A lot of people are not making any headway with their cryptocurrency experiment (or is it an investment?) because they don't even know what they want, what they're doing, or why they're doing it.
In this short post, you will discover whether you're in crypto to make money or to grow your money and what you should be doing in either case.
Cryptocurrency is a new asset class that attracts the attention of both the wealthy, the rich, and the well, not so rich masses who're looking to make a difference in their finances.
When you come into crypto, you're one of two kinds of people:
- You want to make money with crypto
- You want to grow your money with crypto
Each of these two categories needs different strategies to achieve their aim and if you apply one for the other, you will be losing money or at best not get optimum result for your effort.
If you don't know where you're going, any road will get you there.
Trying to grow your money when you should be making more is a recipe for frustration and sub-optimal results.
Who's Here to Make Money and What You Should Be Doing
If you're not coming into crypto with a minimum of $10,000 you're certainly here to make money.
And the investment vehicles you use or strategies you employ will be significantly different from someone who has a reasonable amount of fiat to play with.
What You Should Be Doing to Make Money
There're hundreds of ways to make money in crypto.
I have covered some of the popular ways in previous posts such as:
- 7 Solid Ways to Make Money with Cryptocurrency
- Earn cryptocurrencies Daily in 3 Simple Ways
- How to Earn Crypto Daily for Reading and Blogging on Publish0x
- Here’s 3 More Genuine Ways to Earn FREE Cryptocurrency
More ways to make money in crypto include:
- Through affiliate and referral programs
- By participating in competitions, giveaways, and airdrops
- By monetizing your skills and doing stuff for people (online and offline) and getting paid in crypto.
All these methods require the use of personal efforts to acquire (more) crypto.
Who's Here to GROW Their Money and What You Should Be Doing
You can easily and quickly build more wealth by putting your money to work for you.
Passive residual income is everybody's dream but requires you to already have some reasonable amount to invest.
If you're able to settle your daily living expenses with 0.1% of your capital, then you can reasonably focus on growing your wealth with crypto full time.
What You Should Be Doing to Make Money
Again, there're hundreds of ways to grow your wealth with crypto. Prominent among which are:
- Through staking and lending for daily rewards and interest
- Liquidity mining or yield farming
- Buying and HODLing
- Trading.
Among all of these, trading is the riskiest but offers the highest potential reward IF you know what you're doing.
As a result, I would suggest you avoid crypto trading as much as possible if you don't want to lose your money.
Conclusion
In this post, I talked about making money and growing money.
By making money, I mean doing stuff and getting paid in crypto as a way to increase your overall wealth.
While by growing money, I mean using the money you already have to make more money through investing.
In summary, if the daily gains from your capital cannot cover your daily expenses, then you're probably here to build rather than grow your wealth.
And this will determine what you should be doing to achieve your goals.
However, you can accelerate your wealth-building effort by combining the two strategies- making and growing your money simultaneously.
You can do this by investing (growing) all or part of the money you make, and leaving it to compound.
Are you making or growing your wealth with crypto? What strategies are you using? Share with us in the comments section below.
