The cryptocurrency market is booming more and more every day. In fact, it is touching heights never seen before. And the interest in investing in crypto has never been higher either. There are highs and lows every day, and there are people ready to take advantage of those highs and lows.
In fact, crypto has also become a very good way for a lot of people to earn some money in their off time. People have adopted crypto as a source for passive income by investing small amounts in different cryptocurrencies and then watching the periodic rise and fall of those currencies.
One of the main currencies that people are using to invest in crypto is known as Ethereum. It is known for its stability and the high volume of the currency. That is why people consider it a great option.
In this article, we will take a look at what Ethereum is, why it is such a good option for passive income, and how to buy and sell Ethereum in Pakistan.
What is Ethereum?
Actually, Ethereum isn’t a cryptocurrency. It is a decentralized blockchain platform. And the official cryptocurrency of the Ethereum platform is known as Ether coin. That is the main difference between Ethereum and Bitcoin. Bitcoin is simply used for financial trade. In contrast, financial trade is just one of the many aspects of the Ethereum platform.
Active vs. Passive Income
The idea of active income is simple. It is the income you spend most of your time earning. Whether it is through a full-time job or your own business. Alternatively, passive income is the process of earning money without spending much time on the process of earning it. However, full-time jobs used to be enough back in the day, these days, that is not enough. This is why more and more people are building passive streams of money that they can earn from in the background while they earn their main income from the main job. Thus maximizing their income as efficiently as possible.
Ethereum is such a popular option for passive income because much of the decentralized finance ecosystem is built upon the Ethereum blockchain infrastructure.
Now, let’s take a look at some of the methods that you can use to create a passive income stream of your own through Ethereum:
The main method is, of course, trading—the best way to get into trading any cryptocurrency is to understand market trends and how they work. You need knowledge of all the factors that go into affecting the price of the cryptocurrency. It might seem like a time-consuming thing, but once you gain enough knowledge of market trends, you will gain an awareness of how long you can leave your investment until it earns a profit for you.
Whether it is conventional trading or crypto trading, all of it depends upon trends and geopolitical and social factors that decide the mood and sentiment of the market at that given moment in time.
Once that mood changes, they decide to either pull their investments out or invest more money into that specific coin. It is the same with Ethereum. And when that happens, the price of the coin fluctuates.
When you get a stronger understanding of Ethereum trading, you can invest without worry and only pay attention to it in your free time, thus creating a passive income stream for you.
The most effective and common method that people employ when trading crypto is Hodling. The concept behind it is relatively simple. Whenever the cryptocurrency dips, you buy it. And when it goes up and reaches a point that you have pre-determined, you sell it. Holding is quite sustainable, as long as you do it well.
Investing in cryptocurrencies is, like fiat investment, inherently risky. But those risks only exist in extreme circumstances or when you don’t know what you are doing. The basic principles of investment apply to cryptocurrency investment too. Do your research, invest only that which you can afford to lose, and don’t fall for scams. That being said, the potential for Ethereum is huge. And once you get into it, you will find it relatively simple, whether you are trading or holding. And when you get the hang of it, the sky’s the limit.
Buying and selling Ethereum in Pakistan has never been easier. With PKR2Dollar, the process is simplified for you, and you can invest your money with ease. So, contact us today, and we will get you started.