The most logical next step to take after learning about the basis of cryptocurrency and blockchain technology is usually to seek ways to participate and profit from it.
The cryptocurrency space is a wide field with so many activities going on at the front stage as well as the background.
Every day, we see different use cases for different cryptocurrency projects, and with this uprise in the number of cryptocurrencies come much more confusion as to how one can earn from participation.
Whenever newbies talk about making profits in the cryptocurrency space, they most often think more about buying Bitcoin or any other cryptocurrency that is being hyped at that time but in reality, this just constitutes one of the various ways available to earn while participating in the cryptocurrency space.
There are various activities that you can engage with on your journey in the cryptocurrency space, these activities once well understood and followed diligently can help you profit big. In this article, we divide these into 3 broad ideas which have been explained in detail throughout the rest of this article.
Cryptocurrency Airdrops
Cryptocurrency airdrops are the easiest ways of getting into cryptocurrency and blockchain space profitably. Most people starting in the cryptocurrency space do not usually come in financially buoyant to start trading actively in the volatile cryptocurrency market, participation in cryptocurrency airdrops ensures that these earn enough to enable them to go on to participate in investing in the cryptocurrency market.
The working mechanism for cryptocurrency airdrops is a simple one. When a new cryptocurrency project is about to start, they usually start without a community around the new project, to build a community around the new project, the team behind the project can decide to give out a certain part of their cryptocurrency total supply for free.
To be eligible to receive these free tokens, participants are mostly asked to perform certain social tasks such as following the project’s social media accounts or joining their community on Telegram or Discord, they could also be retroactive airdrops.
The criteria for eligibility can be set to be anything depending on what the team thinks is the best way to reward participants with the project’s cryptocurrency.
Therefore we can say that the process of getting cryptocurrencies for free by performing certain specified social tasks or meeting with certain conditions outlined by the project’s team is referred to as airdrops. If this distributed cryptocurrency goes on to be valuable in terms of price, then it can be sold for Bitcoin, Ethereum, or fiat currency. Many top cryptocurrencies we have today started as an airdrop event, then went on to be valuable through a combination of proper marketing and market relatable use cases.
The major upside to participating in cryptocurrency airdrops for newbies is the fact that it helps improve the learning curve for them, the process will ensure that you learn how different cryptocurrency projects work, this gives a certain level of advantage when it comes to performing fundamental analysis on other cryptocurrencies you might want to have your investment in the future.
It must be made known that not all cryptocurrency projects who go through the route of an airdrop event will be successful in the long run, for some cryptocurrency projects an airdrop event might be the death of the project either because those who receive these tokens freely decide to sell them so cheap and exit the project’s community or an outright failure on the part of the team to properly promote the project successfully.
Cryptocurrency airdrop participation requires a whole lot of patience just as with every activity in the cryptocurrency space.
Cryptocurrency Trading
It is already a fact that cryptocurrencies are now classified as an asset class, therefore they have value in terms of price. If this is the case, then one cryptocurrency can be exchanged for another cryptocurrency, fiat currencies, or other asset class such as gold.
The cryptocurrency market just like other markets such as the stock market or the forex market just represents where cryptocurrencies can be traded. Trading of cryptocurrencies represents an opportunity to make profits while participating in the cryptocurrency space, the aim here is to buy a particular cryptocurrency when it is at a low price and sell when it appreciates at price, although there is currently a derivative trading option available on most cryptocurrency trading platforms.
Cryptocurrency trading takes place on platforms called exchanges, these exchanges are just third-party tools that help facilitate trading activities smoothly. Most exchanges are centralized while a sizable number of upcoming ones are beginning to explore decentralized working mechanisms. Popular examples of exchanges where cryptocurrency trading takes place are Binance, Kucoin, Uniswap, Okex, etc.
The cryptocurrency market is very volatile, meaning there is a very high possibility of making a profit as well as an equally high possibility of racking up losses. The market is also large and very unregulated, therefore trading in the cryptocurrency market should be backed with a high level of caution and participation should be done from a place of knowledge and proper skillset. A basic understanding of fundamental analysis and technical analysis will help you trade cryptocurrencies with significantly fewer losses.
Offer Services to Cryptocurrency Projects
As knowledge of cryptocurrency and blockchain technology continues to gain widespread adoption, the number of different cryptocurrencies beginning to spring up is on the rise.
These new cryptocurrency projects are not handled or developed by robots but by human beings, they need the efforts and skill set of different people to make it work out successfully. This situation presents a unique opportunity for those looking to earn in the cryptocurrency space offering their skill set as a service to various cryptocurrency projects.
Cryptocurrency jobs are becoming more profitable as the potential to earn in this space expands exponentially, the major upside to this trend is the concept of working remotely, with your mobile device, private computer, and other electronic tools, you can work for big cryptocurrency projects from the comfort of your home.
Cryptocurrency projects require developers, content writers, graphics designers, community managers, project ambassadors, social media experts, and a lot more skill sets to be successful.
If you possess any of these skill sets, you can earn by offering them as a service to these projects. There are quite a several websites that list out available cryptocurrency projects opening from time to time, a popular example is the Cryptojoblist website.
These three routes to participating profitably in the cryptocurrency space are just knowledge at the surface level but they will certainly give you a sure pathway to knowing exactly what to do to earn those bucks as you navigate through this space. Explore them all like Dora.
