Best Unique Ways of Making Money with Crypto: The Definitive Guide [2020]Kelly HansonThe Capital – Medium

By Kelly Hanson on The Capital

The cryptocurrency industry has evolved over the past 10 years from a small and loosely connected group of passionate technologists to today becoming a global economy of millions of people in its own right, composed of dozens of ways to generate an income.

While the predominant ways of generating an income in the cryptocurrency industry remain as cryptocurrency trading, investing, and mining, a trend we have seen over the past few years is a gradual diversification of the revenue generation in opportunities that are available in the cryptocurrency space.

As the industry has increased in size and the amount of money moving around, the cryptocurrency market has similarly increased, innovative and unique ways for users to be able to generate an income with cryptocurrency have been created on a regular basis, with many of these growing to become significant subsectors of the cryptocurrency industry themselves.

As we move towards what is predicted to be the third major bull run of the life of Bitcoin and cryptocurrency industry, this guide takes a look at unique ways of generating a significant income in the cryptocurrency market, starting with a look at what cryptocurrencies actually are, the main and most common ways of making money with cryptocurrency, before then moving on to five unique methods of generating revenue with cryptocurrency in 2020.

What are Cryptocurrencies?

Where Did Cryptocurrencies Come From?

Although many people know the cryptocurrency was created in 2008 when an anonymous group or individual known as Satoshi Nakamoto released a research paper known as the Bitcoin Whitepaper which outlined what cryptocurrencies are, fewer people know the history of digital currencies in general.

The first attempt at creating widespread digital currencies in the 1990s was relatively rudimentary and highly centralized digital currencies took advantage of the fledgling Internet in order to try to establish new ecosystems of value that didn’t rely on the contemporary financial system.

It was the centralization of these early attempts at creating digital currencies which proved to be their downfall, as digital currency after digital currency was shut down by governments and regulators who simply had to issue legal or regulatory restrictions on the currency and then seize the computers stored at the central location of the operation.

These early attempts clearly had a significant influence on the design of Bitcoin, with Nakamoto understanding fully how perilous creating a centralized digital currency is, and instead of opting to design a digital currency that integrated the decentralization into the core of its operations.

It is this concept of decentralization which has ensured that Bitcoin has never been able to be shut down by legislators or regulators in any country in the world and that to the contrary, Bitcoin in 2020 is a modern technological miracle that has grown by tens of millions of percent over the last 10 years.

Who Uses Cryptocurrency?

In 2020 there is a wide and varied array of different cryptocurrency users, and unlike in the early stages of Bitcoin where there were only a relatively limited number of use cases, in 2020 there are substantially more ways to use cryptocurrencies.

Most commonly, people use cryptocurrency as a mechanism for payment, with the ability to be able to make transactions with very low transaction times to anywhere in the world, and with very low transaction costs.

As well as this, there are a large number of people that choose to store a significant amount of the wealth in cryptocurrency as a kind of self-banking that does not require permission from the mainstream financial industry and allows users to fully control their own financial affairs.

Another major way that many people whose cryptocurrency is as a special authority to in order to generate revenue and income in the cryptocurrency market, as this has proved to be one of the most profitable, if not the most profitable, way to engage with global financial markets over the past 10 years.

Other users have found that cryptocurrency is the ideal tool for international remittances, with many people around the world that work in countries other than their own being able to easily and cheaply send funds back to the families from the weekly wages.

What are the Benefits of Using Crypto?

Like there is a wide range of different cryptocurrency users, there is also a wide range of different use cases and benefits of using cryptocurrency, as well as a range of ways that users are able to get value from digital currencies.

Transfers and payments using banks and financial processors can sometimes take three days or more for international transactions, and one of the most important benefits of using cryptocurrency is the ability to make faster international transactions, with some cryptocurrencies taking as little as 15 seconds for a transaction to fully execute.

Another major draw card for cryptocurrency users is the low cost of being able to make payments, with transactions of hundreds of millions of dollars costing less than one dollar in order to execute.

Another major advantage of using cryptocurrencies is that unlike the mainstream financial industry, where in order to be able to set the account up and access bank services users have to provide a significant amount of personal information and require permission from the bank, using cryptocurrencies such as Bitcoin is permissionless, and this means that anyone is able to do it without providing intrusive information.

