How to make money on cryptocurrency

How to Make Money on Cryptocurrencies

Cryptocurrencies long became a staple in our lives, whether we use them or not. The internet is full of news about new crypto coins, stories about people gaining (and losing) money on them, and reviews of new mining hardware and software. We hear about this or that cryptocurrency reaching a new height, and most people at least once thought: ‘Maybe I can make some money on cryptos well?’ This article is here to help you with that.

Crypto Earning Strategies

Cryptocurrencies create their own financial ecosystems, similar to the fiat currencies. There are various ways to make money on cryptocurrencies. From mining to trading, the most popular ones are described in this article. So, without further ado, let’s dive in.

Buy and HODL

The term ‘HODLing’ comes from misspelling ‘holding’. It became widespread among the crypto community. By using this strategy, you are banking on one of the coins to either be stable or to grow in the future. As such, only the most stable or the fastest-growing coins are used to do so. A good example would be Bitcoin, Monero, and Ethereum, as they often rebound from their prices crashing and grow fast.

In fact, recently we’ve compiled our list of the most profitable cryptocurrencies for investing. While it is not investment advice, it will give you a good starting point to start buying crypto.

Staking Cryptocurrencies

Some cryptos open up a way to earn more by staking them. This means that you hold your coins in an online wallet for some time to support the blockchain network and to get dividends from them. It is not the most profitable option, but you can get more money by doing nothing besides storing them in a live wallet. Note, that not every crypto supports staking.

Mining

Mining is the most popular way to get crypto, and one of the hardest. Most cryptos stopped supporting the CPU mining, replacing it with GPUs and ASICs. Even if you have a decent mining rig, it is still a time-consuming and energy-intensive process to receive a reward block. Using mining pools reduces the amount of the reward you get.

Still, if you do manage to strike gold, you will receive a much bigger reward than alternative methods, especially if you are mining crypto like Bitcoin or Ethereum. Some cryptocurrencies started to push back against centralized mining and ASICs to make solo mining more attractive again. So, if you choose wisely, you will find your gold mine.

Day Trading

Day trading allows you to earn money from cryptocurrency if you are good at reading trends and making snap decisions. There are lots of exchanges where you can practice crypto day trading, and a lot of currencies available for aspiring traders.

It is a simple concept that takes time to master: you buy low and sell high. You need to read and analyze charts to see the signs before the price starts to go up or down. You also should react quickly to those changes, as prices may change for up to 50% in matters of seconds. While it may seem difficult to a beginner, everyone can learn those skills in time. It is a good option for people who don’t want to delve into the technical side of mining.

Faucets

Another good way to quickly start earning some Bitcoins is completing tasks on cryptocurrency faucets websites. While the amount of the reward is really low (numbered in satoshis, one-millionth of BTC), it doesn’t require you to have a mining rig or analyze charts. You just need to complete simple tasks to receive your satoshis. One major downside is the fact that to earn a somewhat significant amount of satoshis, you will need to spend your whole day behind the computer solving captchas. It isn’t a viable option for working people. Still, as long as you avoid scams, it is a good option to get some extra crypto on your downtime.

Trading Bots

Trading bots is the way to make money on cryptocurrencies by automating the trading. The bot is a program that tracks prices and trade commodities (in this case, crypto and tokens). Bots free up a lot of time for traders. You can customize it with various indicators and signals, making them more effective.

The trading bot can react much faster than any trader. A bot may be placed on highly volatile crypto so that they could make snap decisions. However, they also lack human intelligence, and can’t read the market flow as good as humans can, so it is always risky to employ them.

Lending

While most people work for money, why not let your money work for you? That’s exactly how lending works, even in crypto: you give someone part of your money so that they will return them later on, with dividends. However, as with many other ways to earn money, the crypto world has its own specifics with lending.

Lending in fiat money is easy. You create a contract and you can go to court if it is violated. Lending in crypto is trickier since there is no court that will help you if something happens. That’s why you will need to pick who you lend to carefully.

Special lending platforms appeared to minimize the risks for lenders using a fee. The most prominent ones are SALT Lending, Nexo, Bankera, and Lendroid. As long as you follow their guidelines (using a multi-signature process, reviewing transaction details, and monitoring your Loan Health), you will be able to use lending as a way to earn crypto.

