Just five years back, there was a time when barely anyone even knew or heard the word cryptocurrency. Fast-forward 5 years, and almost everyone, from an 8-year-old child to an aged person, everyone at least knows what bitcoin is.
Indeed, if you would’ve started getting your feet wet in Cryptocurrency 6 7 years back, you wouldn’t even be here right now. That being said, it’s better late than never. And if you are someone looking to earn some free bitcoin cash, then you are in the right place. We have listed five ways for you to start following right now and start earning some cryptocurrency, even in 2021.
1. Mining your way through
So, one of the most popular, original methods was to mine a bitcoin or any cryptocurrency. Mining cryptocurrency is just like mining gold, but it is not like taking a shovel and digging through.
Mining cryptocurrency essentially uses powerful computers to solve complex mathematical equations, and as a reward, they get newly generated cryptocurrency. Rewinding ten years back, mining BTC (perhaps the only cryptocurrency at that time) used to be very profitable. Most people could mine plenty of BTC by using their base computers. Now it is a whole different story. Not only does it require you to have a powerful computer with a powerful enough GPU, but it is relatively significantly slower than what it was ten years ago.
One solution to this is that you can take part in a bitcoin mining pool. Bitcoin mining pool essentially uses the combined computing power of a group of miners to solve equations faster. The newly mined bitcoin is split among miners.
As you can tell, mining is facing more and more competitive day by day as time moves forward, and more people are joining the game. As competition increases, so is there a decrease in the mining profit, and with that comes more expensive equipment to mine Cryptocurrency.
So, in the end, you need to outweigh the benefits and profits that you will generate from mining with the cost you are going to spend on expensive equipment. And do extensive research before getting your hands into the mining world.
2. Trading with others
Trading is also a very high volatile, face-paced, edge of the seat kind of method to make some cash with cryptocurrency.
You simply buy BTC or any other cryptocurrency of that sort and sell it for a higher profit. But it is easier said than done. You need to have an excellent knowledge of what you are doing and do extensive research before stepping into this trading world.
What traders will do is essentially buy BTC at sometime of the day when it is a bit lower and then selling it with just a small profit margin. If done repeatedly, at the end of the day, the cumulative effect can pile up, and you would’ve earned a decent amount of cash. This same method can also be done by trading between different exchanges and making a profit that way.
3. Buying Cryptocurrency
Buying cryptocurrency is one of the easiest ways to get yourself used to the world of cryptocurrency, especially for those who are just entering the world of cryptocurrency.
In this method, you buy a cryptocurrency and hold it with you until the profit is just right and then sell it when you think the time is right. But this isn’t face-paced like trading. You may need to hold your precious cryptocurrency for months, even for years.
So, brace yourself for a long journey. But if done right, this method of holding and selling can give you a hefty amount of fortune. At the same time, if the value of the cryptocurrency you are holding declines over the years, it can turn out to be a rather disappointing thing. Be sure to be on your toes, and sell when the time is right, rather than being too greedy!
With more top-tier cryptocurrencies like BTC, you only make money via buying and selling it at a higher price. But some cryptocurrencies give profit for just holding the cryptocurrency with you, in your wallet. This is known as cryptocurrency dividends.
Like Neblio, CEFF, some lesser famous cryptocurrencies give you an annual return by merely holding their coin in your wallets. This can be a valuable tool for someone who doesn’t want to get involved in cryptocurrency all year round and wants to make some side profits along the way.
5. Getting paid with cryptocurrency
This method may not sound as existing as the others listed above. But it is undoubtedly an effective way to earn some cryptocurrency. Many services online, like twitch, or more famously known, Bitfortip, give you cryptocurrency as payment or a reward. Not only that, some stores, nowadays, have also started to give cryptocurrency to their employees instead of cash.
What is the benefit of accepting cryptocurrency over real cash? Well, there are countless benefits. The most important probably for me is that; The value of cash decreases over time, as we all know.
Things that you can easily get for one dollar 10 years ago now suddenly cost you twice or thrice and even more. But the value of cryptocurrency generally increases over time.
You can save those hard-earned cryptocurrencies and then sell after a couple of months or years, with a decent amount of profit. This method does not apply to cash.