Investment in cryptocurrencies is rising in popularity, and for good reason. For instance, Bitcoin has drawn interest from both individual and institutional investors since it has consistently outperformed many other assets over a long period.
Despite how appealing cryptocurrencies are as investments, if you’re just getting started, it can be difficult to navigate the crypto market and make wise choices. Fortunately, even for total beginners, there are simple ways to invest.
Here are seven ways to invest in cryptocurrencies without having much industry knowledge if that describes you.
1. Invest and Hold
Many long-term investors, whether institutional or retail, choose the purchase and hold strategy for cryptocurrency investments since it is by far the simplest and safest way to do so. The only thing you need to do is purchase a digital asset, such as Bitcoin, Ethereum, or another type, and keep it in your crypto wallet.
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It’s difficult to keep your bitcoins secure, and this depends on the wallet you use. Anyone with a thorough understanding of the cryptocurrency industry will suggest using a hardware wallet if you want to make any significant investments in the currency. Here is a comparison of the top two hardware wallets to assist you in making your decision.
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2. Bitcoin Staking
The practice of investing in cryptocurrencies is known as “crypto staking.” It is a technique to strengthen the security of a cryptocurrency network while also earning rewards. Stakeholders play a crucial role in proof-of-stake networks, which depend on them for network security.
Staking is an option to think about if you want to help maintain such networks while earning rewards. To get started, learn what proof-of-stake is, and then you can go ahead and purchase and stake as many cryptocurrencies as you like.
One of the most often used cryptocurrencies for this is Ethereum, but you can also stake many other cryptocurrencies. Fortunately, you can do this without any specialized knowledge of cryptocurrencies and sign up for a staker account on any of the networks listed with only a few clicks.
3. Bitcoin Lending
Another low-effort approach to investing in cryptocurrencies is through crypto lending. On a crypto lending platform, you essentially make your money accessible for lending, and as people borrow it, they pay it back with interest, some of which goes to you.
To decide if this is an investment opportunity you want to investigate, learn more about crypto loans and how it operates. You can take part in this even if you have no prior knowledge of cryptocurrency, though some background helps.
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4. Bitcoin Airdrops
Over 20,000 cryptocurrency projects are now active, and more are being launched daily. These new projects give you part of their crypto tokens for free to introduce you to them. The method is known as a crypto airdrop.
There are several websites where you may sign up for cryptocurrency airdrops and start the process of owning cryptocurrencies. You must carry out a few duties, like using their platform or spreading the project’s content on social media.
Don’t take this lightly because some crypto airdrops, like the Uniswap airdrop in 2020, can be significant.
5. Bitcoin Faucets
Using a crypto faucet is another option to dip your toe into the cryptocurrency pool. Like airdrops, faucets reward you with cryptocurrency units in exchange for doing a variety of tasks, such as spinning a wheel or viewing web films and advertisements.
You may acquire some cryptocurrency every day without spending any money by visiting one of the many crypto faucets available (Ponvang Bulus, 2022).
Although the rewards might not seem substantial at first, you’ll be happy you kept those assets if they increase in value. When entire Bitcoins were given out, faucets were popular.
6. Beg for Payment in Crypto
Today, a lot of firms are willing to pay employees’ salaries in cryptocurrency. You can ask your employer to pay you in any cryptocurrency if you’re interested in owning cryptocurrencies. Although you must respect the response, it is still worthwhile to inquire.
In reality, cryptocurrency is a well-liked payment alternative for independent contractors who operate from various locations throughout the world, some of whom lack access to international payment channels. Numerous businesses in the US and other countries have adopted cryptocurrency as a method of salary payment.
You can avoid actively purchasing bitcoin with fiat money, which can result in costs, by getting compensated in cryptocurrency. If you don’t voice your concerns, you’ll never know if your company is amenable to the notion!
7. Online mining
The proof-of-work consensus process is required for cryptocurrencies like Bitcoin, which must be mined. When the process was simple, miners used their personal computers for this. But those times are long gone, and today’s miners work together to mine and split the earnings.
Anyone can take part in cloud mining, which is how they do it. Since you won’t be directly involved in the mining process, you don’t need to be very knowledgeable about cryptocurrencies. To contribute hashing power, all you need to do is pay to join a mining pool. Afterward, you will receive a portion of the newly minted bitcoin according to your hash power contribution.
If done correctly, this can be a source of passive income, so do your research on any cloud mining companies to avoid falling victim to one of the many cloud mining scams that are out there.
Which Crypto Investment Technique Do You Use?
These are methods you can use to invest initially if you’re just getting started in the cryptocurrency market. There isn’t much intricacy, and you don’t need to do much in the way of technical expertise or active engagement.
You can start regardless of your financial situation because some methods just require a little number of funds while others don’t. Only be sure to use caution because many con artists are waiting to steal what is rightfully yours in the area.
ReferencesÂ
Ponvang Bulus (2022). How to Invest in Cryptocurrency: 7 Easy Ways for Beginners. https://www.makeuseof.com/how-invest-cryptocurrency-easy-ways-beginners/Â
HWD (2021). How To Write A Dissertation. https://www.helpwithdissertation.co.uk/blog/how-to-write-a-dissertation/Â
