So you want to get some cryptocurrencies and are looking at different ways to get into it.
So let’s talk about some ways we can jump into this wonderful world of crypto, with the pros and cons of each method.
GETTING PAID IN CRYPTOCURRENCIES FOR WORKING OR PROVIDING A SERVICE
You have some sort of expertise, maybe you are a good accountant or maybe you’re good at marketing. whatever you do you can always sell your expertise to get paid in cryptocurrencies.
Let’s look at how things pan out if you tend to do so.
PROS
- Just ask your clients/customers to pay you in crypto.
- You don’t necessarily need a lot of capital to start.
- You can invest your time and skills to get things done, like the above examples of marketing or accountancy or simply blogging on Steemit.
- You can get paid for the amount of time and effort you invest and the level of expertise you have on a particular topic.
- Example – suppose you’re selling lemonade in return for bitcoin(oh! I like the idea 😂 ) you’d only get paid a little amount, then let’s say you’re an awesome lawyer. Then your chances of getting filthy rich soon are just way more.
- The more valuable your expertise the more you’d earn.
CONS
- If you don’t have expertise that can get paid in crypto sadly this option won’t make you any money, unless you decide to gain some skills.
- Maybe your expertise requires a lot of capital to start your business or work.
- For example – you want to start a food truck that cooks awesome fast food and gets paid in Bitcoin, but you’d first have to invest a lot of money to get the food truck and the permissions needed for it.
- Finding customers who are willing to pay you in crypto is rare. [Having a sign that says Bitcoin accepted does help though.]
MINING
As most of the cryptocurrencies are on the blockchain naturally you have an option to be a part of it and verify the transactions going through and add them to the public ledger and earn some profits while doing so.
PROS
- You can mine most of the coins/tokens without paying taxes or service charges like you’d have to do if you bought them from an exchange. Put simply getting your crypto out of thin air.
- This is a passive way to earn. So you don’t need to stay around your rig 24/7, giving you the freedom to earn while you sleep.
- The procedure to construct the rig is pretty straightforward but takes a little time to set it up properly.
- You can mine many coins/tokens with only a single GPU giving you a chance to get started and get a taste of mining without investing a lot first, if mining is not your thing you can easily sell your GPU if needed.
- You can get your hands on the coins/tokens while they are cheap and the difficulty level for mining is low, making them amazingly profitable over time if you keep holding them.
CONS
- Expensive equipment, We all know what mining has done to the GPU world, inflating the price to staggering levels, the same goes for ASICs too as the demand is at an all-time high.
- The cost to get all the major components to make a decent rig can make this an almost impossible option for some.
- The rigs tend to make lesser and lesser Profits over time as the difficult levels keep getting higher. With the components getting older and heat taking its effects too.
- Heavy electricity costs can make this very less profitable. If you live in a place where electricity cost is extremely cheap for you or you don’t have slab rate increments based on the units of electricity you use then this will give you good Profits.
- Equipment needs to run 24/7 almost always to get maximum profits. This can be a problem if the area where you live has occasional power cuts.
- Equipment is needed to be replaced and/or upgraded from time to time. Reasons can be – equipment failure, degradation of components, or simply the equipment is not profitable anymore.
- Can be an effort to keep the rigs cool, especially in hot and humid climates.
TRADING
Trading is an important art worth learning in one’s lifetime! – said no one
As with almost everything that can be traded for something else, cryptocurrencies can also be traded to make you a fortune.
PROS
- Your profits can be limitless If you understand the market well and have a knack for trading. Getting tons of profits can be a piece of cake.
- You can set your working hours and have the freedom of working on your on will be your boss.
- This can help you develop important trading skills, the ability to read markets in a snap, and anticipate the market moves. A skill that can always help you no matter the market, trading will give you valuable lessons.
CONS
- Involves heavy attention, especially for entrada trading or scalping.
- Your losses can be pretty significant if
- 1 – You don’t know how to trade.
- 2 – Can’t anticipate the market at all.
- 3 – If the market crashes and you get liquidated.
- In short, you’d need multiple skills to be profitable daily, losses can be great.
- Exchanges can be hacked, this has happened before and most likely happen again. You can lose all your money on the Exchanges so, this should always be kept in mind and you should never keep more than what you are ready to lose.
- Involves investing before you can start trading.
PASSIVE INCOME STREAMS
Who doesn’t like passive income? In the crypto world, you can earn passive income too it just has a few different twists and turns and you’re all set to earn some amazing income while doing nothing.
This can very well make me write a whole another article of its own but I’ll try to keep it short here.
- SINGULARDTV – https://singulardtv.com They provide Ethereum tokens to anyone who holds their SNGlS tokens, they have a great business model don’t forget to check them out.
- NEO – Earning GAS with your neo holdings, If you’re holding any neo tokens you’re sure to get some GAS as a passive income. This is a great model as GAS is always a necessary thing for faster transactions.
- CENT – You can answer questions on https://beta.cent.co this is the Quora of the crypto world. Help others to get some money, how much you earn depends on the answers you provide. The more complicated the questions the more you can earn with the kind of answers you can provide with accuracy.
- BITCONNECT – You can earn up to 1% a day through BitConnect. All you have to do is lend them your bitcoin which their trading volatility bot trades giving you 1% profit on your holdings on average.
- PROOF OF STAKE MINING – proof-of-stake mining also offers some passive income but more on that later.
- The pro and cons of each one is different but I hope you got a bit of an idea. Always do your research before investing!
- I would go into detail with all the passive income ideas in the future so watch this space for more!