How can I make money with cryptocurrencies? This is one of the most asked questions by crypto enthusiasts today. After numerous stories of individuals who struck it rich by buying during the 2021 crypto market rally, investors refocused their bearings, and now everyone is looking to invest in digital assets.
But what are the most practical ways of making money with cryptocurrency in 2021?
In this post, we will be addressing the top 10 beginner-friendly ways of making money with cryptocurrencies in 2023.
10 No Brainer Ways Of Making Money With Cryptocurrencies
There is a growing number of ways that you can exploit to make money with virtual currencies, earn passively on crypto you already own and receive free crypto.
Here are the 10 most practical:
- Buy and HODL new coins - Overall best ways to make money with cryptocurrency
- Mining - Best Way to Earn Free Cryptocurrencies
- Day Trade crypto - Make Money Trading Cryptocurrencies
- Staking crypto - Best Way to Earn Passive Income by Investing in Crypto
- Play-to-earn crypto games - Earn Free Crypto Playing Online Games
- Crypto faucets - Make Money Completing Micro-Tasks Online
- Yield farming and crypto lending - Earn Attractive Rewards and Interest Investing In Crypto
- Crypto arbitrage - Make Money With Crypto by Taking Advantage of Price Variations
- Airdrops - Earn Free Cryptocurrencies Effortlessly
- Create Crypto Content - Make Money Creating Crypto Content
Top 10 Ways To Make Money With Crypto
In this post, we explain in detail the 10 best ways to make money with cryptocurrency.
1. Buy and HODL new coins - Overall Best Ways to Make Money With Cryptocurrency
Buy, and HODL is one of the most popular and most beginner-friendly crypto investing strategies. It involves buying a digital that you expect will continue gaining value and holding onto it for an extended period - until its value and your portfolio reach unprecedented highs.
For maximum gains when using the buy and hold strategy, we recommend combining it with ICO investing. This refers to the purchase of promising crypto coins or tokens during their initial coin offering (ICO) or investing in them in the early days of launching and riding their run to the moon.
2. Mining - Best Way to Earn Free Cryptocurrencies
Mining lets you earn free cryptocurrencies when you validate transactions on the network. To get started, you only need to invest in mining hardware - graphic cards - and download mining software. You then have to make a decision on whether to do it alone or join a crypto mining pool.
Note that mining only works for cryptocurrencies hosted on networks that use the proof-of-work consensus algorithm. Examples of such PoW networks are Bitcoin, Litecoin, ZCash, and Ethereum (though it is set to transition to the proof-of-stake algorithm in the coming months).
At the moment, for example, you will earn approximately 6.25 BTC and 12.5 LTC when you confirm one block on Bitcoin and Litecoin blockchain, respectively.
Check Out: Top 10 Cryptocurrencies To Mine That Are Both Cheap and Profitable
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
3. Day Trade Crypto - Make Money Trading Cryptocurrencies
Day trading is the art of buying and selling cryptocurrencies actively. It involves buying a digital asset while it trades at relatively low prices and selling it as soon as its value improves. And making multiple such trades throughout the day. In essence, a day trader seeks to advantage of the volatile price action posted by a specific or multiple cryptocurrencies throughout the day.
But to succeed and make money day trading crypto, you will need expert-level market analysis and trading skills. You will also need access to advanced market analysis and trading tools - possibly an advanced algo-trader if you are a scalper. You will also need to trade on a crypto exchange that guarantees three key features, i.e. fast order execution speeds, deep liquidity, and low trading fees.
4. Staking Crypto - Best Way to Earn Passive Income by Trading Cryptocurrencies
Staking is one of the easiest ways of generating passive income on your crypto investments. It is one of the simplest ways for long-term crypto investors to make money. It involves committing your idle crypto to a blockchain in exchange for rights to confirm transactions for which you are awarded free tokens in return.
Note that this only works for blockchains that embrace the proof-of-stake consensus algorithm. The most popular PoS networks where you can stake altcoins and earn free tokens in return include Cardano, Solana, and Algorand. The average annual rewards for staking on these platforms currently stand at 4.9%, 6.3%, and 7.20% APR.
