10 Ways to Make Money in Crypto
10 Ways to Make Money in Crypto
You’ve heard about crypto. You know it’s the hot new thing, and you want to get in on the action...but how? Everyone keeps talking about how easy it was to make money during Bitcoin’s initial explosion, and you don’t want to miss out on that. But if you have no idea where to start, it can be hard to get started, especially with all the scams floating around out there.
1) Get Educated
The first step is understanding what you’re investing in. Learn as much as you can about Bitcoin, Ethereum, and other cryptocurrencies.
2) Do Your Own Research
There’s a lot of information out there about crypto, but much of it is thinly-veiled hype and/or outright misinformation. Do your own research into coins you might invest in to find out what truly makes a project unique and valuable. When investing in digital assets, never invest more than you can afford to lose; digital currencies are volatile and vulnerable to hackers. Remember that during their early stages, many successful crypto projects look like scams.
3) Join Communities (Reddit, Medium, Twitter etc.)
Cryptocurrency communities are a great place to get educated about specific currencies. You’ll be able to see what people value about that currency and also learn about new opportunities. If you’re trying to build your knowledge of cryptocurrency as a whole, communities are an excellent starting point. Additionally, if you choose to invest later on down the line, you’ll have more assets at your disposal since you can buy a variety of coins through exchanges like Binance or Coinbase rather than just Bitcoin.
4) Stay Connected To The Industry
If you’re looking for a quick way to learn about crypto, connect with leaders of a specific industry via Twitter. There are hundreds of influencers who talk daily about crypto and blockchain, whether they are experts or newbies. Read their work, comment on it and ask questions. Soon enough, you’ll be an expert too!
5) Participate In Airdrops and Bounty Programs
Making money with airdrops and bounty programs is pretty simple. Airdrops are when a company distributes free tokens/coins to your wallet, then you have to take some action (like sharing it on social media or leaving it on an exchange) in order for you to receive those coins. Bounty programs work similarly but instead of being given coins for free, you get paid for doing tasks like leaving comments on Bitcointalk or contributing code that helps develop a project.
6) Invest In ICOs
ICOs have revolutionized traditional startup funding. They’re a relatively new phenomenon, but they’ve quickly become a staple of Silicon Valley culture. In 2017 alone, ICOs raised $5.6 billion, while they raised just $228 million through VC funding. The caveat?
7) Trade Cryptocurrencies On Exchanges
Trading cryptocurrencies on exchanges is a great way to profit from market volatility. When you buy and sell cryptos, you have market risk (the price can go up or down before you execute your trade), but it’s lower than if you were buying shares of a company. That’s because, when trading on an exchange, there are fewer risks like fraud and operating costs.
8) Read Up On New Technologies
In addition to learning how blockchain technology works, you should also learn about other emerging technologies that could have an impact on your business. Even if they don’t affect your industry directly, they might be related and cause waves elsewhere (like artificial intelligence and virtual reality). For example, a retail company might need to learn about augmented reality if it plans on using Snapchat as a marketing tool. As with all trends, these will come and go—but being familiar with them can help you plan for changes.
9) Don’t Put All Of Your Eggs In One Basket
When you put all of your funds into one asset, whether it’s a cryptocurrency or a penny stock, you’re risking it all on one business. If that company fails, you may be out of money. However, if you invest across multiple different cryptocurrencies or different companies, then you can reduce some of those risks by creating diversity within your portfolio.
10) Keep Learning About The Technology Behind It
Researching and understanding how cryptocurrencies work will help you make better investment decisions. When investing in cryptocurrency, it’s important to research both companies and altcoins themselves. While reading white papers is a great place to start, it’s also worth taking time to understand a company’s business model. What are its products? How does it plan on making money? Once you understand these fundamentals, your investment choices will become much clearer.
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