How to earn more money with Cryptocurrency

Make money with cryptocurrency

There is a lot more interest in Blockchain and Cryptocurrency today than ever before. New Retail Investors are entering the market to trade, thanks to a ton of marketing from companies, content creators, and news channels.

But trading isn’t the only way to earn cryptocurrency. In this article, we will cover the alternate, lesser-known ways to make more.

Before that, if you would like to know more about cryptocurrency and its origins, then click here.

If you are just getting started and want to identify a platform to trade, it is worth noting that there are over 1100 platforms to buy and sell cryptocurrencies. Coinmarketcap has recognized the top 300 in the world and provided an exchange score based on specific parameters. Using the Fiat Supported column, you can filter out the platforms that support your local currency.

The methods below will show you how to earn more with cryptocurrency in 2021 –

Cryptocurrency Mining

Mining is what allows a cryptocurrency that operates on Proof of Work (PoW) mechanism to remain a decentralized system. It is a process that verifies transactions between users, which is then added to the blockchain’s public ledger.

Each block on the blockchain contains x number of transaction details that can be stored in it. The value of x can range from 500 to 10000, depending on the coin.

When the unique code of a block (Assume Block A) is verified across all the distributed systems, the verifying computer gets a reward. This reward is generally a certain number of coins, and this is how new coins are added to the system.

As of 2021, the rewards for Dogecoin and Bitcoin are 10000 Dogecoin/block and 6.25 Bitcoin/block respectively.

This code of Block A is then passed on to Block B, and computers race to decode the unique code of B. This process will continue until all the tokens in the cryptocurrency are mined.

The total number of Bitcoin available is 21 million, with around 18.5 million already mined.

Half a decade ago, mining Bitcoin on your personal computer was profitable. If you did mine a bitcoin block back in 2015, you could have received around 50 Bitcoins as a reward, each worth roughly 400$.

To mine cryptocurrency, you need three things – Uninterrupted electricity, exceptional cooling, and a system capable of running 24*7 to do the complex calculations.

The best-known ways to mine are –

» Solo Mining – Purchase an ASIC OR GPU machine for enhanced computing power and cooling systems.

» Join a mining pool – By doing so, you mine as a group, and the rewards are split.

» Mine on personal Laptop – If you have a sound graphics card or a powerful gaming laptop, mining newer cryptocurrencies would be a viable option.

As of 2021, Monero and Dogecoin are the most profitable coins to mine on your own laptop. You could always mine the newer coins, but it requires extraordinary prescience and luck for it to pay off.

 

Farming/Staking your Cryptocurrency

Staking is a way to make use of your idle cryptocurrency lying in your wallet on the exchange. This concept works on the Proof of Stake (PoS) mechanism.

A greener alternative to the Proof of Work mechanism, this too follows the concept of validating the different blocks in the blockchain. A person will have to keep aside a certain number of coins as their stake to participate in this process. Here a person (node) is chosen on random to be the validator of the block based on the duration of staking and money staked. On successfully validating a block, they receive the staking fee as a reward and will then have to wait for a certain duration before they are chosen for validation again.

Staking is only available to cryptocurrencies that support the PoS mechanism. The staking rewards and rules change as per the cryptocurrency. A few top cryptocurrencies that support staking are Solana, Matic, Dot, and Ada. Many platforms facilitate staking, but one easy way to do this for some coins is through the Binance trading platform.

 

Investing in ICO’s or IDO’s

This method involves considerable risk hence please do your research before investing.

An Initial Coin Offering (ICO) is a way for coins to list publicly so that retail investors like you and me can invest in them before they are available for trade on exchanges. This is one of the modes to raise capital in a cryptocurrency startup.

The downside to investing in ICO’s is that there is every likelihood that you will be left carrying a bag of worthless coins. That being said, when deciding to back a project, if you follow the basic parameters of evaluation such as – Team, Problem solved and Vision it might just turn out to be a profitable pick.

A good platform to invest in ICO’s is Coinlist. Many popular projects like Solana, Filecoin have been listed on this platform in the past for fundraising. Ever since Coinlist, these coins have soared 17000% and 7000% respectively.

The popular projects usually see a huge number of retail investors participating in the fundraiser and it inevitably comes down to random allocation to a small number of investors only.

An Initial Dex Offering (IDO) is another method to invest in new coins before they are available to trade on the exchanges. In this method, the coins are available on a decentralized exchange (DEX) such as Binance DEX, Uniswap, or Dao Maker. These exchanges do the due diligence on the projects and only onboard ones that have a strong likelihood of success.

One key difference between ICO and IDO is that in an ICO fundraise model usually the company presents an idea and raises money to develop the idea, whereas in an IDO fundraise model the project is in the execution phase.

 

Lending your Cryptocurrency

In this process, if you own a large amount of a particular coin, you can choose to lend the cryptocurrency, and you will accrue interest for the number of days lent.

Usually, as the borrower, you need to stake some of your cryptocurrency as a guarantee. This staking helps recoup the loss for the lender in case the borrower is unable to pay back.

The interest rates for lending range from 2 – 10%, depending on the coin. Head here to see the popular platforms and cryptocurrency interest rates.

 

Rewards Program

Rewards are a passive way to earn money through cryptocurrency while you go about your everyday life. Here are two ways to do so –

Brave Browser

Brave Browser claims to be 3x faster than Google Chrome. What is interesting is their take on privacy. They value your privacy and your time. You have the option to not see any ads on the websites, or if you choose to see the ads – you get paid for it.

The payout is through Basic Attention Token (BAT) for the time spent viewing ads. You also have the option of tipping content creators when you like their work.

Once you connect your online wallet to brave Browser, you are eligible to claim the rewards earned after it crosses a certain threshold. No Strings Attached!

BlockFi Credit Card

This is a credit card that gives you cash back’s in the form of cryptocurrency. They have no annual fee, and they offer a 1.5% cashback on purchases, which is then converted into bitcoin and held in your BlockFi account.

Cardholders will then earn a 2% rewards rate on spending over $50,000 each year. They also offer a sign-up bonus of 3.5% Bitcoin rewards rate for the first 90 days.

 

Now that you know about five different ways to earn more, please be aware that Cryptocurrency is not a get-rich-quick scheme. Hold your Cryptocurrency for the long term, book your profits at regular intervals, and you should be in good hands!

Disclaimer – Before choosing any of these methods, do your own research and do not consider this article as financial advice.

 

One Response

  1. My family says that I am killing my time on the net, except I know I’m learning a lot reading great content!

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