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Cryptocurrencies are a form of digital currency that uses a decentralized system known as blockchain and cryptography to maintain, process, and verify transactions. Similar to fiat currencies, cryptocurrencies have no intrinsic value, and their worth changes based on demand, utility, mining, and competition.
Crypto has been around ever since 2009, and in today’s time, there are several types of cryptocurrencies, such as utility, transactional, governance, platform, and security tokens. Based on the currency type you own, its value, potential, and personal preference, there are numerous ways you can make money with crypto.
Most crypto enthusiasts prefer to trade crypto or stake it. On the other hand, platforms like CasinosBlockchain earn crypto through affiliate marketing, while more creative and tech-savvy ones make money by creating and selling digital products and NFTs.
To help you get started, we’ll take a closer look at the most common ways you can make money using crypto. We will also help you choose the right method and even give you a few tips to set you on the right path.
How to Make Money with Crypto in 2023? Main Strategies for Making Money with Crypto
The best way to start making money with crypto is to pick a method that works the best for you, and there are several factors you should consider before making a decision.
First things first, you should realistically evaluate how knowledgeable you are about the world of crypto. At the same time, you should decide how much you are willing to invest, how soon you expect to make a profit, and even how much work you are willing to put into it.
The three main strategies you can use to make money with crypto are:
- Buy and Hold;
These strategies require the least amount of knowledge, making them ideal for beginners or anyone who has just taken their plunge into the world of cryptocurrencies.
Here’s how each works.
Buy and Hold
Buy and hold is the simplest and most beginner-friendly method of making money with crypto. It is a long-term strategy, and potentially the most profitable one.
As the name suggests, you will only need to buy crypto, store it in your online BTC wallet, or one that can store the token of your preference, and hold it until you are ready to sell.
The biggest advantage of the buy-and-hold strategy is that you won’t have to check market prices daily. Instead, you can disregard wild price swings and short-term volatility.
Of course, you will still have to be aware of the news and latest changes in the crypto world and be ready to sell at the right time.
As opposed to the buy-and-hold strategy, trading crypto is all about taking advantage of crypto volatility. Instead of focusing on long-term gains, the idea behind the trading strategy is to make a lot of small returns frequently.
Trading works similarly to the buy-and-hold strategy, with the main difference being that you will have to actively monitor the price market. Cryptocurrencies like Bitcoin are extremely volatile, and their price can change drastically in a matter of minutes.
Keep in mind that trading requires significantly more knowledge than the buy-and-hold strategy. In most cases, you will have to enter and exit multiple positions throughout the day and be able to correctly analyze prices and determine whether the token will increase or decrease in value.
Moreover, you will also require a good understanding of how trading works, in general, to be able to make a profit regardless of whether the market is bullish or bearish.
Staking cryptocurrency allows you to earn passive income by not having to do virtually anything. If you own cryptocurrency, you can lock your tokens to help validate transactions on proof-of-stake networks, such as Ethereum, Tron, Cardano, and many others.
You can stake your tokens at a platform like eToro, and you will receive passive income for as long as your tokens are locked away. Of course, the amount you can earn depends on the amount you decide to stake, the platform you decide to use, and more.
Additionally, some platforms require you to stake your coins for a minimum amount of time, during which you won’t be able to use your staked crypto, so make sure to plan ahead.
Other Ways to Make Money Online with Crypto
Holding, trading, and staking are some of the most basic methods to make money with crypto. However, did you know you can earn crypto with marketing skills or even by simply having the right equipment for the job?
Affiliate marketers act as intermediaries between two parties. As an affiliate marketer, you will refer a product or a service through social media, blog posts, podcasts, or websites, and earn a commission whenever someone makes a purchase or joins the platform through your unique referral link.
On the other hand, you can earn commission through retail stores that accept payments in cryptocurrencies. Similarly, if finance and investment are your forte, you might want to consider becoming an affiliate of a cryptocurrency exchange and earn crypto that way.
Another example is online dating platforms. Cryptocurrencies allow users to pay anonymously, which is highly beneficial for anyone who wants to retain their anonymity.
Crypto mining is the process of validating transactions and miners earn rewards whenever they successfully validate a block. The process requires a high-end computer or specialized hardware, which consumes electricity and computing power. In return, miners get rewarded with crypto for their efforts.
In today’s time, mining Bitcoin is no longer feasible for average users. However, there are still plenty of other tokens you can mine, such as Ethereum, Dogecoin, Dash, Litecoin, and many others.
Crypto lending works similarly to depositing fiat currency into your savings account. The process is relatively straightforward—buy crypto and find a reputable and trustworthy exchange that allows users to lend and borrow crypto, and you’re good to go.
In addition to affiliate marketing, minding, and crypto lending, there are numerous other ways you can earn crypto. For example, you can create and sell digital products and NFTs or you can do it via play-to-earn games like Axie Infinity, Decentraland, or Plant vs Undead.
Moreover, you can also earn free crypto by completing tasks on various platforms, claiming airdrops, or taking part in giveaways.
Tips for Successful Online Money-Making with Crypto
It goes without saying that investing in crypto carries an inherent risk. For that reason, you should always plan ahead and carefully consider every decision you make.
First things first, make sure that you have clear goals ahead of you. More importantly, invest only the money you can afford to lose. A good rule of thumb is to start small, especially if you are new at crypto trading and crypto in general.
Other than that, you should always conduct thorough research. The more information you have, the easier it will be to make an informed decision and reduce the risk of losing your investment. Another great tip is to simply diversify your portfolio.
Rather than placing all of your eggs in one basket, you can use several different methods we mentioned. Remember that you don’t have to make a fortune overnight and you can simply earn small amounts frequently that add up to a hefty monthly profit.
Of course, you shouldn’t forget to stay up to date on the latest trends and news, and even laws and regulations. As we mentioned earlier, cryptocurrencies have no intrinsic value and are only worth what people are willing to pay for them, and the latest news and trends can drastically affect crypto prices.
The Bottom Line
Cryptocurrencies are growing in popularity and so are the number of ways you can make money with crypto. Some of the methods we mentioned may help you generate passive income, while others will require a more proactive role.
Ultimately, the decision of which method you should use or how much you should invest is entirely up to you — all cryptocurrency investments are high-risk due to the volatile nature of cryptocurrencies.
The information we have provided is not investment advice and is only for educational purposes. Therefore, make sure to seek independent or professional financial advice before you decide to invest.