Ways to earn from cryptocurrency
There are several ways to earn from cryptocurrency and make money from bitcoin in Nigeria. In this article, we will be discussing them one by one.
- Buy and Hodl: I know, it really isn’t earning if you have to buy right? No, but I need to sneak this in. The best avenue to becoming financially free at this point in our history is through cryptocurrencies. The best way to make it big and earn from cryptocurrency in Nigeria and in anywhere around the world through this asset class is to buy and hold for at least the medium term and then sell for a profit. While this article will discuss various means of earning cryptocurrencies for free (or for minimal cost), it is important to state in clear terms how to earn big from cryptocurrencies. That is only achieved by buying and holding. You need to do some digging to know which cryptocurrencies you need to invest in or subscribe to a top notch crypto academy. You can subscribe to our newsletter.
- FAUCETS: Another way to earn from cryptocurrencies is through faucet. A faucet is a reward system of a particular cryptocurrency. It comes in form of a website or app that dispenses rewards in form of that cryptocurrency for visitors to claim in exchange for completing a captcha or task as described by the app or website. This is a very simple and effective way of earning some cryptocurrencies with real value. Below are some links of some cryptocurrencies.
Cointiply-free bitcoin or dogecoin
- MINING: the Bitcoin network and that of other countless cryptocurrencies are secured by the Proof of Work consensus algorithm. This means that the network is both secured and new coins are produced by energy intensive mining. Since cryptocurrencies are a decentralized revolution, anyone, from any part of the globe can get involved in mining them at any time. All that needs to be done is to secure the necessary hardware that is used in mining the particular cryptocurrency one is interested in mining. For Bitcoin and several other crytocurrencies, mining them will require that you purchase special computers called ASIC miners (Application Specific Integrated Circuit) to mine them. An average new model Antminer S9 costs around $2,500 older versions like Antminer S7 costs around $450. You will also need to factor in the cost of electricity which can be very high. So, except you have a lot of money or you have a money bag backing you, this may not be an efficient way of earning cryptocurrencies.
- CLOUD MINING: If you don’t have the huge funds to set up and maintain a mining rig, then cloud mining will be a suitable option for you. It entails buying mining contracts from reputable mining service providers e.g com, hashing24.com and hashflare.com. it is a form of investment into these already established mining companies. The money is used to support and expand their operations. The investor in turn gets rewarded in cryptocurrencies e.g Bitcoin, paid daily or weekly (depending on the contract). The contracts don’t come cheap and might take up to 4 months to recoup ones initial investment.
- STAKING: Bitcoin’s network and that of several other crytocurrencies are secured by the Proof of Work consensus algorithm. There is another popular consensus algorithm called the Proof of Stake (PoS) in the POS algorithm, instead of the network being maintained by miners, the network is maintained by token holders who hold their tokens in a wallet so as to run nodes. These nodes verify transactions and produce blocks. The larger the amount of tokens one holds the larger ones chance of getting to verify transactions and thus get rewarded in the specific cryptocurrency (token). In another variant of Proof of Stake consensus algorithm called Delegated Proof of Stake (DPoS), certain block producers are elected by the token holders to maintain the integrity of the network (ie verify transactions on the network). In both variants of the Proof of Stake consensus algorithm, the token holders are paid a certain percentage in form of the networks own cryptocurrency annually for holding the tokens in their wallets. Examples of Proof of Stake coin include Lisk, ark, eos, qtum etc
- AIRDROP/BOUNTY: Sometimes, whenever a new cryptocurrency is introduced, in order for the cryptocurrency to gain adoption, the team behind the new crypto sometimes will opt for an airdrop. An airdrop is a way in which a development team raises awareness for their cryptocurrency. Certain amounts of cryptocurrency are distributed to people for completing small tasks such as signing up for the crypto’s ICO, downloading the wallet, sharing messages about the cryptocurrency on social media platforms etc. Sign up on the following platforms to get notified of airdrops/bounties. com, airdropalert.com, bountiesalert.com
- AFFILIATE MARKETING: certain big players in the cryptocurrency space pay in cryptocurrencies for introducing their business to others. When you sign up on their platform, you are assigned a link that you can utilize to introduce others to their business. Whenever any of them use your link to sign up, you are paid a certain amount in cryptocurrency. Example of such platforms includes; coinbase,Binance, Kucoin and Luno (my favourite Bitcoin/ Ethereum -naira on ramp platform)
- GAMING: Simply put you are paid in cryptocurrency for playing games online
To be continued….
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