Top 10 Ways to Make Money with Crypto

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There is a surprisingly wide range of methods you can use to make money with cryptocurrency:

1 Buy and HODL

Buy and hold – “HODL” - is the most popular way of earning money from the market. It involves buying Bitcoin or other cryptocurrencies, “hodling” it for a few months or years and selling it when the price increases. The investing strategy here involves doing your research and identifying a coin you believe has the potential to experience a surge in value within a few months or years. However, before you can do this, you will need a wallet to store, buy and sell the coins. You can buy the coins from cryptocurrency exchanges and transfer them to external wallets for safekeeping.

While most investors focus on the bigger coins such as Bitcoin, Ethereum, Litecoin and Bitcoin Cash, there are thousands of other altcoins with growth potential within the market.

2.Trading Cryptocurrencies

Although potentially very rewarding, day trading crypto profitably is very hard to do. Unlike long-term investing, cryptocurrency trading (especially day trading) requires either extremely strong analytical and technical skills, or nerves of steel and a preparedness to endure long and deep losing streaks. As a trader, you will need to forecast short-term price movements in cryptocurrencies using technical analysis and other analytical tools. With the crypto market’s volatility, you can make huge profits from day trading, but you can also suffer big losses if you get it wrong too often.

3 Cryptocurrency Mining

Crypto mining involves programming a powerful computer to solve complex mathematical problems, to unlock and receive new coins by approving transactions on a blockchain network. Mining is only applicable to the proof of stake cryptocurrencies like Bitcoin. Unfortunately, this way of making money with crypto requires huge investments in hardware and electricity. For some time now, most individuals have not been able to mine profitably – this requires a large-scale operation.

4 Earn Cryptocurrency Dividends

This way of making money from crypto is directly linked to buy and HODL: once you are holding, you can receive dividends. Some cryptocurrencies pay users who buy and hold the coins for a certain period. COSS, CEFF, NEO and KUCOIN are some of the cryptocurrencies that pay owners a dividend. Unlike staking (covered below), you don’t need to hold the coins or tokens in special wallets to put your crypto holdings to work.

5 Run Cryptocurrency Master Nodes

A cryptocurrency master node maintains a real-time record of a blockchain’s activities. Keep in mind that operating a master node is expensive and involves running costs which could exceed the reward. Operators of master nodes are rewarded with coins, usually a share of the block rewards.

6 Stake Cryptocurrency

Staking is like holding and earning dividends. However, the process differs as staking involves holding coins within a special wallet and earning coins as a reward.

7 Crypto Arbitrage

Crypto arbitrage involves you taking advantage of tiny, split-second price differences between the same cryptocurrency asset on different platforms. You buy the asset or coin at the lower price on one exchange and sell it at the higher price quoted on another crypto exchange. However, this is very challenging and requires special hardware and software to give you a chance of executing the trades quickly enough to make profit.

8 Cryptocurrency Faucets

A crypto faucet is a reward system that operates on a website or an application. The qualified users are rewarded with free Satoshis (the lowest denomination of Bitcoin). The rewards are given to users after they complete a few set tasks.

9 Create Cryptocurrency Content

You can make money from cryptocurrency as a cryptocurrency content creator. The crypto market is growing and evolving, and lots of websites are looking for crypto writers to publish. If you are doing your own analysis to trade or invest in crypto, you already have a product which you might be able to monetise. You can make money by creating a video or written cryptocurrency content. It can be news, tutorials, in-depth articles, blog posts etc. Cryptocurrency podcasts can also be successful.

10 Airdrops

Getting involved with an airdrop is another way you can earn from cryptocurrency. You can earn free coins or coin tokens via airdrops, which are usually done to generate awareness. A crypto exchange might offer an airdrop to active members of a particular blockchain community to generate awareness for a new project or new feature it is about to launch.