How To Make Money On Cryptocurrency?

How To Make Money On Cryptocurrency?

written by John Murphy | December 30, 2022

You must have heard of all the stories about people making millions from cryptocurrency or your friend talking about mining cryptos but are still uncertain about how to make money on cryptocurrency. 

Every one of us at some stage has tried testing luck with the crypto market because cryptocurrency is the future of finance. However, it is not that easy as the most volatile cryptocurrencies are available for trade, which are only tested when you are a skilled investor.

With the increase in crypto-assets, new faces and projects come into the industry; thus, new methods of making money with crypto also emerge. Traditionally, people make money with price fluctuations; however, specific advanced techniques surfaced in the last few years, like crypto staking and future selling.

However, making money on cryptocurrency has several avenues, and we will discuss the best ones in this guide. So stick around till the end.

Methods of Making Money On Cryptocurrency

The right strategy of making the mix and match can lead to better results. If you want a longer run in the crypto market, then having a long-term plan and sticking to it can give you a make-or-break position.

Let us take a deep look at a few popular ways how to make money on cryptocurrency.

  • Invest in Presales

The ‘first-mover advantage’ is the best investing strategy used by global investors. The idea is to identify an innovative crypto product and invest in it during its presale phase, as the prices are low.

For instance, those with the foresight to invest in Ethereum during its presale had bought it at $0.31 per token and are now standing with gains of over 1.6 million. Thus, keeping an eagle’s eye on new launches and picking the one with high potential is a strategy ideal for first-time investors as it costs less. 

Although the ‘first-mover advantage’ is not available for legacy projects like Bitcoin or Ethereum, plenty of undervalued crypto projects have tremendous promise. So, you can run through a few of them and seek professional advice to start investing in presales.

  • Staking and Interest

Cryptocurrency will make the world better place by helping the unbanked population create passive income streams like staking. The best way of staking is to open an account with a notable crypto exchange, hold your crypto and earn interest.

As far as yield is concerned, each exchange has its own set of return percentages. However, it mostly depends on the total cryptocurrency amount held with a deal. Higher the amount, the greater the return rate.

For understanding, large-cap tokens like Dogecoin and Shiba Inu offer 12% and 5% APY returns for 90-day staking. 

  • Play-to-Earn Games

P2E is the ideal way for budget investors to make money with cryptocurrency. The concept is snowballing as it offers numerous benefits that other gaming platforms do not have at their service. For example, these P2E games are built on blockchain networks, which provide players with a high level of security.

Furthermore, P2E platforms offer players rewards in their native tokens. RobotEra and Calvaria are two good P2E platforms and must-go for crypto investors interested in P2E games. 

Another famous example is Tamadoge, where players mint a virtual pet NFT by winning games.

  • Yield Farming and Lending

Lending is a money-making concept that has been working for ages in every financial system and is available in cryptocurrency. You can lend your crypto assets to a decentralized exchange and earn income in the form of interest.

Additionally, yield farming is a way of earning rewards or interest by depositing cryptos in a pool with other investors. Yield rates are different for each exchange.

  • Day Trading

Day trading never gets out of style. If you are a full-time crypto investor, then day trading is your go-to way of generating income from cryptocurrency. 

In addition, the day-trading concept is to make small but frequent returns. However, you need to acquire a solid knowledge of analyzing the market before adopting a day trading strategy. Similarly, you should know how to buy cryptocurrency, as it will perform well with day trading.

The best day traders buy and sell cryptocurrencies in pairs, such as BTC/USD or ETH/USDT. It requires technical analysis as to which pair will make better yields.

Frequently Asked Questions

What is the best passive way of making money on crypto?

Many experts recommend staking cryptocurrency as the best way to earn income from cryptocurrency passively. Similarly, lending is another popular way.

Can I make money with crypto every day? 

Day trading is the right strategy to earn daily from cryptocurrency; however, the returns are usually meek in such a method, but it assures daily returns.

How do beginners make money with cryptocurrency?

Beginners are advised to take a ‘first-mover advantage’ and invest in the presale phase of high-potential crypto projects. Similarly, P2E is another valuable way for beginners to earn money with cryptos.

Can I make money from play-to-earn platforms?

Yes! P2E platforms have gained considerable interest from players worldwide and offered them good returns through rewards and native tokens.

Can I make money from mining crypto?

Top cryptocurrencies like Bitcoin do not offer money through mining unless you invest significant cash in advanced hardware. However, less competitive cryptocurrencies offer money for mining.

Parting Thoughts

Luckily, there are multiple answers to how to make money on cryptocurrency. In addition to making money through price fluctuation, cryptocurrency has offered new ways of generating passive income streams.

Furthermore, you can easily make money on cryptocurrency by staking, lending, playing games on P2E, day trading, or yield farming your assets. These means of earning returns from cryptos depict why crypto is important to consider as an investment option. 

However, we recommend seeking professional advice before investing in cryptocurrency. Since the crypto market is highly volatile, thus careful steps can serve better results. Similarly, adopting multiple ways is better than choosing a single investment route.

Please share with us your preferred way of investing in cryptos and how successfully you chose this path.