Earning money with crypto? There are several ways and ideas to make extra money with crypto currencies. From investing to getting free crypto currency thanks to efforts. In this article, you will read the best ideas for making money with crypto. Creative, original, and proven.
On to all the ideas!
Earning Money with Crypto: 10 Ideas
Earning money with crypto continues to be a hot topic of discussion among crypto enthusiasts. With numerous success stories of individuals who have made substantial profits by investing in cryptocurrencies during market rallies―it is understandable why more and more investors are turning to cryptos.
However, not everyone succeeds in making money from cryptocurrency. Most people who try to profit from cryptocurrencies lose money or give up. The reason is simple: they don't follow practical methods.
In general, there are a growing number of ways to make money through crypto. And if you understand what they are and implement only the best and practical ones―you have a high chance of earning consistently.
What are those ways? Read on to know. In this post, we will provide an overview of the 10 best ideas for earning money with crypto in 2023.
Note: be aware that we do not recommend to invest in crypto. Rather we prefer investing in real estate, investing in stocks, ETF investing, and other lower-risk investments to grow our long-term wealth.
Idea 1. Short-term vs. Long-term Crypto Investing
When it comes to earning money with crypto, investors often contemplate whether to go for long-term investment or short-term. At this moment, the best way to make money with crypto is to use a short-term investing strategy like Swing Trading. Buy low, sell high on an active basis.
In swing trading, crypto is typically held for less than two weeks, depending on the strategy. Swing trading aims to make a quick profit based on a sharp change in crypto's price. But watch out for the higher risks with this strategy.
This strategy requires good technical and analytical skills since the prices can change in a matter of minutes. Because of this, we would recommend this option for those who have more experience with cryptocurrencies.
However, a trading bot can also do all the trading for you if you are a newcomer and want to try this. Although it's not easy to set up a trading bot, once the AI has gathered enough information about the characters and patterns, it can perform better on your behalf. Alternatively, you can also use Scalping or Day Trading strategy for short-term investments.
You can buy crypto via the best crypto brokers and ICO brokers, such as Binance or eToro for example. However, be aware of the high risks. Choose for long-term investing, as they may increase your odds and lower the risk. It is estimated that more than 85% lose money with crypto.
Idea 2. Small Altcoins
The other safe idea for earning money with crypto is to buy 20 – 30 small altcoins with a tiny amount of money that you can afford to lose. Then, hold them for at least 5 years, and hope that 1 altcoin goes x50 or more. This strategy is called altcoin flipping. Altcoins are alternative cryptocurrencies to Bitcoin, and they account for nearly 80% of the crypto market. Users can earn high returns from altcoins, especially if they know how to make the most of them.
In recent years, investors have been increasingly investing in smaller, less-known altcoins with the potential to provide a high return. However, the key to success is―before choosing an altcoin, do your research to ensure it has good growth potential. By examining factors such as the technology behind the coin, the team behind it, and the adoption of the coin by the community, you can determine whether it has good growth potential.
Idea 3. The Big Five
Comparatively to small altcoins, the Big Five offer more stability and established options for earning money with crypto and can be a valuable addition to a well-diversified crypto portfolio. As a crypto enthusiast, you're likely familiar with the Big Five cryptocurrencies: Bitcoin, Ethereum, Binance, Cardano, and Solana.
These cryptocurrencies have established themselves as the most widely-used and valuable cryptocurrencies in the market. Also, they have a strong potential for long-term growth. So, holding them and investing in them to earn money isn't a bad idea.
A good way to invest in the big five is by Dollar Cost Averaging. In this approach, at regular intervals - investors invest a fixed sum of money, no matter the cryptocurrency's price at the time. Consequently, this reduces overall risk and averages out market volatility.
Idea 4. Defi Crypto trend
Harness the power of Defi trends to earn money with crypto. The idea of Defi Crypto Trend provides options like yield farming, lending, borrowing, decentralized exchanges, and stablecoins, to earn passive income.
Defi enables peer-to-peer transactions without the need for intermediaries through blockchain technology. And by participating in Defi's thriving ecosystem, you can take advantage of the decentralization and security offered by blockchain technology to earn money with your crypto holdings.
Whether it's through yield farming and earning passive income from liquidity provision or lending and borrowing cryptocurrencies at competitive interest rates―Defi offers numerous avenues for earning money with crypto.
Idea 5. NFT
NFTs, or Non-fungible Tokens, are unique digital assets that have gained massive popularity in the cryptocurrency world. And investing in NFTs are also a way to earn money with crypto. However, investing in NFTs can be a risky venture. Because the value of NFTs depends on public sentiment and can fluctuate wildly― it can be challenging to predict their future worth.
