Hey what’s up, in this article, I’ll explain the common ways people make money with Cryptocurrency. This article is made with beginners in mind, however if you’re an expert, you’re also welcome to read.Now make sure you download the Binance app.
Why should I download the Binance app you may ask? Good question, Well It’s funny because that is one way to make money, the first 100 people who download the app and deposit $100, trade with it, that is you buy any coin or token of your choice, you get rewarded $5 once you do that and it’s free to keep or withdraw.
I can’t say no to free money. We haven’t even gone far into the article and you’ve already started making money. You see how this works?Alright, I will stop the long talk now. Without further ado, let’s get to the primary discussion.One way is Mining, but Mining isn’t what it used to be and I’m not sure it’s profitable if you want to start small. Remember we’re looking to start with as little as we have and work our way up.
#1. Investing & Trading (Buy and Hold)
The first way we’ll look at making some money with cryptocurrency is Investing and Trading. Risk warning though, the cryptocurrency markets are very volatile.They swing upwards and downwards like crazy, however, think of these two terms Investing and Trading in two different buckets. I got this analogy from Stilt.com, credit to them.Investing is long term and trading is short term.
I’ve made multiple videos on the channel talking about investing strategies but regarding the crypto space. It simply involves a long term plan of buying and holding cryptocurrency assets for some time.When you go on the trade section of Binance, you will see a thing called Spot. What is spot? Or Spot Trading? Put simply, it’s a method of buying and selling assets, in this case crypto assets at the current market price which is called the Spot Price.The spot price is the price at which an asset can be bought and sold immediately. This price is created by buyers and sellers where they post their orders. So you can see here, the red prices here are the sell orders, the price at which people want to sell for and the ones at the bottom, the green ones are the buy price.It changes by the second because the market is very liquid. You can change this to show only buy or only sell price but we’ll leave it to show both of them. So not to go too technical, say we want to buy something like Bitcoin, I want to buy about $100 in Bitcoin with BUSD which is a stablecoin like USDT, where $1 equals 1 BUSD or Binance USD.So I’ll click on the currency pairs and select BTC/BUSD because I want to buy BTC or Bitcoin with BUSD or Binance USD which is basically buying Bitcoin with dollars.So you can see my available balance here, keep in mind that if you bought your coins via the P2P method, you would need to move it from your Funding wallet which is the P2P wallet to your Spot wallet to be able to trade here.From the Spot page now, all you need is to put the exact dollar amount you want to purchase in BTC and that’s pretty much it. Like I mentioned, investing is more long terms which is the part where you buy and hold these tokens or coins.Trading or day trading is where people exploit the short term opportunities of the crypto market.
Successful traders have deep knowledge and skills to analyze charts and things like that and frankly, it is really really risky but it’s possible to make money.If it was easy, everyone would do it and there won’t be an opportunity to exploit so definitely consider learning the ropes before you get started. I do not really recommend day trading but it does work if you’re ready to open your mind, learn and understand the risks.There are also advanced techniques like Futures, Margins and things like that but that is a whole separate video. Staking (Lending).
#2. Staking or Lending
Staking in cryptocurrency is almost like having a fixed deposit account in a bank.
How do I mean by this? Well, if you stake your crypto, you lock your coins and cannot spend them for a period of time and after a certain period you get interest or rewarded for that.The reason this is done is almost similar to mining. Miners are the people who let cryptocurrency transactions happen with the proof of work concept where their super powerful computers are used to validate and approve transactions for doing some computing work.For staking, it’s a proof of stake concept whereby your coins are used to validate transactions. On Binance for instance, in the mobile app, you would have to go from your Wallet to the Earn section or Binance Earn.
Select Subscribe to Earn.This would show you options of different coins or products, their APY or Annual Percentage Yield which is like the interest rate for the year. The third tab has the duration or how long you want your coins locked for.Either you lock your coins for 15 days, 30 days, 60 days or more and there are also Flexible plans where you can lock and withdraw when you like.
You can also see the high yield options which have higher percentages but the returns are not guaranteed.So basically to achieve these rates, you would need to lock it until it reaches that 15-day or 30-day date. If you’re starting out. Something like the USDT has Fixed savings where you lock it for 60 days for 9% yearly return or technically 1.4% in 60 days, 30 days for 6% and Flexible for 3% annualized. Your coins are locked away and it’s used to help with transactions on the network while you also make some money. A win for everyone. Transactions are approved with your locked stake, you get interest and maybe the coin even goes up in value.
The downside though is that while you get the percentage gain, the value of the coin might go down.Of course, there are high yield options for USDT as well but again, the higher the rewards, the higher the risks associated with them. As an assignment for this class, you can also learn about Swapping as well. Freelance Work – Adding it as a Payment Method – BitWage.
#3. Offering a Service and Adding Your Specific Currency as a Payment Method
One of the things that freelancers experience is usually high fees. Having a payment for a service you’ve rendered just get cut by almost 100 dollars or more in fees. That’s like 55,000 Naira lost.I’ve used many services like Payoneer to receive payment for work I’ve done and they can take almost a week to get a small thousand dollar payment with so many unnecessary fees.They charge quite a high fee for you to receive money and to spend that money or transfer it.
So it’s just unfortunate and I can’t blame them, that’s how they make money.On an app like Binance, you can select your coin of choice that you want to get paid with. Copy your wallet address and receive your cash with little fees on both parts and instead of waiting 2 weeks, you get it in a few minutes.From anywhere in the world. There are also companies like BitWage which I’ve heard of that allows people receive cash from US businesses, paid to a US Bank account and then send to you in Cryptocurrency.
#4. Following Crypto on Social Media
Creating Content my Affiliate Anyway, another way you can earn money with cryptocurrency is actually by following these platforms on social media and checking out what they’re up to. You never know what you might find to be honest.
Speaking of rewards, Airdrops are free tokens that are distributed to generate awareness about a project. They’re another way people can make some money with cryptocurrency when they follow the crypto space If you’re part of an airdrop, you get a free coin that you can trade for fiat or actual cash and use to buy stuff.
One way that is not so common is the arbitrage method of making money with cryptocurrency. Put simply arbitrage is the process by which you can buy the same asset or coin or cryptocurrency on two different markets for a different price and not the same price.So basically, it’s about buying crypto on one market and selling it at a higher price on another market. Whenever there are arbitrage opportunities, it can be a sort of easy or risk free venture for the trader.How do I know this, well it’s very obvious and one of the richest person in the cryptocurrency space, Sam Bankman-Fried made millions even now billions from this difference in price.
Thank you for reading.