The crypto economy remains one of the most explosively growing industries in world commerce. This opens up tremendous capital growth opportunities, and in 2024, their potential will be even greater.
The first step in investing is to find a secure platform for trading on and establish an electronic purse or wallet. You must also perform extensive market research so as to know where best to invest your assets in and which instruments should be used.
Long-term Investments
The most common way to earn money is by purchasing and long-term storage of cryptocurrency to profit from the growth of its value. Typically investors buy Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL), Litecoin (LTC), BNB (BNB) and XRP (XRP). Sometimes one plays Bitcoin baccarat to earn coins and deposit them for safekeeping. These coins have a high level of liquidity, enjoy widespread community and business support, and are therefore considered the most promising as a long-term investment tool.
The other is to speculate by turning a profit buying up coins from projects which are still early in their development or else have only recently launched. This is also the most dangerous method, but you can multiply your original capital 10 times and even 100 times. To increase your chances, it is advisable to use a venture strategy: It then breaks that start-up capital down into pieces and invests it in a range of crypto enterprises.
You can find blockchain startups for investment on Binance Launchpad, OKX Jumpstart, Bittrex IEO, Gate.io Startup Launchpad, Kucoin Spotlight, Huobi Primelist Launchpad, and other IEO platforms. In addition, many online listings on the Internet collect data about upcoming crowd sales.
Mining and Staking
The second promising way to make money on cryptocurrency in 2024 is to receive rewards for mining blocks. Depending on the type of cryptocurrency, this process is carried out either through mining (BTC, DOGE, LTC, ETC, XMR and other PoW coins) or staking (ETH, ADA, SOL, TON, and other PoS assets). To make money from mining, you will need a powerful computer or ASIC, and to earn money from staking, you will have to buy cryptocurrency yourself and block it on a site like Binance Earn. The profitability of mining and staking depends on specific currencies and the initial investment volume.
Mining is the process of mining Bitcoin and other cryptocurrencies, as a result of which a new block of transactions is added to the blockchain, and coins are issued. Emission, or the release of new coins, is the miner’s reward for the work done and the electricity spent during the mining process. Adding a new transaction requires the network to spend energy to solve a specific cryptographic problem.
Airdrops, Giveaways, Faucets
You can earn cryptocurrency by completing simple tasks. To do this, you need to take part in Airdrops, Giveaways, and Faucets.
Airdrops are the distribution of cryptocurrency by projects just like that or in exchange for some actions, for example, for subscribing to social networks, commenting or liking, participating in quizzes, or watching videos on YouTube. Giveaways - distribution of prizes for participation in sweepstakes. Faucets - distribution of small amounts of cryptocurrency as a reward for completing simple tasks: watching ads, participating in testing, etc.
Such methods allow you to obtain digital assets without an initial investment. This does not require a powerful processor or video card. All you need is access to the Internet and the desire to spend a little time searching and completing simple tasks.
Yield Farming, Lending
These two earning options are similar to staking. Here, too, it is necessary to block a certain amount of cryptocurrency for the sake of reward in the form of tokens of this digital asset. Only in the case of staking, does the investor take part in the mining of blocks, and in the case of Yield Farming, in the “pumping” of liquidity on decentralized exchanges (DEX) with automatic market makers AMM (Uniswap, Compound, Aave). In the story with Lending, we are talking about “pumping up” the liquidity of programs for issuing loans in crypto.
For those who choose these methods of making money on cryptocurrency, it is advisable to use large platforms since they usually have a higher level of security. Binance has a special insurance fund - SAFU - to cover losses of exchange clients incurred as a result of unforeseen circumstances - for example, hacking/misconduct of platform employees.
Conclusion
To understand which cryptocurrencies to invest in, you must constantly monitor the market. This includes analyzing news, tracking trends, and studying analytics. This approach will help determine which cryptocurrencies are worth investing in and when is the best time to do so.
Investing in cryptocurrencies offers unique opportunities but requires a careful approach and understanding of the market. Before investing, it is important to fully understand the potential risks and develop a strategy that suits your investment goals and risk tolerance. With the right approach and enough knowledge, investing in cryptocurrency can become a valuable part of your financial portfolio.
