The realities of modernity are rapidly changing, the digital world is developing in huge leaps, the turnover of electronic money and confidence in cryptocurrencies are growing. Many stores are starting to accept Bitcoin and Ethereum to pay for goods and services, some states are even developing their own cryptocurrencies (China has already begun issuing loans in digital yuan).
In this regard, the number of people wishing to become the owner of cryptocurrency is also growing. But what is the best way to do this? Makeuseof.com has put together some tips for beginners.
1. Buy and store
By far, this is the easiest and safest way to invest in cryptocurrencies. Buy and hold is the method used by many long-term investors, whether institutional or retail. Here it is not even necessary to understand that the cryptocurrency works on blockchain technology, the main thing is to know where to buy and how to store bitcoin, ethereum, binance, etc.
When investing in crypto assets, it is also important to be aware of the risks. Firstly, the rate does not always grow, it can be very unstable. Secondly, you need to carefully take care of the security of your electronic savings, in particular, take a responsible approach to choosing a hardware wallet. Recall that a jump in cryptojacking attacks and other cybercrimes is now being recorded (for example, hackers recently hacked about 8,000 Solana-based wallets and withdrew millions of dollars).
2. Cryptostaking (Crypto Staking)
This is a great way to get passive income, similar to traditional deposits. The owner of the cryptocurrency receives a reward for the fact that his funds are temporarily frozen. Interest can be fixed or floating, income depends on a number of factors.
In general, this type of investment is quite beneficial not only for the depositor, but also for the market, as Proof-of-stake networks rely on the critical role of stakers in ensuring security.
But it is worth noting that Proof-of-stake is not used by everyone. For example, Ethereum is just transitioning to PoS, having only recently allowed a limited number of customers to stake.
3. Cryptolending (Crypto Lending)
In fact, the investor thus partially turns into a lender. He lends his funds to a lending platform, earning interest on trades. To make the most of this investment method, it is worth a little more insight into the issue than in previous options.
4. Cryptocurrency auctions (Crypto Airdrops)
There are more than 20 thousand cryptocurrency projects in the world, and new ones appear every day. These new projects want to introduce you to their cryptocurrency tokens, so they give them to you for free. This process is called crypto airdrop.
You can use this method on many sites. Before starting, you should study the most popular of them. As a rule, in order to receive free crypto tokens, you need to perform simple tasks, for example, share information about the project on social networks or use their platform.
Some cryptocurrency airdrops can be significant, like Uniswap in 2020, so don’t take it lightly.
5. Cryptocurrency faucets (Crypto Faucets)
Another way to get into the crypto pool is through the “crypto faucet”. Like airdrops, faucets give you units of cryptocurrencies for doing multiple tasks like watching videos and ads on the internet. These incomes may initially be small, but over time they can grow significantly (there was a time when “faucets” gave out whole bitcoins).
6. Salary in cryptocurrency
Another very easy way to invest in cryptocurrency is to get paid in it. Today, many employers are ready to offer their employees such an opportunity. In particular, payment for freelance services in bitcoins is now gaining popularity (this is a fairly convenient way, especially if the transaction is carried out at the international level).
“When you get paid in crypto, you don’t need to buy it with fiat money, as it may cost you some fees. You will never know if your employer is ready for this idea if you do not say so, ”experts emphasize.
7. Cloud Mining
Cryptocurrencies like Bitcoin that use the proof-of-work (PoW) consensus algorithm need to be mined. Miners used to do this on their personal computers when the process was simple. However, those days are gone, and now miners come together to mine and share profits.
This happens with the help of cloud mining, and everyone can take part in it. There is no need to know much about cryptocurrencies here, since a simple participant will not be involved in the mining process. All you need to do is join a mining pool and deposit hash power. Money will be credited depending on how much
ü invest hash power (in a simple way, the stronger the video card, and the more of them, the higher the profit).
At the same time, dreaming about a reliable passive income, you should not forget about scammers, which are now too many.