Connected to the point about the permissionlessness of cryptocurrency, cryptocurrencies are often either in anonymous or pseudo-anonymous in the way that they operate in store transaction data, and therefore some users choose to use cryptocurrencies to make payments when they have legitimate reasons for wanting to maintain their financial privacy.

What are the Main Ways of Making Money with Crypto?

Cryptocurrency Trading

Cryptocurrency trading is by far the most popular way of making money online with crypto, and while there is a range of different sub-strategies and tactics that can be used in order to crypto trade, the basic principle of what it is is actually very simple.

Cryptocurrency trading is the process of creating multiple purchases, sells, long positions, or short positions, in order to try to generate profit from changes in the price of different cryptocurrencies.

If a cryptocurrency trader creates a long position or buys some cryptocurrency and then the price of the cryptoasset increases between the entry and exit of the trade, then the cryptocurrency trade it will generate profit.

Likewise, if a cryptocurrency trader creates a short position and the price of the cryptocurrency drops between the entry and exit of the position in the cryptocurrency trade it will generate profit.

If a cryptocurrency trader sells the cryptocurrency and then the price of the cryptocurrency drops then the trader won’t generate profit but will avoid loss that would’ve been incurred otherwise.

Cryptocurrency Investing

Cryptocurrency investing is very similar to cryptocurrency trading, although investing has a few differences that distinguish it from cryptocurrency trading activities.

For instance, the typical length of a trade made by cryptocurrency investor is longer than that of a cryptocurrency trader, where the length of a cryptocurrency trader’s trade my last anywhere from milliseconds up to a few days, and the trade of a cryptocurrency investor my last anywhere from one or two weeks up to multiple years.

Cryptocurrency investing is also different from cryptocurrency trading in that it is much less common to create repetitive positions, but instead, it is more likely to create one or two long-term positions instead.

Also as well, Cryptocurrency investing has a much greater focus on the principles of fundamental analysis in order to decide when to buy and sell into a cryptocurrency, instead of the use of technical analysis which is far more permanent for cryptocurrency traders.

And finally, there is a higher likelihood that the size of the trades being made by cryptocurrency investing will be larger than the trades made by cryptocurrency traders, being over the long term, cumulative investments can be made together which increase the size of the position.

Cryptocurrency Mining

Cryptocurrency mining is a way of generating an income from the cryptocurrency market that has been around as long as cryptocurrency itself, being that the way that Bitcoin is created and distributed is via Bitcoin mining.

Mining is a process of thousands of computers connecting to the system that runs the blockchain of that cryptocurrency, and then using the hardware was in the computers to try to solve complex cryptographic puzzles, where once the puzzle is being sold by a miner, they will then be rewarded with a free amount of cryptocurrency.

Bitcoin was the first cryptocurrency to implement a mining system in order to run its system and distribute its coins, however, in 2020, there is a wide range of different cryptocurrencies that are able to be profitably mined.

Although originally Bitcoin miners were able to use a normal laptop in order to successfully mine Bitcoin, today the combined hash rate of all miners has pushed the difficulty of the Bitcoin mining algorithm to a level where the only two ways to successfully be able to mine Bitcoin today is either as a part of a Bitcoin mining pool or by owning a Bitcoin mining farm.

Crypto Bounties and Airdrops

Cryptocurrency bounties and airdrops are a newer way to generate revenue with cryptocurrency, however, there are a large number of users today that are using airdrop programs in order to generate income.

Cryptocurrency bounties are giveaways of a token where a project will provide details of tasks that can be completed by cryptocurrency users in order to be rewarded with designated amounts of the token.

Cryptocurrency airdrops are different, where cryptocurrency users will be awarded with free amounts of a token just by signing up and without having to complete any kind of a task.

Depending on the bounty or airdrop program itself, the complexity of the tasks that need to be completed, and the amount of time and effort that cryptocurrency users will put into a project, often significant amounts of income can be generated by being a part of these kinds of programs.

Crypto Giveaways and Faucets

Crypto giveaways and faucets are websites which are designed in order to provide free amounts of cryptocurrency to users, either by completing tasks or simply by visiting pages.

Cryptocurrency faucets have been around for many years and are websites where users will be giving small amounts of a cryptocurrency without having to complete any kind of a task apart from possibly clicking a button.

Cryptocurrency giveaway sites are similar to cryptocurrency faucets, except for the fact that users will often complete offers and tasks in order to be rewarded with free amounts of cryptocurrency.

