How a student can make money on cryptocurrency: top proven ways

The invention of Bitcoin, pretentiously dubbed «e-cash», is not a forgotten civilizational extravaganza of the coming century. Some enthusiasts saw the deeper meaning in the original method of making a profit through the methods of cryptography. Over time, they were joined by amateurs who wanted to make money from digital assets.

In recent years, there have been many newcomers to the cryptocurrency industry. There are many students among them. All college students need extra income. Some need money to pay for their studies, and others want to buy more branded things. Young people need money to be able to seek help from professional dissertation writers or to pay their rent. Every second student is interested in how to make money from cryptocurrency. Let's consider the simplest and most popular methods.

Trading

Let's start with the familiar trading. People engaged in trading at special exchanges call themselves traders. As a rule, these are established market participants who have their funds for investments (we will not focus on scam artists who are good luck).

Buying, selling, and buying cryptocurrencies again is a trader's algorithm. The first prerequisite for a beginner's success is thorough immersion in the topic, a willingness to read the special literature, not to neglect lectures and specialized seminars, and, better yet, to take a special training course. Then comes the tedious, painstaking work of following the market, the trends of its development, and the analysis of trading strategies. After that, you can either invest money or look for financial sources. Before participating in trading, it is important to understand that the volatility of cryptocurrency (sharp price fluctuations, volatility) is off the charts and requires constant attention and caution. A fallback option is practice accounts that help you master the tools of the exchange and get a handle on your virtual balance. You have to act gradually, at first you have to operate only with small assets and be psychologically ready for the first losses. This will help you gain confidence in the future and not panic.

Algometrics

 The crypto-entrepreneur understands that technological progress has introduced special programs, which automatically search for ways to trade positions in fractions of a second. Global exchanges use algometric (high-frequency) trading. Such programs are called bots and are roughly divided into:

 — «Simple». The «simple» ones with precisely pre-defined functionality;

— «Trainable»;

— «Robots», do not make deals, but give recommendations.

 Although using algorithms in trading is a complicated process, sometimes it is used not only by professionals. Beginners should eventually consider employing «Robots» who give recommendations. An understanding of the global outlook of software products does not hurt.

 Investing

As a continuation of the crypto trading theme, there is something to be said for the long term. This is investing, and in international practice, the term used is «hodl» (hold). At the beginner's stage of learning the basics of trading, it is attractive without necessarily diving into the depths of technical analysis. The trader spends money and buys when the price is going down in earnest with the hope of profiting from an increase in the future.

 Mining

But, apart from trading, mining is the most popular tool to gain profit. Appropriate equipment (video card processors, specialized ASICs), electricity, and a cool room can help you get there.

Material resource owners are more likely to make money by «producing» Bitcoins. But this is for successful firms or wealthy users, while beginners are better off focusing on altcoins, alternatives to the «progenitor» coin. This makes the process cheaper, and by combining multiple miners, the pool and each participant are guaranteed a profit. Newcomers are wary of offers to receive digital currency on a smartphone, and the right practice does not confirm rave reviews about advertised projects.

 Stacking

It is possible to mine cryptocurrency without the aforementioned equipment. Ten years ago Proof of Stake technology appeared, what cryptocurrency stacking in Academy AAX is written in detail and this information will be useful for newbies. The algorithm invented promises profits if you have a constant balance in your wallet and are online regularly. The amount set by the regulations is placed as if in a bank deposit for interest. The process is called Stacking. Interested people should pay more attention to the said perspective. We are talking about remote server masternodes with the corresponding software resource. Home computers and laptops will play the role of such servers. After adding coins to the wallet, the user waits a couple of days for the blocks to appear, installs the software, and activates the vault. The main condition is to activate and synchronize the storage itself, but do not forget about the impossibility of using the funds there for other transactions. 

 Of course, the range of options for making money in the described area is wider. Experienced traders work with so-called Stablecoins, which are secured with traditional assets and are excellent for taking profits. Others watch out for «probs» abnormal price movements in one direction or another, and if they are lucky, buy the asset at a favorable rate. Remuneration for recruiting new users is practiced. A referral (client of the firm) receives bonuses by inviting referrals (users), according to the terms of special programs called referral programs. Large crypto exchanges, e.g. BitMEX, and EXMO, regularly develop, and implement complexes of such events.

 ICO/ IEO

It is easy for a novice trader to see that the market for digital transactions does not stand still. From time to time, innovations in the cryptocurrency sphere emerge to excite users. For example, three years ago, an initial public offering of tokens (called an ICO) saw the value of Ethereum skyrocket, resulting in an upsurge in demand. Admittedly, it began to resemble a financial bubble and the then popular concept failed. But the momentum of a new idea broke out and another project emerged, IEO, in which cryptocurrency exchanges select platforms and execs to promote coins to users, rather than project creators selecting investors. Over time, cryptocurrency exchanges developed platforms for events called Crowdsales. People began to collaborate, pooling money to fund successful developments. But the scheme did not remain unchanged either. The emerged way of making money, due to fast transactions, left behind late investors. And so the exchanges, changing their approach, turned the program into a lottery.

Conclusion

Time confirms the vitality of digital technology. As the year is winding down, the interest in cryptocurrencies has not diminished, Bitcoin and altcoins are rising in value. This is worth using for earnings, and savings. We hope this brief overview will help novice traders to take the first step in mastering the difficult, but fascinating process. We wish you success and profit in the first year of the third decade of the century.