Can you make a living using cryptocurrency?

In Summary

• There are some negative or you can say dark sides of the digital currency where digital scams cause you to lose your earnings. 

• However, your scope is not only limited to it, you can also try other methods available in the market

A representation of virtual currency Ethereum are seen in front of a stock graph in this illustration taken February 19, 2021.
A representation of virtual currency Ethereum are seen in front of a stock graph in this illustration taken February 19, 2021.
Image: REUTERS

Cryptocurrency is gaining popularity because people believe that they can earn a handsome amount of profit from it. However, not everyone who enters the field to make money is successful.

There are some negative or you can say dark sides of the digital currency where digital scams cause you to lose your earnings. Similarly, some people do not have the patience to generate enough profit and they give up along the way.

There are many legitimate ways to earn through cryptocurrency but they all need some effort and patience. One of the most common and obvious ways of earning through cryptocurrency is by trading on platforms like bitcoin power.

However, your scope is not only limited to it, you can also try other methods available in the market. Below we have listed some of the assured and most impressive ways to earn a living from cryptocurrency:

Buy and Hold

After trading, another most appreciated and common way of earning a living through cryptocurrency is by the strategy of buy and hold. The name itself describes the method but to explain in detail:

Most investors are usually interested in buying the most famous and well-known cryptocurrency like bitcoin, Ethereum, Ripple, Litecoin, and so on. Once they buy these currencies, they keep a check on their price and once the prices are high enough, they sell them for a profit.

The key aspect of this strategy is that you should see the market prices frequently and whenever you think that the prices are high enough to generate a good profit, you can sell the currencies you are holding.

If you choose this method to make a living from digital currency then you must buy the currency which is the most stable and most volatile asset so that the value can shift rapidly and generate regular profit.

Bitcoin and Ethereum are the most popular cryptocurrencies for this scheme as they are known to maintain somewhat regular price fluctuations. However, analyze the market situation on your part because there are frequent changes in trends. 

Earn Cryptocurrency Dividends 

Did you know that you can even earn on cryptocurrency by just holding the currency? This scheme is known as dividends. Several coins in the market will pay you for just buying and holding their currency. Users have appreciated the point that they don't even have to stake the currencies they are holding, especially if they are using a digital wallet. COSS, CEFF, KUCOIN, and NEO are just a few of the cryptocurrencies that offer you a dividend. 

Just like mentioned above, not all coins are suitable for your profile and you will have to pick the currency after close analysis. It is suitable if you pick the coin that perfectly aligns with your investment objectives as well.

Stake Cryptocurrencies

We mentioned staking of cryptocurrencies previously and you can also earn money through it. It is an easy method to make a quick profit because of the double earning potential due to price appreciation. There is also a dividend payout from some selected coins for staking the asset.

In simple terms, staking is holding coins in a digital wallet that will help you in earning additional coins. These additional coins are offered to you because you secure the crypto network of that particular currency.

NAV, Neblio, PIVX, and Decred are amongst the coins that can be staked. 

Conclusion:

Cryptocurrency has become a very vast field and it has opened a lot of opportunities for people. You just need to think out of the box and explore the available options to get the best from this digital currency.