There are some sites which also combine giveaways and faucets together and provide services where users can both access faucets and complete offers in order to gain free amounts of cryptocurrency.

Why is it Important to Seek Out Unique Opportunities in the Crypto Market

Any Market Can Become Saturated

In the early stages of the cryptocurrency market, there were many fewer people that knew anything about cryptocurrency at all, let alone an even smaller number that was actively buying, selling, and investing in Bitcoin.

Because of the perceived risk of having anything to do with cryptocurrency in the earliest days, those that did take that risk and bought into Bitcoin at that point were able to achieve significant revenues and profits from doing so.

However, as the number of cryptocurrency users increased rapidly, so the ways in which people were generating money with cryptocurrency became saturated rapidly also.

This meant that as more people began trading cryptocurrency, more advanced traders came into the market that were able to take the profits that had previously been left on the table by a smaller market in the past.

What this also meant is that referral programs and other similar affiliate programs where traders would spread the word about giving trading platforms in order to generate extra revenue streams would also become saturated as more and more people joined the same programs.

It’s because of this undeniable truth that the saturation in any market is possible, and that instead of just trying to make money in the cryptocurrency industry using the same ways that everybody else is using, it is important whenever possible to try to look for new opportunities that are still unsaturated and can generate higher revenues.

The Hidden Diamonds

As well as unique methods of generating money in the cryptocurrency industry not yet being saturated, it is often common that these methods are hidden diamonds amongst many other rocks in the industry.

What this means is that while some cryptocurrency users will spend hours every day trying to generate money at a relatively low level using the same kind of strategies that everybody else is using, there are opportunities that may be being missed which requires less time and less resources but can generate much higher returns.

Those hidden diamonds are a much more efficient way of generating a high amount of revenue without having to go through the same trials and tribulations that everybody else has to go through in order to generate substantially less revenue.

What is most interesting is that often all it takes is a slight tweak of an existing idea or a slight deviation from the existing use case of most people in order to see an opportunity which is substantially larger and nobody is paying attention to.

5 Unique Methods of Making Money with Crypto

Unique Method #1: Referral and Affiliate Programs

One of the fastest-growing and most popular ways for cryptocurrency users to generate an income without actually needing to trade crypto is through referral and affiliate programs that are listed throughout the digital currency space.

These currency referral programs allow users to be able to sign up and to generate an income by showing information about a trading platform or other project, and by posting referral links throughout different social media platforms online.

While many crypto referral programs are relatively straightforward, there are exceptions which provide additional ways for affiliates to generate higher amounts of revenue, such as PrimeXBT’s 4-tier referral program.

Unlike most crypto referral programs where affiliates are only rewarded for the direct referrals, PrimeXBT provides a way to create significantly more revenue streams from the same promotional activities by rewarding affiliates not just for the direct referrals, but for referrals that are 4-tiers deep.

For example, as an affiliate at PrimeXBT, if you create a post on social media and somebody signs up to the platform as a result of that you will earn revenue, as usual, however, if that person then signs up other people using a referral link you will also continue to keep generating revenue on the people that they refer as well, and this goes for 4 levels.

Unique Method #2: Algorithmic Trading

Algorithmic trading is the process of using software to design and build trading bots which will run autonomously and will create positions in the cryptocurrency market based upon algorithms, or sets of rules.

Unlike the normal way of trading cryptocurrency where a trader will manually watch the relevant cryptocurrency chart and based upon that decide when to buy and sell in real-time, cryptocurrency algorithmic traders will design a bot and then let it run 24 hours a day with the bot making decisions on its own when it will buy and sell.

As can be imagined, algorithmic cryptocurrency trading can be extremely profitable and is developed based upon patterns seen in indicators where opportunities may be uncovered, and as a result, there may be multiple times in a single day where profitable trades can be created by the bot.

A particularly profitable way of algorithmic trading is high-frequency trading, whereas bots will typically make thousands of trades in one day, and often make trades that can last for milliseconds and generate small amounts of profit on their own, but collectively would generate high amounts of profit over the course of an entire day.

Unique Method #3: Crypto Social Trading

Crypto social trading is a sub-sector of cryptocurrency trading that has become very popular over the past few years after many years of prevalence in the traditional market, and a gradual transition into the cryptocurrency market as well.

