While cryptocurrency has many risks, it remains one of the most effective ways to earn passive income online. However, you may wonder how you can turn your digital assets into cash. If you are considering boarding the crypto money-making train, here are nine ways to make money with cryptocurrency to help you get started.
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An effective strategy to convert digital assets like Ethereum, Binance, Litecoin, and BTC to USD, especially if you are a beginner, is by investing. Crypto investing involves buying digital assets and holding them for a specific period.
Investing is a long-term strategy that enables you to spread risks and diversify your portfolio. Before investing, conduct extensive research to choose stablecoins that will likely be around in the long term to avoid losing money.
For instance, you could invest in currencies like Bitcoin and Ethereum with a track record of long-term price increases, making them safe investments.
If the buy-and-hold strategy does not appeal to you, consider taking advantage of short-term opportunities through day trading.
The crypto market is highly volatile, meaning the coin’s prices can increase or decrease dramatically.
To maximize your profit, you must possess excellent technical and analytical skills.
This enables you to study the market charts of your preferred cryptocurrencies to accurately predict whether the asset’s price will rise or fall.
Next, you should take a short-term or long-term trading position, depending on whether you anticipate the coin’s price to increase or decrease to make a profit.
With that being said, trading is a high-risk venture, so avoid investing more than you are willing to lose.
3. Crypto staking
If you own a specific number of digital assets, consider locking them in a wallet for a particular period. You should not spend or withdraw your assets within this period.
The proof of stake network then uses your assets to fund its operations, and in turn, you receive dividends and interest at higher rates.
The type of digital assets you own and the number of coins you stake determines the interest and dividends you receive.
Be sure to conduct extensive research before crypto staking to determine the risks involved.
For instance, locking your assets for a specific period subjects you to the risks of storing digital assets in a cryptocurrency exchange.
Another lucrative way of making money in cryptocurrency is through lending.
This involves loaning your digital assets to another person, and in exchange, you earn interest.
The amount and the type of digital asset you loan influences the interest rate you receive. You could even make a 15% annual interest or more from crypto lending!
To start lending, you and the person you are loaning should link your wallets and accounts, and then a smart contract is generated on the blockchain to solidify your relationship.
However, ensure you pick the right lending platform to realize favorable profits. Below are some lending platforms you could select:
- Peer-to-peer (P2P) lending platforms
- Decentralized lending platforms
- Centralized lending platforms
5. Play-To-Earn Games
Did you know you can make money in cryptocurrency by playing games? If you are working under a budget and do not have enough cash to invest in crypto, engaging in play-to-earn crypto games is an effective way to make passive income.
Play-to-earn crypto games allow gamers from all over the world to complete tasks and compete with other gamers to win a unique NFT often stored on the blockchain.
The winner owns the unique NFT, and they can hold or sell it in the open market.
Some popular play-to-earn games include Gods Unchained, Axie Infinity, Zed Run, and Decentraland, to mention a few.
If you are unsure how to engage in the play-to-earn games, consider trying out the free demos before investing in NFT to play for cash.
Mining is perhaps the most common and oldest way to earn passive income in cryptocurrency. It is a crucial component of an algorithm known as Proof of work.
Behind the Proof-of-Work (PoW), miners compete against each other to identify an encrypted solution to a block, resulting in new coins being released into the chain. The winner is then rewarded with crypto.
There are two different ways of mining. You could invest in specialized hardware or leverage cloud mining services.
Hardware mining is often expensive to start as you must first purchase and maintain hardware.
It also requires technical expertise to earn significant rewards.
On the other hand, cloud mining is less expensive because you do not have to buy or maintain hardware; however, its rewards are often lower than hardware mining.
Airdrops provide an excellent way for users to join the crypto money-making train without spending or depositing cash.
A newly launched exchange will deposit their native coins in people’s wallets to enter a new token into circulation.
Users do not have to pay any cash upfront. The purpose of airdrops is to create awareness and build a larger user base for a new project.
To get free coins, you could join online communities, share project information on your social media handles, or complete simple tasks like watching the project’s educational video.
8. Content creation
If you are a content creator, you could generate high-quality, engaging, informative crypto content to build your brand and make money with cryptocurrency.
A viral post could help you become one of the most sought-after blockchain influencers!
Be sure to identify a platform with a growing cryptocurrency audience. Some thriving crypto scenes include TikTok, YouTube, Instagram, and Twitter.
Next, create engaging content to capture your target audience’s attention. You could then start making money through online ads, getting deals from popular brands, and promoting different projects once you have built your audience.
9. Affiliate programs
Some crypto exchanges have affiliate programs that allow users to earn a commission once a customer signs up with your referral code. Leveraging affiliate programs is an excellent way to make a profit without mining, investing, or trading.
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There are various ways to make money with crypto, including direct investments, trading, staking, lending, mining, airdrops, and content creation. Be sure to choose a favorable investment plan and stick to it.
You should also conduct in-depth research to understand the risks of cryptocurrency and how to mitigate them to maximize profit.
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