How to earn money with cryptocurrencies safely and without prior knowledge? step by step guide

For earn money with cryptocurrencies safely and without prior knowledge, It will be important that you do not miss any detail of what we will show you next.

You will know precisely what the risks of investing in cryptocurrencies are and how much money is necessary to live from the investment in cryptos. Analyze each tips to avoid making mistakes and become an expert in trading crypto assets.

We will also teach you how to make money buying ICOs, mining, trading and holding cryptocurrencies. If you want know the best platforms to place your money in cryptos, read our list of recommendations. Let’s start.

Risks of investing in cryptocurrencies

Before investing in cryptocurrencies you should take into account these risks to which you submit:

• There is no regulation in the EU. It is one of the main problems of crowdfunding, when a company requests financing through actions, it needs to meet a long list of requirements. Once the public offer is made effective, everyone knows the contracts and knows where to complain. Cryptocurrencies do not have a specific issuer and do not belong to the legislation of any country, which makes them decentralized.
• Price formation. Prices are formed by the market. Therefore, supply and demand find the balance point that determines the value, which makes it volatile because no one can guarantee a certain behavior and an exact price in the future.
• Liquidity level. Keep in mind that several of the cryptocurrencies were created to solve a project funding problem. When they are launched on the market, they may or may not be widely accepted, which makes liquidity become a risk for the project itself. If the supplies or circulating supply are low, the risk will be higher.
• Payment method. At this point the privacy of the investor comes into play. In order to receive the return on the cryptos, it is necessary to use a virtual wallet or a bank account, which can be risky if a mistake is made in the cryptocurrency withdrawal process.
• Crypto scam. What the project promises is an important aspect when looking at which crypto to invest in. If the white paper is not very clear, it is not known precisely what the funds raised will be used for and how the problems will be solved, the risk of the investment will increase significantly.
• There is no defined investor. The token is not the same as a cryptocurrency, the former has a specific issuer, as is the case with the Euro, the British Pound, the Dollar and more. While cryptocurrencies do not have it, which makes the risk higher.

How much to invest to live on investment in cryptos?

It is important know how much to invest to live on investment in cryptos to plan the strategy.

See below some important criteria that you must take into account so as not to make mistakes and lose everything:

• Know basic concepts of the market: To know how much to invest and live from this type of activity, it is first necessary to know how the digital financial system works, this will help you understand what mining, blockchain, holding, staking and many other trading terms are.
• Know that the money you invest can be lost: Once you know how the cryptocurrency market works, you must understand its high degree of volatility, which can make you win a lot of money or lose everything.
• Not all cryptos are innovative: Innovation is a necessary aspect to understand the future that cryptocurrency will have. Remember that bitcoin was created in 2009 together with blockchain software, being something so new that to this day these two terms are considered synonymous. If a crypto is not innovative, it is likely that it will not be accepted and prone to failure, so you will not be able to make a living from trading this cryptocurrency.

Once you have assimilated the previous points, you are in a position to put together a strategy to start making money with cryptocurrencies. What you must achieve is to diversify the risk, this means that you must choose investments that are safe and have a stable price and combine them with cryptos, tokens and ICOs that promise a good return in the short term, but keep in mind that this has a higher risk.

When you manage to assemble your basket of crypto investments, you just have to follow the behavior of each asset to be aware of the instability of each one and not lose money. It is definitive, to start in the world of blockchain, you can try with a wallet from €50 to €1000.

Learn how to make money with cryptocurrencies

exist many ways to make money with cryptocurrenciesso we will show you the most frequent ones below so that you can choose the ones that best suit your way of investing.

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Buying ICOs

ICO is the acronym translated from initial coin offering, with which third-party financing is sought with the issuance of a cryptocurrency or the creation of a cryptocurrency through the blockchain method. Often, this financial technology is used to start a large-scale project in exchange for the delivery of a new crypto.

Bancor, Tezos, Polkadot and Ethereum are some examples in which you can invest in ICOS. Its success was based on the advantages of this type of financing, so if you want to earn money safely, you better know the benefits of ICOs to be sure when you invest.

Some advantages of ICOS are:

• It is done through blockchain technology: This means that your operation will be registered without anyone being able to modify or delete it.
• They are interchangeable: It is at this point where money is made, since you can buy a cryptocurrency in ICO at a lower price, stake it and then hold it at a higher price.
• The price is established by the market: Which is an important advantage because the supply and demand of the crypto determines the balance point to get the right price.
• They are easy to manage: You can buy and sell ICOs in a matter of seconds without the need for intermediaries or specialized brokers, as is the case with financial instruments on the stock market and shares.
• There are no geographical limits: This will help you make transactions with anyone, regardless of their country or existing tax restrictions.
• To launch an ICO there are no demanding requirements: Thanks to this advantage, it is possible for anyone who has a good idea to obtain financing through this technology, without having to comply with the demanding requirements requested by the stock exchanges. Nor is it necessary to receive audits to comply with the project, which makes new entrepreneurs opt for this option.
• Any investor has access to the whitepaper: The white paper is the place where the objectives of the project, the team that will work and the wallet in which the tokens will be deposited are explained.

cryptocurrency trading

Cryptocurrency trading is the trading market in which cryptocurrencies can be bought and sold. The goal is to buy crypto assets at a low price and then resell them for a higher amount to make a profit. It is one of the most common actions that are carried out with cryptocurrencies, but for that you must have a great knowledge about how the trading market works and the behavior of the crypto in which you want to intervene.