Cryptocurrency social trading is the process of traders working together by sharing resources, information, strategies, and investments, in order to collectively increase the chances of all involved for generating high levels of profit in the cryptocurrency market together.

Typically a process known as copy trading will be implemented, where experienced traders are able to allow other traders to follow their trades for a fee and generate profit as a result.

PrimeXBT recently announced that in a partnership with crypto social trading platform, Covesting, they have released a platform known as the Covesting Module where traders of all experience levels can work together symbiotically in order to significantly increase their profits.

The module allows experienced traders to be able to create peer-to-peer investment funds which publicly display all of the trades made by the fund manager, and allows other investors to be able to compare the funds easily and to select funds to invest into depending on past performance and the risk profile of each fund.

Unique Method #4: Crypto Margin Trading

Cryptocurrency margin trading is another subset of cryptocurrency trading that has seen a strong trend over the past few years for the growth of both the number of cryptocurrency traders that are using margin trading, as well as the total value of all cryptocurrencies being margin traded each day.

Cryptocurrency margin trading is the process of borrowing funds from a cryptocurrency broker in order to create trades that are significantly more profitable than normal trades and that open up opportunities that are typically unavailable without the use of margin trading.

Two main branches of cryptocurrency margin trading cryptocurrency leverage and cryptocurrency shorting.

Cryptocurrency leverage is the process of borrowing an amount of cryptocurrency from a broker that is significantly larger than the amount of capital that the trader has available, and providing the capital on hand to the broker in what is called the “margin.”

The size of the trade that is created with leverage is measured in multiples of how many times larger than the margin the position is, with low levels of leverage in cryptocurrency industry being between 3 to 5X and professional higher levels of leverage being provided and right of up to 100X.

Shorting is the process of traders borrowing an amount of a cryptocurrency from a broker in anticipation of a drop in the price of that asset, and then immediately selling the amount of cryptocurrency that is borrowed, hoping to rebuy the same amount at a lower price, repaying the broker what is owed to them, and keeping the difference in the cost of the rebuy as profit.

In the last few years there have been a number of platforms integrating margin trading into their services for traders, as well as platforms such as PrimeXBT that have launched as margin trading-centric cryptocurrency trading platforms.

Unique Method #5: Short-Term Bitcoin-Settled Accounts

Short-term Bitcoin-settled accounts are a new kind of financial instrument that are cryptocurrency-based, and that can dramatically increase the profit that traders can make in the cryptocurrency market.

The best example of Short-term Bitcoin-settled account trading is at PrimeXBT, which has recently launched its platform, PrimeXBT Turbo, as a short-term Bitcoin-settled account trading platform that allows traders to generate 90% profit in 30 seconds.

As well as dramatically increasing the profitability of the way the traders interact with the cryptocurrency market, PrimeXBT Turbo also simplifies the process of trading by only requiring the traders correctly select whether an asset price will move up or down over the course of the trade, therefore significantly reducing complexity.

This allows beginners to simplify the process of creating successful trades and to reduce the learning curve that is typically required when they first engage with the cryptocurrency market.

Typically it can take weeks if not months for beginners to get the hang of cryptocurrency trading and to be able to reliably create trades that are profitable, however with the use of PrimeXBT Turbo this phase of trial and error can be reduced because of the simplicity of trading with short-term Bitcoin-settled accounts as opposed to normal trading.

Final Thoughts: Best Unique Ways of Making Money with Crypto

Activities such as cryptocurrency trading, cryptocurrency investing, and cryptocurrency mining, have always been a core part of the cryptocurrency market and have been the main ways that people have generated an income using crypto.

However, as the cryptocurrency industry has grown exponentially and more money has begun to flow through the cryptocurrency market there has been an explosion in the number of ways that users can now generate an income with cryptocurrency which does not rely on these original activities.

Today cryptocurrency users are able to generate almost as much without even needing to purchase or sell cryptocurrency as they would if they were trading or investing, and there is a wide range of different platforms to provide incentives in the form of bounties, giveaways, and airdrops.

For those who would still like to focus on generating an income by cryptocurrency trading or investing, it is important to select trading platforms that are reliable and that provide a wide range of different ways to generate an income in the cryptocurrency market.

https://twitter.com/thecapital_io

https://medium.com/media/3b6b127891c5c8711ad105e61d6cc81f/href


Best Unique Ways of Making Money with Crypto: The Definitive Guide [2020] was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.

