How to Make Money with Cryptocurrencies?

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2020 has been an eventful year for everyone. Including me.

I had less on site teaching jobs. That impacted that source of income.

Thankfully, I was still getting side income from my affiliate marketing business.

But with one source of income affected, I was looking out for more ways to earn money.

A friend contacted me via an online chat app. We had a lengthy discussion about cryptocurrency.

I learned quite a bit about the crypto market. As such, I saw opportunities to make money.

Today, I am here to share with you these opportunities. We are going to discuss How to Make Money with Cryptocurrencies?

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During the chat with my friend, we threw around the term – crypto and cryptocurrency – freely. And that was because we knew what the terms meant. Or at least, my friend who was more knowledgeable about this topic knew very well.

For me, I must admit that I kind of know what it meant. This was because many years ago, with a few ex business partners, we considered investing in Bitcoin. As such, I did my research back then, and found out that crypto and cryptocurrency meant.

And yet, today, I still feel it prudent to do a bit of research again. Just to be sure that I got it right. And I found this definition by Investopedia.

“A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology — a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.”

Investopedia

What do you think? Is it spot on?

There are thousands of cryptocurrencies available. The very first one was Bitcoin. It was launched in 2009 by Satoshi Nakamoto. And till today, Bitcoin is still very popular. According to CoinMarketCap, in December 2020, Bitcoin was pegged at about $421.7 billion.

Other cryptocurrencies include Ethereum, Litecoin, Peercoin, Namecoin, Cardano, EOS, and many others. These are termed as Altcoins.

Blockchain is a specific type of database where the blockchains store the data in blocks that are chained together. It is used to keep an online ledger of all the transactions.

When new data comes in, it is entered into a fresh block. When the block gets filled with data, it is chained onto the previous block. Hence, the term blockchain, which refers to the data chained together in a chronological order.

The blockchain is used in a decentralized way. This is so that no one person or group has control of it. Instead, all the users retain control collectively. This online ledger then becomes quite secure as it is shared and agreed upon by the entire network of individual node or computer that is maintaining a copy of the ledger.

Every new block that is generated is also verified by each node. After that, it is confirmed. This makes it almost impossible for the transaction histories to be forged. One thing to note is that decentralized blockchains are immutable. This means that the data is irreversible.

For those who prefer to see what a blockchain is all about, here is a video for you.

There are many ways to make money with Cryptocurrencies. Below, I present some of the more well known or popular ways to do it. This is not an exhaustive list. So, of course there are many more ways than just what is shown in this list.

For now, I believe the following will be enough to keep you busy and help you have some ideas for passive income:

When I first heard about mining cryptocurrencies, I was a little amused. The idea of people going to mines and digging for tokens was quite funny. Of course, that is not what mining crypto is all about.

Crypto mining is when a machine performs certain tasks. These tasks are called ‘Proof of Work’. And they are math problems to be solved. Upon successful completion, the miner gets a little bit of cryptocurrency.

Today, there are various ways to mine cryptocurrencies. You can join mining pools or mining clouds. A pool is a group of miners working together to solve the complex mathematical problems faster.

A mining cloud is where you pay another party and rent their rig, which is a mining machine. Depending on the agreed period of rental, and the amount of rent you paid, you will get a share of the cryptocurrency mined.

This is one of the ways to make money with cryptocurrencies that many beginners do. And that includes me.

In November 2020, I decided to get into crypto. And my first foray was Bitcoin. I bought some Bitcoin with the intent to hold it for the long term. But it was not a smooth ride.

I found out that I was not able to buy crypto at Binance .com with fiat. Fortunately, there was Binance Singapore, which allowed me to buy crypto using fiat. So I managed to purchase a very little bit of Bitcoin.

I was lucky! After I bought the Bitcoin, the price went up! It crossed the $20,000 mark. And now, as I write this blog post, it has crossed the $30,000 mark, too. And it is still climbing.

What do you think? Will it continue to skyrocket?

With this strategy, most people will buy cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc. And the idea is to hold on to the coin. Over time, the price of the coin rises.

