What is cryptocurrency and how to earn on it

About 40% of internet users do not yet know what cryptocurrency is and how to make money from it. But in today's world, where digital technologies are rapidly developing, traditional financial systems (TradFi) are gradually receding into the background. We are increasingly using electronic payments, online banking and mobile wallets in conjunction with digital assets like Bitcoin.

Cryptocurrencies, led by Bitcoin, are rapidly gaining popularity due to unique advantages that didn't exist before. Decentralization allows transactions to take place without intermediaries such as banks or governments, and the increased level of transaction anonymity appeals to those who value privacy in matters of finance. In addition, the global availability of cryptocurrencies allows for instant international transfers without the high fees and restrictions of traditional banking systems. 

Therefore, every year more and more companies and individuals are starting to use cryptocurrencies, recognizing their potential to change the financial landscape of the future. 

What is cryptocurrency in simple words

Cryptocurrency is digital or virtual money that exists only in electronic form. Imagine electronic coins or banknotes that you can store on your computer or smartphone instead of your wallet. The first and most famous cryptocurrency, Bitcoin, came into existence in 2009.

Unlike regular money, cryptocurrencies are not controlled by any bank or government. Instead, they operate using a technology called blockchain, which records all transactions in a shared ledger. This is similar to if all the people in the world had the same copy of a bank statement and could check who paid how much to whom.

People use cryptocurrencies for different purposes. Some buy them as an investment, hoping their value will rise. Others use them for online shopping or to quickly send money overseas without high bank fees. For example, you can buy a cup of coffee with Bitcoin at some coffee shops or send money instantly to a friend in another country.

How to get started using crypto?

The first step into the world of cryptocurrencies is to create a cryptocurrency wallet. A wallet is your personal digital safe where cryptocurrencies are stored. It is essential for receiving, storing, and sending digital coins. Without a wallet, you will not be able to make transactions with cryptocurrency.

The good news is that creating a cryptocurrency wallet is a simple process that usually takes no more than 5 minutes. You don't need any special technical knowledge or programming skills. The only thing you need is a smartphone with internet access. 

Here's how the process of creating a cryptocurrency wallet looks like using Trustee Plus as an example:

1. Download the mobile app for iOS or Android device from the platform's official website.
2. Enter your phone number and other contact details to create an account.
3. Confirm the data and go to the main menu of the app.

From the main menu, you will immediately access key coins like Bitcoin, USDT, Ethereum and others. Just click on the desired asset to see the wallet address and the offered functions (get, send cryptocurrency). It's simple! 

Top 8 ways to make money on crypto

In the world of cryptocurrencies, there are many opportunities to make money. They can be divided into two main categories: passive and active.

Passive methods generate income with minimal effort, often requiring only an initial investment and periodic monitoring. Active methods, on the other hand, require constant involvement, knowledge and time, but can yield large returns.

Passive earning

Long-term investing

This is the easiest way to make money from cryptocurrency. You buy a cryptocurrency and hold it for a long time, waiting for the price to rise. This method requires patience and the ability to withstand short-term market fluctuations.

Staking

Staking involves “freezing” a certain amount of cryptocurrency in a special account or smart contract to keep the blockchain network running. For this, you are rewarded in the form of additional coins. This is similar to earning interest on a bank deposit.

Referral and affiliate programs

Many cryptocurrency exchanges and projects offer referral programs. You get rewarded for referring new users. This can be a percentage of their commissions or a fixed amount for each new participant.

Mining

Mining is the process of confirming transactions on a blockchain network using computing power. For this, miners are rewarded in the form of new coins. Although the initial costs can be high, it can become a stable source of passive income.

Active ways to earn crypto

Blockchain gaming and Play-to-Earn

This is a new trend in the world of cryptocurrencies. By playing special games built on blockchain, you can earn cryptocurrency or NFT. Some games require an initial investment, while others are free to start.

Arbitrage

Arbitrage involves buying cryptocurrency on one exchange and selling it on another where the price is higher. This method requires speed, attentiveness and a deep understanding of the market.

Trading

Trading is actively trading cryptocurrencies for profit on price fluctuations. It can be a very lucrative but also extremely risky endeavor that requires knowledge, experience, and emotional stability.

Airdrops and Bounties

Airdrop is the free distribution of tokens by new projects to attract attention. Bounties are the completion of certain tasks (such as social media advertising) in exchange for tokens. These methods don't require investment, but can be quite labor intensive.

Everyone can choose the method that best suits their knowledge, experience, and willingness to take risks.

Summary

Cryptocurrencies are rapidly entering our lives, opening up new opportunities in the world of finance. They offer unique advantages such as decentralization, speed of transactions and earning potential. From passive investing to active trading, from mining to participating in blockchain games, everyone can find their way here.

Nowadays, entering the world of cryptocurrencies does not require deep technical knowledge or significant initial investments. It all starts with a simple step - creating a cryptocurrency wallet. With modern solutions like Trustee Plus, anyone can start using cryptocurrency in a matter of minutes. This wallet combines convenience, mobility and favorable conditions, providing quality service and covering all the needs of both beginners and pros.

Therefore, perhaps now is the time to take your first step into the fascinating world of cryptocurrencies.