Most people are still searching for a way to make money through cryptocurrency and if you are among the people that are still searching to know if you can become rich with the help of crypto then the answer. However, you must understand the fundamentals of cryptocurrency.

So, In today's guide about crypto, I am going to tell you the 2 proven ways you can make money through cryptocurrency if you want to venture into the cryptocurrency business in Nigeria. First of all, what do you understand about cryptocurrency?

What is Crypto and how does it work?

A cryptocurrency is a digital currency that can be used to purchase goods and services but uses a powerful encrypted online leader to secure online transactions. Much competition in these unregulated currencies is in benefit trading, often with speculators driving prices down. Below are the things you should take note of whenever you see or hear the name cryptocurrency.

=> The term cryptocurrency is extracted from the network-security encryption techniques.

=> A cryptocurrency is a digital commodity based on a web spread on a wide range of computers.
This autonomous system encourages them to live without the power of central authority and government.

=> For a variety of factors, including their use for illicit activity, exchange-rate instability, and technology vulnerabilities underlying Cryptocurrencies attract scrutiny.
However, their portability, divisibility, inflation tolerance, and openness have been applauded too.

Types of Cryptocurrencies

It will be hard to actually know the exact number of cryptocurrencies that exist but I am going to list the 6 most popular ones you should know below.

#1. Bitcoin (BTC)

Bitcoin is considered one of the most well-known currencies as a cryptocurrency. It was developed as open-source software in 2009. The creator, under the pseudonym Satoshi Nakamoto, was the white paper that created this digital currency.

How is Bitcoin functioning?

Bitcoin helps consumers to perform anonymous peer-to-peer transfers using blockchain technologies. These transfers are viewable by all users but protected by the blockchain algorithm. Although everybody can see the transaction, only the Bitcoin owner will decrypt the transaction with a "private key" provided to any owner.

#2. Bitcoin Cash

Bitcoin Cash has been developed to boost the functions of Bitcoin, a kind of digital money. Bitcoin Cash has expanded the size of the blocks, which allows quicker processing of more transactions.

#3. Zcash (ZEC)

Zcash is a digital currency based on Bitcoin's initial code. It was developed on a shared blockchain by scientists at MIT and by Johns Hopkins and other respected academic and research institutions. Zcash emphasizes anonymity as a key function and distinction. Though investors are not eligible on the Equity Trust website, users can send Zcash and collect the sum transacted without revealing the transmitter or the recipient.

#4. Litecoin (LTC)

As an alternative to Bitcoin, Litecoin was introduced in 2011.
Like other cryptocurrencies, Litecoin is a fully decentralized, open-source, multinational payment network, so no central authority is in place to monitor or regulate the payment system.

#5. Ethereum (ETH)

Created in 2015, Ethereum is a kind of cryptocurrency built on blockchain technologies that are an open-source network.
Ethereum blockchain also focuses on the machine code of every decentralized application when monitoring possession of digital currency transactions, which allows the application developers to use the Ethereum network to pay transaction fees and utilities.

#6. Stellar Lumen (XLM)

Money trading encourages Stellar lumen as an intermediate currency. Stellar encourages a person of another currency to submit whatever currency he or she possesses. Jed McCaleb developed the Stellar open-source network and the native currency of the network in 2014.

Can Crypto make you rich

The answer to this question is yes, you can become richer than you can ever imagine through cryptocurrency trading but also remember that nothing good comes easy. You can become rich overnight without investing your money and time. One way to get rich or become a millionaire is to invest in cryptocurrency. However, this does not always make you a millionaire.

To make choices that will bring you wealth, you must learn and consider each coin. Cryptocurrency will, in fact, make you extremely wealthy in a short period of time. Today, you can potentially still make a million dollars with Bitcoin, but you'll need some money. Every day, the value of bitcoins will fluctuate by tens of percent. Day trading Bitcoins is dangerous, but there's always potential where there's uncertainty.

2 best ways to make money through cryptocurrency

Now if you must make money in cryptocurrency, there are two choices available to you: mine or exchange.
You will essentially make money for nothing by digging for Bitcoins as long as the markets are open. However, mining is now such a difficult job that it is scarcely worth it.

Making your machine a miner would most likely make it loud and hot.
It would most likely take a long time to mine a single Bitcoin, during which time you would have likely invested more money in energy.

You could make some quick cash if you have access to a lot of computing resources and don't have any bills to pay. However, selling Bitcoins across the most popular markets is a more practical means of earning a million. You should have purchased Bitcoins for $10. Selling them today for $1,000 would have netted you $990 per Bitcoin profit. Essentially, you should have purchased around 1,000 Bitcoins when they were still cheap. You'd have spent over $10,000 but will make a lot more when you decide to exchange.

Cryptocurrency Investment

The cryptocurrency was affordable when it started years back but skyrocketed beyond the reach of many which made it impossible for money to invest in crypto today. However, when it comes to investment it's all about buying cryptocurrencies and selling them when there is an increase in the price.

Some investors can purchase some unit of cryptocurrency and left it in their wallet to appreciate before they can convert it into cash and reinvest or use it for other businesses.

Cryptocurrency mining

Bitcoin mining is not just the method of putting new bitcoins into circulation, but it is also an important part of the blockchain ledger's upkeep and growth. It is carried out with the assistance of highly advanced machines that solve incredibly difficult numerical math problems.

Cryptocurrency mining is time-consuming, expensive, and only sometimes profitable. Mining, on the other hand, has a magnetic attraction for many cryptocurrency investors because miners are paid with crypto tokens for their efforts. This may be because, like California gold prospectors in 1849, entrepreneurs see mining as a gift from above. Why not do so if you are technologically inclined?

Also Read

• Best Cryptocurrency to Invest in 2024
• Why Bitcoin Is Better Than Other Cryptocurrencies
• List of the Best Bitcoin Wallets for the Year 2024