What Is Crypto And How To Make Money On It

We are sure you have heard the term “cryptocurrency” at least once in the last year from either a friend, business associate or even the news. Cryptocurrencies are the modern-day equivalent of the American Gold Rush a few centuries ago. This digital phenomenon has rapidly caught the interest of the most successful and wise investors across the globe and has become a multi-billion dollar industry.  Today, it is close to impossible to find a successful software company or bank that has not invested or attempted to create a cryptocurrency of its own (also known as blockchain project).

Very few people know that initially, cryptocurrencies came to be as a result of a side product of a totally different invention. The father of Bitcoin, and thought to be the father of cryptocurrencies, Satoshi Nakamoto (Staged Name). His initial plan was to create a decentralized electronic cash system, something many have attempted to do, but no one succeeded. Only Nakamoto managed to create a fully decentralized system that managed to self sustain itself, and avoid double-spending, function almost like any other bank, but decentralized. A fully autonomous digital currency. A cryptocurrency.

Many people ask themselves about what a cryptocurrency is, and really, it's fairly simple. A cryptocurrency is a virtual currency that works as a medium of exchange, like money. It uses special complex codes to verify and secure transactions, and as well controls the creation of more cryptocurrencies. It's the online equivalent of cash, instead of it being backed by gold, it's backed by complex codes. This may seem simple on paper, but the amount of work and complex coding behind all of it, as well as the trust of investors, is what drives the cost of cryptocurrencies up and down. This new trend has been around for almost a decade, and it is without a doubt here to stay. Cryptocurrency- is the cash of tomorrow.

In the modern tech era of the world, human beings are constantly thinking of new ways of how to generate income with minimal effort. Some people decide to work remotely as a writer, video editor, web designer and many other professions just to avoid the hassle of going to and from the office. Yet, there are certain groups of people that manage to make huge amounts of money remotely within just a few taps of the screen. Crypto traders. This group of people manages to make money on any stage of the crypto market. If the market is falling, they profit. If the market is growing, they profit. They profit under almost any circumstance! There are many different ways as to how you can profit via crypto. Below you will find a few examples.

 

Buying And Holding

This is one of the most common ways on how you can make a hefty amount of money by trading crypto. The method is fairly simple and looks a lot like stock trading. You purchase a certain amount of crypto (any crypto) at one price and wait for the value of the cryptocurrency to go up. Once you see that you have managed to make a decent profit of this so-called “trade”, you sell your cryptocurrencies at the current market price, and there you go, profit!

Buying And Holding For Dividends

The concept of this strategy is very similar to the first strategy listed above, but this one comes with a small twist. Not only can you just buy a cryptocurrency at one point in time and then sell it later down the road when the price for it rises, but some cryptocurrencies also pay you for just holding their currency. Imagine buying thousands of dollars worth of a certain cryptocurrency and getting paid monthly for just holding them! Sounds great, doesn't it?

 

Mining Crypto

You have without a doubt heard of this method of making money from cryptocurrencies. Instead of investing directly into a cryptocurrency, you invest in powerful computer equipment. Once you properly set it up, you will have a passive income. The equipment you set up will be working around the clock solving highly complex mathematical problems, and once they solve a certain amount, they are awarded a cryptocurrency. The only real downside of this crypto profiting method is the fact that you will need to invest a hefty amount into not only the mining equipment but also the cooling systems. Don't forget that your electricity bill will also be impacted by such powerful machines working 24/7.

 

Cryptocurrencies are a fairly new global trend, and hopping on this trend before it becomes extremely overrun would be a great way to make a passive income every month. If you are interested in learning more information as to how you can start trading cryptocurrencies today, feel free to click here and gain more information on this matter.