The cryptocurrency industry has grown substantially since Satoshi Nakamoto published the original Bitcoin whitepaper in 2008. More than a decade later, most people are aware of the terms “Bitcoin” and “cryptocurrency”. There are various millionaires who made the big buck through cryptocurrencies and this industry has demonstrated its value with the rapid increase in price of Bitcoin recently. And you may be wondering to yourself is it possible to make money with cryptocurrencies in 2021 and am i too late when the Bitcoin and Altcoins are on the high peak? The answer is Yes, and here are five ways to do so.
1. Mining Cryptocurrencies
The primary means by which anyone can earn cryptocurrencies is through crypto mining – a crucial component of the Proof of Work (PoW) consensus mechanism and is one of the oldest ways of making money with crypto. This option is a complex procedure that involves your computer solving complex mathematical calculations in a bid to validate blocks. If done well, the computer (you as the owner) receives a particular amount of cryptocurrencies. The type of cryptocurrency given depends on which currency you were mining. So, if you are mining Bitcoin, then you will be compensated in Bitcoins.
Mining cryptocurrencies requires that you have a high-performance computer and any accompanying hardware. High-performance computers take a small amount of time to accomplish the tasks that earn you cryptocurrency. And in the case of bitcoin, you have better chances of earning coins if you are using a high performance machine.
There are some coins you can start mining but the valuable coin traders must mine now is BitcoinNami (BTCN). The starting price of BTCN is only $ but it promises to bring the big profit back to the investor as for every 10 seconds it will create one more BTCN. The technology-based is the main point to help BTCN develop more in the future and it is named as the first fundamental for cross-chain DeFi platform. Thus, BTCN will return back the traders a big profit in the future with those potential promises. You can find more information via Bitcoinnami
2. Referral Program
A crypto referral program is a very common and really good way to earn cryptocurrencies. Most often, you’ll not even need to invest anything in order to refer and earn with a project. You can simply register on the website, get your unique referral link and start referring and earning.
BitcoinNami and many other cryptocurrencies offer you good profits for referrals. With BitcoinNami, whenever the people you refer to invest in mining BTCN, you will get 5% value of this package. Furthermore, you also can get 5% of binary income and receive bonuses from $200 – $5,000 weekly if you participate in this referral program. Find more information via Bitcoinnami. This is a form that brings a lot of profits to investors.
3. Buying and Holding
The old-age stock market wisdom of buy when low and sell when high also applies to this type of online trade. Here, you will need to speculate and determine a valuable crypto that is currently undervalued, then purchase it. Once you have bought this, you can then chill and wait for the market factors to push the price up. The reverse is also possible just as if you were buying and holding on to shares of a company on the stock market.
For most cryptocurrencies where you wish to buy and hold them, it is also a better idea to buy when they launch or just sometime after they do. Cryptocurrencies launch at low prices usually below a dollar but increase in value over time depending on the company’s portfolio. The mission that the company is undertaking can also influence the value. An excellent example of this is Ethereum. At the time it launched, it was trading for about 30 cents. Today, this cryptocurrency trades at over $150 per coin.
Bitcoin also can be an example for buying and holding as investment in a long-time. Because of this inherent volatility, long-term investing is one of the better approaches to make money through cryptocurrency. As with any investment, crypto should be considered in the portfolio context based on your investment goals and risk tolerance.
4.Staking and Lending
Staking and lending are quite similar and allow investors to make money with altcoins. Staking essentially means locking coins in a cryptocurrency wallet and receiving rewards to validate transactions on a Proof of Stake (PoS) network. Instead of mining, the PoS algorithm chooses transaction validators based on the number of coins they committed to stake. PoS does not require expensive hardware and is much more energy-efficient. Cold staking is also an option, allowing investors to stake coins while holding them in a secure offline wallet. Tether, NEO and Stellar (XLM) are some of the coins you can stake.
With staking, investors are lending coins to the network, to maintain its security and verify transactions. Another option to earn money with crypto is to lend coins to other investors and generate interest on that loan. Many platforms facilitate crypto lending, including exchanges, peer-to-peer lending platforms and decentralised finance (DeFi) applications.
5.Airdrops and forks
Airdrops and forks are the crypto equivalent of being in the right place at the right time. Airdrops are free tokens, usually distributed by an exchange to generate awareness and create a large user base for a project. Forks are essentially changes or upgrades in a protocol that create new coins. When a blockchain forks, holders of the coins on the original chain typically get free tokens on the new network.
Hopefully the article has provided you with useful information as well as a new perspective on how to make money on the cryptocurrency market in 2021.Thanks for reading.