Digital assets have caused a revolution across the world, providing different objectives for people and allowing them to make money or conduct transactions.
If you’re a beginner in the crypto space, there’s quite a lot to know and several things to catch up on. Many people desire to own more cryptocurrencies, but the rising prices might not make it easy for them to make purchases.
Even if you’ve got the money, it is important to know how you can use crypto to build wealth.
A vast majority of people who make crypto investments do so because they believe that cryptocurrencies can make them rich. It’s a good belief - no one exactly wants to make bad financial investments, right?
So, it is critical to know the strategies to help you with crypto and assist you in building lasting wealth. Below, we will highlight some of the most important methods and explain how you can capitalize on these methods:
Buy and HODL
The first - and perhaps the easiest - method is to buy a cryptocurrency and simply hold it. When it comes to "hodling," the premise is quite simple - cryptocurrency prices vary, but they tend to adjust upwards. So, when you "hodl," you will get returns going upwards at the end of the day - it might just take a while.
"Hodling" is great for beginners because it is convenient. When you’re a "hodler," you don’t especially concern yourself with things like short-term price swings. As long as prices jump in the long run, you don’t exactly have a problem.
Of course, "hodling" isn’t so clear-cut. You will need to understand assets that are stable and even some which might be volatile and whose values can change rapidly. Assets like Ether and Bitcoin have been known to deliver gains and even have regular price swings. So, you can consider them to be safer investments overall.
But, you can see any asset that you think will rise in value and invest in it. Just understand the asset you want to commit to and "hodl."
You should also note that you don’t need to purchase an expensive asset to benefit. There are a lot of small altcoins that can give you sizable profits, and having these won’t be so bad for your portfolio.
Earn Crypto Dividends
Not many people know this, but it’s actually possible to buy a cryptocurrency and get dividends from holding it.
In fact, several assets will pay you for simply buying and holding them. Even better, you don’t have to engage in complex things like staking. They pay you a dividend for just holding. Some of these coins include NEO, KUCOIN, COSS, etc.
Of course, the problem here is that not every one of these assets is right for you. It is important to analyze and select the assets that are in line with your goals. Invest in it to make a profit. Then, the dividends will also come as a side benefit.
Staking is another significant method you can try if you want to earn more cryptocurrencies. It is especially great because it allows you to earn in two ways - the coins you stake can increase in value, and you also get other coins as rewards when you stake.
Essentially, staking involves holding coins that you have in a live crypto wallet. The coins are locked for a period, and you are eligible for rewards when the period ends. You can stake many coins - Binance Coin, Cosmos, NEO, Tezos, and more.
A vast majority of cryptocurrency investors believe that the best and most effective way to earn money in crypto is through day trading. They’re not totally right, but they’re not wrong either.
Day trading is essentially holding an asset and capitalizing on price shifts that happen during the day - or, at the very most, two days. Of course, it takes a lot to be a day trader - you need to have the right analytical skills to know whether to buy an asset or sell it, and you also need to be aware of what is going on with an asset to know if the perception of it is good or not.
One benefit of day trading is that it can be lucrative. Assets move a lot, even within a short period. So, if you’re sure of a trade, you can lock in on it and make your money. You can also start day trading from a small position - just sign up on an exchange, buy some assets, and get a feeling of how the market runs.
Solve Crypto Microtasks
If you have some additional time on your hands, you could solve small tasks for people on crypto platforms and get paid. Sites like CoinBucks and BitcoinsRewards are always available for you to sign up. You can solve varying tasks, from testing apps and writing reviews to watching videos and taking surveys. The coins you get will be pretty small, but that’s the point. Consistency will help you build your wealth.