Digital currency, also known as cybercash, digital money, or electronic cash, is a form of currency that is not tangible as it only exists on the internet. Although this form of currency is only available in the digital realm, it is now becoming more popular than ever before across the globe, as the world is rapidly shifting to digital transactions due to the recent coronavirus outbreak.
Due to this, cryptocurrencies like Bitcoin, Ethereum, and others have recently hit mainstream media and the news. So, now is undoubtedly the best time to hop on the digital currency trend as it takes off.
Aside from the convenience it offers, there are many advantages to using a digital currency, such as it enables instantaneous, transparent, and protected transactions and record-keeping, all thanks to the internet and blockchain technology. It is also an inexpensive mode of payment as it eliminates the need for unnecessary intermediaries.
With these unique benefits, digital currencies are ultimately changing the financial landscape and driving the future of a cashless society.
In the era of social distancing, the pandemic has definitely accelerated the need for cryptocurrencies, leading more and more people to embrace its advantages towards getting rid of the traditional, tangible fiat money. In turn, digital currencies and e-wallets are now in high demand, propelling the blockchain industry forward.
With that, it is evident that cryptocurrencies are no longer for geeks as it soars amid the pandemic.
Profiting from Digital Currencies
Aside from being convenient, safe, and transparent, it also offers an opportunity for many people to profit from it—and it can even help in making your financial milestones.
1. Crypto Trading
Buying and selling crypto is a lot like traditional stock trading, but instead of using fiat money, you’ll be buying and selling digital coins or tokens, expecting to gain a profit in every transaction.
Wondering how exactly you’ll earn from trading crypto? Just like stock trading, you can buy cryptocurrencies of your choice and hold onto them until their value starts to go up. Once the prices begin to increase, you can sell your crypto for a higher price than when you bought them—making trading crypto pretty lucrative.
Although, remember that the value of digital coins and tokens is exceptionally volatile and fluctuates very often, so it’s crucial to buy and sell wisely at the right time to ensure a high return on investment.
As crypto has gained popularity over the years, there are now a lot of platforms that enable crypto trading. To start trading, all you have to do is create an account, choose your preferred crypto, and purchase some crypto coins.
2. Cryptocurrency Payments
Accepting digital cryptocurrency payments is one of the easiest and most practical ways to earn a hefty profit. More and more multinational companies and enterprises are now accepting crypto coins and tokens as a mode of payment, including Amazon, Microsoft, and even Starbucks.
Aside from these global businesses, a new survey by News Break revealed that 36% of small- and medium-sized enterprises in the U.S. are now accepting crypto payments for their products and services.
If you’re looking to build your portfolio by accepting digital currencies, all you need to do is set up a digital wallet to enable your customers to pay using crypto coins.
3. Crypto Investment
Invest and earn from crypto dividends—just like gaining profit from stock dividends, you make money by earning a fixed interest. There are several crypto investment options to choose from, such as passive, long-term investing, and short-term investing.
Although the available investment options are, in their own right, good opportunities to earn interest, the best crypto investment will depend on how much you’re willing to shell out and how long you’re able to hold on to your coins.
4. Crypto Lending
As cryptocurrencies continue to gain traction over the years, a lot of people have seen the potential to earn by offering crypto loans and lines of credit. Through lending crypto coins and tokens, you can fund projects and help push the boundaries of innovation while also earning from it through interest rates.
You have the option to offer your coins to individual investors to generate interest or lend it to the network and “stake a coin.” Essentially, staking is when you agree to keep a crypto coin for a certain amount of time, and just like in a bank, you earn a high-interest return as a reward for holding the coin in the digital wallet.
As it is beginning to take off, the cryptocurrency economy is now becoming more and more of an open market. Digital currencies are no longer just for geeks, as it’s popularity soared thanks to the evolution of technology, digital capabilities, and the pressure to shift to a cashless society brought about by the recent COVID-19 pandemic.
Investing in crypto can be lucrative, but choosing the right cryptocurrency is key. While it’s crucial to explore the various digital currencies available in today’s landscape, of course, it’s best to start with the top and most popular form of crypto—Bitcoin.
Bitcoin is known as the “grandfather” of cryptocurrencies as many consider it to be the first cryptocurrency invented back in 2009. It was originally introduced by a programmer with the pseudonym Satoshi Nakamoto, who eventually paved the way towards the new age of blockchain technology and digital currencies.
There are three different types of Bitcoin, namely, Bitcoin, Bitcoin Cash, and Bitcoin SV. To easily tell the difference between the three types, it is essential to understand their primary functions:
- Bitcoin is primarily used as a kind of “digital gold” where users are known to hold on to their tokens, expecting a large profit in the future—just like when investing in gold.
- Bitcoin Cash is seen as a type of digital cash used for payment transactions between businesses and their customers.
- Bitcoin SV aims to achieve the primary vision of Satoshi Nakamoto, of creating the ultimate global payment system for online transactions.
While Bitcoin SV (BSV) is relatively new to the market—existing for just less than two years—Bitcoin SV performance is impressive. According to AXX Academy, Bitcoin SV entered the market into a bull run back in May 2019 as the value increased from $59 to around $238 by the end of June of the same year. For this, BSV is definitely worth exploring when investing and making a profit from digital currencies.
Chris Mcdonald has been the lead news writer at complete connection. His passion for helping people in all aspects of online marketing flows through in the expert industry coverage he provides. Chris is also an author of tech blog Area19delegate. He likes spending his time with family, studying martial arts and plucking fat bass guitar strings.