Making money with crypto
Do you want to earn money with crypto? You hear it more and more recently, people who make a lot of money with cryptocurrencies of which the best known and the most profitable is Bitcoin.
But there are many more cryptocurrencies that make money.
👉 I therefore want to explain in this article which crypto coins are important and what you should pay attention to when you start investing in cryptocurrency. So that you too can start earning money with crypto in a responsible way.
✅ Before you start investing in crypto money, you will first have to thoroughly study this way of investing. Just as with investing in stocks, options, gold and real estate, there are also many investors who have lost a lot of money with this form of investing.
So be especially careful before investing your money in digital coins.
The cryptocurrency was created in 2008 during the financial crisis. In America, the Lehman Brothers bank went bankrupt and people were afraid that several banks would follow. The creators of the cryptocurrencies devised a financial system outside the banks.
👉 It was an unknown person with the alias Satoshi Nakamoto who published the document Bitcoin: A Peer-to-Peer Electronic Cash System. The cryptocurrency was born …
Nowadays, the cryptocurrency can no longer be ignored and a lot of money is made from these digital coins. Read on and learn what a digital currency is and how you can make money with crypto.
What is Cryptocurrency?
Loosely translated, the word means cryptocurrency, cryptography (encryption) and currency is the currency. So we are talking about encrypted money or digital money.
👉 If we take Bitcoin as an example, this is a digital currency that most people have heard of by now. This crypto is encrypted with blockchain technology. Digital data is stored here without having to do this at a central point.
This blockchain technology makes it a lot more difficult for hackers to bring everything down by means of a DDOS attack. On the other hand, with a normal bank where everything is recorded at a central point, it is much easier to disrupt the system.
This is also the reason that during the crisis of 2008 and the years after, blockchain technology gained a lot of confidence. In the crisis, many people lost money, so they were looking for a way to keep their money safe.
Why do people buy crypto coins?
Buying cryptocurrency has become more and more popular in recent years, but why do people buy crypto coins? The reason that many crypto coins are bought is that the potential is enormous.
✅ Many coins still have a low price, but people see Bitcoin as an example. Ten years ago, this coin also had a very low price and nowadays its value has risen to more than 30,000 euros.
There are examples where more than 100% profit per day has been made with buying and selling crypto coins. Of course, this does not go unnoticed and ensures that more people want to earn money from crypto.
Furthermore, the crypto coin is so popular because there is no intervention from a bank. With a bank transfer, this goes directly from person to person.
How Cryptocurrency Works
As we already described, blockhain technology is used. This is nothing more than a very large database where all transactions are stored. Because this does not happen in one place, the security is many times greater than with a normal sofa.
Cryptocurrency is digital money which has another advantage, you don’t have to buy whole coins. The Bitcoin is well above 30,000 euros at the time of writing. You will understand that it is not possible for everyone to buy 10 of these coins. It is therefore possible to buy part of a crypto coin.
✅ Speaking of making money with crypto… you will have bought in 2010 when a bitcoin was worth 3 cents. With a value of more than 30,000 euros, I don’t have to explain to you that making money with crypto is possible. I must add that this is of course unique and that this certainly does not apply to every released crypto coin.
If you are going to trade in crypto coins, you need a wallet to store the coins. This digital wallet has a public key, which is a unique address. You can read below what the best wallet is for you and what the differences are between the different types.
You have different types of wallets. First of all, there is the software wallet. You place this software on your computer and you have the coins completely under your own management. It is important that you protect your computer well against hackers and malware.
Another way is to create a wallet at an online exchange. With such an exchange you can trade cryptocurrencies and they often offer the possibility to use a free wallet.
❗️ You run more risk if the Exchange is hacked or the owners run off with your crypto coins then you lose everything. So check in advance whether the exchange is reliable and whether everything is stored securely.
The last option is to create your wallet via hardware. You use a device with your wallet on it. You do not have to continuously connect this device to your computer, this is the safest way.