Masternodes

Running masternodes is another way to get some passive income. A masternode is a node in a cryptocurrency net that is responsible for transaction checking and approval. It also adds blocks in the blockchain. For completing these tasks, other blockchain users pay masternode runners a fee for them to keep doing so.

While it may seem like an easy option, it has rather steep entry requirements. To form a masternode, you need to keep a certain amount of coins on your wallet (or node). This amount varies from crypto to crypto but usually is really high, ranging from 1,000 to 25,000 coins. It is a good way to earn additional profit for an already established crypto user.

Buy Cryptocurrency via Changelly

If the ways above don’t attract you, you can always buy cryptocurrency using Changelly service. Click on that button and choose the coin to buy with USD, EUR, or GBP.

Summary

You can make money on cryptocurrencies in a lot of ways. We might have covered the basics, you will need to do more research before you can employ them correctly. You can do that by reading more articles on our blog. Stay tuned for more pieces on crypto and how to make a profit with them!

How to Make Money with Cryptocurrencies?

#9–18 ways to make money with cryptocurrencies

Everyone talks about cryptocurrencies. Whether they hate it or love it. Some people invested in cryptocurrencies and lost a lot, some others are rich. There are people saying this is the future and blockchain is the best technology ever and a revolution. Others say there is no real use case for this technology.

I cannot read the future but what I know is that because cryptocurrencies are quite a new technology and a new asset, there are a lot of money to be made and a set of new opportunities are raising! That is why I experimented, investigated and listed the different way to make money with cryptocurrencies 💵💵.

Maybe I am not the best person to follow, but fore sure this article will give you some ideas! Actually, I didn’t make any fortune with cryptocurrency (yet), I hope that it will change in the future 😬😁.

Disclaimer: I tried some of the methods in this articles but my earning wasn’t sky rocket so far but there are some people who earned tons via these methods. Factors such as continues focus, timing, luck, other variables have a big impact on how much you would earn so there’s no one-size-fit-all way to earn money but until you won’t try you can’t say how they perform for you.

Investing in cryptocurrencies

Investing is the most accessible way to earn money, but not necessarily the easiest!

Long-term investment & short-time trading

One approach is to do a long-term investment. The same way you can invest in gold you can invest in bitcoin or other cryptocurrencies.

Another way is to do active trading (short-term) but this requires more time. If you prefer this approach you can take advantage of online tools and communities about Crypto Signals. Read more in the following article.

How to Make Money with Cryptocurrency – 5 Best Ways

The exciting world of crypto offers money-making opportunities for all those that know where to look. While the industry as a whole is still very volatile, new investors are already taking notice of this trend, and start learning how to make money with cryptocurrency.

We have previously talked in detail about the passive income opportunities, as well as the ability to earn coins in your free time. Today, however, the theme is different. In this article, we show you how to handle your cryptocurrency in order to increase its value.

How to make money with cryptocurrency in 2020 and beyond

The following methods will help you increase the value of your investment by using cryptocurrency as a vehicle to get there. Let’s get started.

Method #1 – HODL

HODL is an acronym that describes the process of buying and holding onto cryptocurrency for longer time periods. The term originated in 2013 after a BitcoinTalk member wrote a semi-coherent post that ended up going viral. In the post, the user described that, in bad market conditions, the best strategy is to hold onto your coins, even though the majority of the market sells as a reaction to fear.

How does this strategy help you earn money?

You might have used a Bitcoin return calculator to estimate how much your Bitcoin would be worth, had you invested earlier. In most cases (unless you invested in late 2017) you’d probably be up significantly. This is the essence of HODL. By buying and storing cryptocurrency for longer timeframes, you bet on the fundamentals of a cryptocurrency and the growth of the crypto industry as a whole.

Is it difficult to HODL?

When looking at the process from an external perspective, HODLing is extremely easy. You simply, buy coins, store them in your wallet, and forget about them for a year or two – right?

Well, those that actually HODL may tell you a completely different story. Due to the volatility of the market, investors go through a roller coaster of emotions, which can change by the hour. While you may get ecstatic when seeing a large price appreciation on one day, you may feel extremely stressed when a large drop occurs.

To make sure that you can go through this process without feeling overwhelmed, it is important to set and stick to a price target. Once you adopt a goal-oriented mind, it will be easier to navigate through the emotional ups and downs.

