As children, we read about Aladdin and his genie lamp of wonders that had the power to make any person rich; today, we know that genie lamp as cryptocurrency. Now you’ve heard all the success stories of people making millions with investments. It’s time for you to dip your feet into the pool as well.
Let’s start with the very obvious statement that everyone gets into crypto to make money. However, many don’t end up getting much out of it. People either lack the patience to see it through and give up, or end up losing their money. This is because they do not understand how making money with crypto actually works.
While the crypto industry is still in its early stages, more people join the industry as the assets rise in price, and with newcomers coming in, there’s always a big “How to get rich with crypto?” on their foreheads.
But the good news is that there are many ways crypto can be the gate to your next jackpot. Since there has been consistent growth in the industry in terms of social media, developer activity, and startups that only deal in crypto, it’s easier for us to navigate our way through.
Here are 6 proven methods that can help you make money with crypto.
Start investing in new coins from the outset
Overall, the best way to make money with cryptocurrency is to invest as early as possible in the newest altcoins. Coins like Ethereum were trading at $0.75 per token when they were initially released. Now, these coins are worth more than thousands of dollars that have generated significant returns.
A new kid on the block is Lucky Block, which was initially priced at $0.00015. But, since its release, LBlock has surpassed the $0.009 mark. This shows exponential growth potential and a big leap in just a couple of months in trading. This is still a young project, and you can invest in this early, which might give you the best possible chance to invest in something at quite a favorable price.
Idle cryptocurrency tokens can help you earn passive income
Yes, it is quite possible to earn a passive income on your digital tokens, and there are two prominent concepts in the crypto market that allow you to do that.
The first method is crypto staking, which allows you to lock your tokens for a specific time period and helps you authenticate transactions on proof-of-stake blockchain networks.
Cardano and Tron are some of the examples of leading staking networks, and you will continue to receive a rate of interest for as long as your tokens are locked away safely.
The second concept that might interest you when you’re learning about making money with cryptocurrency in a passive way is through your interest account. Crypto interest banks function similarly to a standard bank, in that once you deposit your cryptocurrency tokens, you are paid an interest rate in the form of profit. Your provider will then lend your tokens to people who need to borrow funds, and you will be paid an interest rate as long as your tokens are being borrowed.
Making money by day trading
Making money by engaging in day trading is one of the more lucrative ways to make money. But this, like all good things in life, comes with a catch. To make considerable profit with day trading, you need to have some prior knowledge on how to analyze prices and determine whether the token you’re investing in is likely to rise or fall. If you figure that out, you can make money trading throughout, making small but frequent profits.
Earn prizes and rewards for playing crypto games
You might be surprised to know that you can earn money on crypto by playing games. This play-to-earn-crypto marketplace is now worth billions; one of the best-voted games to be played for winning crypto is Decentraland.
Decentraland is part of a metaverse that allows you to engage with other players in real life. You can also buy land and build your own real estate. Once you have that down, your real estate projects can be represented in the form of unique non-fungible tokens (NFTs).
These NFTs can be sold in the open market. And while this all may sound too good to be true, many Decentraland NFTs have sold for millions of dollars.
Generate a striking APY on your cryptocurrencies
Yield farming and lending is another beginner-friendly way to make money on your crypto tokens. While both of these concepts allow you to earn passively, they refer to rather different methods altogether. Like crypto, yield farming is about lending your idle tokens to a liquidity pool.
Once your funds are deposited into the liquidity pool they are locked away for a certain minimum period. As long as the tokens are in the pool, you will be paid a rate of interest.
In most cases, newer and less liquid cryptocurrencies attract higher APY.
Crypto lending is similar in idea but differs only in the fact that your tokens are instead kept in a savings account. They are only lent to people who wish to borrow funds.
Earning free cryptocurrency by completing simple tasks
Faucet cryptocurrency websites allow you to earn free digital tokens by finishing tasks. As simple as it sounds, many websites require you to complete certain tasks in exchange for tokens. These tasks may differ from site to site. However, it is important to note that the rewards are often minute.
This guide helped discuss some quick and easy ways to make money with cryptocurrency and some that require a little more effort. We’d also recommend you to check how to make money using exchanges like coinbase. With that said, the primary method to earn from crypto is to keep yourself up-to-date on promising currencies and only invest money you’re okay to loose. While it’s not the goal investing is risky and getting advices from an expert before getting started is recommended! When the time is right, invest in them at the start of their journey.