By David Kiboi
Cryptocurrency is all about better currency; that is good money. Everyone in cryptocurrency is there to make money….not everyone makes it though!
Such kinds of high-level scams, though shakes, have never crippled the industry. Cryptocurrency only gets better against all odds, and experts’ projections only reveal a brighter world ahead. A clear indication that the industry is firm and worth investing in.
As you can see, handsome money exists in the crypto space. It only takes learning several tricks and directs the stream to your pocket. This article shows how you can make genuine money with cryptocurrency.
So, how can you make genuine money with cryptocurrency?
1. BUY & HODL
Buy and HODL (Hold on for Dear Life), is a phrase used in the cryptocurrency community for purchasing the cryptocurrency and holding it with a hope that the coin will one day sell at a higher price.
HODL is one of the easiest and fast ways to make money with cryptocurrency. Here you just learn how to buy and wait with patience before selling. Simply put, this is how you make money through this method.
In 2017, bitcoin price grew from $974 to $20000 in less than a year. In other words, anyone who bought bitcoin in January 2017 and sold it in December the same year grew his money by a whopping 2000%…in just
One week in July 2010 saw bitcoin grow from $0.008 to $0.08 in five days. This was a 1000% growth in a record 5 days.
This method is also highly applicable in other cryptocurrencies including Etherium, Binance, Nexo, monera, and all others that have a fundamental use-case.
2. Cryptocurrency dividends
This is another easy and great way to make money in the crypto world. In buy and hodl, you only make money when you sell your coin at a higher price than you bought it. Some cryptocurrencies, however, have a good way of rewarding traders…crypto dividends!
With coins like Neo, Neblio, KuCoin, CEFF, etc, traders make money by simply holding the coin in your account. This way you don’t need to purchase or own cryptocurrency…you get paid for simply holding and keeping the currency in circulation
Neblio, for example, which is seen as a competitor of Etherium and NEO gives an annual return of 10% on the total holdings. Dividends are earned on holding the Nebl token on neblio qt and/or a raspberry pi.
3. Cryptocurrency staking
Staking is a process of holding coins in a live cryptocurrency wallet. It combines the earning potential of buy and hodl and those of cryptocurrency dividends.
In staking you buy a currency and hold it while waiting to sell it in the future at a better price. The cryptocurrency then pays you dividends for the period you hold the currency in a form well known as “double profit.
Cryptos that use this system pays you for securing their crypto network. These cryptocurrencies include: PIVX, Navcoin, and decreed. This is the smartest way to make money in cryptocurrency with fewer efforts.
4. Cryptocurrency Masternode
Cryptocurrency is built on blockchain technology. In other words, cryptocurrency is a digital ledger where transactions are recorded in real-time and chronologically then put public for verification.
These operations need a masternode. A masternode is a computer that makes the ledger available, and up to date in real-time. A masternode acts like a server that can be hosted on any computer…including yours!
Hosting a masternode, however, has some requirements. For many cryptocurrencies, you are required to have a certain number of coins in your account. This number ranges from 1000 to 2500 depending on the cryptocurrency you invest in.
In this case, you get paid to maintain a real-time record of the transactions on the cryptocurrency network. This process requires some technical skills, hence good for advanced users.
Masternode is considered the consensus method for proof of stake currencies. For example, DASH requires 1000 coins to create a node with approximately 7% annual ROI.
5. Cryptocurrency Mining
You probably have come across all these pop-ups suggesting to show you how to mine bitcoins. Mining is one of the surest ways to make money in cryptocurrency especially when talking of altcoins.
Mining involves adding transaction records to a chain of public ledger transactions. The process requires high computing power if it has to be profitable. For this reason, mining requires that you invest largely in equipment; buying, setting up and maintenance.
Complex work in this process is done by the computer. You just set it and let it solve the complex mathematical problems. The miner is rewarded for every problem solved successfully. As pointed earlier, however, this requires a powerful processor that will outdo other computers in the pool to solve as many problems as possible.
For example, this is how you can make money mining bit
bitcoin mining is measured in units called ‘blocks’. For every block completed, the miner currently receives 12.5 bitcoin as a reward.
6. Day trading
This is one of the most common ways to make money in the crypto-sphere. It involves tracking the prices of currencies while constantly buying and selling them. This one is surely not for beginners or those trying the depths. It takes advanced analytical and technical skills to earn good money.
While 80% of cryptocurrency investors believe that day trading is the only way to make money in cryptocurrency, statistics show another side of it.
For example, according to cointelegraph, 80% of day traders quit within the first two years. Additionally, active traders under perform by 6.5% annually, adds cointelegraph.
That notwithstanding, the report found that traders with up to a 10 years negative track record continue to trade. Perhaps why another report reveals that 90% of day traders are losing money silently.
These statistics are scary if not horrific. In other news, however, some guys are making money through this method and others believe that it’s the only way to make money with cryptocurrencies. True to it, with proper tools and skills, this is, without doubt, the most rewarding way of making money with cryptocurrency.
The cryptocurrency industry is evolving rapidly. A few years have passed since it became a thing. Through the years, crypto turned many to millionaires and drained others of their millions. Yes, you can make smart money with cryptocurrency. How much… It depends!
It all depends on your management skills and how high you are willing to take your crypto trading skills.
Disclaimer: The opinions in this article belong to the author alone and do not reflect the opinions of Hacker Noon as a whole. This article was meant for informational purposes only, and should not be taken as investment advice.
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