For who is this strategy best for?

Method #2 – Swing Trading

There are many different types of cryptocurrency trading. However, the one that is by far the most popular and closest to instant gratification is swing trading. In short, it refers to a trading method in which a user observes candle charts and uses price indicators, to determine the best time to buy and sell cryptocurrency.

Swing trading can involve dozens, if not hundreds of entries and exits (trades) per day, and requires a lot of attention to be done effectively. Even with the introduction of stop-loss mechanisms and open orders, it is not a process that should be performed on autopilot.

How does this strategy help you make money?

Swing trading bets on local highs and lows, meaning that you try to buy at a low price and sell at a high price in the short term. For example:

Is swing trading difficult?

Swing trading is not only difficult to learn but also very risky to perform, especially in bull markets. In most cases, when trading in positive market conditions, you will end up with less profit compared to simply HODLing your coins.

That being said, when market conditions are relatively stable or towards the bearish side, swing trading can help you increase your cryptocurrency positions, and thus the amount of money in your portfolio.

Who is this strategy best for?

Method #3 – IEOs

Initial Exchange Offerings (IEOs) became popular in 2018, shortly after the ICO bubble busted due to lack of regulatory oversight. The new, more promising fundraise model was welcomed by the public as a better way to purchase new coins.

The first exchange to implement IEOs was Binance, and the model has since been copied by many popular trading platforms. Public interest for IEOs is so high that people have to participate in a lottery in order to qualify as buyers.

How does this strategy help you make money?

Coin offerings are sporadic, which means they are not sustainable. In turn, one could say that buying into IEOs is not a strategy but simply a matter of luck. While you may not be able to participate in all IEOs, it is a good tactic to keep in your arsenal in case you manage to get lucky.

Is IEO participation difficult?

When it comes to the learning curve that is required in order to understand how to participate in the process, then IEOs are pretty easy to understand. However, when it comes to successfully buying into an IEO, you have about a 5%-10% chance to be in the pool of participants that get lucky.

We recommend that you keep track of all ongoing and upcoming IEOs and try to participate in the ones that seem the most promising to you (you will need to DYOR ).

Note : IEOs are usually more profitable in positive market cycles (bull markets)

Who is this strategy best for?

Method #4 – Staking

When looking at how to make money with cryptocurrency, one of the first methods you will come across is staking. In short, staking refers to a process in which an investor simply holds or temporarily locks his coins in order to earn some form of passive income.

Staking has become a lot more “colorful” in 2020, with several options being introduced in the crypto markets.

How does this strategy help you make money?

The process can be described as an extremely profitable savings account that offers high interest in the coin you choose to place in a storage location for a longer period of time.

Is staking difficult?

Staking used to be rather complex for new users but has since become a one-click process, thanks to the continuous efforts of the trading platforms to make financial products easier to use.

No matter which platform you choose to stake your funds on, you will always receive assistance from a qualified support team and a large library of resources to help you learn more.

Note : Not all staking rewards come from storing your funds on exchange platforms. Some wallets will automatically receive a monthly staking distribution by simply holding specific coins (e.g. NEO distributes GAS). For these coins, all you need to do is HODL.

Who is this strategy best for?

Method #5 – Earn from your referrals

Instead of looking at how to make money through buying and selling cryptocurrency, you can also think outside the box. One of the best ways to earn a relatively steady amount of money on a monthly basis is by building a list of referrals (affiliate marketing).

In short, the goal here is to help many users sign up by using your unique referral code. Here are some creative ways to help you achieve this:

How does this strategy help you make money?

When a user signs up using your referral code, you will earn a small part of the commission they pay when trading. While the amount is very small (often less than 1/1000th of the trade), it can quickly compound if multiple trades are made by a large number of people on a daily basis.

Referral income is neither the most profitable nor the easiest path when looking at how to make money with cryptocurrency. However, it does offer some additional income that can supplement your money-making efforts.

How difficult is it to build a list of credible referrals?

In short, very hard. There are thousands of people that are trying to bank on referrals. While there are still opportunities out there, you would need to do lots of research and try to build your reputation in a smaller sub-niche.

Who is this strategy for?

