10 Ways To Make Money With Cryptocurrency In 2023

Last Updated November 9th 2022
17 Min Read

The cryptocurrency market is highly profitable. From HODLING, and active trading to staking, there are multiple ways that you can make money in crypto. 

With these ten proven methods, this guide looks at how to make money with cryptocurrency in 2023. 

10 Ways To Make Money With Cryptocurrency In 2023

If you are still a beginner wondering how to make money with crypto, here are some of the best methods you can try out. 

  • Passive Mining    One Of The Easiest And Safest Ways To Earn From Crypto
  • Staking And Interest Accounts    Perfect Option For Passive Income
  • Crypto Lending   A Perfect Way To Make Interest In Crypto, Just Like A Bank Deposit
  • Day Trading   One Of The Best Ways To Earn Daily From Cryptocurrencies
  • HODLING   Perfect Option If You Believe In The Future Of Blockchain Technology
  • Early Token Investing   Top Option For Exponential Returns
  • Play-to-earn Games   You Earn Rewards For Participating In Games
  • DAOs   You Get To Make Decisions On A Cryptocurrency's Direction And Get Paid For It
  • Airdrops   You Get Gifted Extra Tokens Just For Holding Specific Cryptocurrencies
  • Faucets   A Top Beginner Way To Earn Cryptocurrency By Doing Simple Tasks

 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

With some of the above methods, earning free Bitcoins is possible. To make making money with cryptocurrencies even easier, let's now take an in-depth look at the 10 ways to make money with cryptocurrency in 2023. 

1. Passive mining – One of the easiest and safest ways to earn from crypto

At first glance, it may seem like the best way to earn with cryptocurrency in 2023 is to set up your own mining rig. After all, this allows you full control over your mining operations and will enable you to earn profits directly from mining rewards. However, while this may be a tempting option, it also has several significant drawbacks.

First, buying the necessary hardware and setting up the rig can require a large initial investment and technical knowledge that not everyone possesses. Additionally, running your mining operation means that you will be largely responsible for maintenance and upgrades as they arise, which can significantly affect your earnings.

Another option for making money with cryptocurrency is investing in passive protocols that use computing power to mine coins on behalf of investors in exchange for regular payouts or dividends. These protocols often have lower minimum investment requirements than individual miners would need to meet to receive returns from their equipment.

 Additionally, because these protocols use an open-source algorithm that anyone can access, there is no need for specialized technical knowledge to get started with investing in them. Overall, whether you are looking to maximize your earnings through direct mining or by leveraging computing power through passive protocols, many viable options are available for anyone looking to make money with cryptocurrency.

There are lots of passive crypto-mining protocols you can use. Among the best ones that the market has to offer is Copium Protocol. This protocol is designed to make it easy for anyone to earn passively from cryptocurrency mining without any prior experience in crypto mining.

 

2. Staking and interest-earning crypto accounts – Perfect option for passive income

Staking easily makes it to the list of the best ways to make money with cryptocurrencies in 2023 for its passive income potential. 

Staking is a crucial component of the blockchain ecosystem, as it helps to provide security and validation for transactions on proof-of-stake networks. Essentially, staking involves locking your tokens away for a specific time to help these networks run smoothly and efficiently. Some leading staking networks include Cardano and Ethereum.

Importantly, stakers can earn interest on the locked tokens during this period, which provides a strong incentive to get involved in staking. However, this process can be challenging and complicated, as it often requires purchasing specialized hardware or meeting certain lockup periods to validate transactions on these platforms.

Fortunately, some more accessible options are available, such as using crypto staking services like eToro that allow you to stake your tokens without having to worry about meeting minimum requirements or lockup periods. If are new to staking and don’t want to risk it complex processes, then eToro is the place for you.

However, it is also possible to earn a passive income without having to stake your coins. This entails earning interest on crypto just like a normal interest-earning bank account. Unlike other investment options, these accounts operate similarly to traditional bank accounts: by depositing your crypto tokens into the account, you will be paid a rate of interest on those tokens, typically calculated as a percentage of their total value.

This is an attractive option for anyone looking to grow their portfolio without actively trading or managing their holdings. A wide range of crypto interest accounts are available, offering different rates and terms depending on your needs and preferences. Some require minimum deposits or have limitations on the number of withdrawals a month. In contrast, others allow you to earn higher rates by locking up your tokens for longer periods or by participating in complex yield projects.

Whether new to crypto or an experienced investor, crypto interest accounts offer a great opportunity to build your wealth over time. They are easy to do, and pretty much risk-free.

