How to Freelance with Blockchain
We’ve covered freelancing with blockchain with a personal narrative (check it out here). Now, we’re here to show you a few ways to make money with blockchain. You’ve heard about it. You know big corporations are getting in on the next technological wave. But, how in the world are you supposed to jump in on your own?
While Millennials are certainly moving towards “alternative career paths” more often than their Generation X or Baby Boomer counterparts, there are countless ways for absolutely anyone to capitalize on the new wave of oncoming technology. Here, you’ll find an awesome starting point to freelancing with blockchain.
Easily the first way to make money with blockchain, mining cryptocurrency is considered the granddaddy of making bank on blockchain. Here’s a quick rundown of how the technology works. Multiple transactions make up a block. Miners verify blocks through a process. They apply a mathematical formula to each block, turning it into something called a “hash.” Essentially, a hash is an alphanumeric sequence. The hash is then stored at the end of the blockchain. When each block’s hash is created, it uses the previous block’s hash. More or less, this is the digital version of a wax seal.
So, once a block has been “sealed off”, a flurry of activity happens. The first miner to produce the hash receives a reward. This, of course, varies cryptocurrency-to-cryptocurrency. Currently, Bitcoin’s reward is 12 bitcoins. As more of the cryptocurrency is mined, the rewards is halved. The process itself is pretty straightforward. What’s not straightforward, though, is actually making it happen.
When Bitcoin first arrived on the market, there were few people mining the digital currency. As it gained popularity, however, more people saw its potential. With that, a massive influx of miners arrived on the market. For years, merely using your graphics card or CPU was more than enough to mine.
Since so many people have computers strong enough to mine, it’s far more difficult to make it a lucrative endeavor. Instead, mining pools have popped up. Mining pools are just groups of people working together to mine—it ups the computing power and probability you’ll complete a hash. If the pool wins, everyone in the pool is distributed a portion of that winning. That’s not to say, though, that mining smaller Altcoins on your own isn’t a possibility. In fact, other coins such as Monero and Litecoin are awesome choices if you’re looking to get into the mining game.
Cryptocurrencies reside on exchanges, just like fiat money. However, they have much more in common with stocks. Because cryptocurrency markets are so volatile, they can feel like more of a risk than they’re worth. With bitcoin fluctuating about $1,000 in a month, it’s no surprise you may be nervous.
Trading crypto, though, is much closer to penny stock trading. Penny stocks fluctuate like crazy. But, to make money with them you just need to be aware of trends and do your research. Know the specific risks associated with trading. A “pump-and-dump” is a common scam. Essentially, someone buys up a ton of crypto and the hypes it up. This inflates the price. As it reaches its peak, that person sells all of his holdings and the price plummets. Keeping an eye out for these types of scams is necessary to keep your crypto portfolio safe.
There are literally thousands of cryptocurrencies on the market. For the most part, they’re created solely for a profit, only to be sent to the graveyard of cryptocurrencies past. So, if you’re up on your crypto news, you can get in at the bottom floor of these new coins and sell them before they fizzle out.
On the flip side, if you choose to hold on to certain cryptocurrencies, you are considered a hodler. While it may seem like a great idea, as a general rule of thumb, holding onto cryptocurrencies is not wise. The exception, of course, is bitcoin and maybe ether—Ethereum’s altcoin. Do your research. Read up on the market. Trading crypto is crazy fun, regardless of if you make money. Jump in feet first, or just dabble. Either way, though, it’s definitely a lucrative way to make money on blockchain.
Sell Membership Access
Remember when being a YouTuber was actually profitable? Ad sharing allowed you to make a profit on the streaming site. When it was taken away, content creators were left in a rut. Since then, YouTube has released something called YouTube Red. People pay a monthly fee to watch videos without ads. Creators only receive a portion of the fee a YouTube subscriber paid, based on the amount of minutes watched. Naturally, this method significantly reduces income.
YouTube is not the only platform to introduce new revenue sharing channels, skewed away from the creators. If you make awesome content, be it videos, blog posts, digital art, music, or anything else, you can capitalize on blockchain. Rather than relying on a platform that will take the vast majority of the income, set up a digital wallet.
Charge people for viewing your blog. Set a price for listening to a song. Require a monthly subscription to a streaming site. The possibilities are literally endless. Just put on your brainstorming cap, and you’ll be bringing in extra cash in no time–all while freelancing with blockchain.
Perhaps you have no interest in charging people to view or experience your work. Many museums and galleries have a donation bin in the space. In the same breath, you can easily add your wallet address, so people can tip you. It’s a much less in-your-face approach, but more often than not, it’ll produce less income than straight-up charging members for a subscription.
Now, this article was just a starting point for freelancing with blockchain. If you can think of another route, by all means pull the trigger and go for it! Freelancing with blockchain truly provides an alternative way to make money, without having to sell your soul to a corporation. Remember: you control your destiny. Blockchain will only help you get there!