Cryptocurrency is becoming better known and more popular throughout the entire world. However, being relatively new, you may not be familiar with it or why it’s even a big deal.
Are you new when it comes to cryptocurrency? I wrote a comprehensive guide on this blog on the basics of cryptocurrency for beginners. Check out the link to the article to learn more.
Bitcoin is one of the most well-known cryptocurrencies out there, additionally, there are thousands of different cryptocurrencies available. Not all cryptocurrencies serve the same purpose.
While some are for general use, others solve specific problems one of which we are going to be talking about in this article is Ethereum.
Though Ethereum is commonly compared to Bitcoin, Ethereum’s network greatly expands upon Bitcoin’s technology, enabling users to create their decentralized applications on its platform.
Ethereum is a decentralized, open-source blockchain network that enables users to connect using reliable, tamper-proof smart contracts.
Do you want to make money online with Ethereum? This article has been written to guide you
What is Ethereum?
Ethereum is a decentralized blockchain network powered by the Ether token that enables users to make transactions, earn interest on their holdings through staking, use and store nonfungible tokens (NFTs), trade cryptocurrencies, play games, use social media and so much more.
Why do I need to Invest in Ethereum?
Most investors believe that the only way to make money using Ethereum is by purchasing the Ethereum token and waiting for it to increase in value over time.
While this is a viable method that can earn you money using Ethereum, it’s far from the only value that the token has. Here are some of the reasons why you should invest in Ethereum.
1. Ethereum performs the functions of a computer.
Ethereum remains one step ahead of other cryptocurrencies because of its ability to run smart contracts.
Ethereum’s smart contracts can secure ownership of items hosted on its blockchain. Anyone can use a smart contract built on Ethereum. And they can pay with Ethereum too.
The world may be interconnected thanks to the internet, but Ethereum is showing new and improved levels of interconnection for businesses and private individuals around the world.
2. Ethereum will give us Tokenization.
According to The World Economic Forum (WEF), up to 10% of the global Gross Domestic Product (GDP) will be stored and transacted with the help of blockchain technology by 2025–27.
This means that each country worldwide will use blockchain technology for up to 10% of its GDP. The concept of tokenization built around Ethereum makes it easy for it to stay valuable.
3. Ethereum can run uncensorable apps.
Another reason why you should invest in Ethereum is the fact that the information stored on the Ethereum blockchain can’t be shut down by a government or agency and will remain alive and uncensorable for as long as Ethereum is alive.
Facebook, Twitter, Youtube, and Instagram, all of these companies reserve the right to delete, modify, or hide content, but the blockchain technology built around Ethereum makes it practically impossible to modify without leaving a footprint.
4. Ethereum is a host for innovation.
Ethereum has gained strength and momentum because of its ability to host anything on its network.
Fascinating new projects are being built on Ethereum such as crypto-collectables, healthcare records, and many more.
5. Ethereum serves as Diversification from other cryptocurrency assets.
We know why Bitcoin is a good investment Ethereum serves as an alternative to investors.
Bitcoin is scarce since it’s capped at 21 million coins while Ethereum is uncapped.
How Do I Make Money Online With Ethereum?
With Bitcoin, you can store value and pay for things, while with Ethereum, you can program smart contracts, tokenize assets, and more.
Ethereum’s technology and purpose are different from Bitcoin’s. When you visit a cryptocurrency broker and purchase Ethereum, you’re investing in the Ether token.
Ethereum remains promising in the world of cryptocurrency, and If the market cap goes to $1 trillion, the price should be around $8,000 — 400% more than today. Do you want to join this moving train? here is how it can be done.
1. Buy and Hold.
The crypto classic investing formula remains one way to make money with Ethereum. It’s low-risk and guaranteed to make you money as long as the price of ether goes up.
Back when ETH was $200 a year ago, I remembered someone asking me to buy it back then, which I did not. For those people who were able to buy theirs, It means they would be sitting on an over 700% gain right now.
As of the time of writing this piece Ethereum is currently amid a cumulative drawdown of around 68% since November highs and trading at around $1,570.
