Cryptocurrencies have become an essential part of our society, with millions of people making payments using cryptos. They are still pretty volatile, so many enthusiasts are looking for a way to increase their overall wealth with various strategies related to digital currencies.
The two most popular ones are HODLing and trading, but they are not the only ones available to people who want to increase their income by dealing with cryptocurrencies.
HODLing actually means holding, and the name was just a common typo that went viral and became accepted in the crypto sphere. People who HODL usually buy certain cryptocurrencies and simply hold them, waiting for their price to go up and sell them when their value hits the ceiling.
That is the simplest strategy out there applied by most of the people who own cryptocurrencies as it doesn’t require taking a deep dive into finance-related topics such as investing, trading, and more.
HODLing is very much based on luck and minimum research — all it takes is to buy the cryptos of your choice at the right time and sell them when they hit the all-time high. It is a slow process that may or may not pay off in the end. In other words, by buying cryptocurrencies, storing them, and waiting for the price to go up, you are taking a risk, as the price may not go up after all.
Bitcoin is not the only cryptocurrency available at the moment, although it is still the most popular one with a single unit of BTC still being the most expensive digital currency. People who wanted to learn more about cryptos and their technology probably stumbled upon other types of cryptos that are often referred to as altcoins.
The most popular altcoins at the moment are Litecoin, Ether, Bitcoin Cash, and others. Cryptocurrency holders who engage in crypto trading are present all over centralized and decentralized exchanges and are basically doing the same thing as HODLers but with more intensity. They follow crypto prices on a daily basis, selling and buying them all the time in order to get the most out of them.
There is a third option, however, although it is often regarded as a part of cryptocurrency trading. There are dozens of projects that are crypto-based (blockchain-based) and allow crypto holders to buy platform-specific tokens.
These tokens have a certain value that may go up if the project (also known as ICO) is successful. In other words, you can invest in specific cryptocurrencies that work pretty much like shares and support a blockchain-based start-up in their idea. Make sure to check out some of the latest ICOs if you want to engage in investing and choose wisely where to invest your money.
Cryptocurrencies are just like regular currencies, although they are still not completely regulated by law. However, you can use them in various ways to make a profit. For example, one of the first ways to use cryptos was to play a game called Satoshi Dice that was basically a luck-based game that revolved around playing dice.
Nowadays, many casinos opt to introduce cryptos as a payment method, which means that you can play bitcoin video slots and other popular casino games. You can also earn cryptocurrencies by working for them. Dozens of sites on the web connect employers and employees who want to get paid in bitcoin or any other cryptocurrency.
That can also work the other way around — if you own bitcoin or any other crypto and someone wants to obtain that crypto, you can offer to pay them for a service or a product in that currency.
Some of the paths you choose to follow in order to make a profit using cryptos are very difficult to learn, which means that you’ll have to put your heart into them. It is all fun and games from an outsider’s perspective, but once you start digging a bit deeper, you will discover that it takes a lot of time to master the art of making a profit with cryptocurrencies.
On the other hand, you can choose to rely on luck and opt for methods such as HODLing or playing crypto casino games — those are totally legitimate ways to increase your crypto wealth.
We just scratched the surface in this article, so make sure to explore more about these strategies or even test some easier methods if you already have some cryptos in your eWallet.