When looking for the best ways to earn money online, cryptocurrency probably doesn’t even hit your mind. But, it should. Cryptocurrency is one of the fastest-growing digital assets.
Everyone gets into the cryptocurrency field to make money, but not all end up doing that. Many people either give up along the way or fall into some trap with the rising cases of crypto scams.
There are multiple ways to make money with cryptocurrencies other than the obvious way of trading, some of which don’t even need you to invest anything but your time and efforts. Today, we will talk about some of the best ways to make money and even get rich; with cryptocurrencies, most involve a high degree of risk while others require domain knowledge or expertise.
Buy and HODL
This is the most common way when it comes to investing and making money from cryptocurrencies. HODLing is the process where you buy some powerful cryptocurrencies and then hold them for quite some time with the hope for their prices to go significantly up. Once their market prices rise, you sell at a profit.
Cryptocurrencies like Bitcoin, Ethereum, and BNB are good for long term investment and holding. They can, therefore, be considered a safe investment in this regard. However, you’re welcome to trade any asset you feel will rise in value; all you need to do is analyze each asset you invest in before committing to HODLing it.
For example, 1 Bitcoin was worth around $333 in 2015, and the most peak price we’ve seen so far was $23,000 in 2020. That means if you had just 2 Bitcoin in 2015, it would have been worth around $46,000 if you sold at the peak price. That’s a big return on your money, nearly unheard of in such a short time, even in the stock market.
This method offers a double earning potential through currency price appreciation and dividend payout from selected.
Staking involves holding coins in a cryptocurrency wallet to support a blockchain network’s security and operations, allowing you to earn additional coins for securing that particular crypto network.
Some examples of coins that can be staked include Tezos (XTZ), Synthetix (SNX), Algorand (ALGO), Loom Network (LOOM), Decred (DCR), Cosmos (ATOM), Icon (ICX)
Tezos allows you to hold XTZ in a Binance or Coinbase wallet and still stake those coins. The downside is that the exchange keeps a percentage of the rewards generated through staking. Clearly, staking can be one way to increase cryptocurrency holdings with little effort and expense. The danger is that some projects have done things that inflate the projected return from staking, which means it isn’t as profitable to stake certain coins as the project would have you believe. You need to closely examine the economic models being used with a staking coin to ensure it is effective and sustainable.
Earn Cryptocurrency Dividends
Cryptocurrency dividends work more or less like stock dividends. You invest in a dividend cryptocurrency and earn fixed interest on your investment. Several coins will pay you for simply buying and holding their digital assets. The top dividend cryptocurrencies you can invest in for dividends are BNB, NEXO, NEO, and KUCOIN. The best thing about these coins paying a dividend to holders is you don’t even have to stake them, especially in a wallet.
Just like the conventional stocks market, not all of these coins are reliable; you’ll need to analyze and pick out what seems to align with your investment objectives.
Crypto trading is just like stock trading, where you buy and sell tokens/coins for profit margins. More than 80% of cryptocurrency investors believe that the only effective way to earn money in crypto is trading.
There is also day-trading for those who wish to incur good enough profits by selling and buying cryptocurrencies on the same day. 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 listed cryptocurrencies’ performance; this is perhaps the most involving way of earning from cryptos, but I believe one of the most rewarding.
Day trading is a bit more advanced and involves looking for patterns in financial trading charts every day. You will have to constantly track the price, and you can make a huge return on investment by buying some coins in one hour and selling them an hour later. 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.
Tip: If you’re going to be a day trader, consider mastering the art of analyzing stocks before you invest. We wouldn’t recommend this if you’re a beginner or don’t want to follow charts every day. If this sounds like you, it would be better to consider the other options.
If you have extra time, you can also do some small tasks for individuals or cryptocurrency platforms and get paid for them. The tasks may vary; it could be apps testing, filling an online survey, adverts viewing, taking surveys, watching videos, and more.
You can get micro tasks from sites such as Bitcoins Rewards, coin bucks, or Bituro. You can also apply for freelancing job sites like Upwork and ask to be paid in cryptocurrency.
Work for Cryptocurrency Companies
If you work online or have a job that allows you to do so, this is a great way to make an income with cryptocurrency. Whether you’re a web designer, digital marketer, writer, or designer, you’ll find plenty of international companies willing to pay in cryptocurrencies for your work/services. All you have to do is identify their needs and show them how your skills can help solve a problem. Blogs that are specifically dedicated to cryptocurrency are also willing to pay writers who want to work in crypto.
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 home.
Below are a few examples of platforms that pay in digital assets for services rendered:
Sell Products & Accept Cryptocurrency as one of your Payment Methods
If you are a merchant and cryptocurrencies like Bitcoin are allowed in your country, you can accept the same in exchange for your goods and services. You stand a chance of earning handsomely from accepting crypto payments. Cryptocurrencies are digital money and can be easily transacted and used worldwide without converting to other currencies. So, you can accept any of the top coins for easy, global transactions.
Several Bitcoin payment processors allow you to integrate crypto payment options in your offline/online shop. Examples are
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- Ikajo International
If you are buying and holding some coins, this might be a great way of making money online. Using several peer-to-peer networks, you can lend out your coins to other investors and generate interest on that loan. You can usually earn upwards of a 10% return on your investment when you do this.
Any government or official department does not regulate cryptocurrency. It is the same for the lending side, so you need to be extremely careful about how you lend your money and to whom. Many platforms facilitate crypto lending, including exchanges, peer-to-peer lending platforms, and decentralized finance (DeFi) applications.
So, can you make money with cryptocurrency? Well, there, you now have your answer. You can start with a small investment and always increase it later on. By following this guide and using the methods we have discussed above, you are now well-versed in making money with cryptocurrency.
Now get in the wave of new investment and start making money.