Buying and selling currencies is what millions of investment traders do around the world each day. It’s not a new way to make money; in fact, it’s something people have been doing for decades and even hundreds of years.
As you can imagine, it’s something people also do with cryptocurrencies like Litecoin. You’re likely here reading this article today because you want to make money from cryptocurrency. But, you’re probably unsure of the best ways to do so.
The following are five genius hacks to help you make some money from cryptocurrency the right way:
Buying and Selling
Arguably one of the classic yet popular ways to increase your net worth through cryptocurrency is by purchasing coins or tokens at low prices. You can then hold onto that cryptocurrency until the value reaches a certain point, where you can sell them for profit.
It’s a strategy that you can employ across several different cryptocurrencies such as Bitcoin, Ethereum, and Litecoin, to name but a few. You should spread your investment across different currencies anyway to lower your risk.
If you’re used to trading foreign currencies on the Forex markets, doing so with cryptocurrency will be a cinch for you! Did you know that many of the world’s leading currency exchange platforms offer cryptocurrency trading?
You can trade leading assets like Bitcoin against the US Dollar, for example, and profit with short or medium-term currency movements. Trading offers roughly the same level of risk as investing, but you can earn money quicker if you don’t prefer long-term investing strategies.
An exciting way of making money from cryptocurrency is with a strategy known as staking. In a nutshell, staking involves keeping a sum of cryptocurrency in an e-wallet and receiving financial rewards for validating transactions in a ‘Proof-of-Stake’ network.
Staking is a form of lending because you lend your coins to the network to validate transactions and maintain its security. The great thing about staking is anyone can do this, and you don’t need to stake vast sums of cryptocurrency.
Don’t worry – when you mine cryptocurrency, you don’t need to descend several hundred feet down a dark and dangerous mine! Cryptocurrency mining is the process of verifying blockchain transactions as part of the Proof of Work (PoW) consensus mechanism.
Mining is the oldest way of making money from cryptocurrency, but it requires a lot of computer processing power (and electricity). Many people join forces to form mining pools, where they mine for coins or tokens collaboratively and have equal reward shares.
One final way to make money from cryptocurrency assets is by lending some of your coins or tokens to other people. Peer-to-peer lending is not a new thing, yet it’s taken off in recent years thanks to the changing digital financial landscape.
Some online services will check an individual’s creditworthiness for you. That way, you can minimize the risk of losing your cryptocurrency due to borrowers defaulting on their loan agreements.