In addition to staking on the PoS blockchain, you could also stake on third-party platforms that pay interests. The most popular today are crypto exchanges like Binance and Crypto.com and digital wallets like Exodus and Trust. The best thing about staking crypto is that it lets you earn doubly - first, you earn free cryptocurrencies in the form of staking rewards and interest. Secondly, you earn when the value of staked coins appreciates.
Don't Miss: Best Staking Coins For Maximum Gains
5. Play-to-Earn Crypto Games - Earn Free Crypto Playing Online Games
Play-to-earn games are all the rage right now, especially as the concept of a crypto metaverse gathers steam. And they, too, present you with one of the easiest ways of earning free cryptocurrencies in 2023.
Some of the most popular places to make money with crypto by playing online video games include the Decentraland metaverse, Sandbox metaverse, and Axie Infinity. Most of the games in these crypto metaverses make it possible for you to start playing and making money without necessarily making an investment. To make tangible returns on some, say, Axie Infinity, you will need to invest in quality gaming tools - in this case, quality Axies.
Most of these crypto games have also incorporated aspects of NFT into their design. At Axie Infinity, for instance, the Axies are NFTs that can be bred and sold on the Axie Infinity NFT marketplace. You, therefore, make money playing online games and even more when you trade online gaming items/collectables.
6. Crypto Faucets - Make Money Completing Micro-Tasks Online
You could also make money with crypto on online faucets when you complete different microtasks. Faucets, in this case, refer to online platforms and websites that pay you to complete such tasks as watching or clicking on ads and marketing content, completing surveys, participating in focus groups and mock trials, or testing apps and software. For participating in these tasks, you are rewarded with crypto - mostly Bitcoins.
Coinbase - the all-popular exchange - runs a faucet-like program that rewards crypto enthusiasts with free crypto when they learn about different crypto listed on the platform.
Crypto faucets are one of the most beginner-friendly ways of making money with crypto. They do not require an initial investment, and you do not even need crypto trading/investing experience to start earning free cryptocurrencies on any crypto faucet.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
7. Yield Farming and Crypto Lending - Earn Attractive Rewards and Interest Investing In Crypto
Yield farming and crypto lending are the two most popular ways of earning above-average returns on your crypto investments. They both work like staking or depositing cash in savings in a main street bank account. The only difference between crypto lending or yield farming to staking or a savings bank account is the former pays higher rewards/interest on crypto savings.
Yield farming, for instance, involves contributing liquidity to a liquidity pool - mostly on the decentralized exchanges and getting paid interest for it. The perfect example of yield farming is contributing liquidity to the Uniswap decentralized exchange and sharing in the fees earned by the pool - based on your liquidity contribution.
Crypto lending, on the other hand, involves committing your digital assets to crypto lending protocol and getting paid interest. In this case, you are essentially loaning other traders and investors your digital assets on the promise that they will pay it back with interest through a third-party crypto lending protocol. Some of the most popular crypto lending platforms include Aave, Compound, and MakerDAO.
Both yield farming and crypto lending ways of making money investing in crypto are rather straightforward and beginner-friendly. Like staking, they too let you earn doubly on your crypto and appeal to long-term crypto investors. How much you make yield farming or crypto lending is dependent on such factors as the amounts involved, preferred yield-farming platform, and farmed/lent cryptocurrency.
8. Crypto Arbitrage - Make Money With Crypto by Taking Advantage of Price Variations
You could also make money with crypto by taking advantage of the price difference of a cryptocurrency on different markets or exchanges. It is quite similar to day trading, only that instead of taking advantage of a coin’s price action, arbitrage trading involves leveraging the short-lived price differences for the same asset on two different trading platforms.
Say, for instance, Bitcoin is selling at $40,500 on eToro and $40,600 on Binance. You could buy the one BTC on eToro, where it is priced cheaply, and immediately move it to Binance, where you can sell it for $100 more.
Arbitrage, therefore, involves dedicating time to studying price differences for various coins on multiple markets/trading platforms - and taking advantage of the slightest price differences. Given the often-minute differences in price, you need a significant capital investment so the arbitraging revenue can cover the trading fees and transfer fees and earn you tangible profit.
