The cryptocurrency markets offer many opportunities for profit. This includes not only purchasing and hodling digital currencies in the traditional sense, but also through staking, interest accounts, airdrops, play-to-earn games, and other methods.
In this beginner’s guide, we discuss how to make money with cryptocurrency in 2023 across 10 proven methods.
If you’re wondering how to make money from cryptocurrency right now – these are some methods:
- Invest in High Potential Crypto Presales like Dash 2 Trade – Best Method for Long-Term Returns
- Earn Monthly TradFi Returns from The Uncharted NFTs
- Passive Cryptocurrency Mining – Overall Best Way to Make Money With Cryptocurrency
- Staking and Interest – Earn Passive Income on Idle Cryptocurrency Tokens
- Day Trading – Make Money by Trading Cryptocurrency Pairs
- HODLing – Invest in Cryptocurrency and HODL Long Term
- Play-to-Earn Crypto Games – Earn Rewards for Playing Crypto Games
- Crypto Yield Farming and Lending – Generate an Attractive APY on Your Cryptocurrencies
- Faucets – Earn Free Cryptocurrency by Completing Simple Tasks
- Airdrops – Cryptocurrency Tokens Deposited Into Your Wallet for Free
Ways to Make Money With Cryptocurrency
1. Invest in High Potential Crypto Presales Like Dash 2 Trade – Best Method for Long-Term Returns
Investment in the top altcoins as soon as possible is the best way to make money with cryptocurrencies overall.
After all, you would have paid a tiny fraction of a cent if you had purchased Bitcoin at the time of the digital currency’s initial launch in 2009. In a similar vein, when Ethereum’s token was first introduced in 2015, it was only worth $0.75 per token.
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The projects mentioned above are both now worth thousands of dollars and have produced impressive returns.
Since they are newly launched projects, cryptocurrency presales typically offer prices below market value. Therefore, they have a greater chance of generating returns than more established projects, though investors should make sure to conduct adequate research and due diligence before investing in a presale.
2. Earn Monthly TradFi Returns from the Uncharted NFTs
For cryptocurrency users, The Uncharted offers yet another fantastic source of income. Users of Web3 receive returns from TradFi through the collection of 21,000 NFTs. High-tech HFT (High-Frequency Trading) algorithms support the project, which is backed by Xeta Capital Fund (XCF).
The Uncharted’s sales proceeds are entirely donated to the fund. Xeta Capital, a well-known wealth management company, has a sister project called The Uncharted.
Through quarterly airdrops, the Uncharted NFT owners are given a portion of the monthly profit made by the fund. The fund will be distributed equally among NFT holders and The Uncharted LTD after a three-year period during which it will remain in effect. It is anticipated that the returns will increase as the fund compounds over time.
This does not imply that you must use the NFTs for the full three years. On secondary NFT market places, you can always sell them again. Given that the fund is managed by a group of industry veterans with a combined track record of more than ten years, the collection is anticipated to soar to the top of NFT sales charts as the quarterly returns decline. The asset’s collectible value cannot be discounted, despite being distinguished by its real-world intrinsic value.
3. Passive Cryptocurrency Mining – Overall Best Way to Make Money With Cryptocurrency
By directly operating your own mining rig, you could earn money with cryptocurrencies. However, purchasing the hardware necessitates a sizable down payment and technical expertise to set it up. As an alternative, you could put money into a cryptocurrency mining protocol that generates income without actively mining.
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4. Staking and Interest – Earn Passive Income on Idle Cryptocurrency Tokens
You can generate passive income from dormant digital tokens you own thanks to two notable ideas in the cryptocurrency markets. To help validate transactions on proof-of-stake blockchain networks, the first option is crypto staking, which entails locking away your tokens for a predetermined period of time.
Cardano, Tron, and — soon — Ethereum are a few examples of popular staking networks. Most importantly, you will earn interest while your tokens are hidden away. Therefore, you won’t be required to adhere to a minimum lock-up period if you stake on the eToro platform. Instead, you are always free to withdraw your tokens.
The idea of using an interest account is the second thing to think about when learning how to passively earn money with cryptocurrencies. In their most basic form, cryptocurrency interest accounts function similarly to a conventional bank. This is because you will receive an interest payment for depositing your cryptocurrency tokens.
Your cryptocurrency tokens won’t be deposited into a smart contract, in contrast to staking. On the other hand, your preferred provider will lend your tokens to people who need to borrow money. So long as the tokens are being lent out, the borrower will pay you interest at a certain rate.
Aqru currently provides the market’s top overall cryptocurrency savings account. With deposits in Bitcoin and Ethereum, you can earn 7% annually, and deposits in stablecoins like Tether can earn you 12% annually. Aqru does not impose any lock-up requirements on any of its accounts because they are all flexible. Additionally, the Aqru app allows you to purchase cryptocurrency and make fiat currency deposits.
As previously mentioned, players of RobotEra will be able to stake TARO tokens to obtain rewards.
5. Day Trading – Make Money by Trading Cryptocurrency Pairs
Actively participating in day trading is one of the most profitable ways to earn money with cryptocurrencies. There is a small catch, though: in order to determine whether the token in question is likely to appreciate or depreciate in value, you must at the very least have a basic understanding of how to use the best cryptographic tools for price analysis. You could make money trading cryptocurrencies all day long if you are able to do this.
Using short-term volatility to your advantage is the main idea of day trading in cryptocurrencies. Experienced traders in this market will also infrequently, if ever, hold onto a position for longer than a day. The goal is to open multiple positions throughout the day and make smaller but more frequent profits as a result.
