For some reason, people tend to think it is already too late to become a crypto investor. They are looking at those who made fortune on Bitcoin last decade and think the gold fever is gone. Well, it is not. If you want to invest in crypto, do it now.
You have probably heard lots of stories about people who started earning with crypto in the last few years. Some of them bought BTC for $4,000 and sold it when the prices reached $50,000. Others were the first to notice the newborn NFT trend. And later sold their penny NFTs for huge amounts of money.
No wonder, you might assume that it is too late to start trading tokens right now.
But here is the interesting fact. According to a recent study by Gemini exchange, almost half of the crypto investors in the US, Asia Pacific, and Latin America bought their first tokens only last year. The study also claims that 79% of the respondents want to hold their crypto for the long term.
Just because someone has already earned his millions, it doesn’t mean you can’t earn yours. If you wish you can still invest in crypto in 2022.
Here are a few simple ways to do that.
The most simple way to invest in crypto – just buy and hold
The easiest way to earn with crypto is actually buying and holding some tokens till their value starts to rise.
How to buy crypto
You need to register your account on one of the crypto exchanges. Binance, Coinbase, Kraken, Crypto.com are the first names that come to mind. But you can choose some other exchange including those local that you might find in your country.
Typically, the crypto exchange allows you to bind you bank card to your account and buy anything you want directly with fiat money.
Where to hold crypto
Every crypto exchange gives you a wallet so store the coins. Those are custodial wallets that do not allow you to keep the private keys to your crypto assets.
You can always transfer crypto to a non-custodial wallet of your choice. We’ve done a pretty thorough comparison of custodial vs non-custodial wallets recently, please take a look.
How to sell crypto
Trading coins on the crypto exchanges is easy. At least if you just want to sell some amount of the coins.
Complexity rises as soon as you start going deeper into all those limit or stop-loss orders. But beginners shouldn’t be trying this while making their first steps in the world of crypto.
Just watch your fees during transactions.
And here is an advice that proves to be quite useful for many crypto rookies. It’s always easier to convert your fiat currency to some stablecoins and then buy any crypto you want. Stablecoins allow you to own some crypto always knowing how much exactly do you own. That’s because stablecoins are pegged to fiat money. For instance, one USDT (Tether) is always worth one American dollar.
Staking is also a way to invest in crypto
Staking is one of the basic methods to get passive income from crypto.
And it’s worth mentioning that by entering staking you are becoming a true crypto community member. That’s because staking actually makes you a part of community that saves cryptocurrencies from volatility and inflation.
What is crypto staking
While staking you are helping to verifying transactions in different cryptocurrencies networks. Also you are loaning your tokens and receive interest for that.
There are different staking pools and types of staking at any exchanges or crypto wallets.
Most popular cryptocurrencies to stake are Cardano and Solana, but of course everybody is waiting for Ethereum to make a switch to PoS algorithm. Ethereum is crypto #2 after Bitcoin, so that would enough room for staking for everyone. So staking will soon become a popular way to invest in crypto.
The downsides of staking
You have to remember that the main condition of staking is blocking. The tokens you staked are locked during the staking period. If you want to withdraw it before the staking period ends you won’t get any income.
Mining is another way to invest in crypto
Crypto world actually started with mining back in the days when Satoshi Nakamoto started the Bitcoin madness. So why not discuss mining now as a simple way to invest in crypto?
Of course, we will. But there is a catch.
Isn’t mining already kind of dead?
The oncoming Ethereum (ETH) switch to PoS seems as the end of mining to many people.
Indeed, mining Bitcoin has become so complicated that only those with huge investments are able to mine BTC today. That is not the way to invest in crypto, unless you are ready to go really big scale.
Ethereum is the most profitable mining network for generic miners who do not own specialized hardware. Actually Ethereum mining is quite profitable even if all you have is just a mild gaming GPU in you laptop or PC.
Assuming that is about to end soon, the question arises – what to mine after Ethereum is going to PoS.
Well, there are alternatives.
What crypto to mine in 2022?
There are many cryptocurrencies that still use the Proof-of-Work consensus mechanism.