2. Stake your Ethereum.
Instead of just sitting your ETH in your wallet doing nothing, you can simply put it to use by staking it for profit. Ethereum’s move to proof of stake gives holders an opportunity that Bitcoin doesn’t offer: staking. Validators replace miners, and validators are rewarded for confirming transactions.
Validators provide tokens as collateral, and the network selects which validator gets to confirm each transaction. More tokens mean a higher chance of being selected and being selected more means more rewards.
Holders who do not wish to be validators can delegate their coins to validators to earn a share of the rewards.
Proof of stake is live on Ethereum’s test net, which means that even now, while the mainnet is still proof of work and reliant on miners, holders can stake their tokens to begin earning rewards.
Being a validator yourself requires 32 ETH, which most people don’t have, but there are more accessible ways to stake with less by using existing wallet providers like Binance, Coinbase and Kraken.
For example, these platforms will allow you to stake ETH to earn about 5%, but your coins will be locked until the next phase of the Ethereum 2.0 roadmap.
3. Invest your Ethereum with your wallet provider.
A third option is to store your ether in a place where it will gain interest, and there are many options.
Celsius, Binance BlockFi, and Nexo are the big names that come to mind, and they all operate the same way which allows anyone to deposit funds and earn yield.
The advantage is that there’s no conversion, so your ETH stays ETH. Earn interest as you accumulate ETH, then withdraw to your wallet once you have enough that you want to stake.
4. Create a Token with Ethereum.
Another way to build a passive income on Ethereum is to build a project with it and issue your token to govern such a project.
ERC-20 tokens are similar to Bitcoin and Litecoin in many aspects. However, the most significant difference is that instead of running on their blockchain network, ERC-20 coins run on Ethereum’s blockchain network and use gas as the transaction fee.
ERC stands for Ethereum Request for Comment, and 20 is the proposal identifier number. ERC-20 was designed to improve the ETH network.
With the right knowledge, anyone can create a token on Ethereum to power their cryptocurrency project.
Binance famous BNB token was initially created on Ethereum before developing its blockchain.
To start you can give your token a name, and a symbol, and mention how dividable your token is, by specifying the decimals which then can be finally deployed on the Blockchain.n
5. Become an Ethereum Developer.
The next way to build a passive income on Ethereum is to become an Ethereum developer.
Ethereum is an open-source blockchain platform that could support the development of applications tailored for different use cases.
The salary in a job is also an important factor in encouraging aspirants to learn skills for the job.
The average Ethereum developer’s salary can be an indicator of the demand for Ethereum developers.
In addition, Ethereum blockchain developers also earn around $50-$100 on an hourly basis on freelancing platforms like Upwork.
You need to learn basic coding concepts and finally master /Solidity before becoming an Ethereum developer.
I wrote a comprehensive guide on this blog on how you can kickstart your journey in tech to becoming a web developer. Check out the link to the article to learn more.
6. Write about Ethereum.
A crypto blog is any blog that discusses news and information or explores cryptocurrencies. Sharing information about Ethereum is one way to make money online.
An Ethereum blog will cover many topics, including recent events, news, and updates on the Ethereum community.
Ethereum is quite a hot topic with a huge amount of search queries, starting a blog about Ethereum as a topic will not be a bad idea after all because of the huge audience around it.
I wrote a comprehensive guide on how to start a successful blog. Check out the link to the article to learn more.
7. Start a YouTube Channel and Talk about Ethereum.
Video content accounts for over 82% of all online traffic – and YouTube is the most popular video platform with more than two billion active users.
YouTube is also the second largest search engine behind Google. Online video is growing exponentially, with over 4 billion videos viewed daily you could leverage YouTube to grow your audience on a particular topic of your strength.
Ethereum is also one topic people love to know about, and YouTube is one platform where they seek out content related to this topic.
If you have enough working knowledge needed to educate an audience, then you can start your own YouTube channel where you talk about Ethereum.
I wrote a comprehensive guide on this blog on how to start and scale your YouTube channel. Check out the link to the article to learn more.