 

3. Crypto lending – An easy way to earn interest on your crypto just like a bank

For those looking to earn money passively with cryptocurrency, crypto lending is one of the best ways. As the popularity of crypto assets continues to surge, more and more people are looking for ways to earn passive income from their tokens that are not committed elsewhere. 

One popular strategy for generating steady returns is known as crypto yield farming. This refers to lending your crypto to a liquidity pool, often on decentralized exchanges like PancakeSwap and Uniswap. The process is usually straightforward for anyone to do, regardless of their experience in the market. You can deposit your funds into the liquidity pool and let them sit for a while before withdrawing them back.

Not only does crypto yield farming allow you to earn a steady stream of passive income, but you are also helping the decentralized exchange ecosystem to become vibrant. That's because crypto yield farming provides liquidity for DEX trading. Because decentralized exchanges often lack sufficient volumes of on-chain orders, they rely heavily on off-chain liquidity pools that help ensure that orders get fulfilled quickly and efficiently. Participating in crypto yield farming on platforms like PancakeSwap or Uniswap provides essential support that fuels this robust ecosystem of DEXs. 

When it comes to crypto yield farming and crypto lending, one crucial factor to consider is the liquidity of the crypto being used. Generally speaking, the newer and less liquid a cryptocurrency is, the higher its respective annual percentage yield (APY) will be higher. This is because yield pools generally offer more competitive rates for hard-to-require or trade coins. For example, it might be wise to look at less popular coins with lower market caps if you are looking to invest in crypto lending. 

Low-cap coins offer higher yields since they are less liquid and therefore generate more interest among investors looking for ways to earn passive income from their cryptocurrency portfolio. When deciding on a strategy for yield farming or lending, it is essential to consider all aspects of each option, particularly the liquidity of the assets involved.

With its potential for high returns and low-risk levels, crypto yield farming is one of the hottest trends in blockchain today. The earnings are predictable, and the risks are pretty low compared to most approaches to cryptocurrency investing. If you don’t want the hustle of timing the market, crypto lending is without a doubt one of the top ways to make money with cryptocurrency in 2023.

 

4. Day trading – One of the best ways to earn daily from cryptocurrencies.

Day trading stands among the most lucrative ways to earn with cryptocurrencies in 2023. You can make consistent and reliable gains throughout the day with a basic understanding of technical analysis indicators such as moving averages.

To be successful at crypto day trading, you must understand the underlying concepts that drive short-term volatility in this market. Typically, traders will aim to take advantage of short-term price fluctuations by opening multiple positions throughout the day. This helps them to minimize their risk while still making steady profits regularly.

Of course, successfully navigating this dynamic and ever-changing landscape requires skill and effort. Still, if you are willing to commit and put in the work, then there is no reason why you can't become a successful crypto day trader. 

To successfully day trade digital currencies, you need to find a broker that meets two core criteria – low fees and support for a wide range of crypto markets. Regarding fees, the most important thing is that your trading platform charges low commissions on each trade. This will help to maximize your profits, so you can easily turn a profit even when the stakes are high.

As for the number of crypto markets supported by your exchange, you must have access to as many different coins and tokens as possible. This will give you more options for setting up profitable trading strategies, allowing you to capitalize on ever-shifting market trends. With these criteria in mind, there are plenty of great exchanges out there that offer exactly what aspiring day traders need.

One of the top cryptocurrency exchanges you can use eToro. It has some of the lowest fees in the market. eToro has a wide range of cryptocurrencies, allowing you to make the most of your everyday trading activities. 

trade cryptocurrencies

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

5. HODLING – Perfect option if you believe in the future of blockchain technology.

This is by far the easiest way for newbie investors to make money with cryptocurrency in  2023 and beyond. All you have to do is buy a cryptocurrency and hold it long-term, say 5 years or more. 

HODLing has quickly become one of the most popular cryptocurrency investment strategies. This strategy is centred around the belief that long-term price trends are more important than short-term gains and losses. Rather than trying to time the market or make speculative trades, HODLers buy a coin and hold onto it for many years, regardless of short-term fluctuations in price.

And this strategy can certainly pay off, as many cryptocurrencies have seen significant gains over the long term. For example, Bitcoin has risen by thousands of percentage points since its inception, while other well-known currencies like Ethereum and Dogecoin have also experienced huge growth. With just a bit of patience and discipline, you can potentially see great returns over the long term by simply holding your crypto assets over time. And with so many cryptocurrencies to choose from, HODLing is pretty easy. 

