The cryptocurrency industry has grown substantially since Satoshi Nakamoto published the original Bitcoin whitepaper in 2008. More than a decade later, most people are aware of the terms Cryptocurrency, Bitcoin, Ethereum, etc.
Now that crypto has gained wide momentum globally, with mainstream commercial and financial systems subscribing to the design, you can use it to make payments, invest, and a whole lot more. It gives rise to wealth generation in dynamic ways.
Let’s take a look at how to make money from buying and selling cryptocurrency.
Before we go on to define cryptocurrency, take a quick look at the table of contents below.
Table of contents
What Is Cryptocurrency?
Cryptocurrency is a digital asset created to work as a medium of exchange in which individual coin ownership records are kept in a computerized database using strong cryptography to secure transaction records to control the creation of additional coins and to verify the exchange of coins.
A known feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them immune to government interference or manipulation.
Recently, cryptocurrency has proven to be a legit way of making money and honestly, it is. Everyone gets into the cryptocurrency business to make money.
Can I Make Money Off Buying and Selling Cryptocurrency
A lot of us think or feel investing in cryptocurrency is a venture not worth the time. You might have your reasons. Nevertheless, keep your mind on the tune and watch me walk you through the financial benefits of trading crypto.
At the beginning of 2016, Bitcoin was worth $820-$960, and at the end of the year, it tripled to $20,000.
Cryptocurrencies generally open up some new revenue opportunities, including for making Bitcoin, the basics should be familiar to you – you need to invest time or funds to make money. Three basic ways to gain money using cryptocurrency are Investing, Trading, and Earning.
Some people tend to think that since cryptocurrency is something virtual, and there is a magical way to make a lot of money from it without making any effort. You will be disappointed if you follow this line of thinking.
Can A Beginner Make Money Investing In Cryptocurrency?
Investing in crypto as a newbie can be all alluring. However, it’s a two edged sword. You can win today and loose tomorrow.
That is to say, you can win and lose a large amount of money quickly. This means crypto trading is exciting, and it can be very difficult to keep peace in mind under heavy pressure.
Cryptocurrency is a growing digital asset that effectively offers multiple means for anyone looking to make a good income online. You can make money with cryptocurrencies in multiple ways, some of which don’t even need you to invest anything but your time and efforts.
Given the intrinsic volatility of crypto assets, most options involve a high degree of risk while others require domain knowledge or expertise.
By the end of this article, you will know how to make money from buying and selling cryptocurrency.
How Can I Make Money From Buying And Selling Cryptocurrency?
There are different ways to make money with cryptocurrency. Given the inherent volatility of crypto assets, most involve a high degree of risk while others require domain knowledge or expertise.
Therefore, the basics should familiarize you – you must invest time or funds to make money. Investing, Trading, and Earning are fundamental ways to gain money using cryptocurrency.
Let’s look at the top 10 ways to make money from buying and selling cryptocurrencies.
#1 Staking
Staking is investing or locking up your funds in a crypto-coin and earning new cryptocurrencies in the form of interest. In addition, you also benefit from a price increase when you choose to hold your coins for a specific period.
There are a large number of proof-of-stake cryptocurrencies that will allow you to make a good income with staking. The best options include WISE, PIVX, Tezos, DASH, NAV Coin, etc.
For example, WISE is an ERC-20 token that allows you to earn a handsome income through interest by securing your funds in the WISE contract. With WISE you can earn up to 5% yearly interest on your stakes.
#2 Buying & HODLing
This process allows you to buy some powerful cryptocurrencies with great ideas and good use cases and then keep them for a while, hoping their prices will go up. Once the coin price takes an upward move for you to make good profits, you can sell them in the market.
HODLing, however, doesn’t earn you any interest on your funds.
SEE ALSO: What are Sweatcoin Rewards & Prices in 2023?
#3 Cryptocurrency Investment
Investing is one sure way to make money from buying and selling cryptocurrencies. Investing allows you to earn through exchanges, ICO (initial coin offering), or direct investment/partnership.
