Just a few years ago saw the emergence of cryptocurrency. It all started with Bitcoin, no wonder it is the most popular cryptocurrency today. It is so popular that most people use ‘cryptocurrency’ and ‘Bitcoin’ interchangeably. There are over 6500 cryptocurrencies in the world today. In Zimbabwe, we even have Zimbocash (Zash), the very first to emerge from Zimbabwe. At this moment, 1 Zash is equal to US$0.04; its value is steadily rising. For now, let us explore ways in which you can make money through cryptocurrency.

Content Creation On Cryptocurrencies

Yesterday I was chatting with Tanaka who is passionate about impacting the world through hosting interviews, talk shows and the like. It was validating to hear how that is a potentially lucrative passion. Why? This is because the content is now one of the, if not, the most valuable asset on earth. We are in the information age and big global companies owe their success mostly to information. That is what content is, it is engaging and relevant information. In the cryptocurrency space, you can make lots of money just by creating and propagating content.

Airdrops

This can be a starting point for entering the world of cryptocurrencies. Airdrops entail giving people free tokens when building awareness about a new cryptocurrency. The network effect is one of the most important elements of a cryptocurrency. This refers to the principle that the more people use something the more it grows in value. Airdrops do just that by putting lots of free tokens into people hands. Thus airdrops can lay a foundation for the other two ways I will discuss in this article. This is particularly so if you manage to get the very first airdrops when a cryptocurrency is launched. They tend to be very generous at the beginning. This all will be buttressed if the cryptocurrency goes on to become valuable and widely adopted.

‘Buy And Hold’

This is a straightforward way to consider. All you have to do is to take note of robust cryptocurrencies. By robust, I am referring to cryptocurrencies that have relative stability. These are cryptocurrencies that show promising signs of being long haul. These are kinds of cryptocurrencies that will last and even most likely appreciate over time. There are not that many cryptocurrencies that fit that description though. Two notable examples I can cite are Bitcoin and Ethereum. Right now 1 Bitcoin is equal to roughly US$60000. Ethereum is around US$3650. So you just buy and hold in hopes that at some point the value will spike significantly.

Trading

This is yet another way you can use it. It mostly works on the premise of buying and holding. Trading is all about capitalizing on shifts in the value of a cryptocurrency from time to time. The thing the value can rise or fall periodically. You start by buying and then you hold your crypto. When the value rises you can then enjoy profits from that shift. Essentially you will cash out the profits that come with a rise in value. When the value drops, you can buy more and continue with the holding principle. Then when it sharply rises again, you cash out the profits. That is the basic approach of trading. It sounds simple in theory but it takes having a certain understanding of how the market operates. If you are not careful you can make huge losses.

These are some of the ways you can use to make money through cryptocurrency. It is paramount to appreciate the volatility of cryptocurrencies in general. This means there is a substantial amount of risk involved. You can of course circumvent these issues by being informed. You must take the time to learn and understand the different cryptocurrencies. That way you will know how to make smart and strategic decisions. Let me also add that it might be wise to do trading activities that are short term. The long term is possible but the risk becomes exponentially higher. Lastly, be wary of scams or pyramid schemes. These have become so rampant in the crypto space so be careful.