By Kelly Hanson on The CapitalThe cryptocurrency industry has evolved over the past 10 years from a small and loosely connected group of passionate technologists to today becoming a global economy of millions of people in its own right, composed of dozens of ways to generate an income.While the predominant ways of generating an income in the cryptocurrency industry remain as cryptocurrency trading, investing, and mining, a trend we have seen over the past few years is a gradual diversification of the revenue generation in opportunities that are available in the cryptocurrency space.As the industry has increased in size and the amount of money moving around, the cryptocurrency market has similarly increased, innovative and unique ways for users to be able to generate an income with cryptocurrency have been created on a regular basis, with many of these growing to become significant subsectors of the cryptocurrency industry themselves.As we move towards what is predicted to be the third major bull run of the life of Bitcoin and cryptocurrency industry, this guide takes a look at unique ways of generating a significant income in the cryptocurrency market, starting with a look at what cryptocurrencies actually are, the main and most common ways of making money with cryptocurrency, before then moving on to five unique methods of generating revenue with cryptocurrency in 2020.What are Cryptocurrencies?Where Did Cryptocurrencies Come From?Although many people know the cryptocurrency was created in 2008 when an anonymous group or individual known as Satoshi Nakamoto released a research paper known as the Bitcoin Whitepaper which outlined what cryptocurrencies are, fewer people know the history of digital currencies in general.The first attempt at creating widespread digital currencies in the 1990s was relatively rudimentary and highly centralized digital currencies took advantage of the fledgling Internet in order to try to establish new ecosystems of value that didn’t rely on the contemporary financial system.It was the centralization of these early attempts at creating digital currencies which proved to be their downfall, as digital currency after digital currency was shut down by governments and regulators who simply had to issue legal or regulatory restrictions on the currency and then seize the computers stored at the central location of the operation.These early attempts clearly had a significant influence on the design of Bitcoin, with Nakamoto understanding fully how perilous creating a centralized digital currency is, and instead of opting to design a digital currency that integrated the decentralization into the core of its operations.It is this concept of decentralization which has ensured that Bitcoin has never been able to be shut down by legislators or regulators in any country in the world and that to the contrary, Bitcoin in 2020 is a modern technological miracle that has grown by tens of millions of percent over the last 10 years.Who Uses Cryptocurrency?In 2020 there is a wide and varied array of different cryptocurrency users, and unlike in the early stages of Bitcoin where there were only a relatively limited number of use cases, in 2020 there are substantially more ways to use cryptocurrencies.Most commonly, people use cryptocurrency as a mechanism for payment, with the ability to be able to make transactions with very low transaction times to anywhere in the world, and with very low transaction costs.As well as this, there are a large number of people that choose to store a significant amount of the wealth in cryptocurrency as a kind of self-banking that does not require permission from the mainstream financial industry and allows users to fully control their own financial affairs.Another major way that many people whose cryptocurrency is as a special authority to in order to generate revenue and income in the cryptocurrency market, as this has proved to be one of the most profitable, if not the most profitable, way to engage with global financial markets over the past 10 years.Other users have found that cryptocurrency is the ideal tool for international remittances, with many people around the world that work in countries other than their own being able to easily and cheaply send funds back to the families from the weekly wages.What are the Benefits of Using Crypto?Like there is a wide range of different cryptocurrency users, there is also a wide range of different use cases and benefits of using cryptocurrency, as well as a range of ways that users are able to get value from digital currencies.Transfers and payments using banks and financial processors can sometimes take three days or more for international transactions, and one of the most important benefits of using cryptocurrency is the ability to make faster international transactions, with some cryptocurrencies taking as little as 15 seconds for a transaction to fully execute.Another major draw card for cryptocurrency users is the low cost of being able to make payments, with transactions of hundreds of millions of dollars costing less than one dollar in order to execute.Another major advantage of using cryptocurrencies is that unlike the mainstream financial industry, where in order to be able to set the account up and access bank services users have to provide a significant amount of personal information and require permission from the bank, using cryptocurrencies such as Bitcoin is permissionless, and this means that anyone is able to do it without providing intrusive information.Connected to the point about the permissionlessness of cryptocurrency, cryptocurrencies