Earthlings, humans especially are facing one of the most difficult times in history, and this is due to the coronavirus (COVID-19) pandemic which has infected over 4,534,731 people worldwide and has left approximately 307,537 dead.
The impact of the novel coronavirus (COVID-19) have so far been devastating for citizens and governments alike, and have resulted to governments of every nation seeking feasible means to save the shrivelling of the world economy.
The storm clouds created by the coronavirus (COVID-19) pandemic has brought about a global quiver at workplaces, making it difficult for many companies to make profitable sales due to government-enforced lockdown, to halt the spread of the virus. This has resulted in millions of people around the world being laid off from their places of work.
Economists say the number of unemployed persons increases by the day, and might just be the highest since the great depression — as top companies such as Uber, Lyft, Airbnb, 20th Century Fox, just to name a few have laid off or furloughed over 6,702 employees collectively.
As the rate of unemployment peaks, the internet is flooded with people searching for various kinds of jobs to do — so they can generate income to feed their families or meet some other pressing needs. However, there seems to be those who are not at all shaken financially by the havoc being wrecked by the pandemic — and these are cryptocurrency investors.
How can cryptocurrency investment help?
Recently, there seems to be a continuous spike in the price and demand of bitcoin, and other cryptocurrencies (altcoins) — which has drawn immeasurable attention to them from investors and users alike.
It is most certainly a great time to invest in cryptocurrencies as they almost certainly guarantee favourable returns for all who takes all indications into account before investing.
Investing in cryptocurrencies can prove to be a viable option for those who are currently out of jobs and seek for means to earn whilst at home. Below I have carefully listed and explained each of the 5 ways in which one can accrue revenue by investing in cryptocurrencies.
Buying and Holding
This is by far one of the easiest ways to invest in cryptocurrencies. Just as you have probably guessed, it requires you to study the price of the specific cryptocurrency you intend to invest in to decide when it is a good time to buy the currency. This particular process requires you to wait for a specific period for the value of the currency to appreciate before selling, this way you are certain of accruing reasonable profit over time.
Trading involves the exchanging of one digital currency for another to make a profit. It is almost similar to forex trading where various fiat currencies are traded for one another.
Cryptocurrency trading involves you having an account on an exchange (e.g. Citex) where you can use Bitcoin or Ethereum (or any pair listed by the exchange) to purchase any alternative coin of your choice.
For you to make a profit through trading cryptocurrencies, you will have to make a lot of research on the cryptocurrency you intend to purchase to be aware of the Technical Analysis (TA) and Fundamental Analysis (FA) of the coin and more. This way, you will be equipped with enough information to guide your decision during your trades.
The blockchain is like a digital ledger that records each transaction of a cryptocurrency, copies itself, and sends the copies to every computer, or node, in its network. To make sure the ledger’s true state is verified and updated, each node in the network references and communicates with each other to see if all the copies are the same.
This decentralizes, secures, and publicizes every single transaction of the digital currency. If one of the copies is not the same, due to a manipulation of a transaction’s record after the fact, the network rejects the transaction. This security protocol halts people from altering the ledger to spend the digital currency more than once or send someone else’s digital funds to themselves.
To update a blockchain with new transactions, a new block, which is a bundle of transactions, needs to be created and added to the chain. But to create and add the block to the chain, the block needs to be validated and this validation is done through the solving of an incredibly intricate math problem which can only be solved with mining hardware and software. The validators are called Miners and the first Miner to solve the problem will be reward with a payout of the cryptocurrency in which they mine.
Owning a Masternode
A node can simply be understood as a computer that plays a part in ensuring the integrity of a cryptocurrency’s network. The cryptocurrency space is not only decentralized but also distributed; therefore, it functions by several people running nodes from different parts of the world. Masternode is a server with a full copy of a cryptocurrency’s blockchain, which guarantees a certain minimum level of performance and functionality to perform certain tasks related to block validation, and some extra features offered by the cryptocurrency. There are a handful of cryptocurrencies out there that offer masternode services and reward masternode owners for their services to the network, and some of them include Axe, Pivx, and Phore.
The volatility of the cryptocurrency market has proven to be beneficial to this category of cryptocurrency investors. Arbitrage is the simply the simultaneous buying and selling of securities, currencies (including cryptocurrencies) or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset across markets (exchanges).
Arbitration is a good way to invest in cryptocurrencies, although it would require you to keep surveillance across cryptocurrency exchanges — to enable you to monitor the difference in asset price.
There are other ways in which you can benefit from investing in cryptocurrencies, but whatever method you choose, ensure you read intensively on it before investing.
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