When maximizing your cryptocurrency investments, finding a suitable exchange is crucial. With so many options, knowing which platform will best enable you to HODL long-term is hard. Luckily, eToro is an excellent choice for anyone looking to HODL. Not only does it offer access to over 50 top cryptocurrencies, but its low fees and high-level security make it the ideal choice for any serious investor. Additionally, eToro is a regulated exchange. It is regulated in the US, the UK, Australia, and Cyprus. Whether you are an experienced trader or just starting, eToro offers everything you need to maximize your investment through a HODLing strategy. 

 

6. Early token investing – Top option for exponential returns

When it comes to making money with cryptocurrency in 2023, there is no smarter strategy than investing early in up-and-coming altcoins. These digital currencies often get overshadowed by much larger projects like Bitcoin and Ethereum, but they have enormous potential to grow in value exponentially over time. 

By purchasing cheaply priced tokens at the inception of these altcoins and holding them long-term, you can significantly increase your wealth while potentially minimizing risk. After all, by joining a project at its earliest stages, you are helping to shape its trajectory and position yourself for maximal benefits should it succeed.

To give you an idea of how big of a deal investing in cryptocurrencies early is, consider that there was a time when Bitcoin was trading at less than $0.01. A decade later, Bitcoin is a trillion-dollar asset and even recently hit an all-time high of $69k.

Similarly, anyone who got into Shiba Inu when it launched in 2020 got it at $0.000000001. By November 2021, Shiba Inu had reached a high of $0.00008. This means an investment of just $10 in SHIB when it went live in 2020 earned some investors millions by the end of 2021. That's how powerful it is to invest in a cryptocurrency early. 

That said even the best altcoins carry tremendous risk when still in their initial stages. But like all good investments, risk is part of the game. Whether you invest in established cryptocurrencies like Bitcoin and Ethereum or in lesser-known altcoins with even more upside potential, success in the world of crypto requires finding the right balance between risk tolerance and growth potential. 

It's crucial to strike when the iron is hot – so be sure to research promising projects thoroughly and act quickly when opportunities arise. Doing so should allow you to reap huge rewards over time.

 

7. Play-to-earn games – You earn rewards for participating in games

If you are the type that loves some fun while making money, then you might want to consider play-to-earn games as a way to make money with cryptocurrency in 2023. Under the play-to-earn gaming or P2E gaming model, players enter a digital metaverse where they can interact with other players and compete in various games. The goal of P2e gaming is to earn cryptocurrency by playing games and winning competitions. 

Not only can players use their winnings to get upgraded tools or purchase virtual goods, but they can also sell their items or skills to other players. This allows for a truly dynamic and multifaceted gameplay experience and opens up new opportunities for earning cryptocurrency in an engaging and fun way. Whether you're an avid gamer looking for a challenge or someone who wants to dip your toe into the world of crypto, P2e gaming has something for everyone. 

One of the best play-to-earn games you can try is Axie Infinity. Axie Infinity is a community unlike any other: a digital pet paradise where you can own and care for hundreds of unique creatures called Axis. Whether you're raising Axis to battle, exploring their vast world, or breeding them in hopes of creating the ultimate champion, there's always something exciting to do in this incredible virtual universe. 

Besides the joy of raising digital pets, you can always sell them for crypto, which you can then exchange for fiat currencies. It's one of the most exciting ways to make money in crypto by buying and selling NFTs.

 

8. DAOs – You get to make decisions on a cryptocurrency's direction and get paid for it

DAOs are a major advancement in the world of cryptocurrency and blockchain technology. These decentralized organizations are designed to take many existing centralized systems, such as traditional financial institutions and large corporations, and transform them into decentralized entities that community members collectively run. To become a part-owner of a DAO, you only need to hold the DAO's native cryptocurrency.

One example of a successful DAO project is Uniswap. This innovative exchange platform allows users to trade cryptocurrencies without relying on cumbersome third-party intermediaries or centralized authorities. As a Uniswap token holder, you get to decide on things like fees and other aspects of the smooth running of the Uniswap ecosystem. Since these tokens usually have a strong case, it then follows that investing in DAOs is one of the best ways to make money in cryptocurrencies in 2023. 

 

9. Airdrops – You get gifted extra tokens just for holding certain cryptocurrencies

Airdrops are a great way for cryptocurrency enthusiasts to earn free tokens without needing to put in any money. Unlike traditional sales and token launches, airdrops do not require users to make any deposit or spend any funds upfront. Instead, they allow you to earn tokens simply by signing up and following the necessary steps. Some of these steps might include sharing information about the project on social media, joining an online community, or completing simple tasks like watching an educational video.