are often either in anonymous or pseudo-anonymous in the way that they operate in store transaction data, and therefore some users choose to use cryptocurrencies to make payments when they have legitimate reasons for wanting to maintain their financial privacy.What are the Main Ways of Making Money with Crypto?Cryptocurrency TradingCryptocurrency trading is by far the most popular way of making money online with crypto, and while there is a range of different sub-strategies and tactics that can be used in order to crypto trade, the basic principle of what it is is actually very simple.Cryptocurrency trading is the process of creating multiple purchases, sells, long positions, or short positions, in order to try to generate profit from changes in the price of different cryptocurrencies.If a cryptocurrency trader creates a long position or buys some cryptocurrency and then the price of the cryptoasset increases between the entry and exit of the trade, then the cryptocurrency trade it will generate profit.Likewise, if a cryptocurrency trader creates a short position and the price of the cryptocurrency drops between the entry and exit of the position in the cryptocurrency trade it will generate profit.If a cryptocurrency trader sells the cryptocurrency and then the price of the cryptocurrency drops then the trader won’t generate profit but will avoid loss that would’ve been incurred otherwise.Cryptocurrency InvestingCryptocurrency investing is very similar to cryptocurrency trading, although investing has a few differences that distinguish it from cryptocurrency trading activities.For instance, the typical length of a trade made by cryptocurrency investor is longer than that of a cryptocurrency trader, where the length of a cryptocurrency trader’s trade my last anywhere from milliseconds up to a few days, and the trade of a cryptocurrency investor my last anywhere from one or two weeks up to multiple years.Cryptocurrency investing is also different from cryptocurrency trading in that it is much less common to create repetitive positions, but instead, it is more likely to create one or two long-term positions instead.Also as well, Cryptocurrency investing has a much greater focus on the principles of fundamental analysis in order to decide when to buy and sell into a cryptocurrency, instead of the use of technical analysis which is far more permanent for cryptocurrency traders.And finally, there is a higher likelihood that the size of the trades being made by cryptocurrency investing will be larger than the trades made by cryptocurrency traders, being over the long term, cumulative investments can be made together which increase the size of the position.Cryptocurrency MiningCryptocurrency mining is a way of generating an income from the cryptocurrency market that has been around as long as cryptocurrency itself, being that the way that Bitcoin is created and distributed is via Bitcoin mining.Mining is a process of thousands of computers connecting to the system that runs the blockchain of that cryptocurrency, and then using the hardware was in the computers to try to solve complex cryptographic puzzles, where once the puzzle is being sold by a miner, they will then be rewarded with a free amount of cryptocurrency.Bitcoin was the first cryptocurrency to implement a mining system in order to run its system and distribute its coins, however, in 2020, there is a wide range of different cryptocurrencies that are able to be profitably mined.Although originally Bitcoin miners were able to use a normal laptop in order to successfully mine Bitcoin, today the combined hash rate of all miners has pushed the difficulty of the Bitcoin mining algorithm to a level where the only two ways to successfully be able to mine Bitcoin today is either as a part of a Bitcoin mining pool or by owning a Bitcoin mining farm.Crypto Bounties and AirdropsCryptocurrency bounties and airdrops are a newer way to generate revenue with cryptocurrency, however, there are a large number of users today that are using airdrop programs in order to generate income.Cryptocurrency bounties are giveaways of a token where a project will provide details of tasks that can be completed by cryptocurrency users in order to be rewarded with designated amounts of the token.Cryptocurrency airdrops are different, where cryptocurrency users will be awarded with free amounts of a token just by signing up and without having to complete any kind of a task.Depending on the bounty or airdrop program itself, the complexity of the tasks that need to be completed, and the amount of time and effort that cryptocurrency users will put into a project, often significant amounts of income can be generated by being a part of these kinds of programs.Crypto Giveaways and FaucetsCrypto giveaways and faucets are websites which are designed in order to provide free amounts of cryptocurrency to users, either by completing tasks or simply by visiting pages.Cryptocurrency faucets have been around for many years and are websites where users will be giving small amounts of a cryptocurrency without having to complete any kind of a task apart from possibly clicking a button.Cryptocurrency giveaway sites are similar to cryptocurrency faucets, except for the fact that users will often complete offers and tasks in order to be rewarded with free amounts of cryptocurrency.There are some sites which also combine giveaways and faucets together and provide services where users can both access faucets and complete offers in order to gain free amounts of cryptocurrency.Why is it Important to Seek Out Unique Opportunities