How to Earn Cryptocurrency?
Anyone who wants to invest in cryptocurrencies and earn profits may want to learn about cryptocurrency earning techniques. In this article, we have compiled some techniques that can be applied to earning cryptocurrency. But of course, they are not investment advice.
1. Buying and Selling (Trading)
One of the leading ways to earn cryptocurrency is to engage in buying and selling (trading) activities in the cryptocurrency markets. Investors can take advantage of the price flexibility of cryptocurrencies when trading. Buying cryptocurrencies when their prices fall and selling them when the price rises is an effective investment strategy for many investors. When you buy cryptocurrencies through cryptocurrency markets, you actually buy a coin or token connected to a particular blockchain. In order to trade cryptocurrencies, you should create an account on the Felixo Exchange cryptocurrency platform. Then you should determine the type and the amount of the cryptocurrency you’d like to invest in. After placing a purchase order, investors wait for the invested cryptocurrency to arrive at the desired price before selling it. Felixo Exchange provides the most favorable environment for trading activities with its profitable commission rates and high transaction speed.
HODL, the acronym for “Hold On for Dear Life”, refers to holding cryptocurrencies for a long time instead of trading them. The HODL strategy means not selling what you have, regardless of its price. Investors resort to the HODL strategy mostly during the bear market. The main premise of this strategy is investors’ belief that the value of cryptocurrencies will eventually increase again. Investors who aim to make long-term investments generally employ the HODL strategy.
One of the most preferred techniques for earning cryptocurrency is mining. Cryptocurrency mining is a significant method used to make new cryptocurrencies enter circulation. In addition, thanks to the mining process, new transactions made on a blockchain are easily validated, and the miner earns cryptocurrency as a result. Mining requires a super-powerful computer with extremely high processing power, lots of electric power, and solving complex mathematical equations. The computer that manages to create a new block wins a reward with one unit of cryptocurrency and the process starts all over again. Despite being a very tedious and costly process, mining can sometimes be highly profitable. On some blockchain platforms, it is also possible to mine with mobile devices such as mobile phones and tablets.
In cryptocurrency markets, staking refers to locking cryptocurrency assets for the purpose of earning rewards or interest. Cryptocurrencies are connected to a blockchain where transactions are confirmed and data is stored. And staking is another way of expressing that the transactions are confirmed on the blockchain. Depending on the cryptocurrency invested, this process is called “proof of stake” or “proof of work”. Both transactions allow the cryptocurrency networks to reach a consensus and complete the transaction. The presence of some participants is an important condition for reaching a consensus. So, staking is the process of freezing crypto assets in order to be included in the consensus and decision-making processes. In short, everyone engaged in staking is confirming and validating transactions performed on a blockchain. Thus, investors engaged in staking are entitled to the reward given by the relevant blockchain. The amount of reward earned by investors may vary depending on the blockchain.
5. Airdrop Hunting
Airdrop hunting is one of the leading ways to earn cryptocurrency. Airdrop refers to the process of distributing a small amount of coins to the active members of the blockchain in exchange for simple tasks. Such tasks may include commenting on Youtube videos, retweeting on Twitter, or leaving comments on Facebook posts. Airdrop is a frequently applied method for the promotion of new cryptocurrencies.
6. Buying NFTs
NFT is a token based on the Ethereum blockchain. An NFT operates like a certificate proving digital ownership of an artwork tied to a token. NFTs allow artists to release and promote their work digitally. And investors can make significant profits by taking advantage of the ups and downs in the values of NFTs. For graphic designers, selling NFTs can be a good source of income. Furthermore, NFTs are taking the concept of digital ownership to the next level with the help of blockchain.
7. Crypto Faucets
Faucet refers to the earnings obtained from web pages or mobile apps that give cryptocurrencies in exchange for completing a set of small tasks. These apps and web pages are called faucets because their rewards are small, just like drops of water dripping from a leaky faucet. In order to earn cryptocurrency with this method, it is necessary to perform simple tasks such as watching ads, filling out surveys, and clicking on some links. It is possible to earn small amounts with crypto faucets, but these faucets should not be seen as a way to make quick money because the easier the task is, the less the rewards will be.
8. Micro Tasks
Micro tasks refer to small and simple tasks done in exchange for cryptocurrency rewards. These tasks may include filling out surveys, watching videos, leaving comments on posts, recommending products, and so on. The needs of the firm that prepares the tasks play an important role in determining the tasks. Investors can easily perform these tasks anytime and anywhere. They earn cryptocurrency rewards when they complete the tasks successfully. Firms can use cryptocurrencies as a payment method due to low transaction costs, low reward amounts and rapid money transfers.
9. Arbitrage Trading
In cryptocurrency markets, arbitrage trading means buying cryptocurrency from an exchange platform and selling it quickly on another platform. Cryptocurrencies are financial assets that are traded on hundreds of different platforms. Therefore, there may be price discrepancies between cryptocurrencies on different platforms. Investors basically aim to capitalize on the price discrepancy in arbitrage trading. But arbitrage trading in the cryptocurrency markets is not always easy. For this reason, investors may want to use some applications for arbitrage tracking. They may also tend to prefer cryptocurrencies with low trading volume in order to earn more profits. Investors interested in arbitrage trading can perform their transactions with peace of mind thanks to Felixo Exchange, which is known for its favorable commission rates and high transaction speed.
Download Felixo Exchange now and start buying and selling cryptocurrencies!