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 in the nineteenth century.
This digital phenomenon has rapidly caught the interest of the most successful and wisest 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).
Crypto the result of a side product
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, is Satoshi Nakamoto (Staged Name).
Nakamoto’s initial plan was to create a decentralized electronic cash system; something many had attempted to do, but not succeeded. Only Nakamoto managed to create a fully decentralized system that managed to sustain itself, avoid double-spending, and function almost like any other bank. However, in this case, it was decentralized. It was a fully autonomous digital currency, i.e., a cryptocurrency.
What is a cryptocurrency?
Many people wonder what cryptocurrencies are all about. In fact, they are 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. It also has automatic controls that limit the creation of more cryptocurrencies.
It is the online equivalent of cash. However, instead of it being backed by gold, a central bank, or a government, 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 price of cryptocurrencies up and down.
This new type of digital currency has been around for almost a decade, and it is without a doubt here to stay. Cryptocurrency, many people say, is the cash of tomorrow.
Crypto traders
Ever since the advent of the Internet, how we work, play, shop, watch our favorite shows and movies, study, and communicate has changed significantly. A growing number of people in today’s technological age are thinking up new ways of generating income with minimal effort.
Some individuals now work remotely as writers, video editors, web designers, teachers, consultants, doctors, and many other professions. Their main motivation has been to avoid the daily commute, be in control of when and where they work, and become financially independent.
Some of these people, such as crypto traders, earn substantial sums of money with just a few taps on their screens and keyboards. They make money in the crypto market, which over the past decade has grown considerably.
Making Money in the Crypto Market
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 to profit in the crypto marketplace. Let’s have a look at some of them:
Buying and Holding
This is one of the most common ways of making large amounts of money by trading crypto. The method is fairly simple and is a lot like stock trading.
You purchase a certain amount of crypto, any crypto, at one price, and wait for its value to go up. Once you see that you have managed to make a decent profit from this trade, you sell it at the current market price. Put simply, you buy it at one price and sell it at a higher price.
Buying and Holding for Dividends
The concept of this strategy is very similar to the one above, but this one comes with a small twist. Not only can you 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 onto them.
Imagine buying thousands of dollars’ worth of a certain cryptocurrency and getting paid monthly for just holding onto 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 in a cryptocurrency, you purchase very powerful computer equipment. Once you properly set it up, you will be able to earn a passive income.
The equipment you set up will be working around the clock solving highly complex mathematical problems. Once it solves a certain amount, it is awarded a cryptocurrency. The only real downside to this crypto profiting method is the initial capital outlay. The computing equipment is expensive. You also need a state-of-the-art cooling system.
Your machines, including the cooling system, will be operating all day and night, seven days a week. Your monthly electricity bill will be high.
Cryptocurrencies are a fairly new global trend. However, it is still virgin territory enough for newcomers to exploit. However, do not leave it too long. When the market is overrun with traders, your opportunity will be gone.
Video – Cryptocurrencies
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