7 Best Ways to Make Money with Cryptocurrency in 2021.

Do you want to make money with cryptocurrency but don't know how?

The cryptocurrency industry is super rich. Several people make huge money from the crypto space but a higher percentage of people woefully fail to make money with it.

Many end up losing their hard earned money because they lack the knowledge and skills to make money with cryptocurrency. Some fall to scams and other get rich schemes. This can be very frustrating.

In this article, you will learn super easy and reliable methods to make money with cryptocurrency, even if you are new.

Let's dive into these powerful but easy methods you can use to make money with cryptocurrency.

Buy and Hold

One of the easiest and reliable ways to make money with cryptocurrency is to buy and hold coins for some time. In this method, you need to buy coins at a lower price and sell them to make profit when the price increases.

Depending on your goal and how fast the coin increases in value, you can buy and hold a particular coin for days, weeks, months, and even years.

Buying and holding coins is a long term investment strategy. For people new to cryptocurrency, this is the best way to make money with cryptocurrency since it doesn't require much skills.

You can buy cryptocurrencies on excahnges like Binance and Coinbase. Binance is the world's leading cryptocurrency exchange by trading volume. Coinbase is highly recommended for people in the US. When you sign up on Coinbase, you earn $10 when you buy $100 or more worth of any cryptocurrency. You are also eligible to earn cryptocurrency on Coinbase by learning about other cryptocurrencies.

How to Find Good Coins to Buy and Hold.

You may be wondering how to find good coins to buy and hold to make money with cryptocurrency. There are several ways to go about this. I will use this section to show you how.

To come up with a list of good coins that have a good chance to make you money, start by doing research on Google. How? Simply type keywords like "the best coins to make money in 2021", "best crypto coins to buy", " top altcoins to buy", "best altcoins to make money" on Google.

The Google search results will give you a list of blog posts suggesting some good coins to buy. Open all the websites on Google's first page and read them thoroughly.

Go to platforms like reddit and Quora and search for coins using some of the above keywords. Read all the top posts and answers from the search results. on those platforms. From there, head to YouTube and repeat the research process. Watch videos from the search results. Make a short list of all suggested coins from the research.

What You Need to Consider Before Buying a Coin to Hold.

So, you now have a list of potential coins to buy from your research. What do you do next?

Before you make a decision on which coins to buy, do further research on the shortlisted coins to make sure they have potential to rise in the near future to make you money. You can do this typing the names of individual coins on Google. Read about the coin in detail from the search results.

Below are some key factors you need to consider before buying a coin:

The coin should have a good use case. A coin with a good use case has a great potential to increase in value. Find out the problem the coin was created to solve and how it intends to achieve that. What makes the coin different from other coins.

The coin should have a good team with a good reputation. The team should have experience in managing similar projects.

The coin should have a white paper that outlines the roadmap of the coin. Read the white paper of the coin to help you get a good idea about it and the project backing the coin.

Don't only rely on the information given in the coin's white paper. Go to platforms like Reddit, Quora and read about the coin.

Go to YouTube and search the name of the coin. Watch videos on the coin and read comments. This will help you make a very informed decision about the coin.

Join cryptocurrency groups on Facebook and telegram and read posts on those platforms. A lot of good information is shared in such groups. Read comments on various posts in those groups.

You can also ask questions about the coins you've shortlisted in the group and members would be glad to give you helpful suggestions.

You can equally ask members of the crypto group for their thoughts on some good coins to buy. You'll get some good feedback from their response.

After gathering enough information, use it to guide in making a good decision on the coins to buy.

Useful Tip for Beginner Investors

If you're completely new in the crypto space, it's advisable to buy coins in the top 10 by market capitalization. You can get this information on Coinmarketcap. Coinmarketcap is the world's leading platform for ranking cryptocurrency coins.

You can buy some of the coins in the top ten and hold for a long term. It's good to distribute your capital across carefully selected coins in the top 10. Most coins in the top 10 have strong fundamentals and good use cases. They have a huge market capitalization and have had steady growth for years.

In a bull market year, most coins in the top 10 can rise significantly to give you massive profit. Most coins in the top can rise to about 100%-2000% in a year in a bull market.

Bitcoin, the world's most popular and most valuable coin has increased about 400% in the past 1 year - from June 2020 to June 2021. Statistics from Coinmarketcap indicates that Bitcoin has increased from $8975.53 to $36274.64 from June, 2020 to June 2021. Ethereum has gained about 1179.90% in value in the past 1 year - it has moved from $219 to $2584.07 from June 2020 to June, 2021. Binance coin and Dogecoin have increased 2309% and 14217.07% respectively over the past 1 year.

Trading

Trading is the second method you can use to make money with cryptocurrency in 2021. In trading, you buy and sell coins to make money in a short period. Trading is a faster way to make money with cryptocurrency. Unlike holding which can take a long time to generate profit, traders can make money in a matter of seconds, minutes, hours, days and sometimes a few weeks.

Trading is recommended for experienced people in the crypto space. This is because it requires a lot of skills, time and emotional discipline to make money. It takes time to master the skill of trading crypto. You can however learn and master trading if you put in the time and effort.

You need to master technical analysis to make money with trading crypto. In technical analysis, chart patterns are used to predict the direction of the market. The charts in technical analysis are made up of Candlesticks. Candlesticks are virtual representations of price movements for a period in the market.

You need to learn and understand candlesticks to help you make sense of the chart patterns in crypto trading. By doing this, you are setting up yourself to become a profitable trader.

Aside from technical analysis, you also need to learn money management skills and trading psychology to make money in crypto trading.

Staking

Staking is another cool way of making money with cryptocurrency. In staking, you earn extra coins by holding your coins on an exchange or in a live wallet. You can stake your coin in a crypto wallet like trust wallet. You can also stake your coins on exchanges that offer staking services like Binance. Below are some coins you can stake: BNB, PIVX, NAV.

Dividends

Dividends offer you the opportunity to make money with crypto by buying and holding a coin. What's exciting about dividends is that you don't need to stake your coins to earn. By just holding a coin for a specific period, you are rewarded extra coins. Some coins that pay holders dividends include Kucoin, Neo, CEFF, Cos.

Cryptocurrency micro tasks

Some sites and platforms pay you coins for doing some micro tasks. Examples of such micro tasks include app testing, viewing adverts, taking surveys, etc. You can perform micro tasks to earn crypto on platforms like Bitcoin Rewards, Coin bucks, Bituro.

Cryptocurrency Arbitrage

The idea behind crypto arbitrage is to buy coins at a cheaper rate on one platform and sell it at a higher rate on another platform.

Wondering how this works? Let me explain. The cryptocurrency industry is not regulated. This means most platforms or exchanges determine the price of coins and other crypto services.

This leads to a lot of difference in price for most coins on crypto exchanges. This offers a good opportunity for some traders to earn money by buying coins at a lower rate on one exchange and selling it high for profits on another exchange.

Content Creation

Because cryptocurrency is new, most people have limited knowledge about it. This has created a high demand for content to educate people on cryptocurrency. Many exchanges and crypto firms pay people to create various types of content to educate their followers on cryptocurrency. You can be paid to write a blog post or social media post. You can also earn money by creating videos on cryptocurrency.

Final Thoughts

We have looked at 7 great ways to make money with cryptocurrency in 2021. Go ahead and use the method(s) that suits you to help you make money with cryptocurrency in 2021 and beyond.