This beginner’s guide on how to make money with cryptocurrency provides seven ways you can start making money with crypto in 2023.
It’s often touted as the ‘shortcut’ to getting rich; investing in crypto with the right strategy & patience can deliver you positive results. However, not everyone gets to earn money in the crypto space, as it brings along a lot of volatility. Beginners either lose their money due to duplicate investment strategies or don’t understand the concept behind the price changes in the crypto market.
Either way, it should be noted that the cryptocurrency industry is still in its early stages and continuously innovating. So today, you’re not only limited to bitcoin mining, investing, or trading in crypto assets to generate profits.
While there are several other ways to earn more with your cryptos, remember, it’s just about the risk appetite and money you are willing to put into it. Invest in your plans and execute them wisely!
So, if you’re thinking about investing in cryptocurrency and looking to make some money, we’ve listed a few methods on how to make money with cryptocurrency in 2023.
Basics Of Making Money With Crypto
Making money with cryptocurrency involves understanding the cryptocurrency market trends and taking advantage of them through various methods such as trading, staking, and mining.
- Crypto Trading: Trading cryptocurrencies involves buying crypto tokens low and selling them high.
- Crypto Staking: Staking is a method of earning passive income. This is where you hold onto crypto assets and coins and receive rewards for supporting the network.
- Crypto Mining: Mining involves using computing power to validate transactions and earn coins as a reward.
Additionally, using a secure cryptocurrency wallet and keeping track of taxes on profits are essential for long-term success.
Different Ways Of Making Money Via Cryptocurrency
Now that you know the basics of how to make money with cryptocurrency, let’s jump into the different ways of making money with cryptocurrency in the next section.
1. Crypto Investing
The most straightforward and common way to earn money with cryptocurrency is to buy & hold crypto, also known as HODL (Hold On for Dear Life). Most investors buy Bitcoin, Ripple, Litecoin, Ethereum, and other cryptocurrencies from a crypto exchange with the expectation that their value will increase over time.
Crypto investing can be done through various methods, including purchasing coins directly, investing in a fund that holds a diversified portfolio of cryptocurrencies, or trading on a crypto exchange.
As with any investment, it’s important to do thorough research and consider factors such as the technology behind the coin, adoption rates, and overall market trends. It’s also crucial to have a long term strategy, as the cryptocurrency market can be highly volatile and prices can fluctuate rapidly. Additionally, it’s important to have a well-diversified portfolio and to keep up with industry news to make informed investment decisions.
2. Invest in Cryptocurrency Projects Early
One of the most straightforward approaches to make money with cryptocurrency is investing in them at their initial launch stages. After all, if you were an initial investor who had put their money on Bitcoin back when the project was initially introduced as a concept in 2009, you would just have to invest a fraction of a penny. Similarly, in 2015, Ethereum’s tokens were traded at $0.75 per token at its issue.
Both of the initiatives described above are worth thousands of dollars, creating over 1000x profits for their investors. Therefore, always try to find the best ways to start crypto projects early.
3. Crypto Staking & Lending
There are two ways you can generate passive income from your existing crypto assets, which are staking and lending.
Staking your crypto assets is a simple concept that locks your crypto tokens away for a set period to help the Blockchain validate other PoS (proof-of-stake) transactions over the networks.
With crypto lending, an interest account is a secure way to make money with cryptocurrencies and earn passive income. Here, these interest accounts function similarly to ordinary savings accounts, where you receive interest payments on depositing your crypto assets.
However, your digital assets are not placed into smart contracts when it comes to acquiring interests. Instead, your selected provider lends your tokens to individuals who want financial assistance. As a result, the longer you lease out the digital assets; the borrower will pay you the interest rate.
4. Crypto Day Trading
Initially, you might confuse the two interchangeable terms investing and trading crypto. However, it’s simple! The time invested distinguishes them to some extent—those who day trade crypto, with their strategies, look forward to a rapid return. In contrast, those with an investing strategy would only add or sell a few tokens, making fewer modifications to their portfolios yearly.
Nonetheless, unlike stocks or other securities, day trading can become another profitable way to make money with cryptocurrency. For example, to get make money trading crypto, day traders might acquire & sell assets on the crypto market using leverage on the same day.
To start day trading, you must sign up, acquire some digital currency, and analyze crypto market charts. You may also begin trading using an automated trading platform to do the technical analysis and reap profits out of trends.
5. Crypto Mining
Crypto mining is the process of using specialized computer hardware to verify and record transactions on a blockchain network. Miners are incentivized with rewards, such as newly minted cryptocurrency coins, for solving complex mathematical problems to secure the network and validate transactions.
The difficulty level of these problems adjusts dynamically to maintain a stable rate of new coin creation. As a result, crypto mining has become a competitive industry, with individuals and companies investing in powerful hardware to maximize their rewards.
While profitable in the early days of cryptocurrency, the increasing difficulty levels and energy consumption of mining have made it a less accessible means of earning cryptocurrency for individual investors.
6. Play2Earn
When considering the different ways how to make money with cryptocurrency, you might be surprised to know that you can also play games. Yes, they’re an option too! There are other variants and sorts of play to earn games in this sector, with Decentraland possibly one of the most popular crypto games.
