Make money from cryptocurrency | Nairalaw

Cryptocurrency is a digital asset designed to work as a
medium of exchange that uses strong cryptography to secure
financial transactions, control the creation of additional units,
and verify the transfer of assets. Here are a few ways to make
money using this

Buy (or trade in) cyptocurrency

Your first option is to just buy coins. There are different
exchanges that will allow you to buy or trade coins to keep. Once
you’ve created your account on whichever one you choose, you pay
the market rate for the coin, then hold onto it until you’re ready
to sell. The hope is that the price goes up.

However, like any investment, you need to be careful.
Cryptocurrency prices fluctuate. You need to make sure you go
through a reputable exchange, and that you back up your digital
wallet. Then, you need to pay attention so that you can sell your
coins when you feel like your profit has been reached.

Accept payment in cryptocurrency

Another way to make money with cryptocurrencies is to accept
them for payment. If you have a business where you sell products or
services, you can accept payment in the cryptocurrency of your
choice. However, you would need a digital wallet, and to work with
people who are willing to pay in cryptocurrency.

With a little research, you can find clients or customers that
use cryptocurrencies and are willing to pay you by transferring the
coin through the blockchain. You will have to be able to calculate
a rough estimate of what a service might cost, though, based on the
value of the coin. The idea is to have a feel for how your products
and services translate into the cryptocurrency of your choice.
After you receive the payment, you could either use it to pay
others for something or hold onto it until it rises in value. If
the value of the coin goes up, you could see a solid profit by
selling later.

Mine your own cryptocurrency coins

It is possible to mine your own cryptocurrency coins. However,
we aren’t in the days where you could just use your home computer
to work on mining coins. Today, with so many miners working with
their rigs, it can be difficult if you want to make money with
cryptocurrencies through mining. You need to invest in graphics
cards and the right setup for the best chance. You need to know how
to build a computer. Once you get it set up, you will be using more
electricity. Some coins might be faster to mine than others. There
might not be enough demand for you to sell all your coins if you
mine something less popular.

Earn free cryptocurrency and convert it to
naira

Many cryptocurrency exchanges and peer-to-peer marketplaces have
created a free source of earning cryptocurrency; otherwise known as
an ‘Affiliate Programme’. By joining an affiliate programme with a
cryptocurrency exchange and promoting its listed products, you can
make quick money in commission.

Generally, after signing up, affiliates will receive a link with
a unique tracking ID attached to it. The crypto exchange will use
the tracking ID to identify when someone uses their platform
through the affiliate’s unique link. In return, the affiliate will
receive a percentage commission. If the commission is in
cryptocurrency, the affiliate can still make money by converting it
to naira.

Exchange for digital currency trading

Cryptocurrency adoption is soaring in Nigeria and the best way
to make money in cryptocurrency is by trading digital currencies.
For traders already familiar with forex, it will be little to no
adjustment migrating to cryptocurrency trading. Traditionally,
trading requires a broker to execute your trade; and a broker that
adds commission fees for the execution. The best part of
cryptocurrency is that it is decentralized; thus, requiring no
middleman to handle your trade whether you’re a newbie or seasoned
trader. In addition to this, you have unlimited access to making
money as you can buy and sell cryptocurrency without hitting a day
trader limit.

Buy and hold cryptocurrency for dividends

Another smart way of earning through cryptocurrencies is to buy
and hold cryptocurrencies that pay dividends. There are many great
cryptocurrencies that pay you a fair share just for holding them
and you are not even required to stake them, especially in a
wallet.

No matter what method you use to make money with
cryptocurrencies, though, you have to be aware of market
conditions. If a coin drops in value, you might have to wait until
it rises again to sell — or it might be a coin that doesn’t pan
out, then your losses are permanent. Make sure you understand the
risks before you start.

Culled from Punch