Whenever anything thinks of making money in crypto, it always involves trading. The masters of the universe tell us that we need to buy when the price of tokens is low and sell when it is high.
It turns out, though, that there are many other ways to make money in crypto. And many of them don’t require you to be a world-beating investing genius.
But what are they? Well, you’re about to find out. This post takes a look at some ways to make money in crypto that don’t involve trying to predict the next random move of currency prices.
How To Make Money In Crypto: Peer-To-Peer Lending
One good example of a way to make money with crypto that doesn’t involve any trading is peer-to-peer lending. Many platforms now let you exchange your cryptocurrency with other people in return for interest payments. In other words, these systems let you become a kind of bank, lending money and making a profit on it.
Peer-to-peer lending can sound scary when you first start, but you don’t need to put all your money into it. Try it with smaller sums and see how that works out for you. If it goes well, give it another shot with a larger sum of money.
You can also make money in the crypto space by gaming. While it might sound strange, it is one of the latest online trends, designed to reward gamers for taking part in online communities.
For example, some of today’s crypto games actually pay you to complete certain tasks or engage in specific ways. Companies are experimenting with getting more regular players onto their platforms and for people to start viewing gaming as a kind of job.
The sums of money are small from a developed world perspective but enormous in the developing world where people have less.
Gaming for crypto can also be something you do for fun and make a little extra money in your spare time.
Another way to play the crypto game is to sell merchandise online and then offer crypto-only payment methods. Again, it is a simple business model, and plenty of companies are willing to take care of fulfillment for you.
Take Part In ICOs
Taking part in ICOs or “initial coin offerings” is another way to make money in crypto. The idea is to get in early and invest in projects before the wider public knows about them.
The problem with this investment strategy is the extreme risk it involves. People who participate in ICOs often lose their money because the underlying product isn’t viable.
If you decide to go down this route, do your research first. Become an expert and use your knowledge and reasoning to think carefully about whether a specific idea will work in reality.
Don’t consume ICO literature from the company doing it as gospel. While it might sound good on paper, always get a second opinion.
Another possible route to making money in crypto is to get into education. Training people on the market and how to make money in it is a lucrative business model right now.
Currently, the vast majority of people do not understand crypto. Therefore, hardly anyone uses it. However, it continues to grow, and more people, including institutional investors, are becoming interested.
If you can show these individuals you know how to make money or explain how the market works, you will be in high demand. Many organizations are willing to pay high fees for individuals who can train their staff.
Invest In NFTs
You might also consider investing in NFTs or non-fungible tokens. These have become famous in recent years, with some selling for millions of dollars.
NFTs are essentially non-reproducible pieces of art. Once created and established on the blockchain, nobody can copy it or pass it off as their own.
For this reason, NFTs have become increasingly popular among artists and other creative people. Many of them now sell creative NFTs to bidders looking to expand their portfolios.
Most NFTs sit on Ethereum’s blockchain. To start selling, you’ll need to get acquainted with how the platform works and what you need to do to get set up.
Another way to make money in crypto without trading is to get into mining. Many owners of cryptocurrency mining companies have become wildly successful thanks to the consistent demand for their services.
These days, you don’t actually need to set up a mining company yourself. Instead, you can buy stakes in existing operations and get a kickback every quarter when mining operations are successful.
Even though it’s complicated, you don’t even need to know how it works. You can be a part of a mining company without actually understanding the process of creating new blocks on the blockchain.
Staking is also something you might want to try. It’s an alternative to trading that’s become increasingly popular in recent years.
Essentially, staking is where you hold a certain number of coins in your wallet to support an emerging crypto network. In return, the network provides you with additional coins.
The system works similarly to government bonds. You get paid a fixed rate on your investment every so often to encourage you to stay and help them build the network.
Staking comes with some risks, though. If the network fails, the value of the coins can go to zero.
Another strategy you might want to try is yield farming. The idea is to provide liquidity to decentralized finance organizations in exchange for interest or rewards.
Again, these systems work similarly to regular bonds. You permit your money to be tied up for a short time and, in exchange, you receive payments and extra money back.
Yield farming is analogous to putting your money in a traditional savings account. The decentralized finance organization takes that money, sends it to someone else, and then receives interest in exchange. Once they get the money, you get paid back and can continue to use it however you like.
Most decentralized finance organizations have thousands of outstanding loans and customers at any given time, meaning they can offer you fixed returns and rates, paying you back, as long as the business as a whole is solvent.
You can also take part in bounty programs to earn rewards for completing various tasks, such as bug reporting and software development. These jobs require you to exchange your time for money, but they can be lucrative, especially if you get good at unearthing issues and discovering problems.
When searching for bounty programs, look for those with the best terms and offers. Don’t lock yourself into a contract if you can help it.
Also, be on the lookout for marketing opportunities. Many networks offer significant rewards for individuals who can spread awareness and get more people interested in their activities.
Finally, you might be able to make money by promoting crypto-related products via affiliate marketing. Here, you earn a commission for each user who signs up for a particular network or buys products after following one of your links.
The type of affiliate marketing you do depends on your interests and the connections you can establish. The most successful marketers are often those with large followings who can attract large numbers of people to their links.
How you do this is up to you. You could talk about crypto, new investment opportunities, or other services like exchanges.