3 Ingenious Ways to Make Money From Cryptocurrencies

Digital currencies are providing lucrative opportunities to retail and institutional investors. Today, the crypto industry has close to 19,000 assets with a cumulative market cap of $825B. The crypto ecosystem is, however, in its earliest development stages since it is a fairly new concept. Many individuals are uncertain about how they can make money with virtual currencies. Investors across the world are taking advantage of common mechanisms like mining, day trading, and holding to maximize profits. The following article, therefore, intends to examine which of the three strategies is more suitable for investors to make money from cryptocurrencies. How to Make Money From Cryptocurrencies Crypto Mining Crypto mining is an income-generating opportunity that rewards miners for validating transactions on a blockchain. Under this mechanism, a group of decentralized computers is responsible for maintaining the public ledger. The process encourages miners to participate in solving complex algorithmic equations. As such, miners with significant computational power have a higher chance of solving the equations. From there, the winning miner is able to update the ledger by adding new blocks to a chain. Performing this activity allows miners to earn a predetermined amount of digital currencies. Bitcoin, for instance, provides miners with a certain amount of BTCs which decreases after every four years. During its initial stages, the minin...