While Bitcoin, Ethereum, Litecoin and other cryptocurrencies have skyrocketed in value in the last few years, not everyone has made money from their interest in the market. There are many ways to make money through cryptocurrency, though, and most of them don’t even involve taking a risk by investing directly in virtual coins like Bitcoin and Ethereum. In this article, we’ll go over 10 different ways you can use cryptocurrency to make money.
1) Buying and holding
Buying and holding cryptocurrency is a great way to make money. Investing in Bitcoin or any other cryptocurrency can be risky, but it can also lead to big gains. For example, in December 2017, the price of one Bitcoin was $13,500. By January 2018, the price of one Bitcoin had risen as high as $19,000 before falling back down to around $14,000.
2) Trading
Cryptocurrencies are a volatile market, meaning prices can jump up and down as quickly as you can say Bitcoin. One way to make money from this volatility is through trading, or buying and selling cryptocurrencies at the right time. A lot of people use bots (robot software) that monitor the markets for them, but it’s still a good idea for any serious investor to do their own research before risking their own money.
3) Lending
Lending is the process of providing others access to your cryptocurrency holdings and having them pay you interest. This is a great way to make money with cryptocurrencies because it requires very little effort on your part and offers a high yield on investment.
The most popular lending platform for cryptocurrency is Poloniex, but there are many other platforms that offer this service as well. The first step when opening an account with any lending platform is transferring your funds from the exchange over to the lending platform.
4) Staking
Staking is an excellent way to make money with your cryptocurrency, and it’s not that difficult to do. But first, you need a wallet. There are many different wallets that come with different features, but for this example we’ll use Exodus. Once you have your wallet set up, all you have to do is wait for the right time.
5) Mining
There are many ways to make money with cryptocurrency, but the most popular way is mining. Mining requires a computer with a special software installed on it called a miner. Miners search for the next block of data and then compete with other miners in solving complex math equations. The miner who solves the equation first is awarded a certain number of coins, which they can then sell or hold onto depending on their plan.
6) Masternodes
Masternodes are an excellent way to make money in cryptocurrency. They are like having a savings account which pays you interest, but it pays you interest based on the number of coins your wallet holds. You can earn even more by running a masternode and collecting the rewards that come with it. To run a masternode, though, you will need to have at least 10,000 coins available for the duration of the node’s life.
7) Airdrops
Airdrops are a great way to earn free cryptocurrency. By participating in airdrops, you can get paid coins just for signing up, following someone on Twitter, or joining a Telegram group. While there are many types of airdrops, the most popular is called an airgrab. Airgrabs usually require you to fill out some kind of form and share your personal information.
8) Bounty programs
Bounty programs are a popular way of making money with cryptocurrency. Bounty programs give you the opportunity to earn rewards by completing tasks like writing a blog post, sharing social media posts, or translating text into a different language.
If you’re looking for more ways to earn some crypto coins, bounty programs are an excellent place to start!
9) Affiliate marketing
There are many ways to make money with cryptocurrency, and one of them is affiliate marketing. Find an affiliate program that offers products or services you would actually use yourself, and then promote them on your blog or social media pages. Whenever a customer buys through your link, you’ll receive a commission on the sale!
10) Creating a cryptocurrency
Cryptocurrencies are digital assets designed to function as a medium of exchange using cryptography. Digital currencies use decentralized control as opposed to centralized electronic money and central banking systems. The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database. Bitcoin, created in 2009, was the first decentralized cryptocurrency. There are over 1500 different types of cryptocurrencies with more appearing every day.