Cryptocurrencies are the hottest new asset class around, generating dozens of headlines every day thanks to new innovations, price crashes, and scandals. For the average person interested in making a bit of money from their investments, piling their cash into crypto assets can seem a little daunting.
It turns out, however, that there are many ways to make money from the crypto craze. What’s more, this isn’t some new gold rush. Crypto is a technology that is here to stay and will likely form an essential pillar of the economy in the future, thanks to the tremendous benefits it offers over the existing monetary system.
Here are some of the simple ways you can invest in crypto.
Buy Dividend-Yielding Cryptocurrencies
When people hear the word cryptocurrency, they immediately think of the bitcoin (or possibly Ethereum). But it turns out that there are dozens of cryptocurrencies out there, all vying to emerge as the largest and most successful.
One of the ways that smaller currencies are trying to entice new buyers is by offering dividends just for holding the asset. COSS, KuCoin, and CEFS are all experimenting with this idea of paying people for joining their network in the hope that it will kick-start their success.
Invest In Server Companies
According to Viderium Ltd, companies invested more than $20 billion in 2018 in global mining data centers. That means that the crypto mining market is one of the largest in the world. It’s also growing fast, despite recent falls in the price of bitcoin. If you’re not comfortable with buying a cryptocurrency with an unstable price, consider buying a stake in the supporting assets. Bitcoins don’t mine themselves: they require the backing of expert teams of people who understand how to operate significant mining operations.
Start Performing Microtasks
If you want to earn a bit of extra money in your spare time, consider performing some microtasks. These tasks are relatively easy and involve things like watching videos and completing surveys online. You can now sign up to services, like Coinbucks, which will pay you in cryptocurrency instead of regular money.
Buy Low, Sell High
If you’re serious about getting into cryptocurrencies, then one of the things you could try is crypto arbitrage. Arbitrage is the process by which you buy for a low price in a cheaper market and sell for a higher price in a more expensive market, pocketing the difference. Finding arbitrage opportunities is no easy task. But because there are so many different cryptocurrency exchanges across the world, there are often opportunities to make a quick buck by buying from one and selling to another.
Mine Your Own Cryptocurrency
People still aren’t sure which cryptocurrency will be the dominant one. The frontrunner is currently bitcoin, but it is highly flawed and may not have the functionality to serve as currency long term. That means that there’s an opportunity to mine some of the less well-known cryptocurrencies out there and make a profit. Mining currencies, like Dogecoin, is easier because there are fewer serious players in the mining market gobbling up all the revenue.