Many people want to make money with cryptocurrency because they have heard the success stories of people who became millionaires from zero.
If you are part of those people interested in making money with crypto, this is the right article for you. Today, we share 12 practical methods on how to make money with cryptocurrency.
The most exciting part is that some of these steps don’t require any initial investment. You can earn cryptocurrencies free of charge using some of the methods below.
Although the crypto industry is still in its early stages, every day a new method emerges that allows people to make money with crypto. I know you have heard of the massive gains crypto investors have reaped over the last couple of years, and it makes you want to jump right in.
This will be your best starting point to making money with crypto.
How to Make Money with Cryptocurrency
- 1. Day Trading
- 2. Buying Low Cap Tokens/Coins
- 3. Crypto Lending
- 4. Trading Bots
- 5. Staking
- 6. Crypto Mining
- 7. Crypto Faucet
- 8. Crypto Arbitrage
- 9. Create/Sell NFTs
- 10. Yield Farming
- 11. Providing Liquidity to DEXs
- 12. Provide Storage Related Blockchains
- 13. Start Blogging on Medium or Crypto Blogging Platforms
- 14. Start a Crypto YouTube Channel or Crypto Twitter Account
1. Day Trading
The cryptocurrency market is highly volatile, meaning prices are not predictable. The cost of a crypto asset can rise or fall at any time. Day traders always make a profit regardless of the situation of the market.
They equip themselves with the knowledge of predicting the charts and anticipate when the price is going up or down.
Day traders build up a trading strategy to identify the perfect time to buy a crypto asset and when to sell it. By doing so, they minimize the risk of losing so much in the long term when the price of an asset decreases.
While day trading might sound easy, it is a bit difficult. First, you have to study charts that require technical and analytical skills. It would be best if you made a spot-on prediction because the outcome of your predictions will be the difference between profit and loss.
You also need to visit blogs that provide you with updated news in the crypto world. That way, you will be able to spot newly listed cryptocurrencies.
Day trading is a proven method that will help you make money regardless of what is happening in the crypto market. If your predictions are accurate, you will make money whether the market is bullish or bearish.
2. Buying Low Cap Tokens/Coins
Another way to make money with cryptocurrency is to buy undervalued crypto assets. Some crypto investors buy low market cap coins and tokens and sell them when their price increases.
An excellent example of these types of cryptocurrencies is Shiba Inu. The value skyrocketed in 2021, and many Shiba holders became millionaires. The most challenging situation is spotting the right project to buy to avoid any pump and dump strategy.
The price of popular assets like Bitcoin and Ethereum might be high for some new traders. Therefore, it is best to invest their money into buying some low cap tokens and earn up to 100x return in investment if they move towards the right direction (up).
3. Crypto Lending
Crypto lending is another way you can earn money with your crypto assets. It is a process where you borrow your crypto and make interest. The good thing about crypto lending is that there are no intermediaries. This means that you can lend your money and earn interest. You can be the bank.
On the other hand, you can lend money without having to fill a copious amount of paper and get scrutinized if you have a bad credit score.
Crypto lending is exciting, and it is one of my most trusted ways of making cryptocurrency.
4. Trading Bots
Another way how to make money with cryptocurrency is by using Trading Bots. The bots are automated, and they work on behalf of an investor.
The bots record your crypto asset’s current price and volatility level. They will help you buy and sell crypto at the right time since they are machines bound to follow orders.
The main aim of using a crypto trading bot is to manage risk and increase revenue. Many crypto trading bots like 3Commas, Cryptohopper, Haas Online, and TradeSanta. They can also be used on various crypto exchanges like Binance, Coinbase, etc.
Related: Top 12 BEST Crypto Trading Bots
Crypto staking is another reliable and safe method of earning passive income with your crypto. It shares similarities with lending, but you get a much higher APY if you stake your crypto in most cases.
For example, if you stake your crypto in a liquidity pool on pancakeswap, you get up to 200x of your initial investment. Staking also eliminates the risk of volatility since you will be earning more crypto in return.
Let’s say you stake CAKE/BNB for 100x in return, and the price begins to fall before the end of your Staking period.
You will still make a lot of profit that will cover your initial investment. Impermanent loss is the only problem that affects crypto staking. I recommend this method to some people, but it is always important to do your research before staking.
6. Crypto Mining
Some people mostly think Crypto Mining is difficult, while it’s true there is some crypto that doesn’t require too much hardware to mine. Mining is essential for the blockchain because that is used to verify and add new transactions.
It is a core part of the crypto concept, and it can be a way of earning passive income. Any crypto that uses the proof of work method requires mining, and a few include Bitcoin, Ethereum, and Litecoin.
