Making Money with Cryptocurrency [2023]

How to make money with Cryptocurrency in 2023

Dec 15, 2022

Cash is no longer king. Cryptocurrencies have changed how we interact with, spend and make money. Our focus today is the latter and we shall discuss sixteen ways you can make money with crypto.

These methods all have a degree of risk, much like all of crypto.

1. Arbitrage

Arbitrage is the easiest way to make money in crypto with the least amount of risk. It is possible to profit through arbitrage by purchasing cryptocurrency at a low price on one exchange and then selling it at a higher price on another.

Due to slight price variations, there is an opening in the market for cryptocurrencies on various trading platforms. Depending on the market, the price of a single Bitcoin can range from $1,000 to $1,100. As a result, if you purchase it on the first exchange and sell it on another, you will make a $100 profit.

2. Speculating on the Day's Market (Day Trading)

Despite popular opinion, some people make a living trading cryptocurrency as their prices rise and fall throughout the day.

Daily traders make money in situations like this: if a cryptocurrency currently trades at $1,000. We could see a rise to $1,050 or a drop to $980 in the next few minutes or hours. You can make money off the fluctuation in prices because they frequently occur throughout the day.

A day trader could invest $980 in the cryptocurrency, wait for its value to rise to $1,000, and then sell it for a profit of $20.

3. Staking

Making passive income through staking is fun. Proof-of-stake (PoS) coins can be staked by their owners to contribute to the network's overall health. You could stake your coin and receive additional coins regularly from the fees..

4. Investing with the intent to hold (HODL)

You've likely encountered crypto-related content in various places, such as Telegram groups, Twitter, webinars, and even casual conversations with friends and family. And one phrase often heard is "HODL" but what does that acronym stand for?

"Hold On for Dear Life" is the meaning of the acronym HODL. The term "crypto bull" refers to investors who buy a cryptocurrency and are so confident in its future that they hold on to it despite a drop in value. Bitcoin is a coin that people have made money on by HODLing.

Regarding crypto, no universal formula can be used to predict the future. However, if you keep up with news regarding that coin, you'll know whether to hold onto it or sell it. Here are a few suggestions for keeping abreast of the news:

Set up RSS Feeds to receive updates about that cryptocurrency..
Participate in the coin's subreddit today! (subreddit). The cryptocurrency community is active on Reddit, with subreddits dedicated to many different coins.
Look for the token on Twitter:
You can narrow your search by entering a hashtag (#) or a dollar sign ($) before the name of the coin you're interested in. The result will be a list of tweets mentioning the coin. However, sceptics should be aware that scammers can use hashtags to spread their deceit.

5. Referral Income

Companies in the cryptocurrency industry have referral programs similar to those in other traditional sectors. You can earn tokens or rewards when you invite your friends to join a cryptocurrency site and sign up yourself. You increase your earnings potential by referring more people.

6. Possession of a Redistribution Fee Coin

Learning cryptography involves multiple steps, as you will soon discover. Some coins appreciate and bring in a tidy profit, while others do extra work for you. For example, BabyDoge and SafeMoon users receive a proportional share of the network's transaction fees. The mere act of holding such a coin can generate passive income.

7. Faucet mining

Faucets are online services that reward users with cryptocurrency in exchange for performing a simple task. This could involve doing something like watching an advertisement or filling out a survey. This works similarly in a similar vein to video games, where viewing advertisements grants other game currency or progress. Moon Bitcoin, Moon Litecoin, and Coinfaucet are three examples of well-known cryptocurrency faucets.

Tips for Profiting From a Cryptocurrency Faucet

Find out which faucets are the best and do some research on them. This depends on the nature of the rewards and the efforts required to earn them.

8. Cryptocurrency ETF Trading (ETFs)

This one is for those on the fringes who don't intend to get their hands dirty with crypto but would like to reap its benefits. Do you know how mutual funds work? To pool the resources of many people to better invest in various businesses or commodities like gold, for example.

In a similar vein, you can think of exchange-traded funds. The main distinction is that crypto ETFs make it possible for many people to simultaneously make a single investment at the same price as a single cryptocurrency. For instance, the price of a Bitcoin ETF will be the same as that of Bitcoin itself.

So:

The ETF would be worth $50,000 if Bitcoin were valued at $50,000 per coin.

An increase of 20% in Bitcoin's price would increase of 20% in the ETF's value. This means that as Bitcoin holders enjoy their 20% gain, you will too, thanks to the ETF. When the price drops, it's the same.

Shares of a Bitcoin ETF can be purchased in the same way that Bitcoins themselves are.

To sum up, an ETF is a way to simulate the experience of buying cryptocurrency while avoiding the actual purchase of digital currency. Proshares' BITO exchange-traded fund (ETF) is by far the most widely held Bitcoin ETF.

Methods for Putting Money into a Bitcoin Exchange-Traded Fund

To participate in the Bitcoin ETF market, one must :

Open a stock trading account.
Decide on how many ETF shares you want to invest in.
Post a limit or market order with the broker.

