Crypto, or cryptocurrency is no doubt a familiar term. You no doubt associate it with the likes of Bitcoin, Litecoin, Ethereum, and any other “digital currency” that you might have heard of before. It can be a pretty sweet platform, but what you might be wondering is, how can you make money with cryptocurrency in 2020?
After all, many of the earlier adopters already made their millions right after coins like Bitcoin made it big. So is there still a way to make money with cryptocurrency this year and beyond? There is, but it will take a bit of patience, as your odd of getting lucky in a Bitcoin-esque style blowout are pretty slim these days.
Either way, we’ll show you how you can still bring in some extra cash with cryptocurrency in 2020.
Buy and hold
One of the most obvious options might be to buy cryptocurrency coins like you would buy individual stocks in a company. It can be an easy way to make money if you have time on your side.
It’s very similar to purchasing individual stocks — you buy stock in a company, and then hope that over time, they increase in value, hopefully significantly. Once they gain value, and you’re satisfied with the return you’re getting on your investment, you can cash them out.
Buying and holding crypto works in a similar way. You buy the currency that you want to invest in, such as Bitcoin, Litecoin, Ethereum, or any other coin out there. Then, you wait for the currency to go up and value. Finally, when you’re satisfied at the value of your currency, you sell your coins, hopefully making a good profit from the increased value.
To put it in perspective — and using completely figurative numbers — you could buy $50 in Litecoin. Litecoin increases in value over time to $90 per coin, which you could then sell or “cash out” for a $40 profit. It work almost just like stocks.
The cool thing about crypto is that you don’t have to buy whole coins either. If a single Bitcoin costs $10,000, you don’t have to purchase a whole coin. You can purchase parts of a coin, like $100 worth of Bitcoin, and just wait for that portion of Bitcoin to grow in value. It’s way less risk than buying an entire Bitcoin.
It’s worth at least mentioning that crypto is pretty volatile. They go through massive swings in value. They can lose thousands of dollars of value over night and regain that the next day. Or, they can take months at a time to recover to “normal” levels.
That said, you’ll really want to make sure that the money you invest into crypto is cash that you don’t mind losing, just because of the massive swings that take place in digital currency. In the same vein, and similar to stock buying, it should be cash that you can be patient with while waiting for your investment to grow.
It’s worth remembering that no investment is without its risks, but it just so happens that crpyto is one of the investment platforms with a significant amount of volatility.
Buy and hold for dividends
Similar to stocks, you have options for buying and holding crpyto that pays out dividends for simply holding coin. It’s worth noting that, at least at the time of this writing, the coins that do this aren’t worth much, and so you’re not going to see some massive payoffs.
The way it works is that you don’t actually “own” these coins. You simply “hold” them, keeping them in circulation. And then, depending on the details of the coin, you earn dividends.
If you’re interested in giving crypto dividends a shot, you can purchase coins like Neo, Komodo, KuCoin, and a few others, all of which are not available on Coinbase. You’ll have to look at other exchanges for these.
Staking cryptocurrencies is essentially a combination of the prior two methods. You own cryptocurrency and plan to sell it for a profit, all while raking in dividends while you wait. Again, these coins aren’t worth much, so the dividends aren’t likely to be a lot, and you aren’t likely going to see a huge return on the coins themselves either.
Additionally, just like the coins available for dividends, you’re not going to find these types of coins on mainstream exchanges like Coinbase — you’ll have to find another exchange out there to buy them.
Coins like these are Neblio, Komodo, Pivx, etc.
In our opinion, the best way that you can make cash with a cryptocurrency is by mining for coins. You’ve no doubt heard of mining coins before — after all, it’s one of the primary ways that people make money with crypto today.
Mining coins has a high earning potential with a low time investment. One of the cool things about mining is just how passive it is — after you invest in the equipment needed, or simply use your machine at home, you can just setup the software program and let it run for new coin.
You can use a low to mid-range system for mining coins. You don’t need any special equipment at all; however, the slower the hardware, the slower your computer is going to be at solving the computational problems needed to earn altcoins.
The problem with mining for coins is that you’re going to have people with much faster hardware trying to solve the same computational problems as your computer; however, they’ll be doing it faster, and will likely be gathering up those alt coins before you can get to them.
The way crypto works is that, the more that’s in circulation, the more difficult it is to solve the problems. That said, it can take a really long time to solve those computational problems, which is why it’s suggested that you invest in at least a somewhat high-end system for faming coins.
It’s still worth taking for a spin on your standard computer before making a big investment. You still have a chance at nabbing a coin of your choice, and if nothing else, it’s good experience to learn how it all works exactly.
Work for crypto
Your other option is to actually exchange work for cryptocurrency. Almost any service online can be exchanged for cryptocurrency, which has the potential to yield you massive returns.
We’ll use advertising as an example. You still charge $120 for the advertising services requested of you, but the company pays into your crypto wallet or address instead of giving you cash. So, you’ll hold $120 of Bitcoin or whatever altcoin requested. That can work out in your favor depending on which way the currency swings in value.
However, if you’re willing to hold onto it for an extended period of tine, that Bitcoin can significantly increase in value, netting you some excellent returns in the services provider over time.
Working in exchange for crypto can be a great way to earn a side income as well. Not only do you still get paid for the services rendered, but with time on your side, that crypto can increase in value for free.
If you love everything finance, you might be interested in trying your hand at day trading with cryptocurrency. This requires investing a lot of time into monitoring financial reports and charts, but can allow you to make some major dough.
Crypto, as we’ve already told you, is extremely volatile. Its value can change drastically from hour to hour, which opens up the potential for massive earnings. You’ll have to keep up on financial reports and charts to identify patterns, but with that data in hand, you could purchase a ton of crypto at a low point at one hour, and then sell at a high point at the next.
This method certainly isn’t recommended for beginners, and it’s certainly not for the person that hates looking at financial charts and reports all day; however, it is an opportunity to rake in some massive earnings.
As you can see, there are a lot of different ways that you can make money with cryptocurrency in 2020. And there are still many other ways that you can earn crypto out there, but these are some of the best ways that you earn cash with altcoins.
These are tried and true methods that can get you crypto earnings — there are other ways, but many of them aren’t worth your time or are not a guaranteed way to bring in crypto earnings.
These usually involve completing micro tasks for a minuscule amount of alt coin in return for your time, or for setting up your store with an alt coin as an alternative payment method, which isn’t really a way to earn cash with cryptocurrency.