7 Easy Ways for Beginners

Cryptocurrency investment is becoming more popular by the day, and for a good reason. Bitcoin, for instance, has performed better than many assets for many years in a row, thus gaining the attention of retail and institutional investors alike.

As attractive as cryptocurrencies are as investments, navigating the crypto space and making strategic investments can be daunting if you’re just starting out. Luckily, there are easy ways to invest, even for complete beginners.

If that sounds like you, here are seven ways you can invest in crypto without knowing much about the industry.

1. Buy and Hold

By far the easiest and safest way to invest in cryptocurrencies, buy and hold is the method many long-term investors employ for crypto investments, whether institutional or retail. All you do is buy a digital asset like Bitcoin, Ethereum, or otherwise and store it in your crypto wallet.

The tricky part is keeping your cryptocurrencies safe, and that comes down to the kind of wallet you use. Anyone with a good understanding of the crypto space will advise you to go for a hardware wallet if you wish to make any substantial investments in crypto. To help you choose, here is a comparison of the top two hardware wallets.

If you are new to crypto and wish to play it safe, buying and holding digital assets is a good choice.

2. Crypto Staking

Crypto staking is an investment method that is growing in popularity. It is a way of contributing to securing a cryptocurrency network and getting rewarded for it. Proof-of-stake networks rely on the critical role of stakers to ensure the security of their networks.

If you wish to contribute to sustaining such networks while getting rewarded, staking is an option to consider. Learn what proof-of-stake is to get started with this, and you can proceed to buy and stake any number of cryptocurrencies you like.

Ethereum is one of the most popular cryptocurrencies used for this purpose, but there are many other cryptos you can stake. Luckily, you don’t need any advanced crypto knowledge to do this, and you can become a staker with a few clicks on any of the listed platforms.

3. Crypto Lending

Crypto lending is another way of investing in crypto with very little participation on your side. Basically, you make your funds available for lending on a crypto lending platform, and as users borrow your funds, they pay back with interest, some of which goes to you.

Check out crypto lending and how it works to know if this is an investment option you wish to explore. You can participate in this without having any experience with cryptocurrencies—but a little experience definitely helps.

4. Crypto Airdrops

There are over 20,000 cryptocurrency projects in existence, and new ones are coming up every day. These new projects want to get you acquainted with their crypto tokens, so they give you some for free. The process is called a crypto airdrop.

There are many websites to receive cryptocurrency airdrops from and be on your way to becoming a crypto owner. You must complete a few tasks, such as sharing information about the project on social media or using their platform.

Some crypto airdrops can be substantial, like the Uniswap airdrop in 2020, so don’t take this lightly.

5. Crypto Faucets

Another way to get your foot into the crypto pool is through a crypto faucet. Like airdrops, faucets give you units of cryptocurrencies for carrying out a few tasks, ranging from spinning a wheel to watching videos and ads online.

There are several crypto faucets where you can go to get some crypto every day without having to buy with money.

The rewards may not be much initially, but those assets may appreciate, and you’ll be glad you held them. There was a time when faucets gave away full Bitcoins.

6. Ask to Be Paid in Crypto

Many employers today are open to paying their employees’ salaries in cryptocurrencies. As someone interested in owning cryptocurrencies, you can ask your employer to pay you in any cryptocurrency. You’ll have to respect the answer you receive, but it’s worth asking.

In fact, crypto is a popular payment method for freelancers who work from different parts of the world, some of which don’t have access to international payment options. Several companies in the US and other parts of the world have also incorporated crypto as an option for paying salaries.

By getting paid in crypto, you don’t have to actively buy cryptocurrency with fiat money, as this can cost you some of it in fees. You never know if your employer is open to this idea if you don’t speak out about it!

7. Cloud Mining

Cryptocurrencies such as Bitcoin, which use the proof-of-work consensus mechanism, need to be mined. Miners once did this on their personal computers when the process was easy. However, gone are those days, and miners now come together to mine and share the profits.

They do so through cloud mining, and anyone can participate in it. You don’t need to know much about crypto as you will not actively participate in the mining process. You only have to join a mining pool and contribute hashing power by paying for it. You will then be given a share of the mined cryptocurrency based on how much hash power you contributed.

This can be a source of passive income if done right, so make sure to research any cloud mining firms, so you don’t fall into a cloud mining scam, as there are many out there.

Which Is Your Crypto Investment Method?

If you’re just entering the crypto space, then these are ways you can use to invest initially. There is little complexity, and almost no technical or active participation is required on your part.

Some ways involve a little capital, but others don’t, so you can start regardless of your financial standing. Only make sure you exercise caution as there are lots of scams and fraudsters in the space waiting to take what’s yours.