in the Crypto MarketAny Market Can Become SaturatedIn the early stages of the cryptocurrency market, there were many fewer people that knew anything about cryptocurrency at all, let alone an even smaller number that was actively buying, selling, and investing in Bitcoin.Because of the perceived risk of having anything to do with cryptocurrency in the earliest days, those that did take that risk and bought into Bitcoin at that point were able to achieve significant revenues and profits from doing so.However, as the number of cryptocurrency users increased rapidly, so the ways in which people were generating money with cryptocurrency became saturated rapidly also.This meant that as more people began trading cryptocurrency, more advanced traders came into the market that were able to take the profits that had previously been left on the table by a smaller market in the past.What this also meant is that referral programs and other similar affiliate programs where traders would spread the word about giving trading platforms in order to generate extra revenue streams would also become saturated as more and more people joined the same programs.It’s because of this undeniable truth that the saturation in any market is possible, and that instead of just trying to make money in the cryptocurrency industry using the same ways that everybody else is using, it is important whenever possible to try to look for new opportunities that are still unsaturated and can generate higher revenues.The Hidden DiamondsAs well as unique methods of generating money in the cryptocurrency industry not yet being saturated, it is often common that these methods are hidden diamonds amongst many other rocks in the industry.What this means is that while some cryptocurrency users will spend hours every day trying to generate money at a relatively low level using the same kind of strategies that everybody else is using, there are opportunities that may be being missed which requires less time and less resources but can generate much higher returns.Those hidden diamonds are a much more efficient way of generating a high amount of revenue without having to go through the same trials and tribulations that everybody else has to go through in order to generate substantially less revenue.What is most interesting is that often all it takes is a slight tweak of an existing idea or a slight deviation from the existing use case of most people in order to see an opportunity which is substantially larger and nobody is paying attention to.5 Unique Methods of Making Money with CryptoUnique Method #1: Referral and Affiliate ProgramsOne of the fastest-growing and most popular ways for cryptocurrency users to generate an income without actually needing to trade crypto is through referral and affiliate programs that are listed throughout the digital currency space.These currency referral programs allow users to be able to sign up and to generate an income by showing information about a trading platform or other project, and by posting referral links throughout different social media platforms online.While many crypto referral programs are relatively straightforward, there are exceptions which provide additional ways for affiliates to generate higher amounts of revenue, such as PrimeXBT’s 4-tier referral program.Unlike most crypto referral programs where affiliates are only rewarded for the direct referrals, PrimeXBT provides a way to create significantly more revenue streams from the same promotional activities by rewarding affiliates not just for the direct referrals, but for referrals that are 4-tiers deep.For example, as an affiliate at PrimeXBT, if you create a post on social media and somebody signs up to the platform as a result of that you will earn revenue, as usual, however, if that person then signs up other people using a referral link you will also continue to keep generating revenue on the people that they refer as well, and this goes for 4 levels.Unique Method #2: Algorithmic TradingAlgorithmic trading is the process of using software to design and build trading bots which will run autonomously and will create positions in the cryptocurrency market based upon algorithms, or sets of rules.Unlike the normal way of trading cryptocurrency where a trader will manually watch the relevant cryptocurrency chart and based upon that decide when to buy and sell in real-time, cryptocurrency algorithmic traders will design a bot and then let it run 24 hours a day with the bot making decisions on its own when it will buy and sell.As can be imagined, algorithmic cryptocurrency trading can be extremely profitable and is developed based upon patterns seen in indicators where opportunities may be uncovered, and as a result, there may be multiple times in a single day where profitable trades can be created by the bot.A particularly profitable way of algorithmic trading is high-frequency trading, whereas bots will typically make thousands of trades in one day, and often make trades that can last for milliseconds and generate small amounts of profit on their own, but collectively would generate high amounts of profit over the course of an entire day.Unique Method #3: Crypto Social TradingCrypto social trading is a sub-sector of cryptocurrency trading that has become very popular over the past few years after many years of prevalence in the traditional market, and a gradual transition into the cryptocurrency market as well.Cryptocurrency social trading is the process of traders working together by sharing resources, information, strategies, and investments, in order to collectively increase