While most teens are spending their days playing video games and surfing the web, some teens are doing this a little differently—they’re raking in the cash with crypto!
Cryptocurrency has taken the world by storm, creating wealth for thousands of people—including teenagers. Despite its high volatility, investing in crypto can also bring you some massive returns if you know what you’re doing, and teenagers seem to have got it right.
Keep reading to find out how cryptocurrency works and what teenagers did in order to change their lives forever!
What Is Cryptocurrency & How Does Blockchain Technology Work?
In a nutshell, cryptocurrencies allow you to purchase goods and services or trade them in order to make a profit. Sounds simple enough, right?
Well, in order to get access to the cryptocurrency you will need to exchange it for actual money, which will allow you to purchase certain goods and services with the cryptocurrency tokens.
Cryptocurrencies work through a decentralized system known as blockchain technology which works across computers and records transactions securely throughout the globe.
While you’ve most likely heard of Bitcoin (the most valuable and widely known cryptocurrency) there are several others such as Ethereum, Binance, and Tether.
They all work through the blockchain system, which is essentially a ledger chain of codes that is public and can be added to with blocks as sales are made.
Basically, this is a secure way for two parties to make an agreement and go through with a sale without the need to worry about outside parties getting involved.
As the blocks increase along the chain through cryptography they are verified and recorded securely, meaning that they cannot be altered once they have been verified and stamped.
Essentially, Bitcoin mining takes place when a sale is made and extremely powerful computers work to verify and confirm the transaction, using diverse computer algorithms.
Once this has been done, the successful miner is rewarded with Bitcoin from network fees that are then passed onto the seller ad buyer.
Finally, using a hash, this block is then added to the chain permanently and can be considered completed.
While this may sound a little complicated for many, teenagers of today seem to be raking in the coins with crypto, but how exactly did they do this?
Here's How Teens Are Raking It In With Crypto
By now you’re probably dying to know how teenagers are managing to rake in the six figures with crypto! And, is this even possible?
Well, the crux of the matter is that you need to have the right know-how and perseverance is absolute key. You need to bare in mind that you will likely lose some money along the way. After all, you win some you lose some!
Just ask 19-year old Bitcoin millionaire Erik Finman who started investing in Bitcoin at the tender age of 12. Using his grandmother’s birthday cheque of $1000, he bravely invested every penny into crypto.
Adamant that Bitcoin is the way to get rich quickly, Finman now owns 41 Bitcoins valued at a whopping $3.4 million. He further advises youngsters to invest at least 10 percent of their total income to the top cryptocurrencies.
Another teen Bitcoin millionaire, otherwise known as Miss Teen Crypto, shares the same views as Finman. Similar to him, she started investing her pocket money at the tender age of 16 and now finds herself a millionaire at only 18!
She believes that NFTs or non-fungible tokens, are the way forward when it comes to Gen Z and crypto. If you’re wondering what these are, they’re basically unique digital assets such as videos, pictures, or audios that are stored in blockchain.
These cannot be duplicated, meaning that they are one of a kind and hold significant value. She argues that this generation can become highly successful if they are educated on the ins and outs of crypto and how to smartly invest.
Miss Teen Crypto has made it her mission to educate other young hopefuls on how to succeed with crypto, and she uses social media as her platform to share.
Essentially, they believe that cryptocurrencies have created the most significant transfer of wealth that this generation has ever seen. That said, they believe that this is only the beginning!
How Can You Get Started: Understanding The Basic Principles
If you’re young and ambitious and want to make some cash with crypto, then there are a few strategies that you can harness if you want to get rich.
First things first, you need to understand your options when it comes to handling crypto. That said, you can decide to do the following:
- Trade or invest
- Use coins already in possession to lend to others for money
- Mine coins using blockchain tech or reap rewards for participation in work done
Whichever one you decide on, you will need to follow the below mechanisms in order to successfully make money with crypto. So, keep reading to learn more!
As you probably already know, the crypto market is incredibly volatile. This means that its value can skyrocket and plummet just as quickly, making it a risky investment.
That said, you can use this to your advantage when practicing short-term trading. Unlike with investing, trading can be done quickly when the market is working in your favor.
With that in mind, you’ll need to have the right know-how if you plan on succeeding and making some serious cash. By this I mean analyzing charts and picking up on trends in the market.
This will help you to make more accurate predictions about crypto values and ultimately earn more.
Unlike trading, investing is more of a long-term option when it comes to cryptocurrency. So, if you do decide to go the investing route, then you’ll need some patience on your side!
This type of investing means you stand to reap some incredibly promising long-term rewards, but you also have a lot to lose.
This buying and holding strategy works best with assets that are known to have more stability such as Bitcoin and Ethereum, as most can assume that they are unlikely to drastically drop value in the long-term.
Otherwise known as the Proof of Work strategy, this is the original way to make money with crypto (but there’s a whole lot more involved)!
This aspect of crypto is absolutely crucial, as it essentially determines the value of crypto. To add to this, there is big money to be made with crypto mining! So, what is the caveat?
Well, crypto mining requires some exceptionally high-tech equipment that will require a substantial investment. On top of this, you’ll also need the right skillset and expertise to mine crypto, which could be a stretch for the average teen!
4.Staking & Lending
Now, this is where things get a little complicated! Essentially, staking can be referred to as authorizing and validating crypto transactions.
So, you have ownership of the coins but you do not actually spend them. What you do instead is lock them away in your crypto wallet and lend them out for validation in return for rewards.
A Proof of Stake network utilizes authorizes these transactions. All you are doing, essentially, is lending coins to the network and receiving rewards as payment.
This algorithm makes the pick based on how many coins you have offered for staking, so the more you have the better!
This strategy is also ideal for those who do not have the expensive equipment and it is also far more energy-efficient.
To finish, you can also opt for lending your coins out to additional investors and earning interest this way.
5. Social Media Crypto
Did you know that you get social media platforms that are blockchain-based?
When you create exciting and innovative content, these platforms will reward you with their own coins that can be used on their platforms.
The important takeaway here is that every great reward will come with significant risk, so you need to approach crypto with an open mind.
You also need to remember that riches won’t happen overnight, it takes years of experience, training, and patience to reap truly significant earnings.
That said, it’s always a good idea to partner up with someone who is an expert in the field, as they can mentor you and hopefully prevent you from making any serious losses.