- Beginner's Guides
How to Make Money with Cryptocurrency in 2021?
Planning to get into the world of digital currency to make some money online with Bitcoin? Believe it or not, cryptocurrency is the future of money. Global institutions are already leveraging it to make millions of dollars by mining it.
Many people get into the crypto world every year but fail to make it to the end. Crypto trading involves numerous technicalities and you need to understand the system clearly before diving deep into it. If not, you may end up losing your money.
That said, it’s not difficult to understand the process. Cryptocurrency is still relatively new, so it’s the best time for people to enter the market. According to an estimate, there are more than 300 million crypto users worldwide, which marks an average of 3.9% global crypto ownership rate in 2021 only. Over 18,000 businesses have started to accept crypto payments.
Another report suggests that corporations will spend $20 billion per year on blockchain services by the end of 2024.
Let’s look at some ways you can make money with cryptocurrency.
1. Buy and HODL
First used in 2013, the term HODL or hodl is derived from a misspelling of “hold.” It refers to buy-and-hold strategies to make money in the context of Bitcoin and other digital currencies.
This is the most popular way of making money online. Many people purchase digital currency coins such as Ripple, Ethereum, Bitcoin, Litecoin, and more and sell them at a profit when their value rises.
To earn money with the buy and hodl strategy, you need to identify stable digital assets that are subject to increase in value resulting in financial profits. Typically, Bitcoin and Ethereum are considered safe investments because they maintain stable price fluctuations.
It’s however, important to remember here that you don’t need to purchase high-priced assets to make profits. An alternative to Bitcoin is an altcoin that also offers lucrative price shifts. According to a report by CoinMarketCap, altcoins account for almost 60% of the overall cryptocurrency market in October 2021. There are currently more than 12,000 cryptocurrencies worldwide.
2. Earn Cryptocurrency Dividends
Looking for a short-term opportunity to make money with your cryptocurrency?
To make money by earning dividends, you only need to purchase a digital asset and hold it. You won't have to stake the coins, especially in a digital wallet. Some coins that pay you a dividend, “reward”, for holding them include KUCOIN, NEO, COSS, and CEFF.
Before you start, however, you need to evaluate your investment objectives and evaluate if it’s suitable for your portfolio.
3. Earn Passive Income with Master Nodes
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To run a master node, you need to buy a certain amount of digital coins and deposit them into the wallet as collateral.
Technically speaking, a master node is a cryptocurrency full node or digital wallet that operates on a collateral-based system and keeps a real-time record of a blockchain’s activities.
Most crypto platforms outsource their blockchain maintenance service to node operators. Master node operators verify new blocks and maintain a real-time record of the new blocks of transactions on their blockchain. In return, they earn a percentage of their stake from the crypto platform.
Popular examples of proof of stake crypto that employ master notes include PIVX and DISH.
4. Create Cryptocurrency Content
In recent years, content creation has emerged as an effective method of communicating your message to potential clients. Whether you want to launch a new product, or just need to increase the sale of an existing one, content creation will help you do that.
As most of the crypto projects are virtual, they heavily rely on content marketing. You can create infographics, videos, or written content to help crypto platforms reach their target audience.
Some popular websites offering regular gigs for digital content creators for promoting their crypto projects include Steemit, Y’alls, and Yours.
Getting started with crypto staking is one of the easiest methods of earning money with crypto. It offers a double earning potential through price appreciation and bonus payment from certain coins for staking their assets.
With this method, you hold coins in a live digital wallet and earn additional coins for securing their crypto network. Some digital coins you can stake include PIVX, Neblio, Decred, and NAV coins.
Learn More About Crypto with Urban Crypto
Urban Crypto is a reputable platform where you can find a beginner's guide for cryptocurrency and learn about the latest trends in the crypto world.
Feel free to have a look at their blogs if you’re looking for a way to make money with cryptocurrency.
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