5 Ways To Make Money In Crypto

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The pandemic has changed the rules of the game, not only for business, but in fact has affected everyone. The words quarantine and telework have become commonplace in our everyday life. Companies that were unable to switch to remote operations suffered losses or were completely liquidated.

Most regions are still in decline. The majority of the population is forced to stay at home due to strict quarantine measures. And despite welfare, many suffer losses and even face bankruptcy.

What if you are forced to stay at home, your money runs out and the quarantine measures are not yet complete? There is a way out! We present to you 6 ways to make money on cryptocurrency without leaving your home!

Method 1 – HODL!

More than ten years have passed since Satoshi Nakamoto invented Bitcoin, which to this day remains the first and most popular cryptocurrency. Relatively recently – in the spring of 2021, the cost of a bitcoin exceeded $ 63,000, and despite the current dip to $ 38,000, many experts are predicting an increase in the value of BTC in the long run.

We don’t urge you to take the experts at their word, but ask you to look into the past – in May 2015, the average price for 1 BTC was $ 240. Over 200 times the price increase in 7 years! A similar story has become the basis for one of the most popular strategies for making money based on cryptocurrency – HODL. The name, derived from the paraphrased English verb hold, means that after you buy bitcoin, don’t sell it, as its value will increase steadily.

Such a strategy can also be justified for ether – the second currency after bitcoin in terms of value, the price of which has risen in 1 year from $ 130 to $ 4000.

However, the cost of these cryptocurrencies is already very high and no one can guarantee that after acquiring the coveted asset, it will not start to lose value.

It would be nice to go to 2011 and buy bitcoin.

Method 2 – Look for a Promising Asset!

Since the inception of Bitcoin, many other types of cryptocurrency have emerged, each with their own properties. Some are very technological, and some owe their price to the tweets of famous people. We will not understand the reasons for this, but will simply give examples of the growth of certain cryptocurrencies during the year:

ADA – the Cardano blockchain cryptocurrency, launched in 2017 in May 2020, cost around 5 cents, while its value currently exceeds $ 2!

DOT is the cryptocurrency of the Polkadot blockchain, as of October 2020 with a cost of $ 4, it is currently worth around 40!

SOL is the Solana blockchain cryptocurrency – in June, its price was around 60 cents and now exceeds $ 55.

All of these cryptocurrencies are united by the strong technological base of their blockchains, and if you ignore the controversial situation with Dodgecoin – a cryptocurrency created for a joke, which Elon Musk launched using tweets from half a cent at the start of the year to an impressive half dollar right now. Maybe there is a tip: evaluate the technological advantages of young projects, buy dumped tokens, but remember that such a strategy can both enrich you and ruin you.

What if you don’t want to take the risk.

Mining is the gold rush of the 21st century!

In addition to receiving income from acquiring an asset whose price increases, another opportunity to obtain cryptocurrency is available to the crypto enthusiast – mining. Mining is the process of forming new blocks, containing data about transactions in blockchains such as Bitcoin, Ether, Monero. The miner who was the first to receive the result of a very complex calculation that meets the necessary conditions, forms a block of transactions for a certain time and receives a reward in the form of cryptocurrency for it. This principle of blockchain formation is called PoW (proof of work) – proof of work.

As an additional bonus for miners, in addition to the reward, such a reward also includes a percentage for a cryptocurrency transfer. After all, if you don’t pay it, your transaction may not be accepted in the block by the miner and will remain on hold.

For the first blocks of bitcoin, the lucky ones received 50 BTC. Since then, a new block appears every 10 minutes, and the mining reward has been divided by 3, and today it is 6.25 BTC.

And although the competition among miners is very high, modern solutions allow miners to unite and, if successful, divide the reward in proportion to the computing power invested.

But what if your computer isn’t as powerful and electricity is expensive?

Staking is a cryptocurrency analogue of a deposit!

As you understand, mining is an extremely computationally intensive process, because if your resources are insufficient, your competitor will do the calculations first, which means that only they will get the reward. And if in your case it is just boring, then in the case of an entire planet it means a huge waste of electricity and, as a result, deterioration of the environment.

In new blockchain developments, they have tried to solve this problem in another way, called PoS, or proof of ownership. The right to form blocks containing transactions is received by a number of holders of large amounts of cryptocurrency, who pledge it as a token of their honesty. By forming a block, they also receive a reward. These blockchain users are called validators, the process of forming blocks is called validation, and the procedure for presenting the required amount of cryptocurrency is called staking. At the same time, unlike the PoS algorithm, the reward between all validators is usually divided equally.

And since their participation in the process is directly dependent on the validator’s cryptocurrency amount, there is a whole set of services that allow ordinary users to withdraw funds to participate in validation. These are often decisions of companies that have their own validating nodes and accept user contributions, but in some cases, participation from ordinary users is also allowed by the blockchain itself. For example, in the Free TON blockchain, a young tech project, there is DePool technology – which allows any user to participate in staking without risking depending on the decision of a particular company.

Typically, the percentage of revenue from staking is far from space heights and ranges from 5 to 15% per year, with rare exceptions. However, on the other hand, the risks of losing your investments are minimal. Are there other ways?

Competition – from each according to their abilities, to each according to their work!

All of the above methods to generate income require some financial investment. But is there a way. allowing you to make money on cryptocurrency with your own work? Oddly, there is.

Many blockchains develop their community through the governance system. Participants are encouraged to do useful work for the development of technology, while the best solutions can be rewarded with the cryptocurrency of this blockchain. Such solutions can be found in Polkadot, Solana, Near …

We have already mentioned Free TON, an innovative blockchain platform born out of a blockchain project for Telegram. Inheriting from TON technologies, Free TON has gone one step further by proclaiming full autonomy and a meritocratic cryptocurrency distribution system.

In short, each Free TON user who has contributed to the development of the platform is entitled to a reward. This mechanism is implemented through competitions.

Each member of the community can offer their own contest by posting it on the forum. Once approved by the community, the contest is hosted at gov.freeton.org. Anyone with an account in the Free TON cryptocurrency can participate.

During the year, the Free TON community organized more than 160 competitions of different levels and specializations. From the most complex contests for the development of smart contract systems for decentralized voting, to the Christmas card or sticker contest that attracted hundreds of participants. Development, design, testing and writing contests – The community has contests for everyone. The rewards may surprise even a seasoned trader: To win developer contests, the rewards were 300,000 TON Crystal – Free TON cryptocurrency, the price of which is now around 60 cents. And although the design and writing competitions are smaller and their rewards are 5,000 to 15,000 tons of crystal, it is still very high.

Conclusion

Whatever type of income you choose, remember that the choice is yours and that you alone decide what is right and what is not. But don’t forget the risks. I can say one thing for sure – contests are the most profitable way to make a profit, because by participating in them, in addition to the pay, you also improve your skills, which will probably come in handy after the end of the competition. pandemic era

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