8 Ways to make money with crypto
When it comes to making money with cryptocurrency, most people will probably think of it in the context of a simple investment product. You buy Bitcoin, hold on to it, and hopefully, at a later date, you’ll be able to sell it for a better price and cash out the profit.
But while it’s possible to earn passively from cryptocurrency, when seen as part of a comprehensive ecosystem, you’ll quickly find that there are many more ways to engage with this, making the most of price movements and different revenue models.
So let’s look into the different ways you can make money with crypto.
1. Buying and holding
Buying and holding is the most straightforward way to make money with crypto. It’s important to realize, however, that hundreds of different cryptocurrencies derive their value in different ways. The most important point here is to study various currencies and buy the ones you truly believe hold the potential for long-term growth.
2. Crypto Staking
Crypto staking means locking up a portion of your cryptocurrency for a period of time as a way of contributing to a blockchain network. Given that certain cryptocurrencies pay out large interest rates for staking, staking can be a great method to use your cryptocurrency to get passive income.
Miners play an incredibly important role in the crypto ecosystem - they validate transactions, keep the blockchain intact, and through their work generate a fresh supply of the cryptocurrency. It’s also a highly lucrative business.
However, as more miners with better equipment get involved, the more difficult (and expensive) it is to compete. This method is therefore not as easy as it used to be. However, if you’re interested you may want to become a member of a mining pool - where any potential revenue is shared. This requires a bit of homework into the world of crypto for which plenty of sources exist.
4. Day trading
Day trading is perhaps the most active way to engage the market. It entails trading different currency pairs and taking advantage of small - or sometimes significant - price movements. Here, perhaps, it’s less about studying the underlying protocol or business model as much as it is about engaging in technical analysis to come to a view on the market.
In this context, over the past two years, we’ve seen the rise of crypto derivatives which enable participants to trade with leverage and benefit from both upward and downward price movements. This financial product is risky, however, and requires some research and practice if you wish to master it.
If you’re into day trading, may also want to consider investing in a trading bot that you configure and then let free to do the trading for you.
Another way to earn money with crypto is by getting paid in crypto. There are many websites that specialize in this. You may be required to fill in a survey, test an app, debug a website, or click through ads.
Perhaps more lucrative is offering freelance services in exchange for cryptocurrency. It will be important to study tax laws in your country, however, as you may be required to report such income.
6. Affiliate Programs
Numerous cryptocurrency affiliate schemes will pay you for sending new users to their website or app. Joining affiliate programs is free. You'll receive a unique URL after creating an account. You can start spreading the URL as you like on websites, blogs, forums, and social media. You will get paid every time someone uses your link to sign up or buy something. The ability to start quickly and start making money is the biggest benefit. Additionally, even after you put in all that effort, money would continue to come in for days, weeks, months, and even years. Affiliate programs can be a terrific way to get some decent passive income if you currently operate a blog, or website, or have a large social media following.
Airdrop is an easy and none risky way to make money in the crypto space without a dime, all you need to do is perform the task required by the project, it's also a marketing stunt to create awareness for a new project.
Similar to day trading, this method enables you to earn a profit from price movements but more specifically price differences - trading arbitrage often means engaging multiple markets and taking advantage of market inefficiency.
There are several ways to do arbitrage trading. For example, you may buy Bitcoin on one exchange for X amount of money, and quickly sell it on another exchange where it’s selling at a premium. Another way is to buy Bitcoin with, say, USD, sell it for another fiat currency, and then exchange that currency for USD.
This method requires you to study different markets closely, and it generally requires you to move large amounts of assets for it to be truly lucrative.