The coronavirus pandemic has hit the economies of all countries hard. The recession affected all branches of production and brought many problems to the service sector. Today there are no people whose financial condition has not been affected by quarantine restrictions imposed by the governments of different countries. Quarantine forced many people to switch to distance learning or work, which inevitably affected the well-being of large groups of the population. Companies with continuous production cycles and the service sector experienced enormous damage. Many have suffered greatly, feeling significant losses, and a large number of small businesses are forced to close.
Until now, despite the massive vaccination, many sectors of the economy suffer heavy financial losses. A huge number of people with strict quarantine measures stay at home, losing income. The amounts allocated by the state are not always able to fully compensate for the drop in profitability. The magnitude of losses for many commercial structures led to bankruptcy. In such conditions, people begin to look for alternative ways of earning money in order to feed their families. Cryptocurrency is one of the financial instruments capable of providing stable profits during a lockdown.
5 ways to legally make money on cryptocurrency
Today cryptocurrency is rapidly gaining popularity among different segments of the population. At a time when the usual ways of making money are losing their relevance, people are actively looking for opportunities to generate additional income without the need to leave the apartment, to contact other citizens. More than ten years have passed since Satoshi Nikamoto came up with a new financial instrument Bitcoin, which is one of the most famous types of cryptocurrency today. Experts unanimously predict a stable growth of BTC in the long term.
1. An easy way to make money on cryptocurrency is HODL
After analyzing the situation on the cryptocurrency market, you can see how much the price of virtual money has grown. But according to open sources, at the beginning of May 2015, 1 BTC was trading at $240. For 6 years, its quotes have grown 200 times. Analyzing the current situation, experts recommend using strategies like HODL for simple, stable income. The abbreviation stands for the English meaning of this word. You need to buy bitcoin and hold until the price rises. Buy cryptocurrency cheap, sell it high to make good money.
2. Search for promising assets
Today there are already many independent types of cryptocurrencies with different financial capabilities. Let’s leave it out of the brackets, which is purely technological, but the growth in value, which is influenced by tweets of famous politicians or other media people, should be qualified by analysts studying the reasons. Ordinary people need to know which types of cryptocurrencies have given the maximum profitability gain in a year.
- ADA. The Cardano blockchain launched in 2017 visualized by the cryptocurrency was valued at 5 cents at the beginning of 2020. Today the cost exceeds $2.
- DOT. Polkabot blockchain, launched in early October 2020. The project’s cryptocurrency was valued at the initial stage of $4. Today the cost of the project’s crypt is $40.
- SOL. At the beginning of the summer, the Solana blockchain cryptocurrency was estimated by experts at up to 60 cents. Now the price is over $55.
This is definitely a risk for investors. However, having correctly evaluated the capabilities of the launched blockchain, you can quickly increase capital hundreds of times. Although, if you make a mistake, you will lose money. However, this is not much different from playing on the stock exchange when buying securities.
3. Modern gold rush in mining
Crypto enthusiasts use mining to form new blocks containing data on the most popular blockchains. Special equipment makes it possible to carry out complex calculations for the formation of transaction blocks in a short period of time, such work is rewarded with a certain amount of cryptocurrency. Experts call this formation of blockchains PoW or proof of work. Miners in the form of additional bonuses for the work performed will receive a certain percentage from each transaction of cryptocurrency transfers. Mining pioneers received up to 50 BTC for each block formed. Now a new block is formed every ten minutes, and the payment does not exceed 6.25 BTC, which is also good considering the current rate of the cryptocurrency. Due to the high competition, miners are united in groups, which reduces operating costs, and the reward is divided proportionally, taking into account the computing power used by each participant.
4. Using staking for extra profit
A high level of profitability can be obtained from mining only with solid computing power. Otherwise, competitors will cope with the work faster, which will bring income only to them. New blockchains solve this problem using modern algorithms. Using PoS or proof of stake, you can form blocks to process information using a collateral as proof of the honesty of your information truble amounts of cryptocurrency.
- Such a blockchain user is called a validator.
- A way to create blocks by validation.
- The principle of depositing the required amount of cryptocurrency by staking.
The main difference from PoS is that all participants commit income equally. Today there are many special services that enable ordinary users to participate in validation. Many companies have their own validation rules for accepting deposits, or when creating a blockchain, the participation of ordinary investors is envisaged. The new technology project Free TON initially offered the DeProol methodology, which opens the door for everyone to participate in staking. Average income from staking is 5-20 percent per annum. To many, this seems insignificant. However, the risks of capital loss are minimal, and the constantly growing cryptocurrency rate guarantees a high level of capital gains.
5. Contests a way to earn cryptocurrency without initial payments
In an effort to develop its community as soon as possible, blockchain often uses the Governance management system. Participants put their own intellectual energy into doing useful work to advance the project. The best solutions that have a positive effect on improving the blockchain performance are rewarded with cryptocurrency. A striking example of this approach is the Free TON blockchain platform, which developed from an innovative project for Telegram. Today the project uses a meritocratic cryptocurrency distribution system based on the self-government of the participants.
For each Free TON user who has made a feasible contribution to the development of the blockchain, there is an opportunity to regularly receive their share of the cryptocurrency. All members of the community have the right to propose their own contests, which, after the encouragement of other members, are posted on the forum. To take part in the competition, you need a cryptocurrency account in Free TON. During the year of the platform’s operation, more than 160 contests of various difficulty levels were held. The prize for winning some contests was 300,000 TON. Today the rate is 60 cents per unit of cryptocurrency and is constantly growing.
If you analyze the information received, you can conclude that contests are the most convenient, safe way to receive cryptocurrency today. In addition to the opportunity to significantly strengthen the financial position, each participant improves their professional skills, improving their intellectual potential. The pandemic will pass, and the knowledge gained can be successfully used to create your own projects.