Wrapping up

You should now have a better idea on how to make money with cryptocurrency. The options we shared above are becoming increasingly popular for both amateur and experienced investors. In short, here are the options we talked about:

Now that you know how to how to make money with Bitcoin and other cryptocurrencies, you might want to look into up and coming coins. So make sure you check our favorite new coins of 2020 and invest responsibly.

How to Make Money on Cryptocurrencies?

Contents

The crypto market has changed a lot. A couple of years ago, we used to enjoy a stable bullish trend; you could buy an asset and forget about it but for taking the profit. However, currently, you have to watch the market all the time; the “buy and hold” option must be becoming the past.

While the Bitcoin is somehow winning back its positions, other assets, such as the Ethereum, Litecoin, XRP, Bitcoin Cash, has not yet managed to begin a stable uptrend. In such circumstances, we have to use tech analysis of charts, buy and close positions more and more frequently.

There are several quite different ways of making money on cryptocurrencies, however, many are still sure that the best way is to trade digital assets.

Trading at the crypto exchange

What is a crypto exchange?

Crypto exchange is a platform where you can exchange one cryptocurrency for another. Also, you can trade an asset for a certain currency based on the actual price of the cryptocurrency. All in all, those are like normal exchanges only that you trade cryptocurrencies instead of stocks or indices. Here, traders also try to make money on the fluctuations of the exchange rates of cryptocurrencies.

Which crypto exchanges are there?

Presently, there are several types of crypto exchanges. All of them have their characteristic features.

Centralized and decentralized exchanges

Many users are not quite fond of centralized exchanges. Vitalik Buterin has frequently voiced his support to decentralized exchanges while the centralized approach is generally against the crypto philosophy. On the other hand, centralized exchanges offer high liquidity, thanks to which the speed of operation will be much higher.

However, such platforms have their weak points, such as security. They suffer from hacker attacks rather often, imposing large losses on users. This made centralized exchanges really serious about the identification of users.

Decentralized exchanges do not require personal information or identification. Liquidity on such platforms is much lower; they also lack common facilities of classic trading, such as leverage, limit orders, or a comfortable trading platform.

Trading via a broker

Trading via a classical broker has a lot of peculiarities, including advantages. The main feature is that the broker has long been in business and is client-centered: the broker will provide a comfortable platform, appealing conditions of depositing/withdrawing money, a high security level, quick and easy registration, and high-quality client support.

According to some feedback on the work of crypto exchanges we frequently read that client support takes its time to reply, while regular reports on hacker attacks make any exchange participant nervous.

All RoboForex cryptocurrency spreads you can find on the Contract Specifications page

Mining

Mining is a conservative way to make money on cryptocurrencies. Miners get rewarded for supporting the network of the asset by connecting their equipment to it. However, today – after the halving (described in detail in the article: “Three Facts about Bitcoin Halving-2020. Is Growth To Follow?”), the volumes of mining the Bitcoin decreased two times. Thus, the reward per mined block fell from 12.5 BTC to 6.25 BTC.

Some say that you can make a living on mining if you have access to cheap electricity. Moreover, you have to be knowledgeable of hardware, perhaps experienced in IT even in order to assemble and set up the mining equipment. Also, you need to be a skillful business person who foresees the future and owns substantial money in stock just in the case of another bearish trend.

On the whole, mining is a so-called medium-term investment that takes several years to pay back. Mining does not allow you to get your money back quickly as, say, trading, where you can buy an asset and escape the position if the price grows, or withdraw the deposit to your account if you need your money back again.

IEO instead of ICO

ICO (Initial Coin Offering) has been developing actively since 2018. Market players invested in various coins that later appeared on exchanges, which brought a substantial profit to those who had bought the assets at the start. There used to be a whole range of projects, and new ones kept emerging thanks to the overall growth of the industry.

However, in the end, some of the projects turned out absolutely empty; the legal regulation of the field was very vague; the creators of the projects cheated the investors, who remained completely unprotected.

As for now, IEO (Initial Exchange Offering) is becoming popular among people who try to make money on cryptocurrencies. Here, the key player is the exchange: it searches for and selects projects. To participate in an IEO, an investor has to register on the exchange, deposit their account, and buy coins directly from the exchange after the IEO.

Thus, an IEO helps an asset enter a trading platform quickly, makes it good advertising, and brings the trust of clients. On the other hand, IEOs decrease risks for the investor and increases the chances for long-term project development.

