Cryptocurrencies long became a staple in our lives, whether we use them or not. The internet is full of news about new crypto coins, stories about people gaining (and losing) money on them, and reviews of new mining hardware and software. We hear about this or that cryptocurrency reaching a new height, and most people at least once thought: ‘Maybe I can make some money on cryptos well?’ This article is here to help you with that.
Crypto Earning Strategies
Cryptocurrencies create their own financial ecosystems, similar to the fiat currencies. There are various ways to make money on cryptocurrencies. From mining to trading, the most popular ones are described in this article. So, without further ado, let’s dive in.
Buy and HODL
The term ‘HODLing’ comes from misspelling ‘holding’. It became widespread among the crypto community. By using this strategy, you are banking on one of the coins to either be stable or to grow in the future. As such, only the most stable or the fastest-growing coins are used to do so. A good example would be Bitcoin, Monero, and Ethereum, as they often rebound from their prices crashing and grow fast.
In fact, recently we’ve compiled our list of the most profitable cryptocurrencies for investing. While it is not investment advice, it will give you a good starting point to start buying crypto.
Some cryptos open up a way to earn more by staking them. This means that you hold your coins in an online wallet for some time to support the blockchain network and to get dividends from them. It is not the most profitable option, but you can get more money by doing nothing besides storing them in a live wallet. Note, that not every crypto supports staking.
Mining is the most popular way to get crypto, and one of the hardest. Most cryptos stopped supporting the CPU mining, replacing it with GPUs and ASICs. Even if you have a decent mining rig, it is still a time-consuming and energy-intensive process to receive a reward block. Using mining pools reduces the amount of the reward you get.
Still, if you do manage to strike gold, you will receive a much bigger reward than alternative methods, especially if you are mining crypto like Bitcoin or Ethereum. Some cryptocurrencies started to push back against centralized mining and ASICs to make solo mining more attractive again. So, if you choose wisely, you will find your gold mine.
Day trading allows you to earn money from cryptocurrency if you are good at reading trends and making snap decisions. There are lots of exchanges where you can practice crypto day trading, and a lot of currencies available for aspiring traders.
It is a simple concept that takes time to master: you buy low and sell high. You need to read and analyze charts to see the signs before the price starts to go up or down. You also should react quickly to those changes, as prices may change for up to 50% in matters of seconds. While it may seem difficult to a beginner, everyone can learn those skills in time. It is a good option for people who don’t want to delve into the technical side of mining.
Another good way to quickly start earning some Bitcoins is completing tasks on cryptocurrency faucets websites. While the amount of the reward is really low (numbered in satoshis, one-millionth of BTC), it doesn’t require you to have a mining rig or analyze charts. You just need to complete simple tasks to receive your satoshis. One major downside is the fact that to earn a somewhat significant amount of satoshis, you will need to spend your whole day behind the computer solving captchas. It isn’t a viable option for working people. Still, as long as you avoid scams, it is a good option to get some extra crypto on your downtime.
Trading bots is the way to make money on cryptocurrencies by automating the trading. The bot is a program that tracks prices and trade commodities (in this case, crypto and tokens). Bots free up a lot of time for traders. You can customize it with various indicators and signals, making them more effective.
The trading bot can react much faster than any trader. A bot may be placed on highly volatile crypto so that they could make snap decisions. However, they also lack human intelligence, and can’t read the market flow as good as humans can, so it is always risky to employ them.
While most people work for money, why not let your money work for you? That’s exactly how lending works, even in crypto: you give someone part of your money so that they will return them later on, with dividends. However, as with many other ways to earn money, the crypto world has its own specifics with lending.
Lending in fiat money is easy. You create a contract and you can go to court if it is violated. Lending in crypto is trickier since there is no court that will help you if something happens. That’s why you will need to pick who you lend to carefully.
Special lending platforms appeared to minimize the risks for lenders using a fee. The most prominent ones are SALT Lending, Nexo, Bankera, and Lendroid. As long as you follow their guidelines (using a multi-signature process, reviewing transaction details, and monitoring your Loan Health), you will be able to use lending as a way to earn crypto.
Running masternodes is another way to get some passive income. A masternode is a node in a cryptocurrency net that is responsible for transaction checking and approval. It also adds blocks in the blockchain. For completing these tasks, other blockchain users pay masternode runners a fee for them to keep doing so.
While it may seem like an easy option, it has rather steep entry requirements. To form a masternode, you need to keep a certain amount of coins on your wallet (or node). This amount varies from crypto to crypto but usually is really high, ranging from 1,000 to 25,000 coins. It is a good way to earn additional profit for an already established crypto user.
Buy Cryptocurrency via Changelly
If the ways above don’t attract you, you can always buy cryptocurrency using Changelly service. Click on that button and choose the coin to buy with USD, EUR, or GBP.
You can make money on cryptocurrencies in a lot of ways. We might have covered the basics, you will need to do more research before you can employ them correctly. You can do that by reading more articles on our blog. Stay tuned for more pieces on crypto and how to make a profit with them!
Changelly is a secure instant crypto exchange that has 150+ cryptocurrencies available to be swapped and bought at market-best rates. Operating since 2015, the platform and its mobile application attract over a million visitors monthly, who all enjoy quick and simple exchanges, low transparent fees, and 24/7 live support.