Cryptocurrencies have become increasingly popular in recent decades. They are integrated into macroeconomic processes and open up new business opportunities. In the minds of the average earthling, cryptocurrencies are strongly associated with stock exchanges and quote charts. Yes, trading is the most famous but not the most reliable and far from the only way to make money on cryptocurrencies. And you don’t always need to buy USDT-TRC20 to enter the market.
Over the almost 15 years of its existence, the crypto market has made an unprecedented leap from a useless hobby of a handful of enthusiasts to a powerful industry. Despite the initial successes and profits in cryptocurrencies, the industry is still in the early stages of development. For example, the Internet was created in 1969, and the World Wide Web appeared only in 1990. Compared to these technologies, cryptocurrencies have only been around for a little over 10 years.
During this time, it became noticeable that the crypto space was developing cyclically. Typically, the cycle begins with an increase in the prices of crypto assets, which causes a stir on social networks and the media. This buzz attracts more people to contribute new code, come up with new ideas, and start new projects. This starts the next development cycle of the crypto space, in which previously inaccessible ways to earn cryptocurrency appear.
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Investment
Investing in cryptocurrencies typically involves purchasing assets and then holding them for an extended period of time. They exhibit extreme volatility in the short term but, at the same time, have enormous potential in the long term. You’ll need to convert your cad to eth if you want to invest in Ethereum, or eth to cad if you want cash out.
Given the high volatility of cryptocurrencies, a buy-and-hold strategy may be one of the best ways to profit from this asset. As with any investment, the approach to investing in cryptocurrencies should be considered as a portfolio construction strategy based on investment goals and risk tolerance level.
Staking and crypto lending
Staking and lending provide investors with the opportunity to earn money on altcoins. Staking involves locking coins in a cryptocurrency wallet, with the investor receiving rewards for validating transactions on the Proof of Stake (PoS) network. Staking can be thought of as a loan of coins that is given to the network itself to maintain its security and transaction verification.
With crypto lending, other users borrow your coins at interest. This method of passive income is supported by many exchanges, peer-to-peer lending platforms, and decentralized finance (DeFi) applications.
Cryptocurrencies with dividends
Some coins include such a mechanism in their code. One of the crypto coins that pays dividends is VeChain (VET). Once you own these tokens, you will receive Thor (VTHO). A similar function is provided for KuCoin Shares (KCS) tokens, which provide the right to a share of the commissions charged on the KuCoin exchange.
This method is in many ways similar to receiving dividends on shares, but here we are talking about cryptocurrencies, and coin owners do not receive a share of the company but only a part of its profits.
Play-To-Earn
One of the fun ways to earn passive income in cryptocurrency is by participating in cryptocurrency games. Most of them now operate on a Play-To-Earn (P2E) basis, which means you can earn money while you play. The game worlds implement different earning mechanisms.
In some, participants are rewarded for winning matches with other players. In others, they need to mine or collect valuable resources that can be sold. There are also those where you can receive and create unique digital assets (NFTs), and then sell them on third-party marketplaces.
Work-to-Earn
Work-to-Earn is the most “tedious” but reliable type of activity, which is not very associated with cryptocurrencies. Previously, mainly programmers, advertisers, and marketing strategists could work in the cryptosphere, but with the advent of the Web3 concept, into which blockchain was organically introduced, other specialists also received the opportunity to work in the cryptosphere.
Currently, the TOP 5 professions in the crypto market include:
- Blockchain developers.
- Community managers.
- PR and marketing specialists.
- Content makers of various formats.
- Niche technical specialists.
The scale and scope of blockchain projects have grown exponentially over the past few years, creating a need to expand staff and create new areas of work. What was previously done by a team of 3-5 people is now done by full-fledged companies. Therefore, if you understand the market as a whole and you have the necessary skills, welcome to the crypto world. You can find work at Web3 in a variety of work arrangements, from remote work at DAO to a full-time developer position in the European office.