Know the 7 best ways to make money with digital currency

by Sanju
forex trading concept

One of the best aspects of the digital industry is that it offers not just one but multiple ways to make money with digital assets. You are aware of the practice of investing and trading digital currencies. But those are not the only way to fuel your wealth with the help of crypto. From crypto lending to sharing affiliate links, there are many exciting ways by which you will be able to make good cash with crypto.

Various ways to make good money with digital currency

HODLing

This is the classic avenue to make good money through digital currency.

HODLing is a twisted form of “Holding” and has been especially coined for digital currency. In HODLing, an investor aka HODLer buys crypto for long-term investment. The investor keeps the holdings on hold for 1 year to 3-4 years, as per the specific condition of the market and future predictions of the coin. Once the coin reaches a surging price, the investor sells it off.

You must be careful during selection of digital currencies for HODLing. This strategy is only suitable for coins that carry a highly promising future, such as Ethereum or Bitcoin. Meme coins that are usually built on hype have no future and hence would be good for trading crypto currencies.

Bottom line is, when it comes to HODLing, always look for coins that are backed by an ambitious and progressive roadmap, and a strong and knowledgeable team. You have to choose sustainable cryptocurrencies to ensure huge returns after years of HODLing.

Leverage trading

Do you want to open big trading positions but apprehensive of limited capital? Well, in that case, you can always opt for leverage trading digital currencies.

Leverage trading means trading digital currencies with leverage or borrowed funds. You can borrow the funds from your trading exchange easily. If the coin price rises, you will be able to make huge profits if you open grand trading positions. However, your trading exchange will ask you to provide a certain sum of deposit that will serve as a margin or collateral needed to borrow the funds for leverage.  You will have to maintain the margin amount even if you encounter loss as otherwise the exchange will be forced to close your position.

Leverage digital trading applies to trading in long as well as short positions. Long position trading is when you buy coins when the price is low and sell them when the market takes an upward swing. But in a short position, traders will be able to make money even when the market goes downward swing.

Day trading

This is another way by which you would be able to make money through trading digital currencies.

Day trading is the exact opposite if HODLing. In HODLing, you keep your digital holdings on hold for several months and years in the hope of sizable profits. Day traders, on the contrary, aim for small but multiple profits. Mostly they conduct multiple trades throughout the day to cash in on daily price fluctuations in the digital scene.

One of the popular day trading strategies is scalping. In scalping, traders trade frequently, within an interval or minutes or even seconds. Scalpers carry numerous trades all through one trading day.

Digital mining

Digital mining allows you to earn money through PoW blockchains.

PoW blockchains follow the process of mining to validate new blocks before adding them to their existing chains. For that, these blockchains welcome miners to resolve complex computational puzzles. Miners have to find the correct hash rate to solve the puzzles – the first miner to do that would be rewarded with new coins. The miner then can cash in the coins for fiat money.

However, one thing to note here, digital mining has advanced by leaps and bounds and you will need specialized ASIC rigs today to conduct the mining process.  These ASIC rigs are extremely costly. But, there are ways to reduce the cost of mining- you can either join a cloud digital mining platform or a mining pool.

Digital staking

Just as PoW blockchains use the mining process, the PoS blockchains use staking processes to achieve the same goal- validation of fresh blocks. But the procedures are completely different. You already know by now about the system of mining process. The staking process is nowhere close to the mining process.

In digital staking, you will have to deposit a part of your digital holdings to a PoS blockchain. The blockchain will keep the coins locked-in for a certain period of time as the PoS blockchain needs these coins to execute the validation process. In return, the PoS blockchain will reward the staker with new coins. Some digital exchanges will charge a staking fee while there are many who won’t.

Staking rewards range from 4% to 10/12% annually.

Digital lending

This is another form of passive income that you can make with digital, added to staking. If you are HODLing and don’t have plans for trading digital currencies sometime soon, then, you can utilize your idle digitals for lending. There are several digital lending platforms out there that will offer you handsome interest rates for lending, ranging from 7 to 13 percent. In fact, DeFi lending platforms offer excellent lending rewards that might even reach 75%.

Sharing of affiliate links

Are you a master of an active blog/s with a knack in digital? Well, then, you have a fantastic avenue to make money with digital through your highly frequented blog. Digital companies are always on the lookout for popular blogs and bloggers that will be willing to share their links and spread the word about them before the larger community. These companies run a separate section of affiliate programs solely based on that agenda.

The only thing you will need here as an affiliate marketer is to share the links provided by the digital companies in your blogs and/or online forums and social media platforms. You will receive payment whenever someone will sign up with the digital platform through your shared link.

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