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Some investors have doubts about how to make money with cryptocurrency. The truth is that there are different ways to profit from these assets, despite the volatility of the market. Check them out below. 

How to make money with cryptocurrency

Most people are interested in making their money multiply, especially when cryptocurrencies are involved. Amid all the earning potential, investors tend to buy and sell these assets on the market. 

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Despite all the volatility in the market, there are different strategies for how to make money with cryptocurrency. Investors can make money with cryptos, as long as they are aware of the risks and the likelihood of profits. 

One of the main characteristics of cryptos is the volatility of the market. The vast majority of assets are high-risk investments, requiring knowledge of the area. 

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In this sense, trading cryptocurrencies is a great business, but it's important to keep the following in mind: just as prices can fall, there are factors that sustain high appreciation. Check them out below:

1. mining

One of the main ways to make money with cryptocurrencies is through mining. This is the very complex process of producing these assets, which involves knowledge of algorithms. 

In addition, to be able to mine cryptocurrencies, users need to have specific computers and software. People who act as miners receive a fraction of the crypto as a reward. 

In order to be a truly profitable activity, it is essential to have the computing power to solve thousands of equations in just a few minutes. It's worth noting that a single piece of mining equipment costs around US$$15 thousand. 

However, you have to assess whether the cost is worth it, comparing the return on the initial investment. Mining requires a large amount of time, which means that as well as paying a lot for the equipment, the cost of energy will increase significantly. 

If you want to work as a miner, there are companies that specialize in this area. In this case, the earnings are paid into the professional's current account, acting as a salary. This market is an opportunity for programmers, cryptography specialists and others. 

2. Cryptocurrency lending

Some platforms allow users to lend cryptocurrencies. Popularly known as DeFI, these services use the owners' coins to provide liquidity for the operations of companies and individuals. 

So the people who lent their cryptocurrencies for this action get paid for it. However, by lending their assets, they are frozen on their platform and subject to technological bugs. 

In some cases, users run the risk of cyber attacks, as well as asset devaluation. So think carefully about this possibility before lending your cryptos. 

3. Long-term appreciation

One of the simplest ways to make money with cryptocurrencies is to invest in them for long-term storage. This is because, when you look at the history of cryptos, you can see the impressive appreciation that the assets have. 

Bitcoin, for example, launched in 2009, has been valued more than 65,000 times. However, just as big leaps happen in cryptos, investors are subject to unpredictability in projects. 

As the number of coins grows exponentially, thousands of them cease to exist on the same day. There are currently more than 20,000 cryptocurrencies on the market, but around 7,000 have already fallen by the wayside. 

For this reason, before investing in assets, read up on the project behind each cryptocurrency and understand whether or not it is rational and worth the risk. Observe the likelihood of continuity in the medium or long term. 

4. Trade

Another way of making money with cryptocurrencies is through trading. Most investors trade stocks and, as a result, end up losing a lot of money on the stock market. 

From the point of view of cryptocurrencies, trading takes place in a similar way to shares. In general terms, the seller and buyer agree on the sale of the assets. If they both reach an agreement, payment is made and the coins are sent within a few minutes. 

However, just like stock traders, these crypto trades are high risk. This is because the fluctuations in these assets are greater than those in the stock market, but they are also very profitable. 

If you want to make money from cryptocurrencies as a trader, be sure to consider trading fees. This is because these payments can eat up a considerable part of your profits. 

5. Games

Nowadays, users can earn cryptocurrencies even by playing games. Some platforms offer virtual games that allow users to make transactions with each other. 

Some of the items traded are costumes, terrain, avatars and weapons. These models work like NFTs, i.e. they are the property of a particular user but only exist in the virtual world. 

The value of NFTs is usually higher than cryptocurrencies. You can therefore make good profits as you progress through the games. And when you have a good base, just trade them and get paid in cryptos. 

Where to buy cryptocurrencies

Now that you know the main ways to earn with cryptocurrency, it's time to find out where to buy them. To take advantage of the full financial potential of these assets, it's essential to have a crypto portfolio at your disposal. Check them out below:

  • Exchanges: Brokers specializing in the sale of cryptocurrencies. As soon as you open an account with an exchange, check the prices and add the amount you need to buy them;
  • ETFs: Another way to acquire cryptocurrencies is through ETFs. These are funds traded on the stock exchange, which mirror their behavior in data backed by cryptocurrencies. Investors can access them through financial market brokers;
  • Investment Funds: Last but not least, investors can acquire cryptocurrencies through Investment Funds. These are funds dedicated to investments in digital currencies. 

Regardless of how you acquire cryptocurrencies, it's important to study the market. Also, consider your investor profile and exposure to risk, as this market is one of the riskiest, but with a high return.

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