Most people come into crypto wide-eyed and excited about the lucrative opportunities awaiting them. While it is true that there are money-making opportunities, some people get frustrated along the line and tap out. You can make money in crypto, but some have the wrong ideas about the process and interpret it as a ‘get-rich-quick’ scheme. Like every other venture, especially lucrative ones, it’s crucial to have the correct information, proper planning, and a strategy to get you where you desire.
Come with me as we discuss crypto investments and the best ways to make money with crypto.
One of the gifts of this age is the convenience it affords us, even in making money. Crypto is one of the ways in which, with a smartphone and an internet connection, you can be a part of a distributed economy. Many people stand on the outside, thinking they must have genius-level technical knowledge to enter the market, but that’s not true. While crypto can be specialised with its vocabulary and technology, it’s not difficult to get into.
Another great thing about cryptocurrency is that you can enter the market with any amount you can afford. It’s not a high-investment market, but like any other investment, it comes with its risks. So, are you ready to start profiting off crypto? Let’s look at how you can make money with crypto in 2023.
Cryptocurrency investment
This is popularly known as ‘buy and hodl’ in the crypto community. It is when you lock away your crypto for a long time. This is a low-risk option for a high-profit margin for the long haul.
The best way to do this is to buy stable coins like Bitcoin, Ethereum, Litecoin, etc. These coins are safe investments, and they maintain relatively regular price fluctuations. You can also invest in altcoins with pretty good price fluctuations. A mix of cryptos in your portfolio will give you an advantage in the market.
The key to a high return is to buy when the crypto is low in value and hold on to them. So, even when others are panic-selling their coins, hodlers usually don’t. This is not a very easy feat, but you should only sell when the time is right, and you’re at a profit.
Staking and lending cryptocurrency
Some cryptocurrencies use a Proof-of-Stake (PoS) consensus mechanism to validate transactions. How this works is that you own your coins, but you lend them to the network (e.g. Ethereum) to validate transactions, and in return, you are rewarded. You can be chosen to be a validator based on the number of coins you have staked. But, if you don’t want to go that route, you can also lend investors your coin and receive them back with some interest.
Crypto gaming
Gaming can also give you some extra money in the bank. You can earn money through play-to-earn NFT games like Axie, Infinity, etc. In these games, you’re expected to finish tasks, enter competitions, and as a reward, you get crypto or NFTs that you can reinvest or hold. But, the catch usually is that you need to have some NFT investment to earn money from playing.
Crypto mining
To earn through mining cryptocurrency, you must have some technical knowledge. Mining is the process by which new coins are created. Although not every crypto uses heavy and high processors, Bitcoin and others still use this means to mine coins. The incentive for miners is crypto coins rewards. It’s best to remember that while mining is lucrative, it requires some technical and mathematical expertise.
Trading
This is the most popular way to make money with crypto among investors and enthusiasts. Trading is the opposite of hodling because it is a short-term investment strategy. Crypto traders are very involved in the crypto market, and an added and defining advantage is to have analytical and technical skills. This helps them to read the charts and know when to buy and sell cryptocurrencies. Some investors swear by trading as the most profitable way to earn from crypto, and they have the profits to show for it.
The most recommended way to make money with crypto
All the strategies discussed above are lucrative; you can make money from them with dedication and consistency. It’s important to reiterate that getting into crypto is not the magic wand that will improve your finances overnight. You’ll need to weigh your options, pick an area(s) of interest, educate yourself, stay committed, and even join a community of like-minded people.
Before picking an investment strategy, you should gauge your risk tolerance, investment objectives, and proficiency. This is because different money-making options in crypto require different skill sets and investments. For example, with crypto mining, you’ll need to invest in heavy and high-processing computers and acquire some mathematical knowledge. But you don’t need all that to become a crypto trader.
When you’ve decided to invest in crypto, follow the golden rule: don’t invest more than you can afford to lose. A wise investment strategy is not lifting above your weight by putting in money that would cause you heartache if it gets lost in the market.
Also, be compassionate and kind to yourself when you start. Give yourself the grace to make some mistakes and embrace the lessons that come with making money with crypto.
Conclusion
Crypto may seem intimidating, but you’ll succeed with the right approach and methods discussed in this post. Remember: don’t go into any crypto venture under-prepared. Do your own research and invest wisely. When you’re ready to reap the benefits of your crypto investments, Breet is the best bet for getting the cash value for your investment in a seamless process.
