HODL on — investing is only one way to make money in crypto
BI India Bureau
- The lull in the crypto markets has many wondering how to make money from tokens.
- In the background, the bears and bulls are caught in a tussle to swing the markets one way or another.
- Business Insider’s monthly comic strip, ‘Bitter Coin’ takes a look at the various ways one can look to make money with crypto even when the overall market looks less than enthusiastic.
There are many different ways to make money with cryptocurrency and generate income in the crypto space — even in a down market. Time is a vital factor, no matter how you approach your investment.
However, as with all things crypto, there is a certain degree of risk involved. One must do their own research (DYOR) before diving in. The wild nature of crypto assets means your strategy can yield a multiplier effect or trap you in huge losses.
Here’s the eighth story in a series that we, at Business Insider, like to call ‘Bitter Coin’ – HODL ON!
HODLing
Short-term swings come and go. Due to the inherent volatility of crypto assets, historically the easier, and more profitable strategy to make money from crypto is to hold onto what you have.
Trading
While investment is for the long haul, trading is relatively short-term. The most important aspect of this strategy is the ability to time the market. Even in a down market, crypto traders can make money on temporary upticks provided they know how to analyse the price action.
Staking
Staking is when a crypto investor can take the tokens they have, lock them in a crypto wallet, and earn rewards for validating transactions on a proof-of-stake (PoS) network.
Mining
Just as staking is a way to earn money for tokens that run on PoS networks, mining is a way to earn rewards for tokens — like Bitcoin — which function on proof-of-work (PoW). It requires specialised equipment and the competition in the space has been increasing over time with more and more people joining in.
Lending
Lending is a way for investors to access cash without having to withdraw their tokens by earning an attractive interest rate for lending money to other investors.
Catch up on what else is up in the world of cryptocurrencies with Bitter Coin. Here’s the full collection.
Bitter Coin Part 1: No one (crypto) coin to rule them all
Bitter Coin Part 2: The best ‘fit’ for decentralised finance (DeFi)
Bitter Coin Part 3: Do you Bitcoin?
Bitter Coin Part 4: Crypto romance — Love in the times of blockchain
Bitter Coin Part 5: Cryptocurrency New Year’s resolutions
Bitter Coin Part 6: I know what you did last crypto winter…
Bitter Coin Part 7: The Crypto Oracle – do you know what the future holds?
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
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