There is so much hype around the value of bitcoin and other cryptocurrencies that it is hard to know what to think about it. People with a passing interest are likely staying away even though they are intrigued because it seems like it is too late to jump in and invest.
The idea of making money with cryptocurrency is to buy low and sell high. With the crazy heights that bitcoin is seeing right now, it seems like bad timing to invest now as it may be at its peak. This may or may not be the case so it’s not an easy answer as to whether or not it’s time to invest
Luckily, there are a lot of ways to make money with cryptocurrency so it doesn’t really matter if it’s at its peak. Bitcoin and many other coins are not going away. There will always be an opportunity to make money one way or another. In this article, we will go over several ways that you can be making money with cryptocurrency.
1 – Peer To Peer lending
The blockchain has disrupted many industries, but chief among them is the finance industry. For centuries, there was going to be a middleman for financing whether it is a bank or a government agency that regulates currency. This poses a lot of problems for people and increases the price of accessing money.
Over the years the concept of decentralized finance of DeFi has caught on thanks to the nature of the blockchain. Since it is transparent and secure, it makes the ideal place to do money lending without needing a banking system. It is trustless so it can work anywhere and at any time.
This presents a wonderful opportunity to make money by lending cryptocurrency and getting interest in return. It’s also a bonus if the cryptocurrency in question increases in value over the time the money was loaned out and then paid back. For instance, you can buy dogecoin in Canada and then lead it to somebody on the other side of the world without interference from a bank or regulatory agency.
There are a lot of people that are holding cryptocurrency that need some quick cash but don’t want to cash their coins out. This is a fantastic way for them to borrow against it without needing to sell the coins. It is also a very low risk for you to lend money and make some interest on the coins that you already have.
2 – Blogging about cryptocurrency
Blogging is a very good way to make money online these days. When you have a blog about a topic that you’re interested in and get enough traffic it can end up making as much money as your full-time job or even more.
One of the best topics to blog about is one that attracts a lot of money. That would be cryptocurrency. You will see very generous affiliate marketing commissions since so much money is being spent on cryptocurrency. There are many exchanges that will pay some of the highest commission rates around when you direct your blog traffic to them and people end up buying after.
There is also a very high rate for the ads on cryptocurrency blogs. If you bring in decent traffic, the ad earnings alone can make quite a bit of money. There are different rates for different categories and cryptocurrency offers some of the highest.
It is a very saturated niche and it will be a challenge to break through and have success. However, if you find some good subtopics to focus on then you can get quality traffic to your site and make quite a bit of money.
3 – Day trading
If you have nerves of steel and love a good challenge then being a day trader of cryptocurrency is a great way to make money with it. The way that it works is very similar to day trading with the stock market. The idea is to start the day looking for opportunities in which the value of a currency is low but due to rise. You then buy some of the currency and sell it at some point during the day when it has risen in value.
The problem is that the value can also decrease over the course of the day. You then have to make a decision to sell it at a loss or to hold onto it longer than you had planned.
Things move very fast so losses can mount quickly. At the same time, so can profits. It takes the right strategy and the ability to trade without your emotions getting in the way. The biggest challenge you’ll face is knowing when to stop. There are no market hours like there are with a stock exchange. Trading happens 24 hours a day. Losses can be stopped when the market closes and allows the market to regroup. You don’t have this luxury when it comes to cryptocurrency.
4 – Mining
Although mining pays much less than it did just a few years ago, there is still money to be made by setting up a mining rig. It used to be possible to make your own rig and do the mining yourself. These days it is almost impossible due to the number of big players that are mining.
The way to do it these days is to make a rig and then join a mining pool. This increases your chances of being a part of a hash that gets verified which you will get paid for. The profits are smaller, but so is the initial investment to get set up and working. The best part is that the process is completely passive. It can be working 24 hours a day making you money while you do other things.
Since cryptocurrency has become a big part of daily life for many people around the world, there is always going to be a way to make money from it. It just takes the right system that will work for you and your priorities.