Arbitrage

The next option of making money on cryptocurrencies exchange trading is arbitrage. This means making several trades, normally on various exchanges, and making a profit on a small difference in the prices of the same assets. Traders single out several types of such operations.

The easiest mechanism includes monitoring prices on different exchanges, and if the investor sees that the price differs substantially at the moment, they buy at the lower price in one exchange and sell at the higher price in the other, and thus make a profit. However, here you should account for the expenses on money transfers between the exchanges, commission fees, or possible price changes on the way.

Bottom line

As we see, there are pretty many options for making a profit on cryptocurrencies. You may choose from trading digital assets in an exchange or via a broker, investing in an IEO, mining, arbitrage, or just holding an asset in your wallet. Each way is unique and features its advantages, drawbacks, and risks.

As for me, the easiest and safest way of earning on the fluctuations in the price of digital assets is trading via a classical broker, such as RoboForex. The company protects me from hackers, offers a comfortable platform with orders and chart analysis, leverage, good trading conditions with low spreads, quick money depositing/withdrawal, and high-quality client support.

Material is prepared by

Andrey Goilov

Financial analyst and successful trader; in his practice, prefers highly volatile instruments. Delivers daily webinars on trading and designs RoboForex educational materials.

How to Make Money with Cryptocurrency – 10 Easy Ways

Everyone gets into the cryptocurrency field to make money, but not all end up doing that. A lot of people either simply give up along the way or fall into some sort trap with the rising cases of crypto scams.

Truth be told, there are quite a handful of methods you can make legitimate money with cryptocurrencies other than the obvious way of trading. We, therefore, decided to explore some of the proven ways of how to make money with cryptocurrency; we found quite a few, but be assured that you’ll find them very impressive.

Without further ado, below are 10 ways to make money with cryptocurrency today.

Way#1. Buy and HODL

This is the most common way of earning money from cryptocurrencies. Most investors buy coins such as Bitcoin, Litecoin, Ethereum, Ripple, and more and wait until their value rise. Once their market prices rise, they sell at a profit.

This investing strategy requires one to identify more stable and volatile assets that can shift in value rapidly, resulting in regular profits. Assets such as Bitcoin and Ethereum have been known to maintain regular price fluctuations; they can, therefore, be considered a safe investment in this regard. However, you’re welcomed to trade any asset you feel is going to rise in value; all you need to do is to analyze each asset you invest in before committing to HODLing it.

Also, you don’t need to buy the most expensive assets for you to make profits. There are thousands of small altcoins that have decent price shifts; consider having a mix of all coins that have a promising future value and are not just popular in the exchanges.

Way#2. Earn Cryptocurrency Dividends

Did you know that you can buy cryptos and hold them for the dividend? Well, there are a number of coins that will get you paid for simply buying and holding their digital assets. The best thing about these coins paying a dividend to holders is you don’t even have to stake them, especially in a wallet.

A few examples of coins that pay out dividends include COSS, CEFF, NEO, KUCOIN, and more.

Just like the conventional stocks, not all of these coins, are suitable for your portfolio; you’ll need to analyze and pick out what seems to align with your investment objectives.

Way#3. Run Cryptocurrency Master Nodes

These are full nodes that motivate operators of the various nodes to execute their roles in operating a blockchain. In other words, a master node is a cryptocurrency full node or computer wallet that maintains a real-time record of a blockchain’s activities.

The idea behind master nodes is a bit technical in nature, but below is a simplified explanation:

Running crypto master nodes is one of the most popular ways of earning passive income in this space. But how exactly do you make money from this?

Many cryptocurrencies pay node operators to maintain a real-time record of their activities on their native blockchains. Since the process is complex and requires one to maintain a certain minimum number of coins under their master nodes, crypto platforms prefer outsourcing the service to master node operators at a fee.

Examples of proof of stake cryptos that have master nodes include DASH and PIVX.

Way#4. Stake Cryptos

This is another method of earning money from cryptocurrencies; it offers a double earning potential through price appreciation and dividend payout from selected coins for staking (or proof-of-stake) their digital assets.

Staking involves holding coins in a live wallet, thus allowing you to earn additional coins for securing that particular crypto network.

