- Cryptocurrency examples
THE BASICS OF CRYPTOCURRENCY
What Is Cryptocurrency? Simply put, cryptocurrencies are digital assets, and the name is befitting because all the transactions are highly digitally encrypted, making the exchanges highly secure. Backed by blockchain technology, crypto transactions are decentralized in nature, unlike traditional currencies, which are managed and controlled by a central authority, Central Bank. A cryptocurrency is finite in number and at times equated to precious metals like gold and silver.
How are they created? Cryptos are created through a process called mining, which is a process of very complex problems being solved by powerful computers, usually as a reward for making successful cryptocurrency transactions. In other words, the exchange of cryptocurrency often results in more cryptocurrency being introduced in the world. Many cryptos use blockchain for managing and recording transactions, wherein multiple entities maintain identical transaction records, making it an extremely secure technology for your investments.
EXAMPLES OF CRYTPOCURRENCIES
There are numerous examples of cryptos but they fall under 4 major categories, viz:
1. Payment cryptocurrency
2. Utility Tokens
3. Stablecoins
4. Central Bank Digital Currencies (CBDC)
Examples of popular cryptos include:
1. Bitcoin
2. Ethereum 3. Tether
4. XRP 5. USD Coin 6. Cardano
7. Solana 8. Dogecoin 9. Tron 10. Polygon
MAKING MONEY WITH CRYPTOCURRENCY - HOW?
The cryptocurrency technology presents numerous money-making opportunities which you need to know about. The volatility and decentralized nature of cryptocurrency make them good investment and trading assets for digital investors and traders. In essence, just like trading Foreign Exchange (FOREX, FX), you can also buy, hodl, sell and trade cryptocurrencies to make profits using some crypto trading strategies.
1. Crypto Investing
When paired with fiat currencies, the fluctuations in prices of cryptocurrencies make them fantastic investment vehicles in the medium to long term. The case study of Bitcoin has proven this. The Bitcoin was less than USD1 in 2009 when it was launched, but it rose to as high as USD 67,000 IN 2021.
Investors buy and hodl for long term to reap benefits. A reliable crypto platform is needed for this so you can get your crypto wallet and buy the currency to hodl.
2. Crypto Trading:
Crypto trading involves buying and selling cryptocurrency at different prices to make a profit from the price difference. The fluctuating nature of cryptocurrencies prices allows traders to buy a cryptocurrency at a specific price and sell off when there is positive difference in prices.
Please note that crypto trading comes in two forms: While basic crypto trading takes place within a single exchange platform, arbitrage trading involves buying and selling cryptocurrencies on two platforms to profit from their price difference. for instance, in arbitrage trading, if COIN A sells for $100 on EXCHANGE1 but at $125 on EXCHANG2, an arbitrage trader will buy the COINA from EXCHANGE1 and sell it on EXCHANGE2 to make $25 spread
3. Crypto Mining
Crypto mining is a sophisticated process but has now been simplified due to improved technology. It involves solving cryptographic equations to the next block in a blockchain using some mining machine to earn rewards. Certain specifications are required of mining hardware infrastructure. You could mine solo or as a pool. A miner’s compensation is as much as the many problems he can solve. Specialized platforms exist for crypto mining. Please stay tuned for verified platforms by Aza Hub to avert falling for scams.
Many crypto platforms offer bonuses and airdrops to reward their members. Please note that this is prone to scams and cyber attackers advantage. So, you should run proper background checks before getting involved. Airdrops are a form of crypto giveaways used mainly by developers of new projects to build hype around their tasks and increase the project’s fan base. Selling free crypto as an airdrop or a bonus is an excellent way to generate money online.
5. Crypto Blogging and influencer
Crypto is ever-hot topic as a tech of the future and now. many new assets coming on board while the netizens are interested in topics on the opportunities cryptos present, just as you are reading this topic with some level of eagerness. That way, if you engulf yourself into the knowledge and practice of crypto world, you can make money as an influencer on social media or as a blogger in evergreen crypto niche.
In Conclusion
To make money with crypto is not hard, but 3 ingredients are needed:
1. Keen interest
2. The right up-to-date knowledge
3. Practice
With these, you can make something for yourself with the evergreen crypto opportunities that abound today.
Stay tuned to Aza Hub for reliable recommendations as regards best platforms and exchanegs and cryptocurrencies.
THE BOTTOM LINE
With cryptocurrency technology, the future is here. To start making money with crypto through say trading and investment, you need trusted cryptocurrency trading / exchange platforms such as recommended by Aza Hub where you can buy, hodl, sell and trade cryptocurrencies like Bitcoin, Ethereum, Tron, and more.
Stay tuned for our recommendations.
Do you have experiences with cryptocurrency? Share with us in comments.
