How To Profit From Blockchain Technology and Cryptocurrencies
Blockchain technology and cryptocurrencies have opened new streams of income for people all over the world. But whenever discussions such as this are raised, people often think they must be traders t
Image from nairametrics.com
Blockchain technology and cryptocurrencies have opened new streams of income for people all over the world.
But whenever discussions such as this are raised, people often think they must be traders to be beneficiaries. However, nothing could be further from the truth.
Thousands of people are making money from blockchain technology just by positioning themselves and knowing the right way to follow.
If blockchain technology is considered a global disruptor, then why should traders be the only beneficiaries?
According to PwC, blockchain could boost the wealth of the global economy by 1.76 trillion dollars - and this wealth will not come just from trading cryptocurrencies.
We all can be winners
How To Be Among The Winners
There are majorly 3 ways, anyone can profit from cryptocurrencies and blockchain technology
Trading, HODling and Mining
Starting a Blockchain/Cryptocurrency Company or Investing in One
Developing Skills Needed In The Blockchain/Crypto Space
Knowledge is all you need
The underlying requirement for anyone looking to leverage these ways is a basic knowledge of cryptocurrencies and blockchain technology.
Maintaining a mindset of constant research and learning about blockchain concepts, models, projects, and companies gives anyone an edge in this space.
Without further much ado, let's delve into these ways mentioned above and make you a winner.
Trading, HODling, and Mining
Trading
The most popular method people in the crypto space have employed. But not everyone is willing to take the risks that come with trading crypto assets.
One of the criticisms cryptocurrencies often face is their volatility rate, and how it's a dangerous asset for traders and large firms especially.
As the saying goes 'with great risk come great reward' and traders who have developed the psychological prowess to manage their risk are winning big.
Some of the top platforms to get started with trading includes Binance, Coinbase, BitMex, FTX and Huobi Exchange. A few of these platforms also offer trading education and tips.
HODling
'Hold on for dear life'
The term hodl originated from a typo in the crypto space in 2013, but from there on people have used it in referring to the concept of holding a cryptocurrency without selling it.
HODling has produced millionaires in the crypto space especially from those who were early Bitcoin adopters. Bitcoin moved from $0.0008 to over $60,000 in 2021, although the price has re-corrected since then.
These figures, though mind-blowing, shouldn't place one in the fairytale that the road has all been nice and smooth.
There have been times where hodlers have experienced a huge price decrease. The most recent occurrence happening in May, where Bitcoin lost over 50% in price value.
HODlers also make extra gains by staking their coins on lending platforms or Decentralised exchanges (DEX).
Mining
The traditional method of mining cryptocurrencies is gradually phasing out but not for Bitcoin and "Proof-Of-Work" currencies.
Mining is one of the ways to keep a cryptocurrency network secure, and miners are incentivised to spend time and resources doing this.
Considering mining is a competitive task, miners spend thousands of dollars in building mining farms to enable them to gain the rewards promised by these different cryptocurrency networks. Others join mining pools.
Talk of 6.25 BTC reward for bitcoin miners.
Starting a Blockchain/Cryptocurrency Company or Investing in One
Image from wikipedia
Following this route will require one to have in-depth knowledge of blockchain technology and its system of operation.
A lot of considerations must be made regarding who to employ, business location and how to adapt to the change blockchain technology brings with it.
But still, the profits most blockchain companies will rake in not long from now, can't be easily ignored, because of a few challenges. Gartner states that at least one innovative business built on blockchain will be worth around 10 billion dollars by 2022.
Another choice will be to invest in a blockchain company or start-up. Much words wouldn't be necessary here as the increase in funding blockchain startups received this year says it all.
CNBC states that blockchain startups raised 4.4 billion dollars in funding this second quarter when bitcoin was overly bearish.
It will be very hard to overlook the profits blockchain companies might yield in the near future. Top blockchain companies include Coinbase, Chainalysis, Ledger, Circle, etc.
Developing Skills Needed In The Blockchain/Crypto Space
The majority of people should be spending more time learning than buying.
Tyrone Ross
The need for developing skills cannot be overemphasized, especially skills that have a high correlation with emerging technologies such as blockchain.
Individuals with the right skillset can benefit from the blockchain disruption in thousands and even millions of dollars.
Industries, governments and start-ups are hiring experts with the right skill to kick-start their blockchain journey in order not to miss out.
Entrepreneurs are also not left out, shovelling thousands of dollars from the blockchain/crypto space with their skills.
The skillset needed here are subdivided into two groups:
Tech skills and
Non-tech skills
Tech Skills
Computer programmers - Blockchain technology itself is nothing without programmers. Programmers are responsible for developing its architecture and real-time functionality.
Interested programmers will need a good knowledge of cryptography, peer-to-peer networks, and smart contracts.
Data analysis - One of the improvements of blockchain in the current business environment is data transparency and immutability.
But blockchain's way of transparency is quite different from traditional ways like Excel. Data analysts will need to understand how blockchain distributes data and achieve its transparency to carry out the right analysis
UI/UX Designing - A lot of complexities are involved in running a blockchain/cryptocurrency website or app.
Especially from the backend where hashing, private/public keys, and advanced computer codes are involved. UI/UX designers are needed to design an interface that simplifies these complexities and makes it appealing to the regular user.
Non-Tech Skills
Legal practitioners - As blockchain changes business processes, so also will new policies be implemented to guide these changes.
Blockchain/Crypto companies are seeking for legal practitioners who understand blockchain technology and how it will affect government policies.
Crypto firms have shown the need for legal practitioners with the countless number of government actions against them in different countries of the world.
Content writing - Without content, who will know the service a company offers?Contents help the public know the products and services offered by blockchain companies.
It also serves in explaining technical blockchain/crypto terms to the average individual. The fact you are reading this content now says it all.
Digital Artist/Photography - The recent NFT (non-fungible token) boom tells it all. Being a creative/artist with good blockchain knowledge can put millions of dollars in your pocket.
The art and entertainment industry is currently enjoying the perks of blockchain technology. Digital paintings, digital arts, videos, sports highlights are sold for millions of dollars every day on blockchain platforms.
Companies and firms are also employing graphics designers/ animators to communicate their services through visuals.
JPG file by Beeple which sold for 69 million dollars
Gaming - The most unbelievable part is how gamers are making money for having fun online. Gaming is what we do just for fun and to while away time - but not in the blockchain space where gaming has become a profession.
Blockchain gamers, as I would like to call them, earn thousands of dollars by winning virtual characters and virtual estates in a game that can later be resold for thousands of dollars.
The Game-Fi world is one you would be interested in if you are good at gaming.
Axie infinity: a crypto game where players earn over 1500 dollars monthly
Other areas
Business development representative
Research analyst
Financial analyst
Blockchain consultant
Marketing manager
Crypto broker
Blockchain engineer
Security architect
Blockchain/crypto educator
Conclusion
As blockchain technology is still emerging, it's crucial to sharpen your area of expertise and pounce on opportunities it presents.
For newcomers in the blockchain space, choose the area that clicks with you, consistently build yourself in it, and leverage ruthlessly.
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