Another way you have to trade is through contracts for difference or CFDs, with which you will get a return calculated between the comparison of the price of an underlying asset when you enter and exit that leverage product. For this you must pay for a margin or initial deposit to have an understanding of the underlying market, this will lead you to not own the cryptocurrency, but to obtain a position that is used to calculate profits or losses.

hold crypto

Holding cryptocurrencies means keeping them for a long time in the wallet to speculate on a rise in price, which means you can earn money without having to make daily records in the blockchain.

This type of action in the crypto market It is ideal for those people who do not want to be aware of the movements or the price of their investment or who do not want to spend a lot of time on this type of operation. The important thing to make money is to sell the cryptocurrencies when the price is higher than the purchase price.

mining

Cryptocurrency mining consists of adding records of the operations carried out on the blockchain network, in exchange for a percentage of a cryptocurrency. To carry out this practice it is necessary to have special software installed and to be as fast as possible to solve the mathematical calculations that free the registry.

The faster you complete your work, you will be available to receive the next order. Keep in mind that to earn money as a miner you will need to use a computer with very powerful hardware, especially processors and motherboards designed specifically for this task.

With NFT Games

NFT gaming is a combination of video games with cryptocurrenciesbeing NFT stands for Non-Fungible Token, lor which means that they cannot be exchanged for another asset because there is no other asset that has the same value. Smart contracts are used where metadata is dumped to guarantee the validity of these and the true possession of a user.

Among the most popular NFT games you will find are Axie Infinity, Thetan Arena, CryptoKitties and Sorare. To buy NFT you can choose different options. The first is to choose an NFT Marketplace, the second option is to acquire the NFTs from their own owners and the last alternative is to enter auction sites to get good prices. If you want to sell them you can enter those auctions or keep the price set by the owner of the NFT.

NFT Games or Play to Earn are video games where you can earn money by buying and selling unique characters and items in NFT. It is not necessary to participate in video games, although as you accumulate the tokens, you will have more chances to win the game and improve your characters, which will serve to increase the balance of your wallet. The difference that you will obtain with these movements will be charged in cryptocurrencies on which the token is based.

Cryptocurrency staking

When you have cryptocurrencies in your possession and perform staking, what you are doing is adding blocks to the blockchain chain in exchange for receiving crypto as a reward. For this, it is necessary to keep a certain amount of crypto in the wallet for a time to maintain the security and credibility of the block network.

Thanks to the blocking or freezing that is done on that amount of coins, the owner of the crypto earns money passively without the need to use expensive computer equipment and consume electrical energy. The election process can be executed randomly by the algorithm, which gives it greater transparency.

You can stake in two ways; What Proof of Stake (PoS) or as Delegated Proof of Stake (DPoS). The first case occurs when an indeterminate part of cryptocurrencies is made available to the network for the creation of the new block. While, the second option of staking according to the balance of cryptocurrencies that exists in the wallet, which grants a number of votes based on that stock.

sell digital art

You can buy and sell digital art without using cryptocurrencies, since it is possible to receive non-fungible tokens for your creations. You will have the option to create your own NFT within platforms where clients and artists set a price for their works.

If you are interested in this idea, we recommend that you visit the nifty gateway where you will have an Ethereum wallet and you can originate your tokens in a simple way. Thanks to its reliable system you will be able to exchange your creations with registered customers, go to https://niftygateway.com/ and be part of this thriving community.

cloud mining

In previous points we told you that you can earn money by mining cryptocurrencies, but for this specialized, high-performance hardware is required to make the registrations in the blockchain in the shortest possible time.

There is another way to solve mathematical processes to settle an operation within the block network and is to opt for a remote data center located in the cloud, thereby utilizing the performance of shared processing hosted in the cloud. The only thing necessary for this case is to have a computer and choose a provider to start earning money. The most important thing of all is that you won’t need to install any special software either.

The most reliable providers you can find for cloud mining are:

• CryptoUniverse.io: This platform is ideal to test how the cloud works without having to spend money, you only have to enter to discover the potential of your hardware.
• Hashmart.io: It is another reliable cloud mining service where you can manage Bitcoin and Ethereum cryptocurrencies, access their site and register as a miner.

Decentralized Finance (DeFi)

With this system you will avoid intermediaries when you want to obtain financial instruments. This is done thanks to the use of platforms in which the Smart Contracts are registered and the operation is reflected to borrow funds from third parties or become someone’s supplier. With DeFi it is possible to trade with cryptocurrencies, being able to obtain extra benefits based on the proper functioning of these assets and on obtaining interest.