Furthermore, airdrops often act as a crucial means for new projects to get their tokens introduced into circulation. Since these projects typically do not hold a presale or launch on a conventional exchange, they need some other way to generate interest in their tokens and encourage people to use them moving forward. And by offering prospective users free tokens through an airdrop campaign, these projects can quickly build a community and generate interest in their products and services. Many airdrop tokens have become worth a lot of money and made investors rich. For instance, Bitcoin Cash was an airdrop to Bitcoin holders, and it is one of the most successful cryptocurrencies in the market. 

Overall, then, it is clear that airdrops can be an incredibly effective way for cryptocurrency enthusiasts to invest in and participate in new projects without needing to shell out any money. Whether you are looking for your next big investment opportunity or want to explore the world of crypto trading, there are sure to be plenty of exciting opportunities waiting through airdrops. They are an incredible way to make money with cryptocurrencies in 2023 without doing anything. 

 

10. Faucets – A top beginner way to earn cryptocurrency by doing simple tasks

Given the popularity of cryptocurrency and blockchain technology, it is not surprising that many websites and mobile apps are dedicated to helping people earn free digital tokens. Known as crypto faucet platforms, these sites allow users to complete all sorts of tasks in exchange for free tokens. Some common examples include completing captchas or playing newly launched games.

Depending on the platform you choose, there may be other types of tasks that you will need to complete to earn your free crypto. Some sites require you to complete surveys or refer friends, while others might ask you to write reviews about different cryptocurrencies or download specific apps. 

Whatever the case, there are plenty of opportunities for anyone interested in earning free crypto to find a suitable platform and get started immediately. Whether you're looking to dip your toes into the crypto space for the first time or you're an experienced investor looking to explore new opportunities, crypto faucets offer a great way to get started with minimal risk and effort involved. 

The only downside to faucets is that the earnings are tiny. That said, it is important to note that the platforms that faucet platforms allow you to earn cryptocurrency without any financial investment. Unlike many other forms of investing, crypto faucets do not require you to put up any money upfront but instead allow you to complete various tasks to earn small amounts of cryptocurrency. 

Whether you participate in surveys, play games, or engage with social media, each task will typically offer only a negligible amount. Nevertheless, there is no risk since you are not putting in money. That's why faucets are a risk-free way to make money with cryptocurrencies, they are a great way for fledgling investors to gain valuable experience and start making money with cryptocurrencies in 2023. 

 

Best Exchange To Invest In Cryptocurrencies In 2023

Up to this point, we have looked at the 10 best ways to make money with cryptocurrencies in 2023. But how do you buy cryptocurrencies safely and efficiently?

We have reviewed multiple cryptocurrency exchanges and believe that eToro is the best. 

eToro – Top Cryptocurrency Exchange To Use In 2023

eToro is one of the most used cryptocurrency exchanges globally. More than 20 million people use it globally, and the numbers are growing. The reason eToro stands out as one of the best cryptocurrency exchanges to trade or invest in cryptocurrencies is its safety.

eToro is regulated across multiple jurisdictions, namely: The US, the UK, Australia, and Cyprus. You will also love that eToro offers a wide array of cryptocurrencies, and you can invest from as low as $10. This allows for diversification even on a low budget. 

eToro is not just suitable for HODLers and traders, you can also stake on eToro. While most platforms require you to lock your crypto when staking, eToro allows you to stake and withdraw whenever you wish. 

You will also love the fact that eToro has multiple deposit methods. With eToro, you can't miss a convenient way to make a deposit, be it a wire transfer, card deposit, or even the plethora of e-wallets that eToro has at its disposal. 

Key Points On What We Love About eToro

  • It allows staking – with no lockup
  • High yields, over 10% APY 
  • It is regulated
  • It has a safe wallet for HODLERs

Conclusion

This article has looked at the 10 best ways to make money with cryptocurrencies in 2023. The best ways to make money with crypto that we have discussed include buying to hold, active trading, and staking for passive income. 

It is always best to remember that cryptocurrencies are risky assets. As such, whatever strategy you choose, make sure to do some due diligence on the cryptocurrency you are investing in. 

eToro – Best Platform To Buy Cryptocurrencies

Open an account with eToro, deposit some funds with USD, and finally – buy cryptocurrencies for just $10.

etoro cryptocurrency trading

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

FAQs

What is the best way to make money with cryptocurrency in 2023?

Any methods discussed in this article can do, from active trading to staking for passive income.

Is crypto mining profitable?

Yes. But buying rigs can be quite expensive. That's why new investors should do passive crypto mining. 

Are airdrops worth it?

Yes. While there are many airdrops of worthless tokens, consider that a cryptocurrency like Bitcoin Cash was an airdrop to BTC holders.

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