The cryptocurrency sector has significantly grown since the invention of Bitcoin by the anonymous Satoshi Nakamoto more than a decade ago. More and more people are now informed of the terms Bitcoin and cryptocurrency. Three years ago, during the peak price for cryptocurrencies when the value of Bitcoin reached its ATH of $20,000, “How to buy BTC” was the third most searched ‘how to” on Google.
Although the total market cap of BTC has fluctuated massively due to price swings, it has substantially increased from around $10 billion in 2013, to a whopping $237 billion at the end of last year. By the same token, singular Bitcoin addresses and transactions have increased at an average of 60 percent for the last five years.
Can you create wealth using cryptocurrencies?
Although the early adopters of cryptocurrencies have made massive gains, the industry is still in its early stages and developing. For instance, the internet was invented back in 1969, while the World Wide Web was introduced 21 years later. Cryptocurrencies have only existed for just a little over ten years.
Are you interested in generating more income? The answer to this question is pretty straightforward. The crypto space provides you with a plethora of opportunities to generate revenue. A couple of these opportunities need a lot of technical work and speculation, while others need little work. In this article, we have analyzed some of the best known ways to profit from the crypto world:
Cryptocurrency trading is one of the most popular ways you can earn from the cryptocurrency market. Cryptocurrency trading involves the buying and selling of digital assets on a short term basis. The concept is primarily based on buying low and selling when the prices rise. Cryptocurrency trading works pretty well for technical traders and as the crypto market is characterized by price fluctuations and volatility.
Apart from day trading, there is also margin or leveraged trading which involves securing funds from a trading platform and trading with more funds than your initial capital. These additional funds are borrowed from brokerages. In margin trading, for instance a 7:1 leverage means a trader can trade money 7 times than the initial investment capital.
Notably, both day trading and margin trading require fundamental and technical knowledge. We recommend you to gain the required trading knowledge to avoid losing your capital in the cryptocurrency market. However, the emergence of automated algorithmic trading platforms such as the BitQT App have made day trading easier for beginners. BitQT is one of the most efficient and profitable trading platforms for investors who want to aspire to generate regular profits from the digital assets market.
2. Participating in bounty programs and aidrops
People can earn cryptocurrencies by participating in simple community tasks For instance, it is possible to acquire tokens by publishing blog posts, posting on social media platforms such as Facebook, Reddit, Twitter and Github.
Participating in bounty programs is a short term method of earning crypto tokens. However, you can also participate in the development of the project by introducing more people. The more people that join, the higher the possibilities of the project succeeding.
3. Buying and HODling
This is the best known method of profiting from the cryptocurrency market. It simply involves purchasing digital assets and keeping them for the long term with the hope that their value will appreciate in future. Unlike taking part in bounty programs, buying and holding cryptocurrencies has its risks. To succeed using this method, you definitely require some technical skills, some bit of luck and the mind of an investor.
You can try this method by purchasing the most profitable digital assets in the market such as Bitcoin, Ethereum, Dogecoin, Litecoin, Chainlink, Cardano and many others. Cryptocurrencies can be bought on exchange platforms such as Coinbase, Binance, Gemini and many other trustworthy platforms.
4. Investing in STOs and ICOs
Investing in initial coin offerings (ICOs) and security token offerings (STOs) can generate substantial long term proceeds. However, when choosing a project to invest you should be extra keen because most of these projects are overstated and fraudulent. Beyond speculating the value of fresh tokens and digital assets, it is important to watch out for the project’s road map and developments.
We recommend you to seek additional information on ICO projects from independent ICO rating platforms such as ICOBench and ICOHolder.
5. Cryptocurrency mining
Crypto mining involves verifying cryptocurrency transactions and adding them to the blockchain. Miners are rewarded with new cryptocurrencies after completing this process. Mining involves competing with the other miners on the ecosystem to decipher complex mathematical problems using powerful computer systems.
Cryptocurrency mining is a method of generating profits from the cryptocurrency space that requires a lot of technical knowledge. Notably, the process requires substantial investment on the most effective mining hardwares such as ASIC and GPUs. Mining is becoming tough and highly competitive in today's market.