Buy ETFs

Just like on a stock market, Exchange Traded Funds or ETFs are investment funds in which different investments are grouped. Thanks to this system, an investor can get exposure to a certain cryptocurrency without owning it, with which it is possible to obtain benefits thanks to the variation in the price of that certain asset.

For this reason, if you want to make money with this strategy you’ll need buy in the market a common investment fund of BTC, XRP and ETH, among other.

airdrops.io

An easy way to earn money is to choose the airdrop promotional format. with this technique you can get free tokens and cryptocurrencies, which are delivered by users who want to promote events, make known the objectives of an idea and tell what the financing projects they have are about. Thanks to this marketing technique, great notoriety is achieved among the community. Therefore, if you decide to participate in these events, visit the website to find out about all the alternatives available to you.

Best platforms to invest in cryptocurrencies

If you want invest in cryptocurrenciessee below the best platforms with which you will keep your privacy protected and you will receive your money without problems.

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binance.com

One of the most important platforms to exchange cryptocurrencies on Binance. It has more than 100 assets that you can trade from anywhere in the world just by creating a free account. The quality of the services and the transparency of the transactions make this broker become the portal with the highest volume of operations.

To generate a user in this exchange you will have to enter and then click on the Register button. Next, you will need to choose your country of residence and add an email or phone number to verify your identity. After a few intuitive steps, you will be ready to start trading on this platform. you shall choose some of the three types of profiles, with which you will have different levels of withdrawals and the identity verification process will vary.

One time accepted your user account, you will be able to buy cryptocurrencies or choose the option of market and trading, in which you can trade with Margin, Spot and Futures. If you want to earn additional money, do not forget to visit and learn how the Binance Finance tool works, which includes alternatives such as Binance Earn, Smart Pool, Loans, VISA refunds and DeFi.

Crypto.com

Another important alternative to trade cryptocurrencies is crypto.com, in which you will find more than 200 cryptos with fiduciary currencies. Currently the volume of operations exceeds 10 million registrations, this is due to the level of transparency and the possibility of buying cryptocurrencies at a real cost.

It is ideal for those users who are just starting out in trading crypto assets. because you will have calculators that will help you to know precisely the result of the operations. Also you can get interest, get a loan and receive payments of your customers in cryptocurrencies, which is an outstanding option to grow your personal business.

A valuable option to earn money is to get the VISA card with which you will get up to 8% return on your purchases. All you have to do is register as a user and complete the account activation form. Then you can operate in this exchange from your computer’s browser or through your smartphone, which has the option to download the application available for Android and iOS.

Coinbase.com

By registering you will have the possibility to create your own cryptocurrency portfolio and earn interest, obtain financing and increase the yield of your digital investments in cryptos. To do this, you will have to open a user profile on their official site and then link a bank account to start trading and be part of a quarterly volume of more than 327 million dollars.

In addition to trade cryptos and make profits, this platform has a significant difference compared to others. have insurance protection of cash balances that are in dollars. This makes you calm when you operate because your cryptocurrencies will have a transparent and reliable security policy.

Before you start trading, you can read the training courses with which you can also reach cryptocurrencies as compensation. Another way to earn money and get rewards is by staking through test protocols. But for this, it is advisable to have deeper knowledge of the functioning of the market. Also you can use the service of the use of its API to receive cryptocurrencies from your business.

eToro.com

An international broker platform that we cannot fail to mention is eToro, in which there are more than 140 million registered users. You will be able to invest not only in cryptocurrencies, but also in stocks, ETFs and CFDs, which makes investments more easily diversified and you can get a higher return than other exchange sites for crypto assets and financial instruments.

Thanks to the CySEC or regulatory commission of Cyprus, the country where some of its offices are located, and to the certification of international contract treaties by the FCAeToro is considered a safe platform. This makes the privacy protection protocols and the treatment of the funds have high management standards, which helps the security and tranquility of the investors.

For earn money with this exchange you will have to open an account and then create a username and write an email to start trading. If you are just starting out, you can choose the strategies of the best traders according to their ranking visible to everyone, but this is not always recommended because in some situations the profit percentage they get is different from what you can reach at the beginning.

xtb.com

More than 350 thousand registered users to trade cryptocurrencies and financial instruments, being the spreads and commissions very simple to calculate and one of the lowest among exchange sites. It is possible to have 24/5 technological support, which will help you to know in greater detail the behavior of some crypto and lower the risk of making mistakes during the purchase.

Secondly, you can try a demo account to start investing, this will help you understand how the market works and get you acquainted with the terms used in trading. Open an account for free to start trading on one of the platforms most important and reliable broker in Europe. Keep in mind that you must manually choose the market in which you want to act, since not only cryptocurrency is traded.

Once you deposit your moneyyou will need to open a position to start managing the investment. This stage is where you have to apply all your knowledge acquired in the courses, bearing in mind that you must make decisions based on reducing risk as much as possible. When you have finished your management, you must close your position to start earning profits.