More and more investors are increasingly turning to cryptocurrencies to create wealth. The meteoric rise of bitcoin has inspired even skeptics who might otherwise not have considered investing in digital currencies.
But how exactly can you make money with cryptocurrency? Here are 10 ways to make money with cryptocurrency:
- Learn how to day trade.
- Start mining crypto
- Invest in cryptocurrency.
- Earn crypto dividends.
- Invest in crypto-focused funds.
- Participate in crypto lending and staking.
- Get paid in crypto.
- Accept crypto payments.
- Consider airdrops and forks.
- Earn Bitcoin cashback.
This article will take a more in-depth look at the above strategies. Keep reading to discover all you need to know about making money with crypto.
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1. Learn How to Day Trade
One way to make money with crypto is through day trading. Day traders look to make quick profits by exploiting short-term opportunities, so they buy and sell crypto within a day.
By the time the session ends, a day trader could make a considerable cumulative gain. While this strategy is risky because it’s difficult to predict how crypto values will change within a day, you can buy/sell crypto to take advantage of price fluctuations.
The crypto market is relatively small compared to the stock market, but the growth potential is huge. To be successful as a trader, you need proper analytical and technical skills to analyze market charts and make accurate predictions about price movements.
2. Start Mining Crypto
Cryptocurrency miners use high processing power to find solutions to complex equations, thereby producing new blocks and earning tokens as reward. Crypto mining thus requires technical expertise and investment in specialized hardware.
Individuals can also join mining pools whereby they pool resources to mine crypto. You also can take part in the blockchain system either by mining crypto or receiving coin rewards for your work in the system.
Here’s a short YouTube video showing how crypto mining works:
3. Invest in Cryptocurrency
Cryptocurrency investing is the most common way to make money with crypto. Investors purchase digital currencies like Bitcoin, Ethereum, Tether, and Dogecoin, then let the crypto accrue value, and later sell it for a higher price.
However, cryptocurrencies are volatile and therefore, investing or trading in them can be a risky venture. It’s therefore prudent to have a diversified portfolio with multiple digital currencies in addition to other investments.
The best way to invest in crypto is to adopt the buy-and-hold long-term strategy. Since crypto is extremely volatile in the short term, a long-term perspective is more appropriate because it offers enormous growth potential.
Account Minimum: $0
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4. Earn Crypto Dividends
Similar to stocks and bonds, you can make money with crypto assets you already own by earning dividends.
Dividends are typically cash payouts distributed to shareholders. But instead of cash, you receive additional coins (tokens). Cryptocurrencies that pay out dividends include Reddcoin, VeChain, Decred, NEO, NAVCoin, and Komodo.
5. Invest in Crypto-Focused Funds
Another way to earn crypto dividends is by investing in crypto-focused mutual funds or ETFs (Exchange-Traded Funds). These funds invest in technologies or platforms that power cryptocurrency.
Nonetheless, ETFs are yet to get the go-ahead to hold cryptocurrencies directly.
Investing in crypto-focused funds might not be a direct way of making money with crypto, but it enables you to generate passive income from crypto markets.
6. Participate in Crypto Lending & Staking
Did you know that you can use your crypto to stake and lend coins either to the system or other users? Crypto lending entails an agreement between a borrower and a lender.
The borrower offers their crypto holdings as collateral, while the lender offers cash or another crypto. Also, the borrower agrees to pay back the loan with interest.
Therefore, lending out your crypto is another avenue of earning additional crypto by putting your assets to work. Platforms that facilitate crypto savings accounts include Linus, Oasis, Celsius Network and BlockFi.
They accept deposits in various cryptocurrencies such as Bitcoin or Ether, and offer competitive interest rates, some up to 12% on the Annual Percentage Yield (APY).
Staking is a method of validating crypto transactions. But unlike mining, you don’t need expensive hardware. A staker owns coins but doesn’t spend them, locking them in a crypto wallet instead.
When the network uses your coins to validate transactions, you’re rewarded with new coins for lending to the network, allowing it to maintain integrity, security and continuity.
That makes staking much more energy-efficient than crypto mining plus it doesn’t require you to own expensive hardware.
APY: Up to 9.5%
Minimum Deposit: $0
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7. Get Paid in Crypto
Numerous opportunities exist for anyone looking to work in the crypto space. Better yet, you receive payment in cryptocurrency. For instance, you could work for a crypto firm or companies looking to leverage the crypto boom.
Crypto companies require developers, marketers, and cyber security experts among other specialist staff.
Freelancers can also get opportunities to complete tasks in exchange for cryptocurrencies like Bitcoin in sites like laborX.com, Cryptogrind, and CoinTelegraph Jobs.
8. Accept Crypto Payments
As the crypto market continues to grow and mature, more and more businesses are beginning to accept crypto payments for their services. Therefore, if you run a business, consider doing likewise.
Besides, incorporating crypto payments into your existing system will broaden your reach while making your services accessible to customers without credit cards or bank accounts.
9. Consider Airdrops and Forks
To generate crypto awareness, a crypto exchange might decide to conduct an airdrop, distributing free tokens. Developers also perform airdrops in search of support for new cryptocurrencies.
These actions can help to create a large user base. By being part of an airdrop, you can receive a free coin that you may choose to invest or trade.
Airdrop projects get promoted by users via social media, the company’s website, and crypto news platforms. However, extreme caution is essential since hackers use fake airdrops and ICOs (Initial Coin Offerings).
Also, many of the coins issued through airdrops tend to come from investments that aren’t valuable. As such, it’s advisable to stick to well-known cryptos like Ethereum or Bitcoin.
New coins created due to changes, or upgrades in a protocol can lead to a blockchain fork. However, any investors holding coins on the original blockchain, receive free tokens on the newly formed network.
10. Earn Bitcoin Cashback
Crypto users can unlock new opportunities with Bitcoin by using their credit cards. For instance,
BlockFi rewards Visa Signature credit card users with crypto instead of the standard points. Also, cardholders can earn up to 3.5% cashback, which gets converted to Bitcoin and placed in a BlockFi account every month.
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I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.