You can decide to buy hardware for mining as an individual or become part of a mining pool where individuals come together to purchase vast amounts of mining hardware. Miner is rewarded with some portion of the mining crypto or transaction fees from different trades they verify.
The biggest concern is the consumption of energy by mining rigs because of their effect on the environment.
7. Crypto Faucet
Crypto faucets are available, and you can earn passive income by visiting and completing some tasks on cryptocurrency faucet platforms. I recommended some crypto faucets to my friends who don’t want to invest money directly into buying.
They earn between 20 – 35 dollars worth of cryptocurrency in a week by using crypto faucet websites.
What you might make might be higher on lower depending on your level of commitment. It is also advisable that you sign up on more than one crypto faucet at a time to accumulate more in a short period.
8. Crypto Arbitrage
This is another way you can make a lot of money trading crypto. It involves buying crypto in a country that sells it at a cheaper rate and selling it for a higher rate in another country.
Some people make millions of dollars through crypto arbitrage. You can take advantage of the price difference and cash in with ease.
The CEO of FTX, Sam Bankman-Fried, used a similar method to buy Bitcoin in the USA at 10,000 USD and sell it in Japan for 11,000 USD. Using this method, he became a millionaire, and it also aided him in starting FTX, one of the leading global crypto exchanges.
9. Create/Sell NFTs
There has been a recent surge in the NFT space, and it can serve as a means of making money with crypto. NFT, known as Non-Fungible Tokens, are digital assets registered on a blockchain to verify ownership. If you buy or create an NFT, you are the asset’s original owner, and no one else has that same asset. Ownership details are also kept open to the general public.
People have created and sold a lot of NFTs, making millions of dollars from sales. The most important thing is to conduct your research before creating or buying an NFT. In the same way, you can make money with NFTs, and money can also be lost while trading them.
Related: Are NFTs a True Store of Value?
10. Yield Farming
Crypto yield farming involves staking or lending your crypto coin or token on decentralized exchanges. The main aim of decentralized finance is to remove intermediaries from financial transactions.
If you stake or lend your crypto asset on a decentralized platform, you earn passive income in interest or transaction fees. You get much higher interest than when you save your money in the bank.
The problem of yield farming is volatility that affects the general crypto market. The decentralized finance market has a market capitalization of 112.83 billion US dollars. Some of the most popular decentralized finance market places include UniSwap, PancakeSwap, and SushiSwap.
11. Providing Liquidity to DEXs
Another method to make money with cryptocurrency is by providing liquidity to decentralized exchanges.
A liquidity pool is a collection of funds put together in one place and locked with a smart contract. Liquidity pools carry out decentralized trading, lending, and many more.
You can become a liquidity provider by adding an equal value of two tokens in a pool to create a Liquidity pool.
Liquidity providers earn income from the transaction fees that happen in their pools. The gain is proportional to the share of the total value they locked in the pool.
12. Provide Storage Related Blockchains
Blockchain storage is a new method of saving data in a decentralized network. Users worldwide have access to these blockchains and can save their files on the network.
It solves some of the significant problems of centralized storage platforms like recurrent payments after a certain period.
The blockchain storage segment is not yet saturated, and currently, Arweave is the platform dominating the part.
There is a need for more decentralized storage platforms because it gives those who need this type of service the avenue to save their data without fear of losing it. If you have the resources, you can tap into the niche and provide this type of service. It can be a great way of making money with cryptocurrency.
13. Start Blogging on Medium or Crypto Blogging Platforms
There are platforms where you can write and submit articles on different topics. You get tipped by people or automated bots on the platform. Publish0x also lets you earn free crypto by tipping publishers after reading articles.
If you know crypto, you can also write and share on medium. If people find your articles useful, they can tip you with crypto in return for providing them with value. If you are looking for how to make money with cryptocurrency? Then try this method if you are a writer.
Related: Top 10 Best Crypto Podcasts
14. Start a Crypto YouTube Channel or Crypto Twitter Account
YouTube is the second largest search engine globally, and millions of people are searching for crypto-related videos on the platform. If you can create engaging videos about crypto, you can make a lot of money from the platform.
You can also talk about crypto on Twitter and gain many followers. If you build your authority in any social media platform as a crypto influencer, you can easily work with brands that need an audience to patronize their products.
If your channel or the Twitter account becomes a success, you can partner with exchanges and become affiliate partners to refer customers and earn handsome rewards. However, the process is not easy because it takes time, patience, and dedication.
Some people want to know how to make money with cryptocurrencies, and we share all the reliable methods that are available and safe right now. Of course, you must carry out more research if you decide to work with any of the methods listed above.
However, it is still very possible to make money with crypto because even more innovations are yet to be discovered in the crypto space. Until then, use the methods above to make money by trading your favorite crypto assets.