You might have heard the success stories of people making billions of dollars by investing in the crypto market.
A majority of people start trading in crypto to make easy money; however, most can’t. This is because they have no idea about the methods of making money in the crypto market; therefore, they either give up before losing a lot of money or after.
Let us decode how to earn money using cryptocurrency in this blog.
Earning with crypto: Is it a Myth?
Not at all.
Earning from crypto is evidently very much possible. However, the market is volatile, and there is always a high risk of losing money. So to make a profit, you must have proper knowledge and expertise.
Trading cryptocurrency is one of the fastest ways to make money in the crypto market. Even though the daily average volume of cryptocurrencies traded is nearly 1% of the foreign exchange market, there is a huge potential to perform short-term trades as the market is pretty volatile.
Some of the popular cryptocurrencies in which you can invest are:
- Bitcoin
- Ethereum
- Polygon
- AMP
- Dogecoin
- Shiba Anu
Let’s dig a little deeper and discuss the steps or strategies you can follow to make money with cryptocurrency.
Making money with cryptocurrency
There are a few ways to earn in the cryptocurrency market and who knows, maybe even double your investments! Here’s how that can be possible.
1. Crypto Saving
You can try storing your money in cryptocurrency in a crypto savings account. This digital currency account will allow you to earn interest based on the number of deposited funds.
Some crypto savings accounts also offer a feature that allows you to trade and invest using digital assets, and you can even access traditional banking services.
2. Investing
Investing is the process of buying and holding cryptocurrency for a certain period. Crypto assets are extremely volatile in the short term; however, there is a huge potential for growth in the long term.
If you are planning to use the investment strategy, then it is crucial that you identify all the stable assets which can be invested for the long term. Common examples of such Crypto assets are Bitcoin and Ethereum, which are known to show a price increase in the long run..
3. Trading
The Crypto market is quite volatile. This simply means that the price of cryptocurrencies can rise or fall over a short duration. Leverage the power of trading in Crypto assets to exploit short-term opportunities.
While trading, you have two options: either take a long position or a short position, depending on whether you’re expecting the price of a certain cryptocurrency to rise or fall. Simply put, you can make a profit while trading even if the market is bearish or bullish.
4. Crypto Mining
You can try crypto mining, where you can mine for new Crypto tokens or earn a transaction fee as a reward for validating transactions. However, there is a catch with crypto mining. To earn money via Crypto mining, you need to understand blockchain technology and also have access to specialized mining hardware.
5. Crypto Swapping
In this process, you exchange cryptocurrencies with other businesses. One of the most common types of Crypto swapping is currency swapping, where users or businesses can exchange different currencies.
Crypto swapping also involves the process of exchanging cryptocurrency in exchange for fiat currency.
6. Crypto Referral Program
This is an indirect way to earn from cryptocurrencies which you can later convert into real currency. With a Crypto referral program, you can gain rewards or gifts by referring a certain crypto exchange, a platform, or a wallet service to your friends or family members.
7. Crypto social media
Nowadays, numerous blockchain-based social media platforms reward their user’s certain amounts of cryptocurrencies for creating and editing their content. In most cases, these platforms reward you with their self-developed cryptocurrency.
Conclusion
These are some of the ways you can follow to earn money from cryptocurrency in India. Depending on your understanding of the market and financial goals, you can choose from any of the above alternatives, after you do your due diligence.
Need help with crypto investment? We at Koinx will guide you and help you to select the correct investment methods to earn significant profits.
FAQ
1. Is earning from cryptocurrency legal?
Yes, earning from cryptocurrency are completely legal. According to the Indian government, you will be taxed at 30% with no deductions or exemptions for any income from virtual digital assets or cryptocurrency.
2. How to convert cryptocurrency to cash?
To convert your accumulated Cryptocurrency into cash, you must get in touch with the cryptocurrency exchange platform.
3. Which is the best cryptocurrency to invest in?
The best cryptocurrencies to invest in can be: Bitcoin, Etherium, Cosmos, Avalanche & Binance Coin
4. What is the future of cryptocurrency in 2023?
It is expected that the market will rise again in 2023 and the following years as 2021 was a bullish year for the Crypto market; however, 2022 is a year of Crypto winter.
