Cryptocurrencies have become a major thing recently. If you had bought Bitcoin in 2010 you would be a millionaire now.
For the ordinary person, it is very easy to make money by investing in cryptocurrency. Why? Because you don’t have to be a genius or some kind of rocket scientist.
The idea that someone can make a fortune by investing in cryptocurrency has been the dream of many people. Should you follow such a path? Is it possible to make money and make a difference in this world with crypto?
We all are curious as to how we can cash in on this ever-increasing demand for cryptocurrency. Well, it’s simple if you know what to do.
If you’re looking for ideas on how to make money with cryptocurrency, here are 13 proven ways on how to effectively do it.
1. Investing
Cryptocurrency has begun a new financial revolution that has the potential to transform our lives in unimaginable ways. This new digital economy is gradually becoming more and more accepted and integrated into mainstream society, offering more investment opportunities than ever before.
Buying cryptocurrency is the most basic way to make money with crypto. In the most basic sense, you buy low and sell high. Making money off cryptocurrency doesn’t happen overnight.
You have to invest a good amount of time to learn and understand the market before you can make moves with confidence. You also need capital. The key is knowing where to invest, what the possible return on your investment (ROI) will be, and how long you’ll have to wait for it.
There are many ways for you to do this, but they mostly all involve purchasing some form of cryptocurrency at a low price and waiting for the value of that cryptocurrency to rise. Then, when it does rise, you cash out and take your profit.
2. Mining
One of the simplest ways to trade in cryptocurrencies is to mine them. Mining refers to the creation of new tokens by the authentication of transactions on a blockchain network.
Many governments around the world are attempting to regulate cryptocurrency mining, even banning other countries’ control firms from doing so. This just goes to show that mining is a lucrative and successful business.
It takes time to get started, so once you’ve learned your skills, you’ll be able to learn a variety of new ones from them. Anyone with a computer may start mining for cryptocurrencies.
Yet, it’s a time-consuming operation that takes some understanding of how they function and may take a long time to see any significant returns.
3. Trading cryptocurrency for profit
Cryptocurrency trading is an online activity that is growing in popularity. One of the primary benefits of trading cryptocurrency is that you get to trade online, day or night. All you need to start trading is a computer or laptop, and an Internet connection.
Trading cryptocurrencies such as Bitcoin also involves fewer fees and commissions than other payment methods. Trading crypto is an awesome way to multiply your coins.
It seems easy when you see the images of all these people on social media, making thousands of dollars in a day doing it. In reality, it is a lot harder than it looks. Nonetheless, if you follow the right steps and get yourself schooled, you too can make money trading cryptocurrency.
4. Be a blockchain developer
Are you passionate about cryptocurrencies? Would you like to learn how these platforms work? If, so blockchain developer is a great career choice for you.
Indeed, you don’t have to be Alan Turing to start your career as a blockchain developer, but it is a huge advantage if you’ve got at least some programming experience. You are not going to earn much just by creating a website or doing some other things that an amateur can do.
For making real money with blockchain development, you need to dive deep into the crypto-space. The basic concept of blockchain is that everything is stored in a distributed ledger or database that can never be changed. This disintermediates all forms of information and jurisdiction.
5. Airdrops and fork
The “airdrop” is a means of allocating new cryptocurrencies, such as bitcoin or ether, to users. Airdrops are often conducted by forks of the main blockchain of the cryptocurrency in question and distributed to all existing holders of that cryptocurrency (ex: ETH Classic and BTC cash distributions).
After these tokens are distributed, they can be sold at the market price. The fork is a type of branch-off from a blockchain. For those who want blockchain in their industry, the answer is clear: create your fork for it.
You will have the freedom to produce an efficient and effective product for your targeted industry. Or just a resourceful way to properly use old codebases instead of building everything from scratch.
6. Day trading
Day trading is a high-octane way to make money online. In its simplest form, day trading involves identifying an opportunity to make real money within 24 hours.
The market is always at a certain point of ebb and flow, although now with the advent of cryptocurrency and trading it can sometimes be more pronounced.
If you know how to harness the timing of expected price highs and lows, and you understand how to read the charts, you could potentially day trade your way into a very lucrative position.
Furthermore, you should have a thorough knowledge of cryptocurrency investing, including learning what it is, how it operates, and knowing the associated dangers. A successful day trader needs to be highly knowledgeable and understand technical analysis.
7. Staking and lending
You may be thinking that rather than buying and holding cryptocurrency you can earn interest via lending, staking, or one of the many other methods out there. Lending and staking are some of the most attractive passive income streams that cryptocurrency can bring to the table.
Staking is the process of earning crypto by doing what you already do – like signing up for an exchange and waiting for your coins to stake while you use them.
It works through proof of stake and is an incredibly passive way of making money. Lending, on the other hand, works similarly but provides a little bit more security.
Lend your coins to trusted websites and get the interest on top of the initial investment. This can lead you on a path of passive income for life.
8. Accept cryptocurrencies as payment
Although Bitcoin and other cryptocurrencies were created for digital payments, most businesses do not accept them as payment. Offering products and services for sale using cryptocurrencies is a great idea for any business. You don’t have to convert them to regular fiat immediately.
There is a fast-growing number of people who trust cryptocurrencies to be secured and wish to use them for their transactions. If you run a business that involves accepting payment and providing products or services, adding a cryptocurrency option will attract many new customers.
In addition, ryptocurrencies are considered to be the future of money and are quickly propelling themselves towards the forefront of global financial systems. Nonetheless, it has been noted that many people do not understand how to accept cryptocurrencies as payment through their websites.
