7 ways of How to Earn Money from Cryptocurrency
Here are the best ways to make money from cryptocurrency right now:
1. Early Investing in Promising New Coins
The greatest way to make money with cryptocurrency is to invest as soon as possible in the finest cryptocurrencies.
After all, if you had purchased Bitcoin when it was initially introduced in 2009, you would have paid a fraction of a cent.
When Ethereums token was first released in 2015, it traded at $0.75 per token.
The projects mentioned above are worth thousands of dollars and have yielded substantial profits.
Lucky Block is a more modern example, as it is developing a decentralized app that will use immutable smart contracts to facilitate global lottery games.
In just a few months of trading, this represents thousands of percent gains.
With that said, Lucky Block is still a very new cryptocurrency project, so that you can invest in this project early.
This will give you the best opportunity to get a good deal on an investment.
2. Staking and Interest
In the cryptocurrency markets, two unique concepts allow you to earn passive income from your idle digital assets.
The first is crypto staking, which locks your tokens away for a certain period to facilitate transaction validation on proof-of-stake blockchain networks.
Cardano, Tron, and soon Ethereum are some of the most popular staking networks.
Importantly, youll earn interest on your tokens for as long as theyre locked up.
You will not be required to meet a minimum lock-up time if you engage in staking on the eToro platform. Instead, you can take your tokens out whenever you want.
The interest account is the second idea to explore while learning how to create money with cryptocurrencies passively.
Crypto interest accounts function similarly to traditional bank accounts in their most basic form.
You will be paid interest if you deposit your cryptocurrency tokens.
Your crypto tokens, unlike staking, will not be deposited into a smart contract.
Your chosen provider will borrow your tokens from those who require financial help.
As a result, the borrower will pay you an interest rate as long as the tokens are leased out.
3. Day Trading
Active day trading is one of the most lucrative ways of making money with cryptocurrency.
However, there is one caveat: you must have a basic understanding of analyzing pricing to determine whether the token in question will rise or drop in value.
You can make money trading crypto throughout the day if you can accomplish this.
The general idea behind crypto day trading is that you will try to profit from short-term volatility.
In addition, seasoned traders in this market will rarely, if ever, hold a position for more than a day.
As a result, the goal is to open many positions throughout the day to make small but regular profits.
To trade digital currencies daily, youll need to find a licensed crypto exchange that meets two key criteria: minimal costs and a wide range of markets.
In terms of the former, if you are daily trading crypto with a high-fee exchange, it is difficult to make the process worthwhile. After all, commissions will chip away at your profits.
For example, Coinbase charges 1.49 percent for every slide, which must be covered before the deal can be closed with a profit.
This strategy is likely the best option for novices from our list of ways to generate money using cryptocurrencies.
This is because HODLing a play on the phrase Hold refers to the act of purchasing a cryptocurrency and hanging on to it for the long term.
This is like purchasing stocks and keeping them for many years.
You wont have to worry about short-term price changes this way, especially if you buy in well-known cryptocurrencies like Bitcoin and Ethereum.
Ethereum, for example, was traded at $4,300 per token in May 2021.
The price of Ethereum had dropped to $2,100 in less than a month.
You would have lost around 50% of your ETH tokens if you panicked and sold them.
However, had you engaged in HODLing, Ethereum was trading at roughly $4,900 per token by November of the same year.
Long-term investing in bitcoin is the most effective technique.
Once again, youll need to find a good exchange to HODL your money in the best possible way.
5. Play to Earn Cryptocurrency Games
If youre looking for ways to generate money with cryptocurrencies, you might be surprised to hear that playing games is one option.
Make no mistake: the market for play-to-earn crypto games has grown to billions of dollars.
There are many other types and variations of games in this space, but Decentraland is perhaps one of the greatest crypto games to consider playing.
Decentraland is a metaverse that allows players worldwide to create virtual avatars, interact with other players, and purchase land plots.
After youve purchased a plot of land and constructed your own real estate project, youll be given a unique NFT to represent it.
You can then sell your NFT real estate on the open market.
Although this concept may seem far-fetched, some Decentraland metaverse land plots have sold for millions of dollars.
Buying on time gives you the best chance of getting a good deal on an NFT.
Completing tasks on cryptocurrency faucet websites allows you to earn free digital tokens.
There are many platforms in this space, and the specific duties you must do will differ from one to the next.
Some crypto faucet services, for example, ask you to complete captcha.
This is something that everyone can do; thus, no prior experience is required.
There are bitcoin faucets that are available as a mobile app.
These frequently ask you to play newly released games for free crypto when you reach specific milestones.
However, it is crucial to remember that the benefits offered by crypto faucet services are insignificant.
Most tasks will only pay only a few cents in cryptocurrency.
Crypto faucets dont require you to deposit any money, so you can receive rewards taking no risks.
Mining is the last option to explore from our list of the top ways to generate money with cryptocurrency.
In a word, mining is attaching specialized hardware to a desktop computer, which then connects to the cryptocurrencys blockchain.
Miners are supposed to make the network decentralized.
Because mining equipment solves difficult mathematical calculations, transactions are validated.
Miners are rewarded with newly created cryptocurrency tokens that enter circulation, and each block is validated in return.
For example, with Bitcoin, a new block is created every 10 minutes, resulting in an additional 6.25 BTC.