Many investors nowadays ask how to make money in crypto. Hold it, I would say how to double money in crypto, because when we have money to invest in crypto then we can double it in crypto. In that way, investors can earn as much as they can.
But if there is no money to invest then profit can still be made in crypto by mining it. Mining can make money in the form of rewards but still, they need investment to set up an architecture.
If you are looking for the best solution for how to make money in crypto then this guide is for you.
Mechanisms to Make Money in Crypto
Purchasing top-rated coins and holding them is called investment and selling them at double the price is called profit. Profit is money that you earn in crypto, there are three mechanisms through which you can make money in crypto:
Based on these three given mechanisms, here are some strategies to make money in cryptocurrency:
1st Strategy: Investing
In this strategy, investors buy assets, hold them for a particular duration, and then sell them at double or triple the actual price. The investment could be long-term or short-term, it depends on the asset’s fluctuating value.
2nd Strategy: Trading
The second strategy trading is the long-term investment based on the first strategy, as well as it exploits short-term opportunities. Due to the fluctuating value of crypto time by time. Therefore, the traders must know the market as well as have strong predictions about the fluctuations.
3rd Strategy: Staking
Staking is the process that validates the transaction, let’s explain it when a transaction is performed, a staking node checks whether the transaction is valid or invalid. In case of a valid transaction, it will be added and updated to the distributed ledger else discarded. In return the transaction holder pays a gas fee to the validator, it would be the reward fee in return for staking.
The staking node uses proof of stake consensus, this algorithm chooses the validator on the based number of coins you committed.
4th Strategy: Crypto Social Media
Although it’s just like other social media platforms, it is completely decentralized. A platform where users can create and curate content and in return, they would receive a reward in the form of a platform native coin.
5th Strategy: Mining
Miners are nodes or a collection of nodes that assist in carrying out legitimate cryptocurrency transactions. Additionally, it confirms and authenticates the transactions or blocks, before adding them to the entire blockchain. Additionally, it encourages each node in the network to update the previous ledger by including the newly confirmed transaction.
Miners compete to solve a challenging mathematical problem using a set of cryptographic hash rules. After successfully mining a cryptocurrency, the miner receives a reward fee in the form of a private key with a reward fee stored in the wallet.
There are three basic mechanisms to make money in crypto; staking, mining, and trading. Furthermore, based on these three mechanisms there are 5 quick strategies to make money in crypto investing, trading, staking, crypto social media, and mining. All these given strategies are the most used by both initial and pro-level investors.