Are you a student, employee, or even an employer? Then you’ve come to the right place. Because who doesn’t want to earn a penny with crypto?
In 2017, it all seemed so easy. Throw that whole savings account on Bitcoin and within a month or two you will be a millionaire. But when 2018 came around the corner, many dreams fell apart and happiness could still run out.
Although 2020 does not really seem to be our year when it comes to daily life, the crypto market is strengthening again. That is why it is now time to learn how you can make your money with crypto.
To refresh the memory first, I briefly explain what crypto is exactly. And when you are ready for the real thing, I will explain some simple and advanced methods to make your “coin” from the crypto world. Take a quick look
Would you also like to hear the other side of the story and know what not to do? Be sure to check out the video below in which a man discusses his mistakes, from which you can learn! What is crypto?
Crypto is a commonly used shortening for the term “cryptocurrency”. A cryptocurrency is a digital/virtual currency. But what is the difference with fiat money, such as the Euro (€) and the Dollar ($)?
There are a number of differences between the two. For example, cryptocurrency is often (not always !!) decentralized, where fiat money is issued by a central party. In Europe, this is the European Central Bank.
The European Central Bank also determines how much money is in circulation, since they can, so to speak, turn on the money machine and pump a lot of extra money into the economy. This can have quite a few disadvantages, including inflation. Simply put, this policy makes your money worth less and you can buy less with your money!
Take Bitcoin, for example. A currency of which there are up to 21 million pieces on the market if they are all mined. No more, but less if you lose your login details. This limit immediately solves the problem of inflation by printing.
Another difference between cryptocurrency and fiat money lies in possession. Do you have your money in the bank? Then you run the risk that the bank will freeze your account, causing you to be in trouble. This is an extreme example, but what I mean by this is that you do not actually manage your own money by putting it in the bank.
The digital revolution of cryptocurrencies has given us the opportunity to take matters into our own hands. Through wallets, you are now able to keep your own digital money with you at all times, without anyone else having any control over it. Sounds nice right?
In short, a cryptocurrency is therefore an often decentralized currency, with a predetermined maximum circulation and with the possibility to take control into your own hands.
Now let’s move on to the part you all came for! How do you make money with crypto?
Making money with crypto is done in all kinds of ways. Fortunately, we are not limited in our methods and who knows that in the future there will be even more options.
Below you will first explain a few simpler methods that are accessible to everyone. Then I will discuss the methods for when you have already saved up some capital.
Furthermore, it certainly does not hurt to do good research yourself per method that you want to use, because more knowledge is never a bad idea. That brings me to an important tip for the crypto world: Always be critical of information you get from others!
There are also many sources of information that are not correct and so own research remains important. Investing in crypto
Investing in crypto is by far the most widely used method to make money with crypto. It is also the method where you can sit back in your easy chair and only have to look back after a few years.
By investing in crypto I mean purchasing one or more cryptocurrencies to hold on to them for a long time and thus achieve great returns. You do not look at short-term fluctuations, but you look at the long-term perspective that your project offers.
For example, in the chart below you would say at first glance: “Sell that trade, no longer look back.”
This is a graph of Bitcoin’s price development in 2013/2014. Again, as in 2017/2018, everyone couldn’t believe their eyes. Unprecedented returns, which eventually lapsed into large losses. But the people who have sold have probably had their hands in their hair for a while.
Behold the further course here, where the circled part represents the graph from above.
The price of the Bitcoin has exploded 4 years after its old peak to even 20 (!!) times the old peak. For example, you see that investing for the long term can sometimes yield a lot more return than reacting to short-term fluctuations. This does not always have to be true, but if you see a future in a project, it is sometimes better to let your investment run its course.
However, you do not just make a long-term investment. This is first preceded by some time and effort, so that you can make an investment that you are sure of and that you support. This is also important for the emotional aspect of investing. If you do not know what you are investing in, you will be more inclined to sell at small price fluctuations, where you are guided by emotions and not by knowledge.
In order to make a good investment, I have set up a step-by-step plan below. It is useful to bookmark this page, then you can always grab this step-by-step plan.1. Learn first, then invest
As many emphasized, do your research! Read into different cryptocurrencies, look at the pros and cons and form your own judgment. Another tip I can give you is that in the end you do not want to own too large a range of coins. They are investments, not Pokémon cards, so leave the shitcoins behind.
You can learn with us on the website. You will find an extensive explanation for each coin, see the price development and get a step-by-step explanation of how you can best buy this cryptocurrency.
Also take a look at the website of a project that has attracted your interest. Here you can almost always find a Roadmap with a vision for the future, but also, for example, the composition of the team that works on the project. These are all important factors in making your decision whether you want to invest or not.
Now, with the 7147 cryptocurrencies currently listed on CoinMarketCap, it can be a bit overwhelming to start researching everything. Therefore, for example, first just start looking at the top 20 coins and compare them with each other.2. What amount can you afford?
It should of course be self-evident that you invest an amount that you can afford. That means that you invest like this, that even if you lose everything, it has no impact on the rest of your life. So leave that savings account for what it is.
For everyone, this means a different amount. But in principle that does not matter, because even with € 1, – you can start!
Also, you don’t necessarily have to invest a large amount in one go. For example, you can choose to invest € 50 per month, or perhaps a small percentage of your salary.
In any case, make sure you hold it accountable.3. Purchase of the cryptocurrency(s)
Has your research been done? Have you taken a good look at how much you want to invest and are you sure of your business? Then it is now time to actually proceed to the purchase of your cryptocurrency (s)!
There are a lot of websites where you can buy crypto, but I will discuss two that can be trusted here and that I have always had great experiences with. These are Bitvavo and Binance.
Bitvavo is a very nice, well-organized site. Made by Dutch people, for Dutch people. It is also the largest Dutch cryptocurrency exchange!
Have you just started with crypto? Then it is useful to create an account with Bitvavo and make your investments, because Binance is a bit more complicated and also has some more options that can only confuse you.
After creating an account, you can make a deposit via iDeal and then purchase your cryptocurrency. You can leave these on your account, or if you have a wallet you can also send them there.
