As an average person, you have almost the same chance of making money from cryptocurrencies as someone who has been in the industry for some years.
The only major difference between you two is that the other person knows how to make money from cryptocurrencies. You would want to know the channels through which you can make cool cash from the crypto industry, won’t you?
Here, you will discover amazing ways people make money from the crypto industry and how you can do that too.
This list will only be complete with day trading; it is practically one of the major ways people make money from cryptocurrencies.
You can make thousands of dollars if you have the right day trading knowledge. However, remember that you can also lose thousands of dollars from day trading the same way you make them.
This is a basic overview of how day trading works; it is quite easy to learn if you are keen to know how to do it.
You go to the crypto market and use tools such as a crypto converter and technical indicators to analyze the crypto market. Once done with your analysis, you take advantage of the volatility in the crypto market by opening an entry position.
When you get into profit, you can exit the position and repeat the same process repeatedly to make as many profits as possible.
One of the advantages of day trading as a money-making channel is that you can open multiple positions. Also, you can engage in day trading in the bear and bull markets; it doesn’t have a season.
HODLing is arguably one of the simplest ways of making money in the crypto industry, although it takes some time to make maximum profit.
If you are a beginner or you are just starting to have an interest in the crypto industry, you can start your money-making spree from HODLing.
This is a simple illustration of how HODLing works; you buy a cryptocurrency, like Ethereum, for $500.
If you are practicing HODLing, you will have to leave Ethereum for a long time, let’s say within six months and above, and wait for the price to increase. After two years, you could go back to check the price of Ethereum and see it at $750 or more.
In simple terms, HODLing is a long-term investment; you buy and hold cryptocurrencies for a long time hoping for the value to increase.
This method of making money off cryptocurrencies is underutilized because of the cost of setting it up and the technical know-how.
However, there are two ways you can make money from mining cryptos; you can either have your mining rig or invest in a passive mining protocol.
If you want to own a mining rig, you will need to buy the hardware that facilitates the mining and a bit of technical skill to set it up.
For the passive mining process, you will need to pay some money to participate, which doesn’t need you to buy hardware or possess technical skills.
Play-to-earn Crypto Games
If you are a gaming enthusiast, there’s some good news; you can easily convert your passion for gaming into a money-making enterprise.
Imagine getting paid in cryptocurrencies just to play a couple of games; that sounds like some dream job, right?
This is the reality, and people are playing and getting paid cryptocurrencies worth thousands of dollars. All you need to do is find a gaming platform that pays cryptocurrencies to gamers who play their games; there are many.
For some blockchain games, such as Decentraland, you play their games and get rewards such as NFTs (non-fungible tokens), which you can sell.
However, note that this process can take time to make a good amount of money, and you need some skill with the game.
Crypto Yield Farming
Did someone give you some cryptocurrencies at one point, and you have forgotten about them? Now is the time to bring them out.
With crypto yield farming and lending, you can accumulate a lot of interest passively without being actively involved.
Crypto yield farming works when an individual gives out some cryptocurrencies and assets they are not using to a liquidity pool.
Most of the time, those to whom the individual is providing the liquidity are crypto exchanges that always need liquidity to settle their users.
Upon lending out those funds, you will leave it for a specified period, ranging from 4 weeks to more than a year.
When this time finally elapses, you will receive the cryptocurrencies you lent and the interest.
For an average person, it can sometimes be confusing how to start making money using cryptocurrencies.
You can make money from cryptocurrencies by following simple methods such as HODLing and playing games or complex methods such as day trading.
Either way, remember you can also lose money when you make the wrong decisions and investments in the crypto market.
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