Crypto investment can earn you returns through an increase in the price of the coin/token you purchase and your share in the project. Depending on the type of cryptocurrency you invest in, you can get access to the project/product or can use the coin for payments.
#4 Trading
The main difference between trading and investing is the time horizon. While investing is a long-term endeavor, trading is meant to utilize short-term opportunities. Trading cryptocurrencies requires a special skill set and experience – specifically, the ability to read charts and understand technical indicators.
This way of making money from crypto is more about understanding the price action in the historical context and using that to predict future prices, often on a short-term basis.
To make money online trading cryptocurrency, investors can buy and sell actual crypto coins or use derivatives, such as a contract for difference (CFD).
So, here’s the deal, once you buy your choicest cryptocurrency, you can hold them for a while and wait for the price to rise before making sales.
Alternatively, there is also day-trading for those who wish to acquire enough profits by selling and buying cryptocurrencies on the same day.
5. Bonus Coins/Tokens
Engaging in bonus/airdrop offers is an amazing way to earn with cryptocurrencies and it doesn’t even require you to invest in anything. To get running, all you need to do is join a cryptocurrency’s airdrop or bounty program and perform some easy tasks.
Additionally, you can earn bonus tokens by investing in a cryptocurrency during ICO or the token sale phase, as new projects often give bonus tokens to early investors.
#6 Mining
Mining is a vital component of the Proof of Work (PoW) consensus device and is one of the oldest ways of making money with crypto. It is a process of verifying transactions and securing a PoW network.
Miners get rewarded with new coins, through block rewards, for performing these functions. In the early days of Bitcoin, mining could be done on a desktop computer but today necessitates specialized mining hardware.
This method requires technical expertise and significant upfront and ongoing investment.
#7 Referral
A crypto referral program is a known and perfect way to earn cryptocurrencies. You’ll often not even need to invest anything to refer and earn with a project. You can register on the website, get your unique referral link, and start referring and earning.
WISE and many other cryptocurrencies award you good profits for referrals. With WISE, the referrer and referee get 10% bonus tokens for every successful staking through referral.
#8 Sell for Cryptocurrencies
If you are a trader and cryptocurrencies like Bitcoin and Ripple are licensed in your region, you can accept the same in exchange for your goods and services. Cryptocurrencies are digital money and can be easily transacted and used globally without the need to convert into other currencies.
As long as you have a digital wallet, you can accept cryptocurrency payments for your goods and services. Major businesses like; Starbucks, Whole Foods, Nordstrom, Subway, Microsoft, Amazon, and others accept crypto.
So, you can accept any top coins for easy, global transactions. Several Bitcoin payment processors allow you to combine crypto payment options in your offline/online shop.
RELATED POST: 15+ Money Making Hacks in 2023 | Do at least 7 immediately
#9 Dividends
Cryptocurrency dividends work more or less like stock dividends. You invest in a dividend cryptocurrency and earn a fixed interest on every investment. All you need to do is buy and hold cryptocurrencies for the period you wish to earn interest.
The top dividend cryptocurrencies that you can invest in for interest are BNB, NEXO, among others. Most of these coins don’t require you to stake to earn interest.
#10 Work to Earn Cryptocurrencies
With the rise in the use of cryptocurrencies, many companies are now using these digital coins to pay their employees’ salaries, among other things. Crypto payments are secure, low-cost, and transparent.
Besides, paying your remote/freelance workers in bitcoin is easy and affordable rather than sending cash through other options. Whether you’re a programmer, a writer, or a designer, you’ll find plenty of international companies ready to pay in cryptocurrencies for your work/services.
Final Thoughts
The main reason why cryptocurrencies are ideal for trading is because of the inconstancies. There are cases where you’ll have more profits due to the price when you bought the cryptocurrency and encounter an increase in the long run.
Also, the opportunity to buy cryptocurrencies when they’re cheaper or at comfortable prices and sell off when you notice they’ve increased in value makes cryptocurrency a good source of income.
We Also Recommend
