The meteoric rise of Bitcoin and other altcoins has created a bull market like no other in history. What was once a market worth only a few billion dollars is now worth over $300 billion; an increase of over 2000% in just one year. However, with this sudden surge in value also came the creation of numerous new ways to invest in these digital currencies.
Unless you have the fortune to invest, it can be difficult to get your hands on even a single Bitcoin, let alone enough to make a meaningful financial return. However, there are plenty of new opportunities available to invest small amounts of capital and still see excellent returns. This article will explore some of these new ways to make money with cryptocurrency that don’t necessarily involve buying it directly.
Investing in Initial Coin Offerings
When you invest in the stock market like you will do when you engage in cricket betting, you’re actually buying shares in companies that you hope will do well and increase in value. However, in the world of cryptocurrency, Initial Coin Offerings (ICOs) are becoming a popular way for companies to raise funds for their projects. ICOs are similar to IPOs but are not regulated by any central authority. Instead, they’re distributed as digital tokens on a blockchain network like Ethereum.
Anyone can invest in these ICOs by purchasing the company’s digital tokens with other cryptocurrencies such as Bitcoin or Ethereum. Just like any other investment, the idea is that the tokens will increase in value over time and you can then sell them for a profit. There are plenty of scams associated with ICOs, and it’s important to do your research before investing in any ICO.
Cloud Mining
Rather than buying and storing the coins yourself, you pay a company to mine the coins on your behalf. The company provides you with the hardware and infrastructure required to mine the coins and you get a share of the profits. The idea is that you’ll earn more than you would by just purchasing the coins outright.
However, the profits from cloud mining are very difficult to predict, and many companies don’t last long enough for you to see a return on your investment. Additionally, it’s important to make sure the company you use is legitimate and isn’t just a scam. Cloud mining is a very risky investment, but it can be profitable if you choose the right company.
Staking and Masternodes
There are other ways to earn a passive income with cryptocurrencies. Staking is one of the most common ways to earn a passive income. You earn a return by holding a specific amount of coins in a digital wallet that supports staking. Although different coins have different rewards and staking periods, the process is generally very simple. You just have to keep your coins in your wallet and you’ll earn a return over time. It’s important to remember to keep your wallet connected to the internet and regularly transfer your coins to a new address to avoid staking.
Another way to earn a passive income with cryptocurrencies is through masternodes. This is a more advanced form of staking and requires a larger initial investment. You earn a return by holding a certain amount of coins in a digital wallet that supports masternodes. You also have to run a server on your computer with certain specifications, which you can earn money from as well. Masternodes require a large upfront cost, but they can earn you a good amount of passive income.
Peer to Peer Lending
Another way to make money with cryptocurrency is by lending it out to other people. Peer to peer lending is a popular way to earn a return on your investment without having to do any work. You just have to choose a lending platform, such as Lending Club, and select the amount you’d like to invest.
Once you’ve made your selection, the platform will connect you with people who are looking to borrow money and give you the option to lend them whatever amount you’d like. You’ll earn a return on your investment over time as the borrower pays back the loan. The great thing about peer to peer lending is that you can select the amount you want to invest and earn a guaranteed return.
Exchange Traded Funds
An exchange traded fund (ETF) is a fund of stocks that tracks a particular index. With an ETF for cryptocurrencies, you’re purchasing shares in companies that mine and produce digital currencies such as Bitcoin and Ether. You can purchase these shares on a stock exchange just like you would any other company.
The value of the shares in the ETF will depend on the value of the cryptocurrencies the fund holds. However, it’s important to remember that the value of cryptocurrencies can be extremely volatile and unpredictable. You can also invest in an ETF that holds a basket of cryptocurrencies.
Wrapping Up
The world of cryptocurrency is still very new, and there will no doubt be many more new and innovative ways to make money with it in the future. New technologies and innovations are being created all the time, and it’s important to stay up-to-date on new developments. New opportunities to make money with cryptocurrencies are popping up on a daily basis, and it’s important to keep an open mind in order to seize these opportunities.
