Whether or not you love crypto for all the right reasons such as its technological innovations or revolutionizing economies and financial institutes, I am always asked how cryptocurrency beginners can make money from the get-go. Making cash is one of the main reasons why people get into crypto, and there is nothing wrong with that.
If you are one of those cryptocurrency beginners who want to dive headfirst into the crypto markets, here are few ways you can make money from crypto right from the start.
This is what I do, and what I describe in my article above. The idea is that you buy a set of cryptocurrencies early in the day and sell them when you capture enough value to be satisfied. You sell everything at the end of each trading day.
I aim for 1% profit per day. That doesn’t sound like a lot. But it is if you are consistent. 1%/day compounded for a year on a $1000 investment is about $37,000. After two years it is $1.4M.
Learn more about day trading cryptocurrency here.
Long Term Investing
Warren Buffet is a long-term investor. When he buys shares in a company, he typically holds them for years. You can do the same thing in the crypto world. Many people are now millionaires because they bought Bitcoin in 2011–2012 and haven’t sold even as it approaches $8000.
An ICO (initial coin offering) is like an IPO where a company is selling its shares on the public market for the first time. Cryptocurrencies do the same with ICOs.
To profit on an ICO you can buy the cryptocurrency at the ICO offering and then sell it immediately when it hits trading exchanges if the price is going up.
Cryptocurrencies run on a decentralized database known as the blockchain. Transactions on the blockchain need to be validated by many parties so everyone can be sure that the database is correct.
Transactions are validated by miners - people who buy expensive computers and use tons of electricity to validate everything. The miners are rewarded for their participation and investment with more cryptocurrency.
We have prepared a comprehensive guide on how to mine cryptocurrency. Check it out here https://fairlay.com/blog/how-to-mine-cryptocurreny/.
There are cryptocurrencies that give some dividends as a reward for letting your wallet connected to the network, therefore securing the network and making it more decentralized.
Here are a few names:
- Neo — It gives you Gas, and you don’t even need to stay connected, you just need to store your Neo in its wallet where you own the private keys such as Neon Wallet (Software) or Ledger Wallet (hardware). Also a few exchanges such as Binance or KuCoin gives you the gas if you keep your NEOs there; the current dividend is around 4%.
- Pivx — Keep your wallet online and get around 4.8% annual return in PIVX
- OKCash — Keep your wallet online and get around 10% annual return in OK
- Many masternode coins (most famously DASH) also give you a return of investment if you hold a masternode. However this usually means you need to hold a big amount of coins (like 1000) to start an masternode and you need to maintain it, update it, etc. to get paid.
Register to airdrops and get free coins. New coins are usually giving away free coins in order to get users into their community, to get followers or just to get known.
Taking Advantage of Hard forks
When one blockchain split in two, a hard fork happens. That’s what happened to bitcoin many times. When Bitcoin Cash was created, everyone who was owning one bitcoin before the hard fork in a wallet with the private keys would get automatically one bitcoin cash. The only thing to do is to access the hard fork currency’s wallet and to connect with the private key!
Building a cryptocurrency related project
Another way to make money is to build your own cryptocurrency.
Please note that the purpose of building a cryptocurrency / decentralized platform is not to make money but to solve a problem!
Create a coin
There are many altcoins, a lot of them are totally useless such as TrumpCoin, PutinCoin or Macron. They are sometimes called Shitcoins.
Betting Using Cryptocurrency
Another method of making money with digital currencies is gambling on various sports and events using bitcoins. There are several bitcoin gambling sites, but Fairlay is one of the biggest Bitcoin prediction markets and exchange.
Predict sports matches like American Football, Tennis, Soccer, Rugby, Golf, Volleyball, NBA, NFL, HFL, MMA, eSports, Horse Racing, Motorsport, Table Tennis, Winter sports, and events like elections using Bitcoins.
We offer game spread, outright, over/under, full-time and half-time betting options. Place your bets on Fairlay’s sportsbook betting exchange and enjoy the thrill of the game! Predict election outcomes and Trump’s exit date on the Fairlay news section and swap cryptocurrencies instantly using the Fairlay Shift Exchange.
Here are a few ways to earn money, try them and see where it leads. I tried a few of them and my life has not been the same again. I hope you will be lucky than me!
Guest Writer contributed to this article: Josiah O. Makori