Making money with cryptocurrency can be a fun way for beginners, but it also comes with risks. In this article, we will look at several basic ways that will help you start making money on cryptocurrency as a beginner.
1. Purchase and long-term storage (holding) of cryptocurrency: This method is the most popular. It consists of buying cryptocurrency and storing it for a long time, waiting for the price to rise. You can choose various cryptocurrencies with high growth potential and purchase them on the exchange. However, before you buy a cryptocurrency, it is recommended to do your own research and familiarize yourself with the statistics and offers on the market.
2. Cryptocurrency trading: This method requires certain skills and knowledge. Here you will buy and sell cryptocurrency on the exchange, based on the analysis of charts and market dynamics. This can be day trading (rolling strategy) or short-term speculative trading (high frequency trading). For this method, it is important to have good analytical skills and be prepared to take high risks.
3. Participation in ICO (Initial Coin Offering): ICO is a collection of funds for new crypto projects that are just beginning their development. You can participate in the ICO by purchasing tokens of this project, and subsequently sell them at a higher price if the project develops successfully. However, participation in an ICO is also associated with high risks, so before investing, it is recommended to carefully study the project and its team.
4. Cryptocurrency mining: Mining is the process of creating new blocks and maintaining the operation of the cryptocurrency network. To start mining, you will need powerful computer hardware and software. However, as cryptocurrency has grown in popularity, the need for powerful computing has also increased, making mining less accessible to individual miners.
5. Participation in the “staking” or “noding” program: Some cryptocurrencies allow coin owners to participate in the process of maintaining the network. This process is called "staking" or "nodding". It requires storing cryptocurrency in a wallet with a constant connection to the network, which allows you to receive rewards in the form of additional coins.