Finding a regulated cryptocurrency exchange that satisfies the two essential requirements of low fees and support for a wide range of markets is necessary for day trading digital currencies. With regard to the first, you will find it difficult to make the process worthwhile if you are day trading cryptocurrency on an exchange that levies high fees. Since commissions will consume a portion of your profitable trades.
For instance, Coinbase charges 1.49% per slide, so you must first pay this fee in order to close the trade at a profit. eToro, on the other hand, is much more competitive. A day trading opportunity will always be available to you thanks to eToro’s access to dozens of popular digital currencies.
6. HODLing – Invest in Cryptocurrency and HODL Long Term
Arguably the best choice for beginners is this strategy from our list of ways to earn money with cryptocurrencies. This is due to the fact that HODLing, a play on the word “Hold,” simply describes the act of purchasing a cryptocurrency and holding onto your tokens over the long term. This is comparable to purchasing stocks and holding them for a number of years.
And by doing this, you can avoid worrying about sudden price changes, especially if you choose to invest in reputable and long-standing cryptocurrencies like Bitcoin and Ethereum. For instance, the price of Ethereum at that time was $4,300 per token. After only one month, Ethereum’s price had fallen to a low of $2,100.
You would have suffered a loss of about 50% if you had sold your ETH tokens out of panic. If you had been HODLing, however, Ethereum was trading at almost $4,900 per token by November of that same year. This is only one among many others. The important thing to remember is that using a long-term strategy is the best way to invest in cryptocurrencies.
Once more, you must locate a reliable exchange if you want to HODL your investments effectively. eToro also fits the bill here, as you can invest in 60 leading cryptocurrencies from just $10 at industry-leading fees. You will be able to HODL long-term safely and securely because this exchange is additionally approved by pertinent licensing bodies in the US.
7. Play-to-Earn Crypto Games – Earn Rewards for Playing Crypto Games
You might be surprised to learn that playing games is a viable option for making money with cryptocurrencies. There is no doubt about it: the market for play-to-earn crypto games is now worth billions of dollars. Although there are many different kinds and variations of games in this field, Decentraland is perhaps one of the best cryptogames to take into consideration playing.
Decentraland, to put it simply, provides a metaverse where users from around the world can create virtual characters, interact with others, and most importantly, purchase real estate. Once you have acquired a piece of land and constructed your own real estate project, this is then shown as a distinctive NFT.
8. Crypto Yield Farming and Lending – Generate An Attractive APY on Your Cryptocurrencies
Currently, yield farming and lending are two more beginner-free ways to earn money with cryptocurrencies. Despite the fact that both of these investment concepts allow you to earn interest passively, they actually refer to slightly different strategies. To begin with, lending your unused tokens to a liquidity pool is what is meant by the phrase “crypto yield farming.”
In the vast majority of cases, you will be giving decentralized exchanges the much-needed liquidity they require. On the Binance and Ethereum blockchain networks, respectively, Pancakeswap and Uniswap are two of the market leaders. Money that is deposited into a liquidity pool is frequently locked away for a predetermined period of time.
Additionally, you will receive a rate of interest for the duration that the tokens are in the liquidity pool. In many cases, the pool will offer a higher APY for a cryptocurrency that is newer and less liquid. This is the same idea we talked about earlier when it comes to cryptocurrency lending, where you will put your digital tokens into a savings account.
And as a result, those who want to borrow money will be able to borrow your tokens. Making a wise choice for your preferred platform is crucial when engaging in crypto lending. Due to the constant possibility of defaulting borrowers, this is. The platform only lends cryptocurrency to high-grade borrowers who have been thoroughly vetted, which is another reason why Aqru stands out.
9. Faucets – Earn Free Cryptocurrency by Completing Simple Tasks
By completing tasks on websites that offer cryptocurrency faucets, you can get paid in free virtual currency. The specific tasks that you must complete will vary from one platform to the next in this market. For instance, some platforms for cryptocurrency faucets require you to solve captchas.
There is no requirement for prior experience because anyone can accomplish this. Then there are cryptocurrency faucets that take the form of a smartphone app. These frequently require you to play recently released games, and after reaching certain milestones, you will receive free cryptocurrency.
It is crucial to remember that the rewards offered at crypto faucet platforms are meager. In fact, the majority of the time, each task you complete will only pay out a few cents in cryptocurrency. Crypto faucets, on the other hand, let you earn rewards without taking any financial risks because no money is needed to be deposited.
10. Airdrops – Cryptocurrency Tokens Deposited into Your Wallet for Free
Similar to faucets, airdrops give you the chance to earn free cryptocurrency tokens without having to pay for them up front. This article’s main idea is that some recently launched projects will distribute their native tokens directly into users’ wallets as a way to introduce cryptocurrencies into widespread use.
As opposed to a traditional presale and fair launch directly onto a cryptocurrency exchange, this. As a result, when they start an airdrop, the project won’t raise any money. There are many instances of airdrops that later became multi-billion dollar projects, despite the fact that this may seem too good to be true.
The 10 tried-and-true strategies covered in this guide on how to earn money with cryptocurrencies should be taken into account in 2023. The best strategies we found include long-term HODLing investment strategies, yield farming, play-to-earn games, staking, and cryptocurrency savings accounts.
The best way to profit from cryptocurrencies overall, though, is to put money into promising digital assets that are just getting started on their respective road maps.
As two recent cryptocurrency presales that are currently up for purchase are Dash 2 Trade (D2T) and RobotEra (TARO), presales typically offer much more potential and room for growth than more established projects because they have low entry points.