Read Also: Top 10 Cryptocurrencies To Turn $1000 To $10000 Long-Term
9. Airdrops - Earn Free Crypto Effortlessly
In the crypto-verse, airdrops refer to a marketing strategy that involves depositing free crypto “airdropping” to crypto user wallets. This makes it one of the most effortless ways of making money with cryptocurrencies. Some of the most popular crypto airdrops that took place in the recent past are the Uniswap and the APE Coin airdrops.
The UNI token airdrop took place in September, with every digital wallet that had interacted with the Uniswap DEX before September receiving free 400 UNI tokens (valued at $3600 today). The APE Coin airdrop is more recent, taking place in March 2023. The tokens were airdropped to the Bored Yacht Ape Club (BAYC) community - made of BAYC and MAYC NFT holders. These NFT holders were awarded between 2,000 and 10,950 APE tokens, valued between $32,000 and $175,200 today.
There are two primary reasons why crypto networks and protocols airdrop tokens. First, airdrops of a new crypto token may be given out to create and promote awareness of the digital asset and its blockchain network. Secondly, token airdrops are used to create liquidity for a new token and to spur trading when it launches on the crypto exchanges.
There is no standard formula for airdropping new or hard-forked tokens. In such a case, the probability of qualifying for an airdrop often boils down to being involved with the right crypto asset at the right time. You can, however, increase the odds of being considered for airdrops by becoming a crypto influencer, as new coins always target large crypto audiences.
10. Create Crypto Content - Make Money Creating Crypto Content
You could make money with crypto without actually investing in or actively trading virtual currencies. You could become a crypto content creator, which exposes you to multiple ways of earning crypto. Some of the content creation ideas available to you include being a freelance crypto content writer, vlogger, reviewer, or influencer.
With programing and cryptography skills, you could also join development teams for established and new blockchain networks. Here, you could contribute to creating and editing whitepapers and roadmaps, you could also be paid to write and/or review smart contract codes and design DeFi apps. Or you could join metaverse projects where you can design, create, and sell in-game items and dApps.
Blockchain technologies like Cardano are constantly looking for developers. The emerging Web 3 wave has also created many job opportunities for freelance crypto content creators. And in all these cases, you have the option of choosing to get paid in your favourite cryptocurrency.
Best Exchanges To Trade And Invest In Cryptocurrencies
You now understand the different ways through which you can make money with cryptocurrencies. Notice that while there is no shortage of ways to earn free crypto, some like staking, yield farming, crypto lending, arbitrage, and day trading are only available to crypto traders and investors.
This says that even as you look for the different ways to make money with crypto, you first need to find the best platforms where you can trade and invest in cryptocurrencies. We recommend using:
1. eToro - Best Exchange for beginner crypto investors
eToro has fashioned itself as one of the most beginner-friendly places to trade cryptocurrencies. This is made possible by its quick and straightforward onboarding process, intuitive user interface, the buy cryptocurrency instantly functionality, and rich educational resources.
But this isn’t the only reason why we consider it the best place to invest in cryptocurrencies. Others include its affordable minimum trade limits - as low as $25, support for virtually all the most popular crypto, and the fact that it provides users with free and considerably safe custodial and non-custodial wallets.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
2. Coinbase - Best Exchange for liquidity
Coinbase features on our list of best places to make money by trading cryptocurrencies because of its deep liquidity. The international exchange processes an average $2 Billion worth of crypto trades daily and boasts of some of the fastest order execution speeds - making it ideal for day trading.
It, too, is also quite beginner-friendly, with a low minimum deposit and trading requirements - from $2 - and also integrates the instant buy feature. Coinbase further provides its users with custodial and non-custodial crypto storage services. We also appreciate its commitment to the security of client funds, seeing that it stores 98% of all client assets in offline vaults and insures the 2% left on hot wallets.
3. Binance - Best Exchange for low fees
Binance makes it to the list of best places to make money by trading cryptocurrencies in 2023 because of the low trading fees that make it appealing to active traders. Here, crypto trading fees start from 0.1% and can drop as low as 0.035% for high-volume traders who use BNB coins to pay for the transaction fee.
