The cryptocurrency market, blockchain, and Web 3.0 bring countless opportunities for the benefit of their users. In this article, we’ll explore up to 6 best ways to make money with crypto. There are exchanges, ongoing projects, exclusive promotions, and mechanisms that allow us to earn on crypto.
When evaluating the best ways to earn on cryptocurrency, we took into account several factors, including the method’s complexity, user safety, and potential profitability.
Trading
Despite the considerable time investment required for learning, the income potential from cryptocurrency trading is virtually limitless. Moreover, exchanges offer numerous opportunities for automating trading and copying deals.
Trading offers the chance to profit from cryptocurrency by leveraging fluctuations in value. The core principle involves purchasing cryptocurrency at a lower price to sell it for a higher price later.
Trading encompasses various strategies, including short positions, where traders profit from asset price declines instead of increases.
Additionally, there are tools available for automating trades and replicating successful strategies. Copy trading services enable users to earn by mirroring the operations of accomplished traders.
Some of the most popular exchanges are : Binance, Coinbase, ByBit, KuCoin, Gate.
Mining
During bullish market periods, this method can yield excellent profits, and you don’t necessarily need to invest in expensive equipment to start mining – you can rent the necessary computing power.
Mining is another popular way to earn cryptocurrency. To do this, you need to validate transactions using the computing power of your equipment and receive new coins as a reward. Mining is not for everyone. it requires expensive specialized equipment, technical knowledge, and a significant amount of energy to power the machines. The industry has become highly competitive, with large corporations dominating it.
Mining no longer yields the same profits as before and isn’t very effective as a source of passive income for most people. While some may still earn good profits by mining coins with the PoW algorithm with lower hash rates and higher potential rewards, such work carries risks, as lesser-known coins have low liquidity and may turn out to be worthless.
However, you can also mine using someone else’s equipment by renting computing power. This method is called cloud mining.
You can mine coins like Bitcoin, Dogecoin, Litecoin, Helium.
Affiliate programs
Affiliate programs are perfect for influencers and content creators: if you have many followers on social networks, you can post a referral link on your pages and receive commissions from the trading volumes of users who registered on trading platforms through it.
Some companies reward users for helping to develop their platform. To earn cryptocurrency through affiliate programs, you need to attract new users to the platform. If you have many followers on social media, affiliate programs can be a good way to earn easy money.
Airdrops
The hunt for airdrops as a way of earning is gaining momentum. This method allows you to earn without investment or with minimal expenses, and some projects reward users with impressive amounts.
Airdrops are a very simple way to earn cryptocurrency. You receive tokens for free because you have other coins, or because you use a specific wallet or meet certain conditions, such as registering on an exchange or subscribing to a newsletter. Don’t forget to research potential airdrops — among them, there may be fraudulent schemes. And never give anyone your private keys.
For many participants in the crypto community, airdrops have become the answer to how to earn cryptocurrency without investments.
You can use services like AirdropsIO, or Dappradar or to find new airdrops.
Staking
Staking can be considered as a passive income option. The essence of this method is that you lock your coins for a certain period and receive rewards for it. The main drawback of staking is its relatively low profitability.
Staking allows for generating passive income regardless of cryptocurrency market volatility. This method of earning cryptocurrency first emerged in 2012 and was used as a reward system for Peercoin (PPC), a coin based on the Proof of Stake algorithm.
The likelihood of becoming the validator of the next block is proportional to the amount of coins you hold in your wallet. In some cases, traders contribute funds to a staking pool, while exchanges handle the technical aspect. Cryptocurrency staking involves holding funds in a cryptocurrency wallet to support the operations of a blockchain network and, in return, earning rewards similar to earning interest on a bank deposit, except here, coins are locked in your wallet. Staking participants can be likened to cryptocurrency miners using the Proof-of-Stake algorithm.
Popular cryptocurrencies like Ethereum, Solana, Polkadot, Polygon can be staked.
Crypto games
Play-to-Earn is a category of gaming crypto projects where players can earn money. Typically, players are offered to perform in-game activities and participate in tournaments. In return, they receive in-game currency, which can then be exchanged for tokens and withdrawn into fiat currency.
Read more: Crypto Casino: Massive ROI or Total Loss?