So, before investing in NFTs, be sure to thoroughly research and understand the market and approach them with caution and a strong understanding of the risks involved. As the market is still very new, investing in NFTs is a high-risk investment.
Idea 6. Initial Crypto Offering (ICO)
One other strategy that expert traders use to earn money with crypto is investing in high-risk (and high-reward) initial coin offerings (ICOs). Despite the potential risks, ICOs can offer a high reward for those who invest wisely. In the event that the project is successful, you will become an early investor, and you will gain substantial rewards for a successful launch. However, it's essential to have a clear understanding of the market, the project, and the risks involved before investing in an ICO.
Besides an ICO, you can also learn about IPO, which stands for Initial Public Offering. Investing in new IPO shares also has high risk, but in some cases high returns can be achieved based on good analysis. In all cases, this should only be done with small amounts you can spare. The less information available, the more uncertain an investment and therefore it tends more towards speculation. The risk then increases.
Idea 7. Cryptocurrency Arbitrage
Due to the fact that the cryptocurrency market is a free market and inextricably linked to the government, we have a lot of price differences between exchanges, as well as volatility. This also creates an excellent opportunity to earn money with crypto.
Simply purchase a cryptocurrency from one exchange for a lower price than another and then sell it high on another exchange to earn a good cut in between. The process is known as Arbitrage. If you're not sure how to do it, a crypto trading bot like Cryptohopper teaches you how to do arbitrage while also allowing you to trade it. The spread is usually between 5% and 40% if you understand how to utilize it.
Idea 8. Stake Cryptos
For long-term crypto investors, staking is one of the easiest ways to generate passive income from crypto investments. The process involves contributing your idle crypto to a blockchain in exchange for confirmation rights, in return for which you receive free tokens. Staking crypto is a great way to earn double revenue - first, you earn staking rewards and interest. Plus, you earn free cryptocurrencies. Furthermore, you profit when the stacked coins' value increases.
Algorand, Cardano, and Solana are the most popular PoS networks for staking altcoins and earning free tokens. These platforms currently pay 7.20%, 4.9%, and 6.3% annual rewards for staking.
Additionally, you can stake on third-party platforms that pay interest if you don't want to stake on the PoS blockchain. Crypto exchanges such as Binance and Crypto.com, as well as digital wallets such as Exodus and Trust, are the most popular third-party platforms today.
As appealing as this may sound, keep in mind that making easy money with crypto often has many pitfalls. If something is easy, there can be high risks. In the case of crypto strike, it is now frequently in the news that the underlying money is not available. This means that when people massively stop their crypto strike (withdraw the money), in reality this money is not there. The result is dessastrous.
Idea 9. Airdrops
Crypto airdrops are marketing strategies in which free crypto is deposited into the wallets of crypto users. In this way, it is one of the most effortless ways to make money with cryptocurrencies. The purpose of airdrops and free token distributions is to generate awareness. It is not uncommon for exchanges to conduct airdrops to build up a large user base for their projects.
You can easily earn money with crypto by participating in airdrops for emerging projects. And in exchange for performing certain tasks (e.g., signing up to the platform and sharing posts), crypto investors receive the project's tokens. This way, blockchain projects can incentivize users to use their platforms and coins. On successful completion of the project, tokens received by the investors can be redeemed - traded for other coins, or sold for cash on listed cryptocurrency exchanges.
Idea 10. Play-to-Earn (P2E) Crypto Games
Since the emergence of the crypto metaverse, play-to-earn games have become increasingly popular. And they also provide you with one of the easiest ways to earn free crypto. With GameFi or gaming finance, players can earn just for playing games and moving through levels. You earn money in the form of crypto, in-game items, or NFTs. Then, the tokens you earn from games can be converted to cryptocurrencies like Ethereum and Bitcoin or swapped for fiat money.
There are several places where you can make money playing online video games with crypto, including the Decentraland, Sandbox, and Axie Infinity metaverse. You can play and earn money without having to make an investment in these crypto metaverses. However, you will need quality gaming tools - to make tangible returns on some games.
So, how will you start making money with crypto? Which of the ideas for making money with crypto currencies do you think is the best? Do you have other ideas and suggestions? Let us know!
Disclaimer: This article in no way contains investment advice. The analysis may not be complete. You are responsible for your own investments. Investing in securities and other financial instruments always carries the risk of losing your capital. IPO investing, buying shares at IPO prices, may involve additional restrictions. Past predictions or performance are no guarantee of future results.