If Bitcoin mining seems to expensive for you to enter, you can consider mining Ravencoin (RVN). It is basically a clone of Bitcoin that is often seen as the next ‘mining king’.
Next possible choice is Ethereum Classic (ETC), which is basically a fork of Ethereum (or vice versa, but it doesn’t matter now). ETC used to be overshadowed by much more popular ETH for a while. But ETC has shown steady growth lately. It is a sign some investors do believe many miners will switch to ETC after Ethereum goes PoS. And the price of ETC will rise imminently.
Then there are other coins to mine. Like Firo, Ergo, Cortex or Aion.
All of them are much less profitable to mine than Ethereum. But that’s only until Ethereum goes to staking. What happens to all those cryptocurrencies that we are used to consider ‘second rate’ after all the mining capacities switch from Ethereum to them? Who knows.
Advantages of mining crypto
What’s good in mining is its simplicity. Anyone who wants to invest in crypto is going to appreciate that.
Once you buy a computer with decent GPU, all you have to do is just download and run mining software.
Of course, there are some pretty savvy tweaks possible. You can join mining pools that require you to run software with command line and edit BAT files. But as a novice you can just using something like NiceHash or Cryptex, those services allow you to start mining in just a few clicks. They also provide you with wallets to hold the crypto you have mined.
The rest is just waiting. Mining can be considered as a merely passive income. Just take care of your mining hardware. It should be working in a well ventilated room, you should also take care of the dust. And pay the electricity bills, of course.
And that’s it. Mining will bring you tokens you can hold or sell if needed. So mining is basically a quite simple way to invest in crypto.
NFTs are the new way to invest in crypto
Surely we can’t talk about earning on crypto without taking into account all this hype around NFT.
Non-fungible tokens and collectibles market is booming today. Some pretty stupid NFTs are often sold for enormous amounts of money.
And unlike Bitcoin, that hype is still in the early stage. So you can still become one of ‘those guys who made fortune out of nowehere’.
There two ways you can do that.
Create your own NFTs and sell them
It only takes a couple of minutes to create you own NFT. And that could also become a way to invest in crypto.
Just choose an object to digitalize (some images, video, or audio), go through the authenticity check, and trade your NFT on platforms like OpenSea, Binance Juggerworld, Treasureland, BakerySwap, etc.
If you are lucky – or talented – enough, your NFTs will attract somebody’s attention. And will be sold.
Buy a potentially worthy NFT and sell it in the future
That’s another way to go.
You can try to listen to the trends. And buy NFTs of some kind while they are still cheap. Then you can wait for them to start rising in price. And when you feel the time has come, you simply sell them.
It might be not easy as it sounds, and you definitely can’t be a 100% sure all the NFTs you buy will be sold eventually at a higher price. There is a risk of losing money, or course. But that is also a way to invest in crypto.
But if you succeed, the outcome may be just enormous. Just look at those guys who bought something you could hardly even consider art in summer 2021 and sold it in the beginning of 2022 for 10 times more money.
Metaverse gives us new hits about how to invest in crypto
Finally, an elephant in the room.
The Metaverse. Investing in the Metaverse will soon be an ultimate way to invest in crypto.
It is not there yet, but people are already betting on the crucial changes those virtual worlds will bring to our society and global economy.
Many experts predict that the Metaverse will be some kind of a new era of economy. With customers being able to move their everyday activity to virtual world and, of course, spending much more money for all kinds of consumer goods there.
As of now, most of these dreams still seem vague. But the latest web3 trend and different metaverse games are already here and are waiting for your investments.
If you are interested in investing with the Metaverse, their is a concept you be familiar with.
It is called Play-to-Earn and it basically allows you to make fun, create your own art objects and monetize it in real-time. A nice way to invest in crypto.
There are whole communities in the most popular metaverse games like Decentraland, The Sandbox, and Axie Infinity.
It may seem complicated to enter the platforms, but be sure that in a few hours you’ll get all the things straight.
The main disadvantage of it is that you have to buy some tokens of these games firstly to create your avatar and register. But that’s a small price to pay for the possibilities these new worlds share.
Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of cryptolife.report. Every investment involves risk, so you should always perform your own research prior to making important decisions. We do not recommend investing money you cannot afford to lose.