If you keep up with modern investing trends, you’ve almost certainly seen a greater emphasis on cryptocurrency and other such digital assets. When Bitcoin is being declared the highest-performing asset of a decade and reaching new price highs 15 years after it was released, investors are sure to pay attention.
What’s more, they are sure to look for more ways to profit off the asset class. While, to an outsider, crypto has limited avenues for generating profit, this could not be further from the truth. Here are a few ways to make money from crypto:
- Trade Speculatively
This is arguably the most common way that people make money from crypto assets. In this case, you buy crypto assets at a certain price with the hope that their price will eventually go up. If it does, you can resell the tokens for a profit. These tokens can be bought or sold on exchanges, peer-to-peer platforms, and much more.
While it is simple in theory, it is a lot more complicated when put into practice. Knowing which tokens might see a value spike comes down to research, luck, and traders’ intuition. But if you’re able to pull it off, profiting from the crypto sector is much easier.
- Invest in Presales
This is a little different from trading crypto speculatively because the tokens you buy will not have been released to exchanges just yet. Instead, the creators will be holding a presale i.e. a sale of tokens prior to their release at a lower price. The idea is that if you buy tokens at presale and they do well once released, you can make even more profit.
Presales have become very popular among crypto investors, with 2024 seeing several raising millions of dollars. As Valerie Reilly writes, many are looking for the best crypto presales to invest in and there is no shortage of options.
- Mine Crypto
When it comes to proof-of-work cryptos, mining is the process by which they are brought into the world. This involves using specialized computer equipment to complete complex mathematical puzzles and getting tokens as a reward. The number of tokens you get will depend on the blockchain in question but mining has remained a popular way to gain from the market. It is worth noting that crypto mining can be very energy-intensive, with people even stealing electricity to power their activities. The good news is that there are several options to make mining easier, including paying a mining company to mint tokens for you or joining a mining pool and splitting the rewards.
- Stake Tokens
The equivalent of mining in a proof-of-stake blockchain would be to stake your tokens to earn interest. Staking, at its core, involves a token holder locking away their tokens within the network for a certain amount of time and then being given a certain percentage back as interest. Tokens like Ether and Solana have this option and while it might not bring dramatic profits that you might get with speculative trading, it is a relatively low-risk way to make money using crypto. To take advantage of this, you might want to sign up for a staking program with a crypto exchange or join a staking pool with others.
- Look Out For Airdrops
Various crypto ecosystems take part in what is called airdrops i.e. giving away tokens for free. This can be done as part of a competition, promotional activities, and so on. Getting picked for an airdrop might require you to be highly active in a blockchain project such as a game or a metaverse. Alternatively, it might just be the luck of the draw. Look out for different airdrop opportunities and sign up for as many as you can. At the same time, be cautious and avoid clicking unverified links as this is a common tactic used by scammers.
- Gamble With Crypto
Believe it or not, you can actually gamble with digital assets like cryptocurrency. The popularity of the asset class has meant that more people are looking to place washers with it. Online casinos, in turn, seem happy to meet this demand and it is common to see them allow crypto alongside (or even instead of) fiat currency. If you happen to gamble with crypto and win, there is a chance that your tokens will appreciate in value, giving you even more profit than before. So, as long as you are playing responsibly, you might want to consider crypto next time you log on to an online casino.
- Start Your Own Crypto Project
So far, all of our suggestions have to do with engaging with someone else’s crypto project, whether that’s buying tokens or mining them. But if you’re feeling very ambitious, you could always look to develop your own crypto project. It might take time and a lot of effort, but many crypto entrepreneurs have earned millions by putting forward their own projects with innovative use cases. It could be a side hustle for you or, if it does well enough, could even become a career. Of course, do your research and be very realistic before you pour your time and money into a crypto venture.
- Lend Crypto
The growing demand for crypto means that more people want to borrow crypto to trade and use in various situations. This could be a source of income for you as you can list your tokens on crypto lending sites and earn interest from those who borrow them. These transactions are completed automatically using smart contracts, so the chances of someone running away with your tokens or defaulting are much lower. Consider this especially if you have tokens lying around you want to make some money off with little effort.
Conclusion
Cryptocurrency as a sector has little shortage of options when it comes to making money. From higher-risk options like gambling to low-risk ones like staking and lending, there is something to satisfy the needs of every type of investor. Look through the list and consider which will serve you best.
