Most people are at least familiar with the terms Bitcoin, Monero, and other blockchain based cryptocurrencies. These digital currencies are stored in blockchains, or a series of data records managed by multiple linked computers rather than being owned by one single entity. In the context of cryptocurrencies, a blockchain can be thought of as a sort of public ledger of transactions. Cryptocurrencies can be created or obtained through a variety of methods, and while most people are probably still at a loss as to how the specifics work, it may be easier than you think to learn how to make money with cryptocurrency.
Crypto coins can be “mined” or created by computers solving complex equations that are added to the currency’s blockchain. The complexity of said equations is far above what humans are capable of dealing with, and even high-end computers can have difficulty with them. While this may seem like a way to pull money from thin air, it doesn’t have unlimited potential. Most cryptocurrencies have a finite estimation for how many coins can ever be mined. For example, Bitcoin count is set to 21 million, and the difficulty of mining new coins scales with each success. These days, the process has gotten difficult enough to require computers specifically designed for mining, so a serious commitment is required for this route.
This one will likely sound too good to be true, but it’s actually possible to receive crypto coins for free through airdrops. This is typically done to draw attention to new cryptocurrencies and encourage further investment. The catch is that these airdrops are often only available to those who have already invested in the cryptocurrency in question. Still, this can be a great way to build on an investment at no extra cost.
For those experienced in other financial markets, crypto trading can be a great way to make money. Even for those less confident, it’s possible to utilize copy-trading platforms to follow those with greater market knowledge. Essentially, these platforms allow users to spend a percentage of their crypto portfolio to copy the moves of skilled traders of their choosing. Simply find a trader on the platform who matches your goals, and set your account to copy their market positions.
If you aren’t well-versed in trading but still want to participate in the cryptocurrency market, it’s not too late to start investing. You might hold new coins for projects you believe will take off in the future or buy coins for already successful projects hoping they increase in value later. There are countless websites and mobile apps that will allow you to use both crypto and fiat currencies to invest. Many experts are considering cryptocurrencies to be an increasingly valuable investment since they aren’t bound by the same rules of inflation as fiat currency.
For those who can’t afford to mine or who are less risk inclined, there are even some cryptocurrency platforms, such as Tron, that allow users to earn crypto coins through games. These are playable either in browsers or on mobile devices, and can range from MMOs to fitness games. As one would expect, progression in these games leads to greater challenges and coin payouts.
The future of cryptocurrencies
Cryptocurrency future is a bit of a touchy subject with predictions praising them as the only way forward to criticisms stating that they are delusions ready to crash. The truth is likely somewhere in between. While it may seem outlandish for cryptocurrencies to totally replace paper money, most experts are optimistic about their future roles. With so many ways to earn cryptocurrency, an investment now could easily see big payoffs in the future.