How to Make Money with Cryptocurrency? Part 1

January 28, 2021

Investment

Sean Korbett

Let’s take a look at the basic concepts and principles that will help you better understand how to make money with cryptocurrency.

What Is An Investment?

Investment comes from the Latin term “investire” which means something like “to dress” or “to clothe”. Basically, an investment is a project or item on which an entrepreneur or a private person spends capital. Both the company and the private individual hope that the income they generate will be greater than the initial capital they have invested.

The types of investments can be differentiated according to such criteria as investment object and investment reason.

Investment Objects

When it comes to investment objects, a distinction is made between financial investments, tangible investments and immaterial investments. 

Financial Investments

Financial investments mean that you buy not actually existing goods, but stocks or bonds. The aim of financial investment is to increase your capital through returns. 

Tangible Investments

As the name suggests, investments in tangible assets are investments in things – i.e. machines, systems, office equipment, etc. These investments are usually made to keep a company going. 

Intangible Investments

Intangible investments are those which are immaterial in nature. These include, for example, patents, licenses or marketing measures that contribute to higher customer loyalty. These investments do not directly contribute to a positive company result, but can pay off in the future.

Investment Reasons

When it comes to the investment reasons, a distinction is made between a start-up investment, a new investment, a replacement investment, an expansion investment. 

1. Start-up investment. To start a business, the founders need to make start-up investments. Start-ups have to invest capital in a company name, in office space or a machine park. 
2. New investment. With a new investment, the company moves into new economic realms. This can affect both young companies and long-established corporations. 
3. Replacement investment. If you have to replace technical equipment, replacement investments are necessary. This does not change anything in terms of business goals or the like.
4. Expansion investment. Also, there is the expansion investment, when you invest in a new product line to expand or further develop it.

Cryptocurrencies are yet to find their balance between means of payment and financial assets, but for many people who have flocked to these new kinds of financial assets, cryptocurrencies are first and foremost a potentially profitable investment.

How To Invest In Cryptocurrency? 

The following options are available:

• Crypto Trading
• Staking of Cryptocurrencies
• ICO
• “Hodling”
• Referral Programs
• Airdrops
• Getting a Wage in Cryptos
• Selling Your Goods for Cryptos

Crypto Trading

Trading implies short-term speculation. We are happy to announce that you’ll get an opportunity to buy cryptocurrencies for fiat currencies on StealthEX pretty soon.

Cryptocurrency exchanges are well-fitting for this, being the optimal way to buy or sell cryptocurrencies. One of them is StealthEX – a service, providing non-custodial cryptocurrency exchanges. 

However, to make money with cryptocurrency trading is not that easy – since it is quite risky. Cryptocurrencies are extremely volatile, so it is wise to start trading with a small amount to survive possible losses. 

Staking Of Cryptocurrencies

Within a framework of staking, tokens are stored in the wallets, bringing an income. The profit margin depends on the annual interest rate and the number of tokens. The process of staking can be compared to a bank depositing, when a user allocates funds for a specified period of time. The more money is deposited, the higher the profit.

ICO

ICO or Initial Coin Offering is the release of tokens, intended to be the means of payment for the services of a particular crypto project in the future. Purchasers of tokens do not receive stakes in these projects and cannot make or influence internal government or management decisions. Essentially, ICO is another implementation of the crowdfunding model, where participants support the development of a company in order to get some benefits.

By buying tokens issued by a project, investors hope to: 

• Benefit from the resale of tokens at a higher price in the future (assuming that they will be in high demand). 
• Redeem their tokens in the future by receiving lower cost services. 
• Support a project interesting for them.

In the second part of the article, we will talk about other scenarios of how to make money with cryptocurrency: “Hodling”, Referral Programs, Airdrops, Getting a Wage in Cryptos, Selling Your Goods for Cryptos. And also about the best cryptocurrency to invest in. As well we will come back to the question – Is Bitcoin A Good Investment?

And remember that the best way to buy Bitcoin and its rivals is StealthEX – a custody-free crypto exchange, providing the opportunity to convert over 350 cryptocurrency assets without limits,  without having to register, and with no extra or hidden fees.

We are happy to announce that you’ll get an opportunity to exchange cryptocurrencies for fiat currencies on StealthEX pretty soon.

So what are you waiting for? Hurry up and visit StealthEX.io 

How To Buy Cryptocurrency? 

You can study a detailed article with an exchange guide, watch a tutorial video on our YouTube channel, or just go to StealthEX and follow these easy steps:

1. Choose the pair and the amount for your exchange. For example, ETC to BTC.
2. Press the “Start exchange” button.
3. Provide the recipient address to which the coins will be transferred.
4. Move your cryptocurrency for the exchange.
5. Receive your BTC coins!

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The views and opinions expressed here are solely those of the author. Every investment and trading move involves risk. You should conduct your own research when making a decision.