No central bank is involved in the storage of crypto coins, so whichever wallet you use, you are fully responsible for the security of the wallet. It is therefore important to properly secure your wallet and to keep the data properly.
❌ Should you ever lose the data, there is no way to ever get it back.
The different cryptocurrencies
We have already used the Bitcoin as an example, but you know that there are many more crypto coins that you can trade in. Fortunately, because with only the Bitcoin the fun would have gone quickly. After this crypto was once valued at 20,000 euros, it freefalled to an unparalleled low.
With this I want to say that trading Bitcoin alone is not as easy as it may seem now.
✅ With a currency that is extremely popular with the general public, you notice that it is also very uncertain to trade. People buy Bitcoin because they have heard the success stories of others on a birthday or at work.
The demand for such a digital currency shoots up as soon as it increases in value, which will make the coin worth even more.
In 2021 there will be several horses you can bet on because there are now more than 3000 digital coins that you could buy. There are some very interesting coins, but there is also a large part that is worth almost nothing.
To make money with crypto it is important to keep an eye on the top 10 digital coins.
Cryptocurrency Top 10
Below the Top 10 cryptocurrencies in 2021. These are not directly the best crypto coins, but they are coins to keep an eye on!
- Bitcoin (BTC)
- Ethereum (ETH)
- Chainlink (LINK)
- Binance Coin (BNB)
- Litecoin (LTC)
- Tezos (XTZ)
- Monero (XMR)
- Cardano (ADA)
- VeChain (VET)
- Tron (TRX)
✅ By keeping an eye on the crypto currency top 10, you know which digital coins are interesting to invest in. Of course, this top 10 will not remain the same throughout 2021, but it is a good guideline.
What are the best crypto coins?
What are the best crypto coins to invest in? A question that cannot be answered immediately. As I write this article, this will undoubtedly be a different currency than when you read this article.
👉 To discover the best crypto coins you will have to keep a close eye on the various major blogs with the latest news. Immerse yourself in the trends, the charts and the price of a particular crypto. Only then will you find out in which crypto you can best invest.
👉 Do not directly follow the crowd, but use your own insight and do not step too high unless you know that the chosen crypto is certainly the best crypto currency to invest in.
👉 During your search for the best crypto coin, do not make the mistake of investing in a so-called “scamcoin”. A scamcoin is a currency that has absolutely no value in the long term.
❌ Such a coin is pumped up by a certain group after which they will be sold en masse again. After this, the coin is hardly worth anything anymore.
✅ Bitcoin is and remains a top seller, this coin has been on the market for a long time and if we are to believe the predictions, it will become worth a lot more.
How to make money with cryptocurrency?
You are reading this article because you want to make money with crypto. I can tell you that there are plenty of options to do this. I will explain below how you can earn money with cryptocurrency and which ways there are.
If we look at the past, we know that many people have made significant profits trading cryptocurrencies.
✅ If we take the Bitcoin again and we look at the current price of more than 30,000 euros, I do not need to explain that the people who bought this crypto 10 years ago and still own it, have gold in their hands.
But there is also good news for you. The technology behind crypto is only at the beginning, so there is still plenty of future to make money with digital coins.
Unlike in the stock market, short trading is done in the crypto market. This is nothing more than one day keeping a close eye on the price and waiting for the right time to buy or sell.
The price of the crypto fluctuates very quickly, so you can buy at a low price and possibly sell at a more favorable price the same day. It is not uncommon to make 10 to 20% profit in 1 day with short trading.
✅ I do have to say that you must have a little experience with trading crypto. So don’t expect to make big profits right away. You will have to gain experience trading small amounts and I say it again only trade with money you can spare.
With day trading you buy and sell different crypto coins on the same day. By keeping an eye on the right trends and prices, you can achieve nice profits.
As a beginner it is quite difficult to dive into the world of day trading. It is a lot more technical than normal cryptocurrency trading. You have to delve into trends, charts and patterns and this simply takes a lot of time and knowledge.
Factors that can significantly influence the price of a digital currency are if the government places a block on a currency in which you trade. By following the news carefully you can prevent a loss by selling this coin in time.
