During this period of strict social distancing, there are many ways that you can use cryptocurrency to earn some extra income.
The rapid spread of the coronavirus has shocked governments around the world into drastic action. Most of us are now bound to our homes for the foreseeable future in a bid to turn the tide on this dangerous pandemic. The social distancing being enforced is necessary, and it is in our best interest to comply with these strict measures. But as well as looking after your health, you can also protect your pocket.
There are ways that you can earn a good passive income at home through cryptocurrency. These new digital assets thrive from participation, and many of them will reward those who get involved. They also experience much higher volatility than other trading instruments, and this can be used to great advantage.
Here, we will list 5 ways crypto can be used to earn from the comfort of your home.
#1 Hodling
Okay, so the first method won’t really make money in the short term, but it is by far the simplest way to earn from cryptocurrency. Hodling is a term used for buying and holding on to cryptocurrency until the value appreciates.
The panic caused by COVID-19 brought the price of cryptocurrency down to record lows. This creates a window of opportunity for those who have been considering buying for the first time. If you choose your coins wisely, you may be in for some considerable ROI after the crisis has passed and the market recovers.
If you are confused as to what coins would be best to buy, look to its fundamental use case. What problem does it aim to solve? Will this solution be relevant in the months, or even years to come? Another good sign is if the founder of the coin is still heavily involved with the project.
#2 Staking Cryptocurrency
Staking your crypto is a superb way to earn a passive income because it also carries the benefits of hodling. Proof-of-Stake was introduced as an alternative to Bitcoin’s energy consuming Proof-of-Work; the way in which the network is secured.
Using this method, you still hold the coins and await the price to evolve. But by keeping your coins in a live (online) wallet 24/7, you have a stake in securing the blockchain and get rewarded with new coins for your participation.
Tezos (XTZ) may be worth looking into if you plan to buy and stake cryptocurrency. They offer a very attractive 6% ROI per annum. Ethereum is also introducing a PoS consensus and there are many more such as Dash, Neo and Qtum.
#3 Masternode
It is very easy to become a Masternode and earn cryptocurrency for coins that use this system. To do this, you must simply use your computer to store a full record of the blockchain in real time. There are a couple of very popular coins that employ masternodes to secure their network. It can also be quite fun and exciting, as participants are often allowed a vote in how the blockchain will be further developed.
Dash is probably the most well-known cryptocurrency to use masternodes. There is also PIVX, a privacy-based coin developed and licensed by MIT.
#4 Crypto Cashback
There are cryptocurrencies now available that give cash back rewards to their users. One of the most notable is crypto.com (CRO), which is currently positioned in the top 20 on CoinMarketCap. Their MCO crypto-based credit card offers 5% cashback on all spends. The reward is given in CRO, which could be very lucrative as the project continues to be developed and the value of the coin rises.
#5 Day Trading
People have built entire careers around day trading, and the crypto market offers a volatility that makes this activity extremely lucrative. The idea is a simple one: Buy low and sell high. Using cryptocurrency as a trading instrument, investors have been able to make incredible ROI within a single day.
Leveraged trading is becoming increasingly popular, where investors can borrow funds to bolster their trades. For crypto, these loans are referred to as crypto-backed loans.
If you are going to get involved with intraday trading, it is extremely important that you understand the fundamental mechanisms. Although this method can potentially be the most lucrative, it also comes with inherent risk and without the proper knowledge, you could end up in a worse position than when you started.
There is a world of information at your fingertips, and as we all remain in our homes to stop the spread of COVID-19 you could use a little of your time to learn about charting, volatility and trading strategies. If you do the proper research and invest responsibly, day trading can earn you an impressive income.
Conclusion
All of these are viable options to earn money through cryptocurrency while having to stay at home. They can also be very interesting to get involved with. Staking coins to have a voice on the network, researching a coin that you feel may appreciate greatly in the future, or learning new knowledge and skills as you begin to trade can bring excitement to your day.
Whichever method you decide upon, remember to learn all you can. The goal here is to improve your financial situation, not to put more strain upon it by diving straight in without the proper knowledge.
So, I suppose learning is earning. Stay home and stay healthy everybody.