Crytpto currencies have become very popular in the last year with bitcoin and various other crypto currencies price booming over the last year I hold a small position in crypto to make the most of these gains and because I see the potential uses for various currencies in the future.
There are two main ways I make money with crypto
Buy and Hold
This is where the bulk of my currency is held I personally use coin base at the moment but other crypto currency brokerages are available and I simply buy and hold a variety of crypto currencies I believe from my own research will go up i’ve done this research by researching on the internet and watching YouTube videos so I can get a good understanding of each coin I own and its uses before I invest, there’s too many to go through in an article like this but common places to start investing is either with bitcoin or ethereum.
you can gain interest from your crypto currency by staking it I do this through my coin base wallet which gives me caring amounts of interest based on the coin I choose to use the interest you can gain from this can fluctuate massively but is generally around 4-8% from my experience.
you can make money from crypto other ways such as creating crypto related content informing other people about how the the coins and tokens work and why they may or may not be good investments.
The pros of investing in crypto
There are periods of huge growth in crypto as its a fairly new asset class and ins’t yet as widely adopted as the common forms of investment
its a different asset class you can use to further diversify your overall portfolio
The cons of investing in crypto
its very volatile you can look one hour and you may be up 5 % then the next you could be down by 5%
its confusing to initially understand
To conclude I believe crypto will be more widely adopted in the coming decade or two so i’m investing a small portion of my portfolio into crypto to take advantage of that (i’m only risking less than 2% of my entire invested assets at the moment but I am likely to eventually increase this to closer to 5 or even 10% if it continues to perform). This isn’t an asset for everyone due to it volatility but if you can handle it its definitely something you should look into for some additional diversification.