Can You Make Money From Crypto? Read This Before Getting Started

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Can You Make Money From Crypto

Since its inception on January 9th, 2009, a single Bitcoin has gone from a value of $0 to $40,000, and this figure continues to fluctuate, usually upwards. Not only that, Bitcoin has spawned several other cryptocurrencies that are following its steady and often meteoric growth. 

The market share of cryptocurrencies is currently valued at 3 trillion dollars. The market only continues to grow, spurred by investor interest and the market’s invisible hand. Some countries are even considering using cryptocurrencies as legal tender. 

It certainly does sound like a lucrative investment opportunity, doesn’t it? So, if you’re someone looking to buy cryptocurrency, the process is not particularly difficult; it simply calls for a little attention to detail.

How To Make Money Using Crypto

Investing

The simplest way to begin a fruitful journey into the world of cryptocurrencies is to purchase cryptocurrency. Although cryptocurrencies do not rely on fiat as national currencies do, you can simply buy crypto with a credit card. All you need to do is choose which fiat currency you wish to carry out your first transaction with, choose how much of a cryptocurrency you want to buy on a merchant website, and that’s it. All that’s left is to sit back and watch that number grow. 

However, we must tell you that profiting from crypto may not be as straightforward as we make it sound. It takes a lot of research and skills to understand how to trade with crypto.  We will get into the details in the following sections.  

Trading

Once you’ve got a bit of Bitcoin, or any other cryptocurrency to your name, it pays to play the market; to buy and sell currencies to accrue a profit against your initial investment. Now, this part requires a bit of expertise; you’ve got to keep your eyes on the value of several cryptocurrencies, including the one you own, and trade them around at the correct time for maximum profit. It takes a bit of practice and expertise, but it’s worth staying on that learning curve for the best results.

Mining

Mining cryptocurrency is perhaps the most old-school method of acquiring cryptocurrency. You see, cryptocurrency functions on a blockchain, which is a software system that records each transaction carried out using a particular currency. This blockchain functions as a public ledger that authorizes the existence and value of a cryptocurrency. Blockchain technology is the basis upon which cryptocurrencies can do away with fiat. 

To mine cryptocurrencies, all you need is a computer with some degree of processing power. Then, you need to download your preferred mining software and go about your day as usual. Your computer will record cryptocurrency transactions as they take place, and in return, parts of the currency you have chosen to mine will be deposited in your account as a reward for keeping the crypto economy on its feet.

Staking and Lending

Now, once you acquire a cache of cryptocurrency, you’ll have the unique opportunity to play at banking; you can lend out your share of cryptocurrency to one, or several borrowers, who can use it as they please. However, no matter how their transactions play out, they’ll have to return the principal amount at the end with interest set by you. If you set a competitive interest rate, your little cache could grow to impressive heights.

Crypto Social Media

From decentralized currencies come other methods of decentralizing data, and Crypto Social Media is where it begins. Unlike Facebook or Twitter, Crypto Social Media’s code and content are crowdsourced from its users. And in return, its users are rewarded for the content they create in cryptocurrency. Think of it as mining, except it rewards your creativity in the process.

How To Get Started?

Now, the very first step to your cryptocurrency journey is in finding a merchant website, or wallet application, that deals in cryptocurrencies. From there, it’s simply a matter of creating an account, linking it to a bank account, and then all you have to do is to convert cryptocurrency (fiat), and you will be good to go.

A Word Of Caution

Decentralizing the economy sounds very liberating on paper, but there’s always room for foul play. It is one of the few pitfalls associated with dealing with cryptocurrencies. Since the entire system is located entirely in the virtual space of the web, the old phishing scams and fake websites that seek to steal your money and data have been given new life. 

So, when you buy cryptocurrency, do vet the website’s credentials you’re buying from. If you’re doing it through apps, skip the dodgy .APK file and download apps from a trusted source. Above all, check where and when you are entering your private wallet key, and keep it from prying eyes.

Conclusion

Cryptocurrencies are a revolutionary new way to invest your hard-earned money and watch it grow, and there are several ways to go about the process. With the information we’ve provided, you should be well on your way to making that first investment and feeling the thrill of playing Wall Street in its heyday.

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