How to Make Money with Cryptocurrency

How to Make Money with Cryptocurrency

15-03-2021 in Finance Door
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What is Cryptocurrency?

You might be wondering "What is Cryptocurrency"? Well, we're here to tell you exactly what they are. Cryptocurrency is digital money that can be used to pay for regular goods online. It functions through a system called blockchain. Cryptocurrency generally has a high-risk, as you could not only gain, but lose all your money. The technology of the blockchain is decentralized, which means that it's distributed across several computer systems that record and track any of its transactions, as opposed to one central system.

Best cryptocurrency to buy

There are different measures used to determine what the most profitable coins to buy are, and it's no secret that Bitcoin (BTC) is the leading coin amongst them all. Infact, "Altcoin" exists to represent all coins similar to, but not Bitcoin.

  • Bitcoin (BTC): Since its creation by the mysterious Satoshi Nakamoto, bitcoin has continued to lead. Although its prices rise and fall at extreme ends e.g as high as $20,000 as at January of 2017, and as low as $3,234 at December of 2018, its popularity ensures a kind of authority that doesn't take cognizance of rivals, making it the best choice. Its current highest ever is over $53,000.

  • Ethereum (ETH): Eth is currently the number two largest digital currency after bitcoin. Eth was launched in 2015 and is now worth a value of $1,218.59 per token. In recent times, the coin has moved the transaction system to one that allows it to run with decreased energy and increased speed of transactions.

  • Litecoin (LTC): There's a lot of underlying technology in the workings of cryptocurrencies. For a popular one like Bitcoin, it is bound to attract both the informed and uninformed. Litecoin was created as a simpler version to help people understand better. Though it's new, it has great potential in sight.

  • Bitcoin Cash (BCH): the blockchain system is effective but not without its own faults. Being able to contain a market as large as BTC means that a lot of people use it and this can slow down its effectiveness. This has led to the creation of BCH. This is one of the best cryptocurrency to buy, because it won't go up and down in price like newer crypto's.

  • Cardano (ADA): Cardano is a blockchain coin that was created after a lot of research. It has now surpassed ethereum in its proof-of-stake system. In February 2021, Cardano had a $39 billion market cap.

How to make money with cryptocurrency?

Want to know more about There are a lot of strategies used in making money off crypto, and here are the top 5:

Investing: this is usually a long term process; you buy the coin and hold for a period of time with the assuranceof huge returns, which can be kept safely in finance companies such as WorldRemit or Fidelity ISA. Want to know more about investing and other financial matters? Read all about it in this personal finances article.

Dividends

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a lot of coins actually pay you simply for acquiring and keeping them. Some of the coins that do this are NEO, KUCOIN, COSS etc.

Trading:

trading and investing differ in relation to time. While investing is long-term, trading requires that you take advantage of short-term opportunities. This would require skills of reading and understanding charts, to get the best prices at the best times.

Staking:

earning through staking comes by value appreciation and payouts from certain coins. When you store those coins in a live wallet, you earn for saving that coin.

Crypto media:

steemit was launched in 2016, and it pays users for creating content on the platform in its native coin, steem. Other platforms like scorum and sapiens have since been created in the same fashion. Now that you're armed with the basic information, you are well on your way to wealth management via cryptocurrencies.

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