How to make money with cryptocurrency?

The majority of opportunistic investors who jumped on the cryptocurrency bandwagon did so for one reason: to make money.

Unfortunately, whether due to multiple industry scams, bad timing or otherwise, the vast majority of them lost more than they won.

However, do you know that there are a few legit ways to make money from cryptocurrencies?

In this article, we'll explore a few that we particularly like.

How to make money with cryptocurrency?

Here are 5 ways to make money with cryptocurrency:

1. Invest in cryptocurrencies for the long term

The majority of cryptocurrencies were launched to achieve a specific and very ambitious goal. And while these cryptocurrencies may see success in the short term, these goals can only be achieved in the long term. And, if you are one of the investors who have adopted cryptocurrencies, you have a good chance of getting rich in the long term.

However, to achieve this long-term success, the cryptocurrencies in question are going to have to achieve widespread adoption in our society.

Is it worth investing in Bitcoin?

Yes! Often called “digital gold”, Bitcoin is the best known and most widely used cryptocurrency.

The more Bitcoin is prevalent in our society and the more companies adopt it as an alternative payment system, the higher the price of Bitcoin will rise.

Bitcoin investors consider that in the long term, the price of cryptocurrency will necessarily increase because the supply of digital currency is limited. Indeed, only 21 million Bitcoins are available on the market. This is not the case with government currencies which can be printed by the government at any time.

If you believe Bitcoin has the potential to become the future long-term digital currency, Bitcoin is an extremely good investment for you.

Is it worth investing in Ethereum?

Ether is the cryptocurrency of the ethereum platform and can be purchased by investors on several trading platforms. If Bitcoin is seen as digital gold, Ethereum is rather a giant computerized system that supports several other cryptocurrencies and decentralized ecosystems.

The platform enables the creation and use of “smart contracts”, which automatically execute once the terms of the contract are met.

This technology makes it possible to create decentralized applications with millions of possibilities.

Network technology has the potential to innovate the financial markets, the real estate market, as well as several other markets.

The huge number of cryptocurrencies that have been built on Ethereum increases the long-term value of Ether as well as increases its utility.

2. Do day trading

If you like risk, day trading is for you!

Advantages of day trading

In the cryptocurrency market, traders can take advantage of several market advantages.

Here are a few:

Markets operate 24/7

One of the aspects that advantages traders in cryptocurrencies versus other financial assets is the fact that this market is open 24 hours a day, 7 days a week. It is therefore possible to make money at all times.

The volatility of cryptocurrencies

Volatility is the norm for cryptocurrencies. Indeed, if you follow some cryptocurrencies, you have surely already noticed price jumps or drops of 10%, 20%, 30% and, sometimes, even more. However, it also means that you have a lot of opportunity to make money.

Data transparency

Cryptocurrency markets are transparent and everyone has access to real-time information and prices and most importantly, this information is available for free!

And yes, you don't need to pay thousands of dollars in Bloomberg fees to find out the price of Bitcoin, Dogecoin or any other cryptocurrency.

In addition, there are several interfaces such as Binance that will allow you to do technical analyzes for free!

The markets are not mature

Although many investors consider the lack of maturity in the cryptocurrency market to be a negative point, this is not the case.

The immaturity of the markets is a huge advantage for cryptocurrency investors. Why? In fact, it is mainly because your competition does not have years and years of advantage over you and, in addition, the amount of newbie investors in the markets gives you a huge advantage over others.

To take advantage of immature markets, it is super important to be as informed as possible about the current cryptocurrency market.

Markets are unregulated

As you probably know, the stock market is highly regulated. And, often, regulations can limit the actions of investors.

The same cannot be said about cryptocurrency markets. These are almost unregulated, so you can invest any way you want.

3. Generate Bitcoins

Generating Bitcoins (or mining them) is the process by which new Bitcoin enters the market. Moreover, it is also a critical step in the functionality of the blockchain.

The generation of Bitcoins is done through sophisticated computers that replay complex computer problems.

But do you know that it is possible to generate Bitcoins without having technological equipment for hundreds of thousands of dollars?

And yes, in the world of Bitcoin generation the important thing is to be able to make your cost of equipment and electricity profitable, to do this calculation there are several websites including NiceHash.

4. Create your own cryptocurrency

Another great way to make money with cryptocurrency is to create a new one.

However, it is also a much harder method to perform than the others on this list.

If you are interested in learning how to create your own cryptocurrency, you will easily be able to find all the necessary information by doing a quick search on google.

There are several ways to create your own cryptocurrency. The easiest would be to use an “open source” code of an exciting currency. This way, you will be able to cut production time a lot!

Although this method is faster and allows you to deploy your cryptocurrency more quickly, it is probably not going to stand out from the others. And, while you will surely be able to make some money with this one, it would not be a good method to earn money in the long run.

If, however, you are willing to go further and develop a cryptocurrency based on an innovative technological concept, you will definitely make a lot of money while being useful to your decentralized/cryptocurrency platform users.

A good example of this method is the founder of Ethereum Vitalik Buterin, who has fter innovating the decentralized application industry is now worth well over US$1 billion.

5. Lend your cryptocurrency

Another way to make money with cryptocurrency is to lend your cryptocurrency and earn interest on your loan.

But how to do it? As you can imagine, if you lend your cryptocurrencies to someone, there is a good chance that this person will disappear with your digital currency.

That's why we recommend using the lending platform BlockFi. This American platform is one of the only decentralized platforms that allows you to lend your cryptocurrency effortlessly while collecting interest!

To get started, you just need to create a free account on BlockFi, deposit one of the cryptocurrencies supported by the platform and voila!

The platform will start lending your cryptocurrency and send you monthly interest.

And, in addition, you will be able to withdraw your cryptocurrency (as well as your interest) at any time!

Conclusion

If you wanted to learn how to make money with cryptocurrency, we hope you found an answer.

Although this is not all the possible methods of making money on new digital currencies, it is definitely a good base.

If you have any tips, comments, or just something to share, feel free to write it in the comment section below.