This article is targeted for beginners.
1. Trading like Stocks
2. High-interest w/ no Inflation
3. Get paid to use crypto platforms
Trading Like Stocks
The first and most common way to make money from crypto is simply investing in crypto companies on the crypto market. The concept of the crypto market is almost identical to the stock market with a few key differences. The stock market is weekly and national, the crypto market is 24/7 and global. In the Stock market you have companies and then their share price. As the price of the share increases/decreases your invested money follows according to the percentage loss or gain from that share price.
Example. - Say the share price of Amazon is $1 and you invested $1000. Then the price of Amazon's share goes from $1 to $2. The percentage increase from $1 - $2 is 100%. Which means your $1000 increased 100% to $2000.
The crypto market works the same way; but instead of companies and their share price, you have companies and their coin price. You can think of Coin and Share as synonymous in that context.
With that understanding, it's good to note that a company with a low coin/share price means it has more potential for high percentage growth/decline; meaning high-risk high reward. So a company with a high coin/share price has a lower potential for percentage growth/decline; meaning low-risk low reward.
Example. - A company with a low price has high potential percentage growth because it takes less money to cause a high or low percentage change. Meaning is a coin price is 1 penny it only has to go to 2 pennies for a 100% increase which can happen quickly. Vs. a company with a coin price of $5,000 which has to go to $10,000 for a 100% gain which can take longer. This also means it can take longer to decline.
Good news about the crypto market vs. the stock market is that this technology is very recent and the companies have not been around for too long of a time, which means prices for investing are really low and the market has very high growth potential because the technology is revolutionary.
It's important to note that investing is not a gamble. Investing is only a gamble if you don't research your company. I highly recommended knowing your company before investing in it.
So how do you invest? You can invest in cryptocurrency on crypto exchanges which can be accessed on your phone or computer. 3 Popular exchanges are Crypto.com, Coinbase, and Uphold with many more to choose from. A crypto exchange is simply a place to buy and sell Cryptocurrency. After investing I highly recommend storing your crypto in a crypto wallet. Simplified, a crypto wallet is a place to safely send, receive, and store your investments. You can either store your crypto on online wallets or offline physical wallets, whichever suits you. Some popular and secure wallets are Nexo, COINBASE wallet, CRYPTO.COM wallet, and the Nano LEDGER S.
High-interest w/ No inflation
An example of revolutionary technology that crypto brings is non-inflatable currencies. These are known as Stablecoins. A Stablecoin is a cryptocurrency that's value relatively never changes. For example, Dai and USDTether are Stablecoins and their value stays at $1. The best part about this is that you can earn interest on them for using specific wallets as high as 10% p.a! with no inflation. The average interest rate on traditional savings accounts is 0.06%; which is basically nothing compared to Stablecoin interest options. So not only do savings accounts barely reward you, most savings accounts don't have high enough interest returns to overcome the average inflation rate which is 3.22%; meaning you're actually losing money. Um… yeah.
So how do you start earning interest on Stablecoins? You buy Stablecoins of your choice and hold them in crypto wallets that provide interest. My favorite and one of the highest places to earn interest on your crypto is Nexo. Nexo provides interests for both Stable and non-Stablecoins, but provides higher rates for Stablecoins from 8-10%! Having a good amount of money invested in Stablecoins to earn interest can earn you a really good passive stream of income. Other popular platforms that provide interest on Cryptocurrencies are Celsius, Crypto.com, and Compound.
Get Paid To Use Crypto Platforms
One of the easiest ways, (but not the most rewarding) to make money is to simply use crypto platforms. The technology that powers Cryptocurrencies is Blockchain technology. Every company on the crypto market is using Blockchain technology. Most crypto companies reward their users with their currency for participating on the platform. A few examples are Brave Browser, PublishOx, and LBRY/Odysee.
Simply put, the BRAVE Browser is a search engine that blocks "unwanted" ads and pays you for viewing the secure ads they notify you with while searching. The Brave Browser can be used on top of your current browser of choice, such as Google, yahoo, safari, etc. Brave is powered by the Cryptocurrency Basic Attention Token (BAT) and this is the currency you are rewarded with.
PublishOx, (this platform) is a crypto blogging platform that rewards both the author for posting and the reader for reading. Win-win. At the bottom of every article, the reader can choose the percentage of the rewards that goes to them and how much they would like to tip the author.
LBRY is another crypto content creation platform similar to YouTube. You'll be rewarded with LBC for posting and watching videos on the platform. These are just a few examples and there are thousands of crypto Companies.
