How much money can you earn with cryptocurrency? Are you able to have an affluent lifestyle and buy a brand new Mercedes-Benz or a Rolex watch? In this article, we will show you why the crypto industry has so much potential.
What is blockchain technology, and how it appeared
The word “blockchain” appeared in 2009, along with Bitcoin. Due to our banking system’s many flaws, the Financial Crisis in 2008 lost the trust of many small and medium investors in the financial industry. People wanted security – something a centralized system appeared not to offer.
The history of blockchain technology is the history of cutting out the middleman. The blockchain is a decentralized, secure, tamper-proof network that essentially eliminates the need for third-party institutions to ensure financial transactions are valid. Furthermore, it disrupts industries that rely on manual processes, paperwork, and/or face-to-face interactions.
The change was needed
The evolution of computing technology continued, and experts soon learned that the blockchain was an approachable means of facilitating a peer-to-peer network. By adding incentives to the value of digital currencies, experts created a product that could be used by more than just specialists.
Ethereum was born
Ethereum’s smart contracts and crypto-asset capabilities were a groundbreaking development for the blockchain world. The new idea allowed anyone to create projects on the network, and it gave users a new way to profit from their expertise and knowledge. The idea of decentralized apps and new investment opportunities continue to pave the way for blockchain technology.
But how people make money with cryptocurrency
Many people have profited by investing in cryptocurrencies, such as Bitcoin. For example, they buy USDT and sell it at the right time. Some lucky investors have made a lot of money. However, there is more than one way to turn a profit from crypto.
Cryptocurrency market
Since the early days of cryptocurrency, many people have made their fortunes trading on the market. Cryptocurrencies are volatile, and if an investor can capitalize on the news or some updates on the technology of the ledger, they can make a substantial amount of money. In order to trade, people should select a cryptocurrency exchange. For example, Paybis is an example of such an exchange where you can trade.
When it comes to digital currencies, there are hundreds of them to choose from. Regardless of your goals, it would be best to start with a widely recognized and highly valued cryptocurrency such as Bitcoin, Ethereum, and Litecoin. These coins have already begun to demonstrate value and market potential, and they are likely to continue to do so.
Crypto mining
Crypto mining is another source of income for many entrepreneurs. Mining was profitable for people early on because the difficulty level required to mine new coins was deficient. Nowadays, Bitcoin mining is still worthwhile, although it becomes harder for newcomers to make something.
Although Bitcoin and Ethereum have been incredibly profitable for investors, their value can be volatile. There are also projects where the currency has not yet been minted. These will be easier to get started with as long as you don’t mind a riskier investment, but there is still the potential for a sizable payoff.
Crypto lending
Negative interest rates and risks aside, people are still very much interested in saving accounts for their money. On the other hand, crypto lending brings forth the idea of earning up to 10-15% APY on your investment. The idea is not entirely new since it has been around since the time of banks, but what makes it stand out is its ease of use and very low risks. For example, Celsius Network offers up to 17% APY for investors, which even investment funds cannot match.
The first wave of entrepreneurs
Though first-movers got the most out of the cryptocurrency craze, this is not true for everyone. Many people sold their bitcoins at $100 or even at $500, missing great opportunities. On the other hand, those who kept their trust in Bitcoin until 2017 are now millionaires.
The Re-Sellers
Everyone knew Bitcoin was going to make it big, but back in its infancy all those years ago, not everyone had the means or power or the desire to mine Bitcoin. Today, mining Bitcoin can be even more complex and hazardous. However, some individuals and organizations saw the vast potential of Satoshi Nakamoto’s project and bought into it early on. These early crypto investors made a ton of money once Bitcoin soared in price!
But is it worth starting in 2021
Business owners and entrepreneurs have debated the future of cryptocurrencies for some time. The market continues to fluctuate, but it is clear that cryptocurrencies will continue to grow in popularity as people diversify their investment portfolios. While there are some risks involved with investing in cryptocurrency, there are also potentially high rewards for those who invest wisely.
The answer is: YES.
However, many people think that investing in cryptocurrency is easy to make money, but this couldn’t be further from the truth. To be successful, you need to research your investments thoroughly, have a solid strategy, and commit the time and energy required to become an expert.
How much can you make
What can you expect when you invest in cryptocurrency? As with any other investment, two main factors drive profitability: the intrinsic value of the investment and your own strategy. You will experience both gains and losses when investing in cryptocurrency, and the volatility is extreme.
It also depends on your timing: you have to get in just before a coin takes off, buying when it’s still affordable (or even cheap). You don’t want to buy any stock or digital currency at its peak; instead, invest before it hits the top.
Summary
Making money with cryptocurrencies is very possible in 2021. However, you’ll need to learn the market and invest your money wisely. If you trade with confidence, experience, and solid knowledge of the market, you’ll most likely end up making a significant profit. But if you let your emotions be your main drive, you should expect nothing but a significant loss.
