How do you make money from cryptocurrency?
You might be wondering “How Do You Make Money From Cryptocurrency when pretty much none of them are yet paying a dividend?”
And that’s a fair question for this new but exploding investment vehicle.
There are numerous alternatives with Crypto to make money.
Some of the most popular include trading, investment, affiliate earnings, and bot profits.
However, there is no one-size-fits-all approach if you are wondering how you make money with cryptocurrency
The quantity of money you make is determined by your risk tolerance and the approach you use.
This article will go through seven of the most profitable ways to generate money with Cryptocurrencies.
Here are the best seven ways of learning how to earn crypto:
- Accepting Bitcoin as a payment
- Affiliate earnings
This is the standard way most people think you make money from crypto.
It uses the standard “buy low, sell high” approach.
This choice is for you if you have an aptitude for analyzing trade charts and are willing to take risks.
Note though that 95% of beginners lose money doing this.
It takes time to learn how to understand all those charts and indicators.
In the meantime you are effectively just heading to race track and putting the money on your best guess horse.
The bright side with crypto trading is that the market trades 24/7 so when you are ready to get into the action, someone out there in the market is willing to play.
Intraday and Arbitrage
Intraday trading and arbitrage opportunities are ideal for those who are even less risk averse.
You must be willing to deal with more complicated measures though.
Arbitrage refers to the practice of purchasing an asset at a cheaper price and then selling it on a different platform for a profit.
Intraday trading is getting into and out of investments in a single day.
You need nerves of steel to be in that game.
In cryptocurrency trading, your profit margins are entirely dependent on your ability to recognize market conditions.
You must be able to analyze charts unless you have a secret weapon, that i’ll discuss later (see 4. Bots 😁)
2. Investing in Cryptocurrencies (AKA HODLING)
Investing entails holding onto the currency until it reaches a price you are happy with.
Long-term investments are referred to as “HODL”.
Initially this is traced back to an early adopter spelling HOLD wrong in a forum.
It went viral but now is also know as an acronym of Hold On for Dear Life.
If you feel a coin has a bright future and that its price will rise, you should invest and HODL.
This is like buying a house and hoping that all returns will come in the eventual sale price in the future.
Generally you need to look at this as a 1 year+ strategy.
Do it if you can spare the cash that will be locked up in the crypto coin for that time.
But expect a big payout when you finally decide to sell.
3. Make Money From Cryptocurrency Mining
Mining is when you join your computer to the network that is used to validate all the transactions on the network.
Other times it is used to work out complicated mathematical equations.
Basically you are renting your computer (and the electricity it uses) out to the blockchain to help the whole thing run.
Occasionally, as a reward, it spits out a coin to you.
This might not sound like much, but if the crypto coin is worth $60,000 its not a bad reward.
For the big coins like Bitcoin and Ethereum this is big business and hard to get into as a standalone player.
For the smaller blockchains it is still a possibility.
4.Make Money From Cryptocurrency Bots
My personal favourite and when asked “how do you make money on cryptocurrency” this is the answer I will give.
Bots are A.I. driven automated software that constantly buy and sell crypto on your behalf.
They use a set of rules and parameters that you give them in order to act.
Crypto is volatile, it is part of the attractiveness for most people involved with it.
With that volatility comes a lot of price movement.
Bots exploit the price movements for profit, whether the price is going up or down.
The more the price moves, the more they will buy and sell – they will even do it hundreds of times in a day.
Each time the amount they buy and sell is quite small, but when the small profits are added up it can ad up to big bucks.
With bots you don’t get the euphoria of being involved in moon-shots on those rare times you are on one.
Instead you get smaller amounts of profits handed to you every day that add up over time.
Kind of like a leaking roof dripping into a bucket.
That bucket fills up pretty quick when you’re not watching it, and that’s how to the bots work.
Set them off, stop watching them and come back later to a bucket load of profit.
To find out more about bots, head to this in-depth review on Dan Hollings’ THE PLAN which is the training program that showed me how to operate bots and get the profits I am getting
5. Accepting crypto as payment
If you sell anything as part of a hobby or business, then accepting crypto is a great way of getting more of it.
Like HODLING, this means that you probably need to be in a position of not needing the fiat cash immediately.
In fact this method goes hand in hand with HODLING.
Take the payment in your preferred crypto and hold on to it until it goes up, taking the profit with it.
Not a good idea who have a lot of cashflow issues in the fiat world to run their business though.
Consider this like a savings account.
In traditional banking, you deposit your money with a bank, they give you a small amount of interest.
They then lend it out to someone else at a much greater rate.
So effectively you are LENDING your money to someone else VIA the bank.
Crypto has the same system but with much better returns.
For stablecoins you can get as much as 10-12% pa.
Compare that with about 0.5% your bank is giving you.
One thing to keep in mind is that this area is not regulated yet.
You are LENDING your money to a private company.
They could go broke or just run off with all the money and you have no protection so don’t bet the house on it.
My personal favourite here is NEXO.
7. Affiliate earnings
It’s time to cash in on your social media followers.
You can make a lot of money as an affiliate for a cryptocurrency company.
To earn a commission, you must join a cryptocurrency affiliate network and advertise their items.
You will be paid commissions based on the number of consumers you bring in for that firm.
Affiliate programs will supply you with a unique affiliate link that will be used to track your progress.
You’ll get paid a reasonable commission for every consumer that buys (or signs up, depending on the program) through your link.
You can make a fortune with affiliate programs by teaching people how to earn crypto if you have a good network and can persuade them.
All you have to do is promote the product by sharing the link on your social media accounts and websites.
My personal favourite of these is number 4, but it is not the most known about. I like the idea of $20 -$50 profit every day over the hope that a coin that I am backing shoots to the moon. There is not certainty in that. And whilst bots can still lose money, most the time they don’t, so risk vs return, I think they are the safest bet, with the best return.