Do you want to earn money from cryptocurrencies?
Well, who doesn’t!
Hence, in this article, I am going to share with you some of the best ways of making money in the crypto-sphere.
Of the ways listed below, I personally use some of them to book profits, and I’m not complaining.
However, alongside making money, you also need to be aware of scams because, in a decentralized space such as cryptocurrencies, the chances of you getting caught in a scam is also very high.
Top Ways to earn money from Cryptocurrencies
1. Buying & HODLing
One safe way to earn money in cryptoland is to buy good cryptocurrencies that have a fundamental use case and hold them until they obtain a fair market share.
For example, cryptocurrencies like:
…are safe buys most of the time.
You can buy and hold them for a longer-term because they are bound to appreciate against the fiat pairs of USD, EUR etc.
Also, on our CoinSutra blog, we have reviewed more than 15 cryptocurrencies fundamentally.
That, however, is NOT a piece of investment advice but an example of how to get started in picking the right unicorns for yourself.
2. Staking Cryptocurrencies
I personally like this way of earning because you get the dual benefit of price appreciation for holding good crypto coins plus the additional reward as dividends for staking the coins.
Staking is basically holding crypto coins 24*7 in a live wallet, hence earning new additional coins as a reward for staking and securing the blockchain network. Some noteworthy coins in this segment are:
Tezos is the most popular and highly funded coin that offers a 6% ROI year on year.
However, the best part is,
you also earn money when the value of Tezos increases as more users adopt it.
There are various ways you can stake Tezos:
- Using Binance Exchange: Here you can purchase Tezos (XTZ) coin using Fiat or exchange it for Bitcoin.
- You can also stake Tezos using Ledger Wallet. See the below tutorial to understand how to do that:
We also did a detailed analysis of some of these coins. You can read it here.
3. Buying & Holding Cryptocurrencies For Dividends
Another smart way of earning through cryptocurrencies is to buy and hold cryptocurrencies that pay you dividends.
There are many great cryptocurrencies that pay you a fair share just for holding them and you are not even required to stake them, especially in a wallet.
Some of these cryptocurrencies are:
- ATC (Atomic wallet coin)
We did a detailed analysis of these currencies for you to understand in detail and choose the right ones for your portfolio.
4. Become a Crypto Trader & lead a team
Skills: Intermediate to expert
There are many platforms which let you earn cryptocurrencies based on your trading skills. These platform let others follow your trades and you will earn a handsome income from the profit of your followers trade. In 2021, this is something which is catching up, and as long as you have crypto trading skills, you can make money in bear and bull cycle.
At the time of writing, these are the platforms which will let you create your own trading tribe, and earn an income from their trading profits:
5. Become a Liquidity provider
Skills: Intermediate to expert
With the growth of DeFi, become a liquidity provider is another handsome way to make money from your existing crypto holding. By becoming a liquidity provider, you will be earning a cut in every transaction happens on a particular decentralized exchanges.
One of the challenges of becoming a liquidity provider is impermanent loss, which is something you have to be mindful of. However there are platforms like Bancor which let you provide liquidity without worrying about impermanent loss. My guess is, in 2021 and in coming years we will see more Dex’s coming up with their own ways to handle impermanent loss.
Here is a quick tip on how to become a liquidity provider.
You can use any popular DEX to become a liquidity provider. The only thing you need to have is holding of cryptocurrencies. For example, lets try to provide liquidity on Bancor.
- Open Bancor on a browser
- Connect it with your wallet using Wallet connect or Metamask.
Once connected, you can click on Stake, select the pair and provide the liquidity.
Here is a screenshot which shows how this liquidity provider works:
There are three advantages of providing liquidity:
- Rewards in the form of platform token (Ex: BNT)
- APR or transaction fees that you would get when someone uses the platform for decentralized exchange.
- Appreciation of price over time
Running masternodes of cryptocurrencies to earn smart passive income is also one way of earning in the cryptosphere. A masternode is simply a cryptocurrency full node or computer wallet that keeps the full copy of the blockchain in real-time, just like your have Bitcoin full nodes, and is always up and running to perform certain tasks.
For performing such tasks, different cryptocurrency networks pay the masternode owners. However, for running a masternode you must have a minimum number of coins to get started. The minimum amount to get started with a masternode is different for all the cryptocurrencies but it is usually in the range of 1000 to 25000 coins.
Some proof of stake currencies that have the masternode functionality are:
See here for more proof-of-stake coins.
7. Microtasks For Cryptocurrencies
If you have extra time on your hands, you can do some microtasks for somebody or some service and earn cryptocurrencies in exchange. These microtasks can be something like downloading new apps for testing, watching videos, doing online surveys etc. Some services that provide you such microtasks are:
These services pay you in different coins like Bitcoin, Dogecoin etc.
8. Day Trading Cryptocurrencies
If you understand and are good at technical charting at various intervals in the day, this method of earning is for you. You can day trade different cryptocurrencies on various exchanges such as these:
The idea is simple – buy low and sell high when your target is reached.
If you don’t know how to do this, you can use a platform like Stacked to find algo strategies which automate the trading for you. Again, I pay more than $350/month for such profitable algorithm, but it is worth it when your capital is high. You can read Stacked invest review to learn more about it.
This method works very well for a technical charting person because crypto, being a volatile market, can fluctuate 1-25% in a day depending on the choices you make.
9. Work For Cryptocurrencies
This is an apt way of earning through cryptocurrencies. If you are a developer or a tester, a writer or a designer, you can start earning in cryptocurrencies right away by exchanging your services for it.
