Making Money With Blockchain: The advent of blockchain was to make the financial transactions fair, trustworthy and without any central monitoring authority. This technology has evolved over time and it’s still evolving.
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We see every technology goes through the hype cycle and so does blockchain. But how does this blockchain make technology help the people making money?
Today we are going to explore about the same…But before we delve into the Question of Making money Lets first look at What is blockchain? how the blockchain works ?… With what intent it became popular? and what makes blockchain technology so useful to the community ? And definitely How Blockchain makes money?
If we go by a definition of What is blockchain then its simply a digital ledger which is distributed across the network of computers. The blocks which form this digital ledger are cryptographically hashed in a way that all the information which is stored in the blocks is always with the blocks and cannot be tampered.
The idea of making such a technology was first proposed by a Cryptographer called David Chaum in 1982 . And the first blockchain was conceptualized by a person ( group of people ) known as “Satoshi Nakamoto”. It’s fascinating to know that the word “block” and “chain” were used separately in the original paper but eventually got popularized as “blockchain” from 2016.
Looking at the face value of Blockchain since 2016, it has been growing rapidly. And hence its not just attracting the High net income investors but also the retail investors for investing in cryptocurrency.
And this makes us wonder how nearly everyone investing in blockchain and crypto is making money.
Investing for the Future: Cryptocurrencies and Beyond
Looking into investment routes, the High net income individuals mostly vouch for long term in crypto wealth. They Usually buy crypto like Bitcoin or Ethereum and think of long term as an investment by considering the history of the coins. This type of investment needs fundamental research and getting into details of every coin that an individual invests in.
Staking and Earning: Passive Income on the Blockchain
If someone is very much skilled with moving on with Decentralized finance then there is plethora of financial products available. Considering some of the forms like Yield Farming, Liquidity mining, Lending Pools. But all these forms of working need a very specialized skill set in Finance as in general. One needs to be good in statistics and should have an ability to use multiple finance analyzing tools.
Building the Future: The Power of Blockchain Skills
One can also make some good amount of money by investing in the skills to make Blockchain and other cryptocurrency. This route is targeted to a specific persona which is usually the tech people. The developers usually find a good way of enhancing the skills regularly and tinkering with new tech. Mastering the languages of Blockchain like Solidity, staying in touch. The startups in blockchain space export APIs which can be consumed by other blockchain builders thus generate a commission.
Creative Content and Curation: Monetizing Blockchain Knowledge
We see that everyone on the internet is not interested in doing the developing. But if you find a hobby of making tutorials then, making money around writing article ( just like the one you are reading now 😉 ) can also help you make money in long term. Creating educational content like videos, blogs, advertorials and can go for sponsorship.
So we have come a long way about discussing about “how to make money” with blockchain. Making money with blockchain has to make us wary of the inherent risks that are involved in it.
Here are a few points that we can consider while thinking around “how to make money” with block chain and mitigating the risks:
- Doing the research: This becomes the very fundamental of understanding the investments that we do be it in crypto or any other financial instrument.
- Staying Informed: After doing the research and starting it out well we need to continuously monitor ( either manually / automation ) so that we can get clarity about the investments.
- Management of the risk: The investments in financial instruments are generally diversified so that the risk on one financial instrument can be managed by other. Similarly we can do it in Crypto assets.
- Herding Fallacy: This is one of the Behavioral Finance fallacy which can be applied here to mitigate the risk of putting all crypto assets in a place were majority of the crypto investments are done.
- Focusing Long Term: Sustainable asset building in crypto can also take patience, effort and energy. So one needs to have patience and more strategic approach.
Overall, we see that the evolution of making money in blockchain space is still at the nascent stage and many enthusiast can try their hands on it. However what we can conclude that one needs a careful and strategic approach in going up to the finish line in order to build a stable financial capital in blockchain.
Hope you all like our view on making money with blockchain. If you would like you read more on Blockchain and Crypto, visit our blog eBlockchain Club.