Can You Really Make Money With Cryptocurrency?
If you’ve ever asked yourself, can I really make money with cryptocurrency? then the answer is yes! The cryptocurrency was one of the biggest market stories of 2017 and although it’s not well known among the general public, those who have invested in it are making huge profits. For example, if you had invested just $100 in Bitcoin back in 2010, you would have made around $2 million by December 2017 (based on its all-time high).
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What is a cryptocurrency, and how does it work?
Much like foreign currency exchange, cryptocurrency is bought and sold using an online marketplace. While there’s some debate about whether it counts as a real currency, cryptocurrency has grown to become a booming industry on its own. Investing in cryptocurrency is generally more high-risk than traditional investments—there are major vulnerabilities that could erase your holdings entirely—but if you know what you’re doing and research projects thoroughly, you can still stand to make a healthy return. Here’s how to get started: Look at what types of cryptocurrencies have been most profitable in recent months and years; study which ones show potential for future growth; identify those with active communities (especially on social media platforms) or news coverage.
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Investing in Bitcoin vs Alt Coins
It’s important to differentiate between investing in Bitcoin and other cryptocurrencies. Bitcoin is much easier to invest in (and its price is easier to predict) than other cryptocurrencies, so we’ll focus on it here. The idea behind investing in cryptocurrency is that you believe its price will rise over time. That can make for a high-risk investment—we know that one bitcoin was worth $0.003 in 2010 and now it’s worth more than $1,000—but also one with an incredibly high reward, because if you buy at $0.003 and sell at $1,000 you can earn a higher return than many investors get from traditional stock investments or bonds.
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Earning with Crypto Mining
Earn money with cryptocurrency by mining for different cryptocurrencies and exchanging them for other cryptocurrencies or for other altcoins. To make money mining, you need an effective crypto mining rig, high-end graphic cards, and special software designed specifically to mine cryptocurrency. Keep in mind that being profitable depends on how much you spend on equipment compared to how much you mine. If you’re looking to start making some cash with crypto mining, here are some useful resources
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Earning with Staking
First and foremost, you must become familiar with staking cryptocurrency. Staking allows you to earn additional coins by leaving your wallet running on a connected device like a computer. For example, if you leave 100 XRP in your wallet, you could potentially earn additional coins over time. The more coins you stake and keep offline in cold storage (off of an exchange), the more potential earnings you’ll receive! Staking coins is easy to do with most cryptocurrencies – here are some step-by-step instructions for doing so with Ripple XRP.
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Earning by Getting Paid in Crypto
Getting paid in cryptocurrency (be it Bitcoin, Ethereum, Litecoin, etc.) for a job is a good way to get crypto if you're just starting out. There are several places that will pay you to perform specific tasks. For example, there are virtual world services such as Amazon Mechanical Turk and Fiverr that advertise online jobs that can be done by people all over the world. If you have programming or other skills, there's Upwork where you can do most of your tasks from anywhere. Another option is to mine for cryptocurrencies through your own home computer. It takes some technical know-how but it could potentially earn you extra money on top of your day job.
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Other Ways to Earn Crypto
Making money with cryptocurrency isn’t as easy as just selling your coins. There are other ways to turn your crypto into cash or a paycheck. 1) Crypto-Bartering: Overstock and Newegg have embraced crypto payments, which means you can use crypto to buy everything from dishwashers to graphics cards. 2) Mining: If you have a fast computer and specialized hardware, you can earn Bitcoin, Litecoin, or even more stable cryptocurrencies like Dash for running hash algorithms on a blockchain network—which is how transactions are verified. 3) Token Sales: Many companies hold ICOs (initial coin offerings), in which they sell tokens in exchange for cryptocurrencies like Ether and Bitcoins.
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