.
Do you want to know how to earn money thanks to cryptocurrencies? We show you a wide variety of options to meet your goals.
4 ways to make money with cryptocurrencies
And finally we reached the peak of the mountain, how can you make money with cryptocurrencies?
We have already mentioned that there are a wide variety of possibilities to invest in cryptocurrencies, but we are going to tell you about the ones that we consider the most profitable and beneficial.
People interested in investing in cryptocurrencies must be people prepared to take risks. In this case, holding is one of the safest ways to invest in cryptocurrencies as long as you are patient. You must be clear and aware that by investing in cryptocurrencies you can both lose and earn money.
To start, you can invest the amount of money you want, from €1 or €100, it’s your decision. The cryptocurrency market is very volatile, so in just one year prices can suddenly go up or down, so it is necessary for everyone who enters this world to know the risks.
The best way to make money in this market without being affected by the volatility of cryptocurrencies is through the holding company. It consists of an investment strategy where holders buy assets and keep them in their portfolio over time to benefit from their revaluation.
A holder is like an investor. It is the figure that considers it more profitable to store and accumulate a cryptocurrency in the long term than to trade with it.
In this way, the investor stores all the assets he has bought for as long as he wants and obtains profits as the cryptocurrency appreciates. So just by holding cryptocurrencies like Bitcoin, Ethereum, Luna or Cardano for a year, you can make a lot of money doing practically nothing.
Now, what if I told you that, while holding, you can receive a monthly income thanks to all the investments you are making without having to sell the cryptocurrencies that you have already bought?
This process is called staking. It is a technique where holders use coins to add new blocks to the associated blockchain, thereby receiving a reward in the form of additional coins.
In simpler words and not to get too technical, staking consists of depositing our coins in a protocol or exchange and blocking them for a certain time to generate more coins.
For the simple fact of having them there working and supporting the network to which they belong, we can already obtain benefits. This means that the coins we deposit will passively generate income for us, but in the meantime, we will not be able to withdraw or sell them.
This is the best way to invest if you want to generate short-term profits. We have already mentioned that the cryptocurrency market is very unpredictable due to its high volatility. To trade you must pay close attention to the state of the market and predict when the best time to buy or sell cryptocurrencies will be.
Trading consists of the purchase and sale of cryptocurrencies or digital assets to obtain profits with price fluctuations. That is, while you trade, you can take the opportunity to buy or sell cryptocurrencies paying attention to whether the price of the asset goes up or down.
In this way, when you see that the prices are rising, you can take the opportunity to sell certain cryptocurrencies and, in case of a drop, you can take the opportunity to buy them.
It is one of the pioneering ways to obtain money thanks to cryptocurrencies. It consists of using the computing power or hash to obtain rewards from all the transactions that are processed in the blockchain or chain of blocks.
That is, a miner records the transactions that are made on the blockchain and, in exchange for it, obtains a reward in the form of the cryptocurrency that is being mined. For example, if you mine with Ethereum , the reward would be in ETH.
Investing in cryptocurrencies and making profits is no longer a possibility, but a reality. Moreover, many experts already confirm that the cryptocurrency market is the future of the world economy. I don’t say it, the experts say it. Blockchain technology has brought a host of new investment possibilities. What are you waiting for?