Cryptocurrency is a relatively new concept and is one of the hottest topics in the financial world. If you’re interested in how to make money with cryptocurrency, there are different ways to do so. Yes, it can be intimidating, especially if you’re new, but with some research (and luck), it’s totally doable. Below are a few:
1. Buy and HODL
The most common and popular way to make money with cryptocurrencies is by buying and hodling them. To HODL means to Hold On for Dear Life, a misspelling of the word hold. This means you will buy cryptocurrencies and hodling on to them until their value increases. Once they do, sell them for a profit.
You can buy Bitcoin, Ethereum, Litecoin, Dogecoin, and other k. The strategy is to identify which among these crypto becomes stable in a volatile landscape. For starters, you can choose Bitcoin and Ethereum as they are known to have regular price fluctuations and, therefore, more stable options.
You can also try lesser-known altcoins that have predictable price shifts. A good mix of the popular and those with promising value can make you profits. Just remember to buy low and sell high.
2. Cloud Mining
You may have heard of people mining their own bitcoin instead of paying for them. This is what’s known as cloud mining. It is the process of using a remote data center to mine bitcoins and altcoins instead of your home computer. It allows people to purchase mining power without having to buy physical equipment.
To start, you need to find cloud-mining software such as Kryptex or Hashing24. Depending on the software, most will require you to download and install it. You should be aware of hardware requirements, so check them out before starting.
3. Referral and Affiliate Programs
A significant part of learning how to make money with cryptocurrencies is through referrals and affiliate programs. You can search for cryptocurrency companies that offer these opportunities. This is the way for these businesses to attract people (the affiliates) as a way to promote their brands. In return, the affiliates will get a commission for each customer they bring to the company.
Many businesses use affiliate programs because they are effective as these are based on interest. To do this, you first must have a platform to publish your content (blog or vlog). You will then create content that revolves around the crypto you’re promoting. Once you get viewers’ attention and they become customers, you can start earning.
4. Trading Cryptocurrencies
If you’re new to trading, you may think this is the same as investing. Whether you’re in stocks or cryptocurrencies, it’s a good idea to know the difference. Investing is a long-term endeavor, while trading has its focus on short-term opportunities.
That being said, trading cryptocurrencies is a great way to earn money. This is what’s more commonly called day trading. What you need to do is to create an account on any cryptocurrency exchange market such as Opensea or Mintable. Then buy some assets, analyze market trends, and sell for a profit.
5. Staking
In crypto, staking is the process of earning passive income by putting your digital assets such as crypto and NFTs to work. You don’t even have to sell your cryptocurrencies. Instead, you’ll be locking them to earn rewards. Think of it as depositing your money in a bank, then waiting for it to make interest.
These rewards typically come in the form of more coins or tokens. You will agree to your digital assets getting locked up for an agreed period of time. The cryptocurrencies stay on your crypto wallet as you can not withdraw them.
6. Lending
Similar to staking is what’s known as lending. Another way of making money with cryptocurrencies is by lending your assets to investors or companies for a fee. They will then use your cryptos for hedging, working capital, or speculation.
This is an excellent way of making money with your cryptocurrencies, especially when you keep tabs on the market trends. This is the way to go when you’re assured that your assets’ long-term value will increase. However, as the gains get higher, so do the risks. Make sure to tread with caution.
7. Play-to-Earn Crypto Games
Blockchain gaming is rapidly gaining fame, and for good reasons. Many gamers are getting hooked on play-to-earn games wherein you enjoy playing while earning cryptocurrencies. Games such as Axie Infinity and Decentraland are such examples. Some even consider these games life-changing.
Choose a game that you find enjoyable, play for rewards, and convert your earnings to real money (fiat currency). In Axie Infinity, you have the option of breeding one-of-a-kind characters that you can sell for their uniqueness or rarity.
8. Crypto Airdrops
Another way to promote themselves, companies (more specifically, startups) use crypto airdrops as a marketing strategy. It is the process of delivering tokens to the wallets of crypto traders in exchange for a minimal promotional fee. The aim is to spread awareness for the crypto company.
You need to go to websites such as CoinMarketCap or Airdrops.io and look for legitimate cryptocurrency airdrops. Browse for different airdrops and follow instructions on how you can earn. Some even give out the cryptos for free, so watch out for these.
9. Work in the Crypto Industry
Cryptocurrencies are slowly but surely becoming mainstream. More and more people are now starting to be aware of it. Many had read about artists becoming millionaires with their art or exchanging Bitcoin when it surged to its all-time highs. This resulted in more companies and businesses getting in on the industry and opening their doors for workers.
What you need to do is find crypto companies looking for workers such as developers. There are businesses that pay freelancers in crypto, so be on the lookout for those.
Final Thoughts
If you’re wondering what the fuzz is about cryptocurrencies, it’s because they’re a game-changer. People are getting fame and fortune with them. If you’re wondering how to make money with cryptocurrencies, the ways listed above will help you.