9. Pay-to-click (PTC) websites
The PTC (pay to click) websites are one of the oldest different ways to earn online, these are websites where you can earn money by clicking on the ads or by viewing them for just 30 seconds.
These websites give you rewards in the form of points which can be changed into virtual currency and then you can redeem this virtual currency to bitcoins also. These websites are a decent way to get started with some fast cash. These sites are usually calling it traffic exchanges or earning sites, but the result is the same.
The owner of the website gets paid by sponsors to show ads, some of which contain a link or a survey you can respond to make some extra cash. Nowadays, more and more PTC sites are devising creative ways to earn money by setting up surveys or paying users for visiting web pages.
10. Binary trading
Binary trading using cryptocurrencies can be a double-edged sword. Yet, when one masters the art, they can make good money using these platforms. In simple terms, trading binary options means predicting if the price will rise or fall.
Trading and investing in digital currencies is fast gaining popularity and investors with large portfolios are looking at different ways to supplement their income. All you have to do is go to a trusted broker and open an account.
Besides, many different brokers offer these services. You can trade Bitcoin, Ethereum, Monero, and other cryptocurrencies as well. There are quite a lot of companies on the internet that will offer you these kinds of services.
You just have to make sure that you stay safe when using them by always keeping your passwords and usernames safe and secure.
SEE: Best binary trading platforms
11. Referral earnings
Earnings from referrals are one of the most simple ways to start making money with cryptocurrency. When you refer someone to a crypto-related platform and they sign up using your referral link, you will earn a small commission based on your affiliate status.
The greater the number of individuals you refer, the more money you get. In certain situations, you receive the money depending on the balance deposited by the person you refer.
12. Cryptocurrency faucets
One of the many ways to make small amounts of money is cryptocurrency faucets, they make it easy and simple for people to get started in currencies such as Bitcoin. Cryptocurrency faucets were developed as a novel way to introduce new people to cryptocurrencies.
The premise is that you will visit a site and perform actions such as solving captchas, clicking on advertisements, or filling out surveys and for your time humans want to give you cryptocurrency.
Each task completed will earn you small amounts of the coin that is being made available through the site. This trend has grown very popular in recent years and seems to show no sign of slowing down.
13. Write about Cryptocurrency
You can make money about just about anything. But there’s a particular niche that’s making people big money right now: Cryptocurrency. How?
Cryptocurrency is one of the hottest investing prospects out there, and many people are unaware that you can make a living writing about it. What do I mean? You don’t trust me?
Some people are making thousands by just blogging about cryptocurrency. It’s true! As cryptocurrencies grow in popularity, more and more people want to learn how to make money with cryptocurrency. Readers are hungry for lots of content about gaining knowledge and growing their money.
Let’s be frank about it. Cryptocurrency can be baffling. There are a lot of terms to understand, and it can all be a little confusing. By blogging about cryptocurrencies, you can make people appreciate it better, so they aren’t as perplexed as you were when you started writing about it.
And if you don’t fully comprehend it all, you aren’t limited to just writing about what you do. You may also write for people who want to get into cryptocurrencies but don’t know where or how to start.
SEE: How To Make Money Blogging
FAQs
Can a newbie make money with cryptocurrency?
Yes, a newbie can make money with cryptocurrency. It takes some time to learn how to choose which cryptocurrency will be the most profitable in any given month or week.
Even then, you have to understand that sometimes your chosen cryptocurrency will go up, and sometimes it will go down. This means you need to have a plan of what investments you are going to make and when. Keep meticulous records so you can track patterns and see if your predictions are accurate.
Is cryptocurrency a good long-term investment?
Cryptocurrency is a good long-term investment if you treat it like any other investment. You need to know what you are doing and be ready for market corrections.
Which cryptocurrency is best to invest in?
If you are interested in investing in cryptocurrency, I would recommend bitcoin because as its value grows, so will your investments.
You may also want to look into Ethereum and Litecoin, which are two other popular cryptocurrencies right now. Also, your goals and intended use for cryptocurrencies have a part to play.
For example, Bitcoin might be a good option if you want to invest it in hopes of selling at a profit later or trading it for another cryptocurrency like Ether. Ether has been used for ICOs or to power smart contracts on various platforms.
What is an altcoin?
An altcoin is short for Alternative Coin. These are all of the cryptocurrencies that are not Bitcoin.
While there are hundreds of coins out there, the term “altcoin” is most often applied to those coins which improve upon the original Bitcoin code or offer something new and exciting to the growing cryptocurrency economy.
Are all the top cryptocurrency exchanges based in the United States?
No. Cryptocurrency exchanges are required to register with the SEC before they can legally operate in the United States. Since most of these exchanges have just begun operations, many do not yet have this registration.
As a result, they are not allowed to operate in the country. Instead, they operate outside the US. This means that most of them are based in jurisdictions that make cryptocurrency investment a bit easier for users like Hong Kong. Coinbase is the top exchange based in the United States.
Final thoughts
No one can deny that cryptocurrencies are currently enjoying a rapid price increase. So, when you consider investing in cryptocurrencies, understand that you’re not the only one.
The price of Bitcoin has risen substantially just this year alone! Now the question is how can I make money in this booming market?
Making money with cryptocurrency has been a widely debated topic in the last couple of years. But, the truth is, making money with cryptocurrency can be quite tricky, unless you know what you are doing.
So, I thought it would be only polite to share my knowledge on how to make money with cryptocurrency.
Finally, you may also like how to make money with bitcoin. I hope you find this helpful.
Thanks for reading.
