While cryptocurrency investing should not be approached with the mindset of getting rich quick, it’s understandable that we’re all in it for the money and everyone – no matter their level of involvement – is looking for the best ways to make money with crypto.
Ways to Earn Money with Cryptocurrency
There are basically, 7 ways to make money with cryptocurrency.
HODLing
Trading
Mining
Staking
Affiliate and Referrals
Gigs
Startup
1. HODLing
This refers to buying and holding onto a cryptocurrency (such as Bitcoin) with the expectation that the price will appreciate over time and you make a profit.
HODLing is a form of speculative investment in cryptocurrency that does not require any active involvement of the investor in order to make money.
2. Crypto Trading
Cryptocurrency trading refers to the buying and selling of cryptocurrencies.
The concept is simple –buy low, sell high – yet, more than 90% of all traders are known to lose money, after all, said and done.
Crypto trading is one of the fastest ways to make a significant amount of money within a relatively short time.
And it’s also the fastest way to lose your money in cryptocurrency. With the high potential reward comes the greater risk of loss.
3. Crypto Mining
Cryptocurrency mining refers to the process of verifying blockchain transactions and forming of new blocks in order to receive what’s called a block reward.
In the very early days of bitcoin, mining was a highly lucrative yet simple business that requires just your PC and a good internet connection to begin earning.
Today, almost all the major coins require expensive machines to mine and the returns are relatively less encouraging.
More so, the competition is so high that one shouldn’t expect to make anything reasonable from mining without a substantial investment in the right equipment.
However, mining several cryptocurrencies are still profitable to some extent and a great way to make money with cryptocurrency given the right resources.
But you will do well to avoid bitcoin mining as the market is almost already saturated except you have the necessary capital to knock out the competition.
4. Crypto Staking
Staking is the process of holding a cryptocurrency asset in a designated wallet to support the operation of a Proof of Stake (PoS) blockchain for the benefit of receiving regular, passive staking rewards or profit.
Staking is a concept that’s peculiar to the proof of stake mechanism and Unlike the Proof of Work (PoW) blockchains that rely on mining to verify and validate new blocks, PoS blockchains produce and validate new blocks through staking.
The more coin a person has “staked” or “locked up as collateral” and the longer they keep it on the network, the more mining powers they have.
And therefore, the more likely they’re to be chosen to be the next validators of a block of the transaction on the network and as such, the more of the potential rewards (profit) they will get to enjoy.
5. Affiliate and Referrals
This is quite straight-forward.
Affiliate and referral programs are one sure way of making money with cryptocurrency right now.
The idea is simple –promote and bring customers to a project or product you like or preferably have used and will naturally recommend and the team will give you a share of their profit from the business.
Almost all projects in the crypto space offer one form of referral and affiliate program or the other that hard-working people like you can take advantage of to make money in crypto.
6. Gigs
What do you know how to best? What skills do you have?
Are you a writer, photographer, graphics designer, video editor, animator, developer or do you have any other skills set that people will be willing to pay for?
You can earn cryptocurrency by providing this service and making your skills available to people that need it.
7. Startup
One of the best ways to make money with cryptocurrency is to start your own cryptocurrency business.
Better still, you can start accepting bitcoin or any cryptocurrency of your choice for your existing business.
For example, if you’re a professional barber, restaurateur, or you run any business for that matter.
Put up a sign that says Bitcoin Accepted Here and you will be surprised how many of your existing and new customers are willing to pay you with cryptocurrency.
BONUS POINT:
8. Airdrops, Bounties, Contests, and Giveaways
Other ways of making money with cryptocurrency worth mentioning are participating in crypto airdrops, bounty campaigns, contests and other giveaways that are very popular among especially the new and upcoming cryptocurrency projects as they look for ways to draw people and attention to their projects through these programs.
There are several ways to make money with cryptocurrency and it takes just a few looking around, researching, and experimenting to find the one that’s most convenient and suitable for you.
Final Thought
There we have them –7 simple yet powerful ways to make money with cryptocurrency.
The above list is by no means exhaustive and I’m sure there’re probably many other ways out there I might not have mentioned.
What is your favourite way of making money with cryptocurrency? Share with us in the comments section below.
I really like the clarity of this article. A great read for beginners.