There are numerous platforms and websites that offer you Bitcoins in exchange for your service, some of which are:
This way you not only earn cryptocurrencies but also benefit from the price appreciation that cryptocurrencies, on the whole, are witnessing over the past few years. You can start by working for these cryptocurrencies in my opinion:
10. Accept Cryptocurrencies If You Are A Merchant
Another way to earn cryptos is accepting them in exchange for your products or services if you are a merchant. As a merchant, you have access to many cryptocurrencies and Bitcoin payment processors that can help you in accepting cryptocurrencies.
Even online businesses owners and e-commerce websites can adopt this way, thereby getting the dual benefit of crypto price appreciation and also earning cryptos directly.
See this for more details: 7 Popular Bitcoin Payment Gateways For Merchants.
11. Cryptocurrency Arbitrage
As we all know, the cryptocurrency market is a free market that is beyond the government’s control, which is why we have a lot of price differences across different exchanges and also the volatility.
Another way of earning in the cryptosphere is to buy a certain cryptocurrency from one exchange which is being sold on a lower price compared to another exchange, thereby creating an opportunity to buy low and sell high on another exchange to earn a good cut in between. This is called arbitrage.
You will usually find 5% to 40% of spread if you know how to make use of it. Exchanges like Bittrex and Poloniex provide such opportunities more often.
12. Blogging On Cryptocurrency Websites
You can earn money by blogging and writing on websites that pay you in cryptocurrencies if your content is liked by the readers.
Also, if you already know that your content is valuable, you can even directly monetize your content for cryptocurrencies for giving full access of content to the respective reader.
Check out: Best Crypto Affiliate Programs
Some of these websites are:
13. Cryptocurrency Faucets
Another easy way to start earning quick Bitcoins is through cryptocurrency and Bitcoin faucets.
For those of you who don’t know what Bitcoin faucets are:
Bitcoin faucets are a reward system, in the form of a website or app, that dispenses rewards in the form of a satoshi, which is a hundredth of a millionth BTC, for visitors to claim in exchange for completing a captcha or task as described by the website. There are also faucets that dispense alternative cryptocurrencies.
These faucets have you do menial tasks such as solving captchas, playing games, clicking on ads, or watching videos. For each task you do, you earn a small amount of Bitcoin.
However, this way of earning isn’t really an option for people who are already involved in hectic, full-time jobs. That is why I have kept this option at the bottom of the list.
14. Lending Cryptocurrencies
Following the popular saying “You should put your money to work” is another way to earn in this space.
If you are already HODLing Bitcoin or Ethereum, you can put your money to work and earn some profit on it by lending it out. There are many peer-to-peer Bitcoin lending platforms that allow you to do this while giving you a decent 2%-8% return on your investment in the form of Bitcoins.
For example Blockfi
I have already done a detailed write up on such Bitcoin P2P lending platforms.
A word of caution: This space of lending is highly unregulated, so choose the person who you lend your Bitcoin to diligently and strictly adhere to the platform policies to make sure you get your returns. Slow, but steady, more regulated players are evolving in this space like the BlockFi.
15. Mining Cryptocurrencies
Cryptocurrency mining is another good way to make money in the cryptosphere. This option, however, does not seem too lucrative to us yet and that is why it is the last one on the list.
But it doesn’t mean that this method doesn’t work. Sure it does, if you are ready to make initial investments for buying mining equipment like ASIC and GPUs plus the additional supporting hardware.
Also, to successfully mine and earn from cryptocurrencies, you should have access to cheap electricity to run this mining equipment along with the technical know-how of how to take care of the software and hardware mining stuff.
These days mining has become a very competitive task that requires a good initial investment to start with, and that’s why we are not particularly interested in this method.
Make Money With Bitcoin & Cryptocurrencies
That is all from my side. But before I go, I want to address one thing:
There are a lot of scams and illegal MLMs going on out there that promise you high returns. My recommendation would be to not get involved with these schemes because they are not worth the time if you want to earn legally. A recent example was the Bitconnect MLM scheme that came down crashing in one day.
I will be back soon with some more secure and legit ways of earning from cryptocurrencies. Until then, stay tuned to CoinSutra and don’t get caught in trouble.
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Love this article? Here are a few articles that you should not miss:
- 9 Best Cryptocurrency Exchanges In The World
- PIVX Cryptocurrency: Everything You Need To Know
- Top 5 Websites To Buy Ripple (XRP)
Harsh Agrawal is the Crypto exchange and bots expert for CoinSutra. He founded CoinSutra in 2016, and one of the industry’s most regarded professional blogger in the fin-tech space.
An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.
An international speaker and author who loves blockchain and crypto world.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
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- Top Ways to earn money from Cryptocurrencies
- 1. Buying & HODLing
- 2. Staking Cryptocurrencies
- 3. Buying & Holding Cryptocurrencies For Dividends
- 4. Become a Crypto Trader & lead a team
- 5. Become a Liquidity provider
- 6. Masternodes
- 7. Microtasks For Cryptocurrencies
- 8. Day Trading Cryptocurrencies
- 9. Work For Cryptocurrencies
- 10. Accept Cryptocurrencies If You Are A Merchant
- 11. Cryptocurrency Arbitrage
- 12. Blogging On Cryptocurrency Websites
- 13. Cryptocurrency Faucets
- 14. Lending Cryptocurrencies
- 15. Mining Cryptocurrencies
- Make Money With Bitcoin & Cryptocurrencies