The use of cryptocurrency as a means of finance is growing in popularity, and for good reason. For instance, Bitcoin has outperformed numerous assets for several years running, attracting the attention of both individual and institutional investors.
Though cryptocurrencies provide attractive investing opportunities, newcomers may find it difficult to grasp the crypto market and make well-informed investment decisions. Lucky for us, there are easy ways for even total novices to speculate.
If this sounds like you, don’t worry; there are still seven ways to invest in cryptocurrency even if you don’t know anything about it.
1. Purchase and Maintain
Many institutional and ordinary investors hold their cryptocurrency holdings for the long haul, using a strategy that is widely regarded as the safest and most effective for doing so: buying and holding. Simply said, you buy a digital asset like Bitcoin, Ethereum, or anything else and save it in your crypto wallets.
Keeping your cryptocurrency safe is the more challenging part, and this comes down to the type of pockets you use. If you want to make a significant investment in cryptocurrency, you should use a “hardware” wallet, as recommended by everyone who knows what they’re talking about in the crypto space. Here is a comparison of the two best “hardware” wallets to assist you make your decision.
If you’re just getting started with cryptocurrencies and want to play it safe, buying and keeping digital assets is a good bet.
2. Crypto Staking
The practice of staking digital currencies is becoming increasingly popular as a means of generating capital. It’s a way to help keep the cryptocurrency community safe and get paid for it. Stakers serve a crucial role in ensuring the integrity of proof-of-stake networks.
Staking is an option to consider if you wish to help maintain such networks and get paid for it. To begin, familiarize yourself with proof-of-stake; then, purchase and stake as many cryptocurrencies as you like.
Although Ethereum is among the most widely staked cryptocurrencies, you can utilize any cryptocurrency for this purpose. You can become a staker on any of the mentioned platforms with just a few clicks and no advanced crypto knowledge is required.
3. Crypto Lending
To invest in cryptocurrency with no effort on your part, you can also use crypto loans. You basically put your money up for loan on a cryptocurrency lending platform, and when borrowers pay you back, a portion of the interest goes to you.
Determine if crypto financing is a viable funding option by learning about its inner workings. You don’t need any prior knowledge of cryptocurrency to take part, however it helps to have some.
4. Crypto Airdrops
Over 20,000 cryptocurrency projects have already been launched, and more appear every day. The goal of these new projects is to familiarize you with their crypto coins, therefore they provide you with some for free. An “airdrop” of cryptocurrency is the term for this practice.
You can start your journey to become a crypto owner by claiming airdrops from any number of websites. There are a few menial tasks required of you, such as posting about the quest on social media or making use of their service.
Do not take this lightly; some crypto airdrops, like the Uniswap airdrop in 2020, could have a significant impact.
5. Crypto Taps
Cryptocurrency faucets are another entry point for newcomers to the market. Just like airdrops, taps allow you to earn little amounts of cryptocurrency by performing simple tasks, like as spinning a wheel or watching an online video with an ad.
You can get some coin on a daily basis at crypto taps without having to spend any cash.
Even if the payoff is modest at first, you may be glad you held on to these items if they appreciate in value. It wasn’t always the case, but there was a period when faucets dispensed complete Bitcoins.
6. Ask to Be Paid in Crypto
Today, a growing number of businesses are prepared to accept cryptocurrency as payment for employees’ services. If you are a staunch supporter of cryptocurrency, you may want to consider asking your company to pay you in one of the many different cryptocurrencies available. It’s worth asking, but you should appreciate whatever response you get.
As a matter of fact, freelancers who operate from a variety of locations throughout the world—including those without easy access to conventional international payment methods—frequently prefer to be paid in cryptocurrency. Numerous businesses in the United States and elsewhere have begun accepting cryptocurrency as salary.
If you get paid in cryptocurrency, you won’t have to spend time or money actively buying it with fiat currency, which could incur transaction fees. If you don’t bring it up, you’ll never know if your boss is open to the idea or not.
7. Cloud Mining
Bitcoin and other cryptocurrencies that follow a similar proof-of-work consensus mechanism must be “mined.” When the process was simpler, miners conducted it on their personal computers. However, those days are long gone, and nowadays miners go together to mine and split the profits.
This is accomplished by cloud mining, in which everyone can take part. Since you won’t be doing any “mining,” you won’t need to know much about crypto. You need only join an existing mining pool and pay for your share of the pool’s hashing power. Your hash rate will be directly proportional to the amount of cryptocurrency mined that you receive.
Because there are a lot of cloud mining scams out there, it’s important to conduct your homework before investing in any cloud mining company.
What kind of cryptocurrency funding do you use?
If you’re just starting out in the crypto world, here are some of the best techniques for making your first investments. There is minimal intricacy, and minimal effort or expertise is needed on your behalf.
If you don’t have a lot of money to spare, you can still get started because there are alternatives that require little to no initial investment. Just be careful to practice caution, since there are numerous scams and scammers in the home eager to grab what is yours.
