In this article, we cover how to make money with cryptocurrency. We’ll go through multiple methods that you can try to start earning today.
After all, the entire point of trading and investing is to make money. Those who get into cryptocurrency have the same idea. However, not all are successful.
Trading is hard. It’s not easy to make money in the cryptocurrency markets.
Many also fall victim to crypto scams, which are rising in popularity with the crypto market itself.
But there are many legitimate ways to make money with cryptocurrencies – even beyond the obvious one involving trading.
So we’ll go through multiple proven ways to make money with cryptocurrency.
Let’s get to it. Below are 11 ways to make money with cryptocurrency:
Table of Contents
Method #1: Buy and Hold (HODL)
The most common way people make money in cryptocurrencies is just like stocks and other assets – buy and hold (or HODL as they say in the crypto market).
Many crypto investors put their money into bitcoin, ethereum, ripple, cardano, dogecoin, shiba inu, and others and just wait for the price to go up.
If and when their prices go up, they sell at a profit. When their prices fall, they might add more.
Crypto is known for changing in value much more rapidly than other assets. Stocks and commodities are volatile, but crypto often puts those to shame in terms of the price movements that are possible each day.
So investing in crypto involves needing to be okay with a lot of volatility and fluctuations in their prices.
You can’t get scared out of something just because it might go down even a little bit.
You might also consider a mix of cryptocurrencies – ones that are more popular in the exchanges (e.g., bitcoin, ethereum) and smaller altcoins that could have more upside potential.
Method #2: Earn Cryptocurrency Interest or Dividends
Did you know that you can buy some cryptocurrencies and hold them for interest or dividends?
There are some coins and some crypto savings accounts that can pay you for holding onto them, much like stocks and other financial assets.
Examples of these include CEFF, NEO, COSS, KUCOIN, and others.
Of course, not all of these coins will work for your portfolio. Just as you probably wouldn’t buy every dividend stock, you probably don’t want to buy every cryptocurrency that pays interest or a dividend.
You need to figure out what best matches with your overall investment objectives.
Method #3: Stake Cryptos
Staking means holding coins in a live wallet. This allows you to earn additional coins as a reward for securing a certain cryptocurrency network.
This gives you the potential for two sources of returns streams: a) price appreciation and b) dividend payout.
Some examples of coins that can be staked include Decred, NAV Coin, Neblio, PIVX, and more.
Method #4: Cryptocurrency Master Nodes
What’s a cryptocurrency master node?
Crypto master nodes are full nodes that incentivize operators of the nodes to operate a blockchain.
This means that a master node is essentially a cryptocurrency full node or an e-wallet that maintains a blockchain’s activities in real-time.
Running cryptocurrency master nodes is one of the most common ways of earning a passive income in the crypto space.
Many cryptocurrencies will pay node operators to keep a real-time record of their activities on their own blockchains.
The process is complicated, so cryptocurrency platforms often prefer to outsource this activity to master node operators in exchange for a fee.
Many proof-of-stake cryptocurrencies have master nodes. DASH is one example.
Method #5: Cryptocurrency Microtasking
Microtasking involves doing small work tasks for individuals or crypto companies and getting paid for each task completed.
The types of tasks vary. You could be asked to do any of the following:
You can get cryptocurrency-related microtasks from platforms like Bitcoins Rewards, Bituro, or Coinbucks.
Method #6: Day Trading / Active Trading
Many in the cryptocurrency space believe that day trading is more effective than HODL.
This is because of the volatility aspect.
But day trading success also depends on your strategy. Many who day trade rely on chart analysis.
Day trading requires you to set up an account on any crypto exchange (e.g., Coinbase), buy assets, analyze, and start trading.
There are also crypto signals and automated crypto trading platforms. These are beyond the scope of this article but basically involve recommended actions based on automated algorithms. Their quality varies greatly.
Like day trading involving any asset, you need to understand what causes your assets to move.
Method #7: Cryptocurrency Arbitrage
Crypto arbitrage involves buying crypto assets on exchanges where they’re underpriced and selling on exchanges where they’re overpriced.
Most exchanges decide for themselves what they price their assets at, so any price variations enable one to hunt for arbitrage opportunities.
These price variations, where they do exist, tend to be small.
So typically arbitrageurs need lots of volume (money and quantity of trade opportunities) to make money.
Price spreads across exchanges can range anywhere from a small fraction of a percent to more than one percent.
To check out crypto arbitrage opportunities, consider signing up on various exchanges and comparing asset prices to find any potential variations that you could profit from.
Be sure to also take into consideration the differences between bid and ask spreads. This will give you an indication of where the market is actually trading should you get into a trade.
Method #8: Work for Cryptocurrency Companies
If you’re passionate about crypto, earning money from it can be as simple as working for a crypto company.
There are lots of different jobs that can suit your skill set.
Just identify what crypto companies need and show them how your skills can help them make money, save money, or help them solve problems.
Many crypto companies also allow you to work from home. Working remotely gives you the flexibility to work from your own space.
Just be sure that the company you work for is legitimate. Crypto is a new space, so there are many impostors.
It’s also a volatile industry considering its nascent state, so be sure to understand that you’re working in an industry that is not totally stable.
Some will even pay salaries out in crypto assets.
These include platforms like:
If you get paid in crypto, that means the value of your earnings can move around a lot.
Of course, you can always convert it into your local currency.
Method #9: Make Cryptocurrency Content
Lots of crypto projects require content to communicate a message to customers or clients.
Many websites now talk about cryptocurrency to educate their readers. These can be investment websites, crypto-specific websites, or standard news and media outlets.
Content is vital for companies in getting their message out to the public.
The cryptocurrency sector, in particular, relies a lot on content marketing because most projects don’t have a physical nature to them.
Not only can you make money this way, but you can also learn a lot based on the research and content creation process.
Some websites that offer content creators opportunities with crypto companies include Steemit, Y’alls, and Yours.
Tradition sites like Indeed might have gigs available as well.
Method #10: Cryptocurrency Faucets
Crypto faucets aren’t especially popular, but are definitely a method that can earn an income for those who take advantage of them.
Bitcoin faucets are a type of a website or app that gives out small amounts of cryptocurrency in exchange for completing basic tasks.
As payment for doing these tasks, users could receive a 1 Satoshi, which is equal to one-millionth of one Bitcoin (0.00000001 BTC).
So, with where bitcoin is priced currently, that comes to a few cents for task completion.
Tasks might include watching ads or videos, completing a survey, and so on. Successful completion earns payment in bitcoin.
Because a Satoshi is a small unit of currency, you might need to complete a number of tasks to make any material amount of money.
Method #11: Have cryptocurrency as one of your payment methods
If you’re a business or a merchant, consider using crypto as one of your payment methods.
If anyone chooses to use cryptocurrency for their payment, this will allow you to build up some crypto reserves.
So in addition to Visa, Mastercard, Apple Pay, PayPal, and others, you could consider crypto payments.
Here are a few possible channels for accepting cryptocurrency payments:
Others are available as well.
You can definitely make money with cryptocurrency and in a way that doesn’t have to involve high risk.
Like everything else, it depends on what your specific skills are and what you put into it.
In this article, we covered 11 ways to make money in the cryptocurrency space.
Some on this list might not make sense for you, while others could have a lot of potential.
Over time, as the crypto space evolves, there will be even more opportunities to potentially make money.
Please note that none of this constitutes investment advice and is purely for entertainment purposes only. Please do your own due diligence when deciding where to put your money.