Crypto is the land of milk and honey.
I’m not talking about your fridge,
but a place full of opportunities for those who put the effort in.
If you're watching this video, you’re probably one of those ambitious and brave souls to the start off their crypto journey.
But what are your plans? Trading? Mining?
Did you know there are also other ways of making money in crypto?
In this video, I'll be showing you the 5 most common ways people make money in cryptocurrency.
Let's get it.
Welcome to BitBoy Crypto! The hardest working channel in all of cryptocurrency.
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I'll also be going on vacation this week.
Just so you know.
And I wanted to leave you guys with something to study while I was going to take a break.
This is the first video in a long series that will help you to learn more about how to navigate the crypto markets,
even if you don't know much about them.
This is your first day in crypto.
In this series, we are getting back to the basics when it comes to Bitcoin and blockchain.
Now, chances are, you probably heard about crypto for the first time when everybody was running around buying GPUs to start their own mining rigs,
creating an elevated price and lack of supply for nerds and companies around the world.
If you didn't, the other likely option is that you know about crypto trading.
These are not the only two ways to obtain crypto, as there are basically as many as developers can come up with.
Today, we will be taking a look at mining and trading, of course, but also, staking, trading, rewards apps and HODLing.
That's right. Not holding but HODLing.
The YOLO equivalent in the crypto world.
If you want to be one of the cool kids, you can't say holding.
All these methods though imply different requirements and benefits,
so let's stop pussyfooting around,
and let's talk about mining.
Who says pussyfooting?
This one is for those who don't mind getting their hands dirty.
Well, as dirty as you can from using computers.
Mining is one of the most important activities on many blockchains,
as is the case of Ethereum and Bitcoin.
As this was meant to be an introduction, I'll be talking about mining in the Bitcoin ecosystem,
as this is the project that started the mining craze and set the foundations for other projects’ approaches.
Okay, so what is mining?
It’s the process of verifying transactions taking place on the network to allow its addition to the public ledger,
as well as the creation of new coins that will then be introduced into the circulating supply.
You know how your country's central bank can decide to make money and just print it whenever they want to?
Well, in networks like Bitcoin, coins are being created at an established and predictable rate that's hard written into the protocol’s code.
This means there's no central authority that can decide to create more or less Bitcoin at any given moment,
as any increase or decrease would have been decided upon from the beginning.
These newly created coins are automatically given as a reward to users for providing its services to the blockchain in the form of mining.
You see, validating crypto transactions requires a lot of computational power,
as it is basically solving mathematical puzzles that most humans wouldn't be able to solve,
and those who can will be way slower than machines.
As miners are competing with each other, the better the mining rig and more computational power,
the more chances that miners will receive the rewards for validating those transactions.
It's a race where the better equipment wins.
This way of generating gains by validating transactions, investing power to solve these mathematical problems,
is known as proof-of-work protocol.
A lot of popular blockchains still use it, but the trend is moving away from it.
It is still a valid and profitable way to make money in the crypto world though.
If you don't want to use mining for any reason, worry not!
There are options for everyone out there.
If you're not a lazy butt who just wants to make some quick bucks with no effort, you can focus your efforts on crypto trading.
Crypto trading works in the same way as stock, fiat currency, gold and many other types of trading as an investment you can think of.
The idea is simple.
Buy low, sell high.
This means you are always aiming to buy an asset, in this case, crypto, at the lowest value possible and selling it at the highest.
Now, this is easier than it sounds.
Like any other market, experiences volatility, and the prices go up and down depending on external factors.
Predicting these changes is everything when it comes to selling your crypto at a higher price than you purchased it out.
While mining will usually require you to focus on a single coin,
when trading, it’s recommended to have a balanced portfolio with different coins.
You won't be needing any hardware investing here.
But you do want to get your research done and trade your coins around.
Just like mining, there's big money to be made here,
which would depend entirely on your knowledge and ability to read the market.
If you're a nerd and you're into RPGs, mining would be the warrior, while trading is the mage in your party.
I--I don't even know what that is.
Neeeeeeeerd!!!!!!
Staking is the equivalent of mining but in proof-of-stake protocols.
Crypto owners can lock their coins to receive rewards.
Easy, right?
By staking their coins, these users are contributing to the security and performance of the blockchain
by getting randomly assigned the right to validate a transaction.
The more coins a user stakes, the more chances it will have to get assigned the next block.
This is why I said it was similar to mining,
as in both cases, the miner and staker are validating and working for the blockchain.
What changes is that mining requires a lot of energy consumption due to hardware and competition,
while staking requires way less energy, as there is no less competition going on.
Well, there may be some competition with the staking, but even stakers with a lot of coins will get all the validations.
Staking also helps the blockchain’s coin value to increase as the circulating supply decreases as investors lock their coins.
Ethereum is currently moving to a PoS protocol from its original PoW.
You may have heard of this. It's called ETH 2.0.
And it should make a big impact on the price of Ethereum.
Now, the following way to make money with crypto is HODLing.
This can be considered by many investors the same as trading, and technically, it kind of is.
You buy a coin at a certain value and hold it in the long term as its value increases.
You never sell.
When I talked about trading, I mentioned the need to have a balanced portfolio and jump around projects,
which is not the case with HODLing.
Here's an example, even if a bit absurd, as not many people would have done this.
Look at Bitcoin’s value over the years.
Someone who had acquired it 5 years ago, would have paid around $250 for each.
Let's just say a person didn't want to risk it and spent only $1,000 and HODLed onto it until today.
Those $1,000 would now be worth $44,000 for holding them 5 years.
A more probable scenario would be for that trader to hold something for 1 to 2 years,
a case in which they would have multiplied their earnings by about 3 to 14 times respectively.
Picking good projects with good fundamentals is essential for this type of investment.
Just as selecting the right moment is a good project, be sure to have the price of its coin increase over time.
Last but not least, I want to talk about reward apps.
As the name suggests, these are apps that reward you with crypto as you use them.
What'd you expect?
For example, Brave Browser gives you Basic Attention Tokens, or BAT, as you browse the web and see their selected ads.
Lolli gives you Bitcoin for buying online in a way similar to how Honey helps you find discounts,
install an extension and start earning crypto by buying participating products.
Be careful if you get to a site telling you that you won 10 BTC for being the 1 millionth visitor though.
Reward ads are a great way to make some easy money with crypto without changing your daily habits.
We all browse the web regularly after all.
Why not make money off of it?
The advantage of these reward apps over the ones who work with fiat is that crypto changes value constantly.
Think about the previous example I gave you where a Bitcoin investment 5 years ago would represent a gain of 4400%.
If you get $1 worth of rewards for buying what you would have bought anyways, and in 5 years, that coin is on the same trend,
not bad, eh?
Now, of course, I'm not saying this will happen, but it is just a way to show the potential gains simple moves have in crypto.
But now it’s your turn.
Which of these options is the most attractive to you?
Do you know any other ways to make money with crypto?
Let me know what you think down below in the comment section.
I hope you enjoyed this video and I hope you enjoyed this series.
If you do, please make sure to smash the Like button and hit Subscribe to become a member of the BitSquad.
Thank you so much for watching.
Have a blessed day.
BitBoy out.