If you are experiencing serious FOMO over cryptocurrency and still want to get in on the action, it’s not too late! Technology continues to evolve and more sophisticated ways to make money with cryptocurrency are emerging.
With a little ingenuity, patience, and timing, you can get some serious returns with crypto. It should be noted, though, that nothing is a guarantee. Like any investment, there’s a risk you could end up with nothing, so don’t invest more than you’re willing to lose.
Ready to find out how to earn money from cryptocurrency? Let’s dive in!
HODL
Every guide on how to make money from cryptocurrency should start with some form of the word HODL. For the uninitiated, HODL – hold on for dear life – is crypto-slang for remaining invested in a coin long-term.
The idea is that if you believe in the potential of a coin and its technology, you should HODL until it becomes widely adopted and its value increases. While this may seem like a no-brainer, it can be difficult to do in practice.
It’s easy to get caught up in the hype surrounding a new coin and dump your entire investment into it only to see the value plummet soon after. Or, you may sell too early and miss out on potential gains.
Mining
There is also the classic way of making money from cryptocurrency: mining. This process involves using your available processing power to verify transactions on a blockchain. You will be rewarded with coins for your efforts.
The difficulty of mining varies depending on the coin you’re trying to mine. Some, like Bitcoin, are extremely difficult and require expensive hardware. Others, like Monero, can be mined relatively easily with a regular computer.
As crypto has become more popular, mining has become more difficult. This is due to the increased competition from other miners. If you’re interested in mining, it’s important to do your research and factor in the cost of electricity before getting started.
Trading
If you’re not interested in HODLing and want to actively trade cryptocurrency, there are a few different strategies you can use to make money.
Arbitrage trading
Arbitrage trading is perhaps the most low-risk way to trade crypto. This involves taking advantage of price differences between exchanges.
For example, let’s say Bitcoin is selling for $10,000 on one exchange and $9,700 on another. A trader could buy Bitcoin on the cheaper exchange and then sell it on the more expensive one for a quick profit.
Trend trading
Another way to trade cryptocurrency is by using trend trading strategies. This involves buying coins that are in an uptrend and selling them when they reach a peak. This can be difficult to do if you don’t have experience analyzing charts, but there are plenty of resources out there to help you learn.
Day trading
Lastly, you could day trade cryptocurrency. Day trading involves buying and selling coins multiple times within a single day in an attempt to profit from short-term price fluctuations. This is a more risky strategy but can be profitable if done correctly.
Staking or lending
Want a little more security with your crypto earnings? Staking or lending coins is a great way to do that.
Staking is the process of holding onto coins to support the network and earn rewards. For example, if you stake 10 Bitcoin on a proof-of-stake network, you could earn interest on those Bitcoin as more transactions are processed by the network.
Lending is similar to staking but with more control over how much interest you earn. This is one of the easiest ways to learn how to make money on Coinbase, a popular crypto exchange.
With lending, you can temporarily offer up your coins to others in exchange for interest. The amount of interest you earn will depend on the coin you’re lending, how much you’re lending, and for how long.
Both staking and lending offer a more passive way to earn cryptocurrency without having to trade or put your coins at much risk.
IDO lotteries
As more and more projects launch initial decentralized exchange offerings (IDOs), a new opportunity to make money from cryptocurrency has emerged.
Many IDOs have some form of lottery system where participants can win a chance to buy tokens at a discount. To enter, all you need to do is hold a certain amount of the project’s native token in your wallet.
For example, if an IDO requires users to hold 100 XYZ tokens to participate, you would need to have 100 XYZ in your wallet at the time of the lottery.
If you’re lucky enough to be selected, you’ll be able to buy tokens at a much lower price than they will eventually be listed on an exchange. This allows you to sell them immediately for a profit or HODL them for long-term gains.
Coin-boosting
Another way to make money from cryptocurrency is by participating in coin-boosting services. By generating hundreds or thousands of requests, inquiries, or likes on social media, you can increase the value of a coin.
This may sound like a simple task, but it’s quite difficult and time-consuming. There are also risks involved, as some projects may be scams. However, if you’re able to find a legitimate project and put in the work, you could see some serious rewards.
Improve your odds
Any individual user can take their chances with IDO lotteries, coin-boosting, or arbitrage trading but to take a swing for the fences you’ll need a service like Multilogin which allows you to improve your odds in several ways.
First, it gives you the ability to manage multiple accounts from a single interface, essentially giving you a chance to buy several tickets for a single lottery. Second, it provides a set of tools that automate various tasks like web scraping, data analysis, and social media interaction.
If you want to learn how to earn money from cryptocurrency, adding a trusted service like Multilogin is a vital step.