Decentraland is a game set up in the metaverse. It allows users worldwide to interact with other players via their virtual avatars and, most importantly, purchase land plots. Once you’ve acquired a plot of land and developed your real estate property, you will be given a unique NFT, which you can later sell for profit.
Play to Earn games such as Axie Infinity have gained popularity as a way to make money through gaming. These types of platforms allow users to earn rewards for playing games and participating in the ecosystem.
How to make money with Axie Infinity?
- Get Involved in the Axie Infinity Ecosystem: Axie Infinity is a decentralized gaming platform that allows users to own and breed virtual creatures called Axies. To make money with Axie Infinity, it is important to get involved in the ecosystem and participate in various activities such as breeding, battling, and trading Axies.
- Breed & Trade Axies: Breeding and trading Axies is one of the most popular ways to make money with Axie Infinity. Users can breed Axies with different traits and sell them for a profit. Researching the market and understanding the demand for different Axie traits is important.
- Participate in Battles: Axie Infinity features battles where users can pit their Axies against each other for rewards. Participating in battles and winning can earn you in-game currency or other rewards.
- Complete Quests: The platform also features quests that users can complete for rewards. These quests can range from breeding Axies with specific traits to participating in battles.
- Stake Axie Infinity Tokens: Staking Axie Infinity tokens is another way to earn rewards from the platform. Users can earn a share of the platform’s transaction fees by holding and staking AXS tokens.
7. Crypto Airdrops
Cryptocurrency airdrops are a popular way for a cryptocurrency project to increase exposure and attract new users to its platform. Airdrops can create a buzz and generate interest in the project by offering free cryptocurrency to a selected group of individuals.
Here are a few tips on how to make money with cryptocurrency airdrops.
- Keep an Eye Out for Airdrops: The first step to making money from airdrops is to be aware of them. Keep an eye out for announcements on social media, forums such as Reddit, and cryptocurrency news sites.
- Join Airdrop Campaigns: Once you are aware of an airdrop, you can participate by joining the campaign. Most airdrops require you to follow them on social media, sign up for their newsletter, or complete other simple tasks.
- Use a Wallet that Supports the Token: Airdropped tokens are usually ERC-20 tokens built on the Ethereum blockchain. To receive the tokens, you need an Ethereum wallet supporting ERC-20 tokens. Some popular cryptocurrency wallets include MyEtherWallet, MetaMask, and Trust Wallet.
- Verify Your Identity: Some airdrops may require you to provide personal information such as your name, email, and country of residence. This is to ensure that only eligible individuals receive the tokens.
- HODL Tokens: Once you have received the crypto coins, hold onto them for a while. Some airdrops may have a lock-up period where you cannot sell or transfer the tokens. However, you can sell the tokens (hopefully for a profit) after the lock-up period has ended.
- Diversify Your Portfolio: Do not put all your eggs in one basket. Diversify your portfolio by participating in several airdrops instead of just one. This way, you can minimize the risk of losing money if one airdrop does not perform well.
Cryptocurrency airdrops can be a great way to make money. However it is important to do your research and be aware of the risks involved. Airdrops are not guaranteed to make you money, but if you’re lucky you may see a return on your investment.
8. NFTs
A direct and effective method to make money with cryptocurrency is through flipping or creating your own NFTs. Suppose you are a talented artist/musician or have a tangible product to sell alongside your NFT. In that case, this can be an effective way to make money with NFTs and eliminate the risk of investing in external projects.
Buying into NFT projects can also be a quick and efficient way to make money with NFT. However, you must research heavily into the team, the crypto market, the community and the roadmap of the project. Your final assessment should be whether you are prepared to make a loss on your investment. As in most cases, this will be the result of flipping NFTs.
Conclusion
There are many ways to make money with cryptocurrency. Whether you choose an investing strategy, to trade cryptocurrency or NFTs, mine or stake your assets. However, it’s important to do your research and understand the risks involved.
Cryptocurrency is highly volatile, and as with any investment, it’s important to have a well-diversified portfolio and only invest what you can afford to lose. With the right strategy and a bit of patience, learning how to make money with cryptocurrency can be a lucrative and exciting opportunity.
FAQs
How Can I Get Rich with Cryptocurrency Fast?
There is no guaranteed or fast way to get rich with cryptocurrency. Investing in cryptocurrency carries risks and it’s important to thoroughly research and understand the market before making any investment decisions.
Some ways to potentially increase your returns include diversifying your portfolio, regularly monitoring market trends, and potentially investing in undervalued or emerging coins. However, it’s important to remember that the cryptocurrency market can be highly volatile, and sudden changes in value can result in significant losses. It’s crucial to approach cryptocurrency investments with caution and a long-term mindset.
Can You Get Rich on Cryptocurrency?
Yes, it is possible to get rich through cryptocurrency investments. Many individuals have become wealthy by investing in cryptocurrencies at the right time and seeing significant returns. However, it is important to note that the cryptocurrency market is highly volatile and there is no guarantee of making a profit. Making informed investment decisions, diversifying your portfolio, and having a long-term outlook can increase your chances of success, but there is always a risk involved in any investment. It’s crucial to thoroughly research and understand the market before making any investment decisions.
