4 Ways To Make Money With Crypto
Cryptocurrency

4 Ways To Make Money With Crypto

By AnarchyReigns | AnarchyReigns | 19 Oct 2021


4 Ways To Make Money With Crypto

1. HODL (hold on for dear life)

To HODL all you need to do is pick a crypto you see a good future in, like VET for example, and you buy it. You don't ever sell the crypto. You just leave it in your wallet or exchange and watch the price go up over time. Although the crypto market is extremely volatile, with wild swings in either direction, long term holding of crypto negates the volatility, for the most part. This is done by sitting back and leaving the crypto to grow steadily as more real world use cases are implemented, and more investors get involved. Holding (HODLing) for the long term is the safest way to earn money from your crypto, although no guarantees are made that the price will rise.

2. Mining crypto

Unlike the days of old, to mine crypto you don't need a pickaxe or drill, but you do need some powerful equipment. Mining is done by utilising computing power to complete complex mathematical problems which helps to maintain the security and performance of P-o-W (proof-of-work) blockchain networks, like Bitcoin. In order to mine cryptocurrency you will need to invest in high output GPUs or ASIC miners, which are costly, noisy, and require a lot of power to run. There are some exceptions now, like the helium network, which offer relatively cheap, and very quiet devices, but work best in heavily populated areas. (please note that not all mining set-ups are equal and not all bloochchains guarantee you a regular return) For more information on how to mine crypto feel free to check out this link:

https://www.investopedia.com/.../how-does-bitcoin-mining.../

3. Staking

This only applies to "proof-of-stake" blockchains, like cardano (ADA), and others. When you stake you are using your funds to maintain the security and performance of the blockchain network. To put it simply, you lock up your crypto and recieve rewards. You can either stake your crypto directly from your wallet, like with 'trust wallet', or you can stake through one of the many exchanges out there, like binance.

If you'd like an in-depth explanation on what staking is then feel free to read through this article from the good folks over at Binance:

https://academy.binance.com/en/articles/what-is-staking

4. Yield farming

Yield farming is a relatively new concept that allows people like you and I to loan our crypto to others and gain interest for doing so. Think of yield farming like the staking for De-Fi (decentralised finance), with slight differences. In short, you put your crypto into a pool, the platform or exchange loans out the crypto, and you receive rewards based on the interest gained. Essentially you become the banker in the traditional loan sense, and are considered a liquidity provider. Although volatility is still a factor, yield farming is very lucrative. You can earn in multiple ways via yield farming. Just take into account that gas fees are applicable, for the most part(as these services run on the Ethereum network), and there are others detrimental factors at play too; like the need to front thousands of dollars in order to generate a decent return.

For more information on yield farming please check out this link:

https://coinmarketcap.com/.../what-is-yield-farming....

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AnarchyReigns
AnarchyReigns

Writer. Creator. Crpto enthusiast.


AnarchyReigns
AnarchyReigns

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