On the other hand, the price can skyrocket if a company announces that it accepts a particular crypto currency as legal tender. You can also foresee this in advance by staying well informed of the latest news.
➡️ If you are just starting out and you follow my advice, you will start with a small amount. You run little risk, but the profit you make will not be very high either. There is something in mind, certain trading platforms offer trading with leverage. You can then trade CFDs, this is trading with leverage.
By trading with the leverage effect you make higher profits in a short time, but the downside is that you can also make significant losses faster.
❌ By trading with leverage, you run a considerably greater risk.
For example, if you bet 1000 euros on a crypto coin with a multiplier of 5, you actually bet 5000 euros on this coin. With an increase of 1%, you therefore have an increase of 5% on that 1000 euro coin.
Where to buy crypto?
You are now wondering where you can start trading and where you can buy the crypto coins.
There are several trading platforms where you can buy crypto. Compare the different platforms in advance because there are some where you have to pay hefty commissions. A factor that weighs heavily for many people is whether they can buy crypto with iDeal. Many people prefer not to pay with a credit card or Paypal when it comes to buying crypto coins.
Earn money with crypto coins as a masternode
If you are already a bit further with making money with crypto coins then the option to do this with masternodes is a good one. A masternode… you might ask? Masternodes are servers in a decentralized network.
What is a node?
Before I explain what a masternode is, you also need to know what a normal node is.
✅ Nodes are important parts of a blockchain network that validate the reliability and integrity of transactions. The nodes verify the transactions through algorithmic calculations and will eventually reach an agreement. The nodes check every coin on the blockchain. So this is an important task.
What is a masternode?
As a masternode you use the same wallet as a normal node with the same blockchain technology. As a masternode you do perform extra services. These can be services to guarantee and improve the privacy of transactions. And you can have transactions executed immediately. A masternode therefore has a great responsibility, but this will of course also be rewarded.
By setting up a masternode it is possible to earn passive income. The reward will be paid out several times a day or every day in the form of the relevant cryptocurrency.
Criteria for a masternode
To be able to run a masternode, you must meet certain requirements. Think of powerful hardware in order to process secure transactions. Moreover, in order to run a masternode, you must have a large number of crypto coins yourself.
Below the criteria for setting up the masternode:
You must deposit a minimum number of coins of the relevant cryptocurrency.
The wallet in which the node is located must be online 24/7. It is best to use a VPS.
A static IP address is required in most cases.
You must have enough space on the server to download the blockchain and update transactions.
There are also crypto coins where it is not necessary to have the wallet online continuously. You do not need your own server with such digital coins. An example of a crypto coin with fewer criteria is VeChain (VET).
In order to make money with cryptocurrency, you can also put out your coins in addition to trading (strike). In the event of a strike, you ensure that your crypto coins remain in your wallet for a longer period of time. You will receive a small fee for this from the network. You receive interest on the crypto, as it were, which you leave for a longer period of time.
How much do you earn with crypto stakes?
How much money you can make with crypto stake depends on several factors. Before you start, it is wise to calculate how much you will earn. Almost every staking coin has a calculator that can do this. Every crypto coin has different rates.
As soon as you participate in a strike for a period of a certain number of months you will receive a fee for this and the longer you leave the coins the higher the fee will be.
Which crypto coins can I stake with?
To stake you will need to buy crypto that you can stake with and you will need to install a wallet on your computer.
The coins you can stake with are for example:
- Nav Coin
Conclusion: making money with crypto
Of course we prefer to earn as much money as possible with cryptocurrency in a short time. My advice is not to focus blindly on the beautiful stories that you often hear on a birthday or from that colleague at work.
As a beginner you cannot expect to immediately start making big money trading crypto. Take the time to buy the best crypto coins for you.
👉 What I do want to advise you is only invest with money that you can spare. Read as much as possible on the internet about trading cryptocurrencies and keep an eye on prices, trends and charts. This will make you familiar with the different crypto coins and you will discover a certain pattern.