Other factors that make Binance the best place to buy and sell crypto include the fact that it is the most liquid crypto exchange. It also maintains some of the fastest crypto order execution speeds and also supports the widest range of crypto assets.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Best Crypto Staking And Lending Platforms
We have already stated hereinabove that staking appeals most to long-term investors, and it helps you earn doubly from your holdings. But what crypto staking and lending platforms have the highest rewards? Here are the top crypto lending and staking platforms:
1. Binance - Best for Flexible Lock Periods
The Binance exchange has morphed into a crypto ecosystem that currently integrates both the crypto savings and staking features that crypto enthusiasts can leverage to earn attractive returns on their long-term crypto investments. We feature it among the best staking platforms because of the flexible lock-up periods and support for the widest range of cryptocurrencies.
2. AQRU - Best Crypto Lender for High Rewards
Aqru is a market leader in the crypto lending space. It is one of the most popular crypto lending platforms, famed for its higher-than-average returns on staked crypto. At Aqru, the interest for staking such popular coins as Bitcoin and Ethereum can be as high as 7% P.A, while that of stable coins and altcoins can rise as high as 12% P.A.
Best Liquidity Pool Contribution Platforms
In addition to staking, crypto lending, and simple day trading/investing, we pointed to yield farming by way of contributing liquidity to crypto pools as one of the best ways to make money with cryptocurrencies 2023. Here are the best yield farms in 2023:
1. Uniswap - Best Decentralized Exchange Staking Platform
Uniswap is one of the most popular and one of the most liquid decentralized exchanges today, with more than $7 Billion in total value locked. It also has one of the most expansive yield farms supporting a wide range of cryptocurrencies.
Here, yield farmers make money by sharing the fees collected on their pools - based on their liquidity contribution. At present, you stand to earn between 20% and in excess of 50% APR depending on the farmed token.
2. PancakeSwap - Best Yield Farm on the Binance Smart Chain
Like Uniswap, Pancakeswap is a decentralized exchange and the most popular DEX on the Binance Smart Chain. It has close to $5 Billion in total value locked, and it too provides crypto investors with a platform where they can earn interest by supplying liquidity.
Just like on Uniswap, how much you make when you contribute liquidity is highly variable. At present, you stand to make between 0.01% and as high as 250% APR, depending on staked amounts and farmed tokens.
Final Word - Best Ways To Make Money With Crypto In 2023
The path to global crypto adoption has exposed crypto investors to multiple ways through which they can make money with virtual currencies.
In this post, we have discussed the 10 most practical ways of making money with crypto in 2023. These are spread between active investment and trading strategies, as well as a growing range of ways through which you can acquire free cryptocurrencies.
For crypto beginners, we would recommend considering crypto staking, liquidity contribution to DEXs, or yield farming on crypto lending platforms. We recommend these because they let you earn passive income doubly - first through rewards and interest and secondly through value appreciation for the staked crypto.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
FAQs on Making Money With Cryptocurrency
How can I make money with cryptocurrency?
There are unlimited ways through which you can make money with cryptocurrencies in 2023. In this post, we have discussed the 10 most common ways of making money with crypto. Go through this list again and find the method that appeals most to you.
What are the easiest ways of making money with cryptocurrency in 2023?
Among the most effortless and easiest ways of making money with cryptocurrencies in 2023 include participating in crypto airdrops, interacting with play to earn games, and interacting with crypto faucets.
How much will I make staking cryptocurrencies?
There is no standard reward for staking cryptocurrencies. How much you make staking any crypto asset will be highly variable and dependent on such factors as the preferred staking platform, preferred staking coin, and amounts staked.
How can I earn free cryptocurrencies?
There are three most practical ways of earning free cryptocurrencies in 2023. These include playing games on the metaverse, participating in token airdrops, and completing micro-tasks on crypto faucets. Note, however, that the amounts made from these platforms are negligible.
What do I need to start trading crypto profitably?
You need to start by registering with an exchange that is friendly to active traders in terms of liquidity, order execution speeds, and trading fees. You also need to be experienced in market analysis and order placement. And lastly, you need access to advanced market analysis, trading, and risk management tools - and possibly a reliable algo trader.
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