If you’ve heard success stories about investing in cryptocurrency and looking to make some money and considering going down the crypto rabbit hole? We have listed a few methods on how to make money with cryptocurrency 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 crypto 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.
Basics Of Making Money With Crypto
If you’ve ever considered making money with cryptocurrency, this post could be what you’re looking for. But remember, when curating different strategies for making cryptos, you generally have to rely on the three other mechanisms:
- Crypto Investing: You can either invest or trade in the exchange market or cryptos. It’s similar to investing in gold, where you don’t necessarily need to own any crypto assets by yourself.
- Crypto Staking: You don’t necessarily need to invest your money in crypto. Instead, you can start earning passive income by crypto lending and staking the coins you already own.
- Crypto Mining: You need to be a part of the Blockchain system by receiving or mining cryptocurrency for the operations executed over the systems.
Different Ways Of Making Money Via Cryptocurrency
Now that you know the basics of making money with cryptocurrency let’s jump into the different effective ways of making money via cryptocurrencies in the next section.
1. Crypto Investing
The most straightforward approach and perhaps the most common way to earn money with crypto is to buy & hold, also known as HODL (Hold On for Dear Life). Most investors buy Bitcoin, Ripple, Litecoin, Ethereum, and other cryptocurrencies from a crypto exchange and wait for their value to grow. Then, they sell at a profit once market prices climb.
This investing strategy necessitates the identification of volatile and more stable assets that can swiftly fluctuate in value, resulting in consistent gains. Bitcoin and Ethereum, for example, have been known to undergo frequent price swings and hence may be regarded as secure investments in this sense.
You are, however, free to trade any item you believe will appreciate; all you need to do is assess each asset before committing to holding it.
2. Invest in Cryptocurrency Projects Early
The most straightforward approach to earning money via crypto assets 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 significant concepts in the crypto markets that allow you to earn passive income from your existing digital assets. The first of which is staking your crypto tokens. It is a simple concept that locks your tokens away for a set period to help the Blockchain validate other PoS (proof-of-stake) transactions over the networks.
For the second process, the interest account is a secure way to generate money with cryptos and earn passive income. Here, these interest accounts function similarly to ordinary savings accounts, where you receive interest payments on depositing your digital assets.
However, crypto coins are not placed into a smart contract 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 asset, 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—traders, with their strategies, look forward to a rapid return, whereas investors would only add or sell a few tokens, making fewer modifications to their folios every year.
Nonetheless, unlike stocks or other securities, day trading can become another profitable method to earn money with digital currencies. For example, to get profits from their trade, day traders might acquire & sell assets on the cryptocurrency market using leverage on the same day.
You can start day trading over any cryptocurrency exchange right now; you must sign up, acquire some assets, and analyze 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
When considering the different ways to generate money with your cryptos, you might be surprised to know that you can also play games. Yes, they’re an option too! Make no mistake here; the play-to-earn crypto games are a billion-dollar industry today. There are other variants and sorts of games in this sector, but Decentraland is possibly one of the most promising crypto games to get started.
Decentraland is a game set up in the metaverse, allowing 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.
7. Crypto Airdrops
The direct and effective method of making money is through flipping or creating your own NFTs. If you are a talented artist/musician or if you have a tangible product to sell alongside your NFT then this can be an effective way to make money with NFTs and eliminates the risk of investing in external projects.
On the other hand buying into NFT, projects can be a quick and efficient way to make money with NFT but you must research heavily into the team, the 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 the majority of cases this will be the result of flipping NFTs.
Now You Know!
This beginner’s guide on how to make money with cryptocurrency provides seven ingenious ways you can start making money with crypto. Personally, for beginner investors, some of the best methods to get started include crypto lending and staking, HODLing, and play-to-earn games.
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!