Cryptocurrency becomes more and more popular as time goes on. Unlike traditional financial systems, cryptocurrencies offer more security and make transactions much faster. In addition, you can also earn nice pocket money with it. Here are three ways how you can do that.
The most obvious way is to trade cryptocurrencies. The cryptocurrency trading is comparable to the trading of traditional assets such as shares. You can make a profit by buying a cryptocurrency, such as bitcoin (BTC), when the exchange rate is low and selling it again when the exchange rate has risen sharply.
However, dealing with cryptocurrencies is an art in itself. In addition to being able to read graphs and technical indicators, it is also crucial to have a good knowledge of the crypto market. Trading with crypto is also known as very risky due to the high volatility of the rates. All the returns that you achieved with trading in cryptocurrency may, therefore, disappear in no time.
HODLen stands for holding the cryptocurrency for the longer term. This is also a form of trading with crypto, but you hold your cryptocurrency for longer. Bitcoin is one of the cryptocurrencies held by many people. Many HODLers expect BTC to be worth $ 1 million at some point in time. Despite the increases since the beginning of 2019, they do not sell their bitcoin for gold!
Finally, there is mining. Mining is encrypting data blocks to be able to add them to the blockchain. This takes a lot of energy, but in exchange for the successful mining of a block, miners receive bitcoins. In the beginning, when Bitcoin was still young, you could still get started with your CPU. Nowadays you almost always need an ASIC miner to make a profit.