Some examples of coins that can be staked include NAV Coin, PIVX, Neblio, Decred, and many more.

Way#5. Day Trading

But what most of them don’t know is that day trading is more than just holding an asset until its value rises; it takes a lot to be a day trader, but most importantly, you need to have the proper analytical and technical skills.

You’ll need to analyze market charts on the performance of the listed assets; this is perhaps the most involving way of earning from cryptos but I believe one of the most rewarding.

You can start day trading on any exchange today; all you need to do is to sign up, buy some assets, analyze, and you’re all set.

You an also start trading through an automatic trading platform like bitcoin profit which allows users to decipher the signals emitted by the trends on bitcoin and other cryptocurrencies and start perform successful small trader.

Tip: If you’re going to be a day trader, consider mastering the art of analyzing stocks using the technical and fundamental methods ; they are widely used to evaluate all traded assets.

Way#6. Help Out with Cryptocurrency Microtasks

If you have extra time, you can also do some small tasks for individuals or cryptocurrency platforms and get paid for it. The tasks can widely vary; it could be apps testing, adverts viewing, taking surveys, watching videos, and more.

You can get microtasks from sites such as Bitcoins Rewards, Coinbucks, or Bituro.

Way#7. Work for Cryptocurrency Companies

This is a common way of earning from the sector. Anyone can work for a cryptocurrency company at any capacity; you can be a digital marketer, content creator, web designer, among other things. All you have to do is to identify their needs and show them how your skills can help solve a problem.

The best thing about working for crypto platforms is that you’re likely to work remotely, allowing you to benefit from the flexibility of working from your own space.

Other than that, most crypto firms offer very competitive packages, and if you happen to come by a chance to work with any legit ones, don’t hesitate to take up the opportunity.

Below are a few examples of platforms that pay in digital assets for services rendered:

These companies offer their compensation in terms of cryptos; this, therefore, means that the value of your earnings can more than double in value within days if not hours.

Way#8. Crypto Arbitrage

The cryptocurrency sector is largely unregulated; this has resulted in a lot of variations in terms of assets valuation, pricing of products, and so on. Most exchanges decide for themselves the prices their assets at are listed, and this has brought avoid the difference in the volatility and liquidity of assets. If well researched, one can make a kill from these price variations through buying from cheap sources and selling on overpriced exchanges. This is pretty much what describes arbitrage.

If you get your act together, you can find anything between 5% – 30% in price spreads across various exchanges. Consider signing up on various platforms and compare asset prices to find any meaningful variations to capitalize on.

Way#9. Cryptocurrency Faucets

Crypto faucets are not that popular, but a very viable mean of income generating. Bitcoin faucets are the most popular ones and they are basically a reward system that runs in the form of a website or application that offers rewards to qualified users in form of a Satoshi. A Satoshi is a hundredth of a millionth BTC; a reward awarded for completing a task such as a capture or any other as may be required by the application or website.

The tasks may also be in form of fun activities such as playing games, watching videos, viewing certain ads. Each task that’s accomplished earns you a small portion of Bitcoin. You may need to complete quite a number of tasks to be able to make any tangible income from cryptocurrency faucets.

Way#10. Create Cryptocurrency Content

Over the last decade, content has become one of the most effective ways of communicating any message to your existing or potential clients. If you need to launch a new product or services, content is the best way to do that.

The crypto sector, especially, relies on content marketing a lot due to the fact that most projects are virtual. It may, therefore, not be possible to use conventional marketing ways to reach the target audience. And this is where the opportunity lies; you can create video content, infographics, or written content for various cryptocurrency brands.

Some of the websites that offer regular gigs for content creators in the cryptocurrency space include Yours, Y’alls, and Steemit.

Bonus: Way#11

Incorporate cryptocurrency as one of your payment methods

If you’re a merchant, you stand a chance of earning handsomely from accepting crypto payments. Statistics show that some cryptos have risen in market value within a day by 1000s in percentage increase, very few investments make it to 100% in years.

All you need to do is to identify the best channel for accepting crypto payments; here are a few to get you started:

Conclusion

So, can you make money with cryptocurrency? Well, there, you now have your answer.

You now have 11 ways of how to make money with cryptocurrency; try the ones that work for you and see their impact.

And if you’ve tried any of the above mentioned or different ways, please share with us in the comments section.