The holding of a cryptocurrency is known as HODL. It stands for Hold On for Dear Life.

You can continue to sell when the price reaches a certain amount. And as such, you make some money. Or you can continue to keep it, and watch if the price continue to rise.

If you like to buy and HODL, click on the blue button below to buy your cryptocurrency at Coinhako. It is one of the most trusted cryptocurrency exchanges in the market.

Where HODLing is to keep the coin for the long term, there is also crypto trading. This is usually a more fast paced way to make money.

People who do crypto trading take advantage of the cryptocurrencies’ highly volatile nature. They buy and sell in order to make short term profits. It is quite similar to stock trading. The difference is that you buy and sell tokens or coins for profit margins.

And this is not easy to do. You will need to do research. Gain as much knowledge and information as you can. Find out all you can about the crypto market. For example, you need to be able to read charts. You need to understand technical indicators.

Crypto trading requires a lot of time and effort. Plus, a lot of practice, too. I know of people who do crypto trading, and they find it exhausting. And I don’t blame them for feeling that way.

Staking is when you lock your coins in a cryptocurrency wallet. You earn new cryptocurrencies in the form of interest.

In a sense, when you do staking, you are actually lending coins to a Proof of Stake (POS) network. And you earn more cryptocurrencies when there is price appreciation and dividend payout from selected coins.

Here are some of the proof of stake cryptocurrencies – WISE, PIVX, Tezos, DASH, NAV Coin, etc.

Another way to make money with cryptocurrencies is to invest. For example, investing in exchanges such as Binance or Coinhako, or an initial coin offering (ICO), or by directly investing in a crypto business.

You make money with your shares in the project you invested in.

Referring people to cryptocurrency businesses, exchanges, and many more operations can generate a nice side income for you. This is also known as affiliate marketing.

Basically, you register with the organization as an affiliate. You get your unique referral link. Then you start referring people by getting them to click on the referral link. When they make a purchase, you earn a commission.

And the commission is usually a bit of cryptocurrency. So, this is another way for you to accumulate crypto. Or if you prefer, you can immediately cash out after you earn it.

If you are a business, you can also earn cryptocurrencies by accepting them as a form of payment for your goods and services.

This is a very powerful way to reach an international audience. With cryptocurrencies, there is no need to convert currencies using exchange rates. Your customers simply make payments securely.

This speeds up the entire payment process. Payment by cryptocurrencies is really fast. All you need to do is give your customer your eWallet address. The transfer of cryptocurrencies into your eWallet is done within half an hour, or maybe even faster. No more waiting for days to receive payments.

In today’s world, many companies are now offering to pay employee’s salaries with cryptocurrencies. So, you find an organization that does so, and earn your crypto this way.

If you are a freelancer, you can have an option to be paid with cryptocurrencies. You will find many people and companies willing to pay you with digital coins for your work, or services.

Are you an expert in blockchain technology? Then creating your very own cryptocurrency may be a way for you to make money.

Of course, you need to be able to research and evaluate your choices. And then decide on the type of digital coin you wish to create.

Alternatively, if you are no expert, you can hire a team of blockchain experts to work with you on this. After you develop the coin, you have to do a lot of promoting it. This is to gain awareness so that people can consider, and hopefully invest in your project.

In addition, you can sell your coin through ICO or exchanges.

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How to Make Money with Cryptocurrencies?

Timotheus Final Thoughts

In today’s world, cryptocurrency is one of the best ways to earn money online. This is because it is one of the fastest growing digital assets.

I understand many people are still cautious about crypto. Some may feel it is still too risky.

And yet, you must know that institutions are now getting into the crypto market. For example, Visa, PayPal and Square are already doing it.

As more and more institutions get into crypto, you know it will soon be mainstream. Maybe it already is. Whichever point we are at, it is wise to consider this option.

So, do yourself a favor. Consider this way of making money online. And do remember to do your due diligence and research.

If you have ANY questions, or anything to clarify, please drop a comment below. I will be happy to help you.

I wish everyone great wealth and success.

Timotheus
Digital Marketer, Lecturer, Amazon Bestselling Author & Cancer Survivor