The cryptocurrency space has seen a huge growth in recent times and has provided various opportunities for different individuals to explore. Contrary to what many people think, money must not be invested before money can be made from cryptocurrencies. Freebies such as airdrops and forks can even make people rich.
Making money from cryptocurrencies is easy but needs proper research. While being a very risky sector, there are other less risky ways of making money from this sector. Having seen a huge growth recently, it is evident that a lot of money can be made in the crypto space with proper research.
This article will teach you 7 ways to make money with cryptocurrencies. While money is needed to explore some options, others require just pure knowledge and consistency. Let’s dive in! Shall we?
CHECK OUT: WHY I ALWAYS TAKE PROFIT WHEN TRADING CRYPTO
7 WAYS TO MAKE MONEY WITH CRYPTOCURRENCIES
Since the birth of bitcoin, the cryptoverse has seen tremendous growth and is ever growing. It has provided a means of livelihood for lots of individuals and is still changing lives. The beautiful thing about the crypto space is that you do not always have to invest money to make money. Let’s explore 7 ways to make money with cryptocurrencies.
1. Investing and Trading
Investing and trading cryptocurrencies is one of the easiest ways of making money in the crypto space. Although it is very risky due to volatility and crypto related frauds, it is still one of the best investments one can make in the 21st century.
Investing in cryptocurrencies has to do with buy and HODL (hold on for dear life) until a target is met. Some investors buy crypto assets and set an amount of profit they want to make from it over a duration of time. It may take lots of year in some occasions while in some, it takes a considerably short period of time. It took some few years for bitcoin to change a number of lives but this wasn’t the case with Shiba Inu which made a good number of persons rich within a span of one year.
Trading cryptocurrencies actively has to do with actively buying and selling. Since the prices of crypto assets are volatile, they change within a short period of time. Active traders study the market and buy at low prices with hopes of selling when the price rises.
Doing a proper research before investing or trading cryptocurrencies is very important.
2. Staking and Lending
Staking and Lending has become more popular in the cryptoverse. Both are generally processes that allow your already owned assets to work for you thereby generating passive income.
Staking involves a process through which some blockchains verify and validate transactions. This is only available on blockchains that make use of a consensus mechanism known as ‘proof of stake‘. It can more or less be seen as a process of lending your crypto assets to the blockchain network in question. The blockchain in return rewards you with more cryptocurrencies for helping it verify transactions and maintaining security.
CHECK OUT: WHAT IS CRYPTOCURRENCY STAKING?
Lending involves a process of giving out cryptocurrencies to another user for a duration of time with hopes of receiving back your assets with some interests on repayment. Many crypto exchanges such as Binance and Kucoin offer lending on their platform.
It is important to note that when you stake or lend your cryptocurrencies, you do not have access to them for a given duration of time. This becomes risky because due to market volatility, the price of the assets may have fallen drastically by the time you receive your assets with interests thereby incurring some losses.
Mining is a process of verifying blockchain transactions by solving complex mathematical equations generated by the blockchain. This process is only available to blockchains that make use of a consensus mechanism known as ‘proof of work‘.
When a transaction is initiated on the blockchain, different miners compete to provide an answer to the equation generated by the blockchain. The first miner to provide the answer to the equations receives the mining reward. A notable example of a blockchain that utilizes the proof of work model is Bitcoin. The mining reward for bitcoin is reduced by half every four years.
CHECK OUT: WHAT IS CRYPTOCURRENCY MINING?
The process of mining involves the use of highly specialized computers which are quite expensive. Cryptocurrency mining is mainly for the big players in the crypto space.
4. Airdrops and Forks
Both airdrops and forks are ways of getting free cryptocurrencies without spending a dime. Airdrops are not promising ways of getting promising crypto tokens but since they are free, then it’s cool. Projects distribute free tokens to users as a sort of marketing to increase their user base. Some airdrops like that of Uniswap made a lot of people rich.
Forks on the other hand occur when a blockchain changes or upgrades it’s protocol. In this case, new coins are created and they are distributed to holders of the blockchain’s previous coins.
5. Content Creation
Content creation is one of the most promising ways to make money in the crypto space. This on most occasions does not involve you to invest any money. It is a simple process that involves creating contents and gathering a reasonable number of following. With this, cryptocurrencies platforms pay you to post contents about them.
Content creation may involves creating crypto related contents on social media such as instagram, twitter, tik tok and youtube. When you gather a good number of following, crypto platforms come to you for adverts.
Another way of making money in the crypto space while creating contents is by blogging. Blogging on it’s own provides a lot of monetization opportunities when done correctly. Some of the monetization opportunities open to crypto blogs include; use of advertisement platforms like google adsense, sale of crypto courses, running a membership blog, use of affiliate links and so many more. The opportunities are just endless.
6. Crypto Arbitrage
Since the crypto space is highly unregulated, prices of a particular crypto asset may vary slightly across different exchanges. Crypto arbitrage has to do with capitalizing on the slight price difference across exchanges to make profits. This process is completely legal and is not a crime in any way. In fact, the CEO of FTX exchange, Sam Bankman-Fried made a ton of money from arbitrage trading.
7. Blockchain Development
This has to be the last because it is reserved for the technical dudes or those interested in learning the technicalities of blockchain. Blockchain developers are highly sort after and are among the best paid developers in the world at the moment. Landing a blockchain job is quite easy since there aren’t much blockchain developers out there. For someone who is techy, blockchain development may be a good way to make a lot of money in the crypto space.
Making money in the crypto space is quite easy only if proper research can be done. It does not always have to do with investing or trading crypto assets. Even people who are tight on budget can take part in different cryptocurrency activities to earn money. Activities such as airdrops or bounty hunting and content creation do not require money to begin. Content creators and big crypto influencers make a shit ton of money even when the market is down.
Exploring these opportunities can be life changing for anyone.