As the world seeks ways to hedge against the high cost of living in 2024, many are looking for new avenues to invest their hard-earned money. With Bitcoin leading the way, cryptocurrencies have been making headway as a possible solution to this.
Despite its boom-bust cycles in the last few months, the potential for upswings and the growing acceptance of these digital assets continue to attract investors seeking alternatives to traditional investment assets.
But can you really make money from cryptocurrencies or is it too much of a gamble?
Making Money with Cryptocurrencies in 2024: A Fad or a Potential Gold Mine
Before diving into ways, you can make an extra coin from cryptocurrency investments, it’s vital we answer the question, ‘Can cryptocurrency actually make you money?’ We’ve all heard plenty of stories about people making money off crypto, which are probably true. But investing in crypto comes with its fair share of risks, especially because of its inherent volatility.
Think of it like playing your favorite online casino games. Say, for instance, you love slot machines. Every time you place a bet and spin the reels, you don’t know whether you’ll land a win or loss. Due to the random nature of online slots, , every spin is unpredictable, a major reason why they are so popular at top online casinos.
The same applies to cryptocurrency investments. Investors don’t know where the profit winds will blow. However, the market’s volatility brings plenty of opportunities to diversify your investment portfolio and make money while doing so.
Proven Ways to Make Money with Cryptocurrency
In 2024, cryptocurrency is no longer a niche for the fintech-savvy. Instead, it has jumped to the forefront of the financial world, bringing with it new and previously unimaginable ways of creating wealth. As of July 19, 2024, the cryptocurrency market was worth a staggering $2.35 trillion, and here’s how you can have a share of this huge pie:
Participate in Presales and Initial Coin Offerings (ICOs)
Better known as the ‘first-mover advantage’ in the investment world, seasoned crypto investors consider investing early in new and innovative crypto projects to be the best deal.
For instance, those who invested in Ethereum in August 2014, when it first launched, bought its presale tokens at $0.31 per token. Today, the same token goes for over $3.000. That goes to show there’s plenty of hope for any of the novel digital coins landing on the market. All you need to do is research thoroughly to find those diamonds in the rough.
Staking
Perhaps one of the more popular ways of earning passive income from crypto, staking involves holding your digital coins in a secure crypto wallet, allowing them to be used to validate blockchain transactions. As a result, the coins earn interest from simply lying inactive. However, this is better as a long-term investment strategy since you’ll earn the best profits over a long lock-up period.
Play-to-Earn Games
Did you know you can also earn cryptocurrency from playing games? Just complete a challenge, tournament, or milestone in a play-to-earn game and watch cryptocurrencies effortlessly flow into your crypto wallet.
An ideal option for passionate gamers and investors on a budget, play-to-earn titles are giving traditional gaming models a run for their money, especially since they are built on the blockchain network. That way, players are assured of their randomness and fairness.
How to Minimize Risk with Cryptocurrency Investments
By no means is the list above exhaustive of the numerous ways cryptocurrencies can make you money, but these are among the most profitable we could find. Before diving in headfirst, we advise you to lower the risk level as much as possible.
As with any investment, thorough research is crucial to understanding exactly what you’re getting into and avoiding scams. Stay in the loop with the most recent industry news and trends to avoid being caught off guard.
Keep in mind, however, that the volatility of the crypto market is inherent. Setting a clear plan and measurable goals will guide you as you steer through the murky waters of crypto investments more effectively.