the chances of all involved for generating high levels of profit in the cryptocurrency market together.Typically a process known as copy trading will be implemented, where experienced traders are able to allow other traders to follow their trades for a fee and generate profit as a result.PrimeXBT recently announced that in a partnership with crypto social trading platform, Covesting, they have released a platform known as the Covesting Module where traders of all experience levels can work together symbiotically in order to significantly increase their profits.The module allows experienced traders to be able to create peer-to-peer investment funds which publicly display all of the trades made by the fund manager, and allows other investors to be able to compare the funds easily and to select funds to invest into depending on past performance and the risk profile of each fund.Unique Method #4: Crypto Margin TradingCryptocurrency margin trading is another subset of cryptocurrency trading that has seen a strong trend over the past few years for the growth of both the number of cryptocurrency traders that are using margin trading, as well as the total value of all cryptocurrencies being margin traded each day.Cryptocurrency margin trading is the process of borrowing funds from a cryptocurrency broker in order to create trades that are significantly more profitable than normal trades and that open up opportunities that are typically unavailable without the use of margin trading.Two main branches of cryptocurrency margin trading cryptocurrency leverage and cryptocurrency shorting.Cryptocurrency leverage is the process of borrowing an amount of cryptocurrency from a broker that is significantly larger than the amount of capital that the trader has available, and providing the capital on hand to the broker in what is called the “margin.”The size of the trade that is created with leverage is measured in multiples of how many times larger than the margin the position is, with low levels of leverage in cryptocurrency industry being between 3 to 5X and professional higher levels of leverage being provided and right of up to 100X.Shorting is the process of traders borrowing an amount of a cryptocurrency from a broker in anticipation of a drop in the price of that asset, and then immediately selling the amount of cryptocurrency that is borrowed, hoping to rebuy the same amount at a lower price, repaying the broker what is owed to them, and keeping the difference in the cost of the rebuy as profit.In the last few years there have been a number of platforms integrating margin trading into their services for traders, as well as platforms such as PrimeXBT that have launched as margin trading-centric cryptocurrency trading platforms.Unique Method #5: Short-Term Bitcoin-Settled AccountsShort-term Bitcoin-settled accounts are a new kind of financial instrument that are cryptocurrency-based, and that can dramatically increase the profit that traders can make in the cryptocurrency market.The best example of Short-term Bitcoin-settled account trading is at PrimeXBT, which has recently launched its platform, PrimeXBT Turbo, as a short-term Bitcoin-settled account trading platform that allows traders to generate 90% profit in 30 seconds.As well as dramatically increasing the profitability of the way the traders interact with the cryptocurrency market, PrimeXBT Turbo also simplifies the process of trading by only requiring the traders correctly select whether an asset price will move up or down over the course of the trade, therefore significantly reducing complexity.This allows beginners to simplify the process of creating successful trades and to reduce the learning curve that is typically required when they first engage with the cryptocurrency market.Typically it can take weeks if not months for beginners to get the hang of cryptocurrency trading and to be able to reliably create trades that are profitable, however with the use of PrimeXBT Turbo this phase of trial and error can be reduced because of the simplicity of trading with short-term Bitcoin-settled accounts as opposed to normal trading.Final Thoughts: Best Unique Ways of Making Money with CryptoActivities such as cryptocurrency trading, cryptocurrency investing, and cryptocurrency mining, have always been a core part of the cryptocurrency market and have been the main ways that people have generated an income using crypto.However, as the cryptocurrency industry has grown exponentially and more money has begun to flow through the cryptocurrency market there has been an explosion in the number of ways that users can now generate an income with cryptocurrency which does not rely on these original activities.Today cryptocurrency users are able to generate almost as much without even needing to purchase or sell cryptocurrency as they would if they were trading or investing, and there is a wide range of different platforms to provide incentives in the form of bounties, giveaways, and airdrops.For those who would still like to focus on generating an income by cryptocurrency trading or investing, it is important to select trading platforms that are reliable and that provide a wide range of different ways to generate an income in the cryptocurrency market.https://twitter.com/thecapital_iohttps://medium.com/media/3b6b127891c5c8711ad105e61d6cc81f/hrefBest Unique Ways of Making Money with Crypto: The Definitive Guide [2020] was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.Read Morefinance, blockchain, cryptocurrency, cryptocurrency-investment, bitcoinThe Capital – Medium

Advertisements

Leave a Reply