What is cryptocurrency
If you are interested in cryptocurrencies, it is a must to have some basic knowledge about cryptocurrency. The basic idea of cryptocurrency lies in the fact that cryptocurrency is a virtual asset based on blockchain technology. Though the name is suffixed with currency, cryptocurrency is not a legal tender. It means, unlike the general currency, your central bank (RBI in the case of India) has no control over cryptocurrency. But don’t worry, you can handle maximum types of transactions using cryptocurrencies. Almost everywhere, cryptocurrencies are being accepted as a financial asset. The good side of cryptocurrency is that the values of the general currency fluctuate downwards due to inflation, but the values of cryptocurrency generally go upward with time. For example, if you had bought Bitcoins worth some dollars when it started operations, you could have been a billionaire at least today.
Types of cryptocurrency
There are almost ten kinds of cryptocurrencies operating today. Some are very much popular are some are less known to us. But more or less, huge numbers of people are involved in tradings of these currencies and earning a good amount of money. Some well-known cryptocurrencies are
- Shiba Anu etc.
Apart from these, some cryptocurrencies like Picoin have come into the game recently. Also, mention worth that concepts of some cryptocurrencies like Jiocoin are also getting popularised but they are not in the market yet.
Three ways to earn from cryptocurrencies
There are basically three fundamental ways to earn from cryptocurrencies.
- Trading: It is buying and selling crypto currencies according to your convenience.
- Lending: Lending your crypto holdings to someone and getting paid.
- Mining: Being involved in blockchain-based crypto mining and earning your own cryptocurrencies as rewards.
Based on these three types of ways of earning from cryptocurrencies, here are some popular ways for you to earn from cryptocurrencies in detail.
Trading in cryptocurrencies may be a financial activity of short term or long term depending upon your strategy and luck(!) of course. For crypto trading to earn some financial gain, you must have smooth knowledge of the crypto market. Without a firm knowledge of crypto markets and their work, the risk of losing your assets is high.
In cryptocurrency trading, you buy some cryptocurrencies for the short term and wait for their prices to go high. You sell your holdings as soon as the price of your holdings goes high and earn some extra money from your crypto holdings. It is not the pretty much-recommended way to play with cryptos due to the high risks involved.
It is a long-term strategy to earn from cryptocurrencies. In the process of investing, you are required to buy some cryptocurrencies and hold them for a period of time. The more time you invest in holding your cryptocurrencies, the more is the chance that you earn high from your cryptocurrencies. After the value of cryptos rises, you sell your crypto holdings. Here patience plays a crucial role Because it is expected that the value of cryptocurrencies goes high over a long period of time and offers good benefits to investors.
It is the core and basic way to deal with cryptocurrencies to earn money. Crypto mining refers to the process of validating and conforming to crypto transactions using blockchain technology. During the mining of cryptocurrencies, you get some pure cryptocurrencies as a reward. The amount of crypto currencies earned from mining is relatively low, a fraction of a cryptocurrency. But it is the safest way to earn cryptocurrencies. cryptocurrencies earned from mining can be sold later like other cryptocurrencies.
Mining cryptocurrencies requires some basic knowledge of blockchain technology. Also, there are a few investments required in the form of computer hardware and software to mine cryptos. The hardware and computer setup required for crypto mining are generally high-end. But once your setup is ready, you can mine cryptos forever.
There are several blockchain-based social media platforms. In these platforms, you can get rewarded in the form of cryptos for creating content. This is like creating content for youtube to earn money. but not in the form of legal tenders, but in the forms of cryptocurrencies.
Crypto stalking is the process to help crypto networks to validate crypto transactions by locking your cryptocurrencies in a crypto wallet and receiving rewards in the form of cryptocurrencies. you can later play with these cryptos as you wish to generate more cryptocurrencies. Unlike crypto mining, crypto stalking requires less energy. Also, another plus point of crypto stalking is that you do not require very much sophisticated hardware and a high-end computer set up for this.
We have discussed all the major ways to earn cryptocurrencies and earn money from the crypto currency in this article. One thing to remember is that to earn from cryptocurrencies requires patience and a long-term investment. To play a short-term game with cryptocurrency is a little bit extra risky. But it is not totally impossible to earn in short term using cryptos. all you need is good knowledge of crypto currencies .
What is the best cryptocurrency in the present day.
Is it possible to earn in short term using bitcoin.
Ans: Yes, But playing with bitcoin in short term is risky. financial loss may be higher.
What is more risky,bitcoin and stock market.
Ans: Both are risky for short term investment.
Is bitcoin legal in India?
Ans- there is no official guideline or law regaring bitcoin. But recently RBI has shown concerns regarding bitcoin.