sharing with you 8 prominent ways you can make money with cryptocurrency in your space-time. Each strategy in the guide is very easy to understand and equally admissible.

Updated on 11 months by Peter Jakes

 

 

If you’re reading this article, that means you must have heard about how many people have profited massively through investing in cryptocurrency and you are looking for more information about cryptocurrency and how it works. Cryptocurrency is the new trend. Especially bitcoin rising to $40,000 this year.

 

In this guide, I’ll be sharing with you 8 prominent ways you can make money with cryptocurrency in your space-time. Each strategy in the guide is very easy to understand and equally admissible.

1. Buy and HODL

Almost every newbie to the world of cryptocurrency must have heard of the “HODL”, this means you should buy a certain cryptocurrency and leave for a long period with the hope that the value of the coin will rise later on.

This strategy is the same as what most investors do with stocks, you buy some prodigious crypto coins (ensure you do in-depth research), wait till the price of the coin rises above the initial buy price, and then sell them when the worth of the coin is higher. Some options you can consider include Bitcoin, Ripple, Ethereum, Litecoin, among others.

Be careful choosing a coin to invest in, don’t underestimate the worth of intensive research.

Also, don’t put your eggs in one basket. Diversify your investments and spread them across different crypto coins that show the most potential of rising in value later on. Don’t limit your choice to popular coins only, small coins can be very profitable because of their volatility.

2. Earn Crypto Dividends

Similar to stocks, you can earn dividends by holding certain tokens from some crypto companies for some time. Some of the coins you can earn dividends from include

  • Komodo
  • COSS
  • BTMX
  • Neo
  • KUCoin

On average, dividends range from 5-10% per annum by holding these coins. That doesn’t mean you shouldn’t take precautions by investigating the company before buying.

3. Day Trading (Buy Low. Sell High)

This strategy is a very profitable way to earn money through cryptocurrency. The concept of Day Trading is very similar to HODL but in this case, the holding period is shorter (could last for a few minutes, hours, or even days) depending on the coin you are trading with.

However, this strategy isn’t advisable for beginners because it requires expert technical and analytical skills to understand the market. Any previous experience in forex trading or analyzing the stock market is a huge plus.

This is not a get-rich-quick scheme, it requires patience and understanding of the crypto market as it can easily become a get-broke-quick scheme.

4. Staking

Staking, or Proof of Stake (PoS), is another great strategy that can fetch you lots of money on cryptocurrency.

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What is staking?

Staking is a type of crypto mining that involves verifying cryptocurrency transactions and adding them to the blockchain network.

How do you earn from staking?

Earning from staking is similar to operating a bank’s fixed deposit account. The major difference is that instead of being paid in interest (as in a fixed deposit account), here, the reward is extra coins for being a forger—someone who verifies PoS blockchain transactions.

Staking isn’t available for all crypto coins except for those with a Proof of Stake system like:

  • Navcoin
  • Komodo
  • Decred (DCR)
  • Neo

Staking is not as expensive as mining and doesn’t require capital for expensive equipment or electricity. With a wallet that is connected to the blockchain, you are good to go.

5. Arbitrage

Arbitrage works based on the principles of the traditional buy low and sell high for a profit but with a little twist. In this method, you leverage the price variation across different crypto exchanges.

Here is how it works. You buy a cryptocurrency at a cheaper rate from one platform, send the coin to another platform, and resell it at a higher price than you initially bought it—leveraging on the difference in prices on both platforms.

This requires you to be good have crypto market research skills and also fast with executing transactions. Also, there are lots of apps and software that can make this process easy for you.

6. Mining

Earning crypto coins through mining has to be in place since the creation of cryptocurrency itself making it the oldest method of earning crypto coins.

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How does Mining works?

Mining involves a series of processes where cryptocurrency transactions are verified before being added to the blockchain. You’ll need certain hardware to be able to do this. For each successful cryptocurrency transaction, there’s at least one miner at the back of the scene verifying and authenticating the transaction as well as adding it to the blockchain network.

The greatest advantage of cryptocurrency is its decentralized nature which means anyone can become a miner. Mining can be really expensive with the cost of equipment, cooling system, and electricity but it’s highly profitable.

7. Micro Earnings (Microtasks, Faucets.)

Earn crypto coins just by performing minor tasks online. Mirco-earning platforms like Bitcoin faucets will pay you a small amount of bitcoin (satoshis) after completing certain tasks. These tasks can be anything from watching videos, filling out surveys, or clicking on ads.

On average, you get paid between 100 – 150 satoshis per task completion. Although these tasks require little effort, making a substantial amount of money from them will take a lot of time.

8. Airdrops

Airdrops are the free money floating around the crypto market. It’s like a fairytale bank that dumps extra cash into your account just because you held your money with them.

They are free coins given out by some companies to their customers that possess a certain crypto coin. The main aim of the airdrops is for the company to:

  • Raise funds
  • Widen the circulation of tokens
  • Generate awareness
  • Reward loyal customers
  • Understand their users

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There are many approaches to earning airdrops (free coins). First, you get free tokens for enrolling in blockchain educations programs. The Coinbase and Stellar partnerships program is one example of such programs, here you learn about XLM and get paid in Stellar Lumens for it.

Airdrops are also given out in ICOs programs where you are required to invest in a cryptocurrency and refer people to the program. This might require you to perform certain actions before getting the reward including holding the coin for a certain period.

Conclusion

Finally, that the end of our guide on earning money daily investing in the crypto market. Each strategy discussed here has its benefits and risks, the choice is yours on which one to go for depending on your personal needs and risk tolerance.

 

 

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