Over the past few years, the number of people who have made their first fortune in digital coins practically from scratch has increased several times greater. Not surprisingly, newcomers are also thinking about how to get rich off of it. But they don’t know where to start. Whether mining, investing, trading, creating or selling NFTs.
Students also want to earn money to be able to pay for all their whims and needs. You don’t want to ask your parents for money for a concert ticket or to pay a paper writer for a well-written essay. Sometimes you have to ask for professional help, even in your studies. And this is the right decision because the experts will fulfill your request responsibly
What is cryptocurrency?
Cryptocurrency is digital money based on software code. Virtual payment systems with their currencies are also called coins. All transactions in this system are protected by a cipher – a cryptographic method.
The cipher relies on the blockchain. It is a massive database of identifiers and checksums. A new approach, the essence of which is decentralization and universal control. We can explain this with the help of an example.
The database divides into blocks. In the diary example, this could be a page. And each page is linked to the previous one. A chain is being formed. The blocks have their numbers (identifiers) and a checksum, which does not allow others to see the changes. Going back to the example with the transfers, let’s say that Citizen A made a transfer for $500 and then decided to correct it for $400. The recipient, citizen B, and everyone else will notice it.
Step-by-step instructions on how to make money on cryptocurrency for beginner students
Produce existing cryptocurrency by computing new blocks with your computer’s power. In the past – in the early stages of crypto – the power of a home PC was enough to mine. Over time, it became increasingly difficult to get new blocks.
After all, each block is related to the previous one. You need a large amount of equipment to make calculations. So now miners create farms – complexes with lots of video cards (they are faster than processors to make calculations).
How to get started? Build a mining farm or buy a ready-made one, choose a cryptocurrency to mine, and launch a mining application.
Pros and cons:
- Low risk: you mine coins that already have value.
- High entry threshold – mining equipment is expensive.
2. Сloud mining
Passive cryptocurrency mining. As we said before, the equipment is expensive, and there are not enough powerful video cards for everyone. But someone buys them and needs money to develop them. They accept investments. In return, they share the mined coins with you.
How to start: choose a cloud service, sign a contract with it and wait for its fulfillment.
“Buy low, sell high” – a simple rule. What distinguishes the cryptocurrency market from classical trading is even greater volatility – price volatility. Is this good or bad? For the average person, bad. But for investors, it is the way to get 100% and even 1000% in just a few hours on price differences. All managers, students of prestigious universities, and even beginners are interested in it.
How to start: you need to register on one of the major crypto exchanges.
This investment is called a HOLD. The gist of the strategy is simple: you buy a cryptocurrency and forget about it for months or years. Then you open your holdings and sell the ones that have gone up.
How to get started: buy crypto on an exchange, digital exchanger, or another user, put it in your wallet, and wait.
You do not need to monitor exchange rates all the time. The balance of the cryptocurrency wallet remains your, conditionally speaking, passive asset, an investment.
The risk is not high. The coin may soar by hundreds of percent over the distance or not change price even at all.
NFT products exist in a single copy and are therefore unique. In addition, everyone can see who is the token owner, and this information is not changeable. NFT works have gained value. Example: a motion designer drew an animation and sold it. Or Twitter founder Jack Dorsey sold his first tweet at auction for $2.9 million. The new owner became the owner of the message. What did it get him? Apart from a sense of ownership, nothing. But collectors buy the original paintings by Dali and Malevich, and someone thinks that you can look at them for free on the Internet. The mechanics of NFT auctions can be more complicated than the bidding game in a classic auction. Each work can have its buying algorithm. For example, selling a painting piece by piece, and in the end, it goes to the person who collected the most mosaic pieces. Although there are also classic examples of auctions – the one who made the highest bid becomes the new owner.
How to start: register on one of the NFT platforms.
Pros and cons:
- There is a rush in this area right now. You can make good money on it.
- High risks: you can invest in something, expecting the next buyer to pay more, but a new bidder may never get in.
6. Crypto Lotteries
Pay $1 and win 1,000 BTC – such slogans lure lottery players. Some do pay out to winners, but this market is opaque.
How to get started: buy a ticket for one of the virtual lotteries.
Pros and cons:
- The ticket is often cheap.
- Can fall for cheaters, low probability of winning.
7. Creating your cryptocurrency
You have to choose whether to issue coins or tokens. The token uses the blockchain technology of another currency. It is faster to launch because the code is in the public domain. To release a coin, you have to know programming and code.
How to start: study cryptocurrency theory, think about the concept of your token or coin, and strategy to promote it and bring it to market.
Pros and cons:
- There is always a chance of replicating the success of bitcoin or altcoins (all coins that are not bitcoin) from the top 10 by capitalization.
- There is a low chance that the novelty will be successful. To start a worthwhile project, you need a large team of programmers, marketers, and lawyers.
The idea is that speakers keep the cryptocurrency in a wallet – locking it into an account. As if placing a deposit in a bank. Not all coins are suitable for stacking, but only those with the PoS algorithm. These include EOS, BIT, ETH 2.0, Tezos, TRON, Cosmos, and others. When coins are locked in the owner’s wallet, it helps the owner mine new blocks, making transactions faster for other market participants. For this, the stacker gets his reward.
How to start? Buy coins, and lock them in the wallet with a deposit contract.
Pros and cons:
- No need to invest in hardware as in mining – buy coins, put them in a well-protected wallet, and wait.
- Exchange rate volatility can cause currencies to depreciate.
Lend money to a cryptocurrency exchanger or individual. It is a kind of usury of our time.
How to start? Choose a reliable partner, and sign a contract with them.
Pros and cons:
- Ability to receive passive income at an interest rate higher than of banks.
- You can run into a “scam” and lose your investment. It is often the case with new exchanges or private lenders.
10. Crypto funds
Suitable for those who understand all the benefits of cryptocurrency, but do not want to or do not have enough time to deal with trading and other investments. You give money to the fund, it selects liquid assets, buys and sells them, and then shares the profits with you, earning its percentage. Crypto funds have different investment strategies: moderate risk or high risk.
How to get started: decide on one or more funds, and agree with them to manage your assets.
Pros and cons:
- The opportunity to entrust your assets to competent management and make a profit.
- Risk of fraud; some funds only practice high-risk investments.
- Learn from mistakes, and get your kicks. The market is quick to point out where you went wrong.
- Find a mentor to guide you, explain, and tell you what to do.
- Draw up an earning strategy, stick to it and adjust it based on the market situation.
- Open a cryptocurrency wallet, put some free money on it and start.
- Don’t invest all your money in one project.
- The same rule applies in the cryptocurrency world as in other fields. You need to be able to understand a new topic, get into it, learn and not quit halfway through. You can ask for help from the best writing services if you don’t have enough time to focus on the field of cryptocurrency because of your study load.
- Choose the area of cryptocurrency that you like. It will be more interesting to dive into the topic and easier to succeed.