9. Buying and Selling NFTs for Profit

In addition to making new NFTs, trading existing ones is a common way to earn money in this space. An NFT can be purchased from another party and then resold for profit. This is typical of NFTs presented as works of art to some extent.

The most common way to make a popular NFT is to compile it with others. Therefore, the same artist can make 5,000 unique NFTs with the same design. Cryptopunks and Bored Ape Yacht Club are two popular collections.

NFT trading is analogous to cryptocurrency trading. The term "flip" refers to the process of purchasing a low-priced NFT with the intention of selling it for a profit. When they first came out, Bored Ape NFTs, for instance, cost around $200. One Bored Ape NFT can now be worth up to $400,000! Many NFT collections are just sitting around, begging to be bought and sold. The following are some suggestions:

View the assortments on OpenSea and Rarible.
Discover more about the collections that fascinate you.
Get some Ether from Quidax, then move it to your Metamask wallet.
Join your digital purse to your preferred NFT platform or open sea.
Spend some time waiting and then buy the NFT.
Maintain a watch on the collection's NFT prices and any relevant news.
You should wait as long as it takes to feel ready to sell, but you should never wait longer than you want.

10. Betting

The bookmaker is the only place where sports betting is more common than in the crypto world. You are essentially wagering on the outcome of a sporting event.

If they succeed, you will receive a sum of money; however, if they fail, you will also lose this sum. But crypto is also used for sports betting, which you might not have known. Those interested in gambling with cryptocurrency can do so at trustworthy online casinos.

Dice games, poker, blackjack, and other table games are available. If gambling establishments are your thing and you don't mind risking your cryptocurrency, you'll feel at home at a crypto casino. Here are a few examples of well-liked online crypto casinos:

A Primer on Cryptocurrency Betting

Learn as much as you can about different methods of betting. Don't let a lack of knowledge cause you to lose money by not using the best tactics.
Sign up for a reputable cryptocurrency betting platform next.
Look into the various betting options. Gambling on blackjack, craps, and poker, among other traditional casino games, is possible at some websites. You could also try your hand at sports betting, if that's more your speed.

The betting process is the same as any other online bookmaker: you deposit money and place a wager.

Not a fan of gambling? Well, join a DAO.

11. Enrolling in a DAO

Collective decision-making for a common purpose is the job of a DAO, or "Decentralized Autonomous Organization." This sounds like the definition of a business. However, please hear me out because I think there is a significant distinction. Individuals in a DAO need not know or interact with one another. They are merely given the right to vote in meetings.

Okay, now we get to the fun: utilizing a DAO to profit from cryptocurrency.

Members of a DAO can decide on investments jointly because of the DAO's decision-making flexibility. When many people are involved, you get a more comprehensive range of perspectives and might even meet some with more investing experience.

12. Involvement as an Early Investor or Whitelist Member

The best returns for cryptocurrency investments tend to go to early adopters. Consider Bitcoin as an illustration. In other words, an individual who invested $100 in Bitcoin when it was only worth $100 would now have $50,000. Whitelisting is so crucial that even NFT collections encourage users to sign up. Those included on these whitelists can purchase NFTs at a discount before the general public. Most new cryptocurrencies also have these early investor lists to participate in a pre-sale of the coin.

ICOdrops Schedule of Upcoming Coin Distributions

Strategy for Getting in on the Ground Floor of the Cryptocurrency Market

It would be best to do your own due diligence before putting your money into any cryptocurrency because not all of them will succeed.

However, here are some guidelines to help you get going:

Cryptorank, Coinmarketcap, and ICOdrops are good places to keep tabs on forthcoming coin releases.
Pick a coin and look it up on various social media sites like Twitter, Reddit, Instagram, Telegram, and Facebook.
Consider what others have said, and if possible, look into the project's development team.
Check out the coin's whitepaper and the roadmap on their website.

13. Profits from the Liquidity Pool Are Shared

Sometimes there is little liquidity because people who have bought that crypto are not selling, and people who want to buy can't pay high prices. In these cases, some exchanges have what is called a liquidity pool. Essentially, this is where people who have a cryptocurrency that people want to buy can deposit their cryptocurrency and profit as more people accept from the pool.

14. Flash Cryptocurrency Loans

You can put your cryptocurrency holdings to work by lending them out through services like AAVE and Compound, where you will earn interest on top of your principal investment.

15. Peer-to-Peer Market

Peer-to-peer (P2P) marketplaces are online venues where buyers and sellers of cryptocurrencies can interact directly to facilitate transactions at market rates.

16: Affiliate Advertising

Affiliate marketing is a great way to make some extra cash if you have a large audience that you can persuade to sign up for a service through your affiliate link. This is similar to referrals, but on a much larger scale, so it's ideal for those with a blog, podcast, YouTube channel, or other platform that allows you to reach many people in the finance or crypto space.

In conclusion

Given the astronomical inflation rate, it’s only fair to play it safe in how you save, spend and invest money. There are many strategies for profiting from cryptocurrency, but the most crucial step in many cases is to buy crypto at the right price at the right time - in short, luck.

The information does not constitute financial advice or recommendation and should not be considered as such, these are just methods that people have used to create monetary gain.