Despite its volatility, the crypto market has attracted many investors, and that’s because of the lucrative opportunities it offers. Digital assets allow people to achieve financial freedom by taking control of their money, and at the same time, it provides them with an appealing way of earning passive income.
Many join the crypto space hoping to see considerable returns but soon find out that the process can be pretty intimidating. Fortunately, there are legitimate ways to make money with crypto without breaking the bank.
Buy and HODL
HODL – the acronym for hold on for dear life- is a mantra for crypto enthusiasts. It refers to holding your crypto, especially during a bear market. Holding is a low-risk strategy that can bring potential high rewards – but it comes with the challenge of avoiding panic selling when others do it.
What you have to do is purchase crypto – for example, bitcoin ( ideally at a low price) and hold on to it until its value increases. HODLing is perfect for beginner investors, as it’s simpler than day trading, and you don’t have to commit to it fully.
Of course, this method can only work when implemented correctly. The HODL strategy has two enemies – FOMO and FUD- which can lead investors to make irrational decisions and sell at lower prices, which results in less profit. For this method to work, it’s essential to stay updated on bitcoin price fluctuations. While it has its perks, it’s worth noting that this method requires emotional strength, as price volatility can cause a lot of stress.
Buy and sell
Trading crypto is one of the most common ways traders make money, enabling traders to use volatility in their favor. The process is straightforward: you buy crypto low and sell them a bit later. However, to make a profit with this method, you need to learn how to perform market analysis.
Day traders choose a pair, such as ETH and USDT, and they do comprehensive research to determine if they should buy or sell it. This involves looking for trends and evaluating how actual pricing levels may influence the pair’s status in the future. This is possible by using economic and technical indicators. Obviously, it takes time to master this skill – in fact, you may become versed in it after months or years! But if you’re patient, things may work out in your favor.
Stake your crypto
Staking is another method you can consider. Think of it as locking your crypto in a bank to generate interest, but instead of a bank, you deposit your tokens into a blockchain protocol. The goal is to keep the network operational and secure. The deposited tokes will then generate interest for an investor after an agreed term of 30-60 days.
However, many platforms provide staking on flexible terms, meaning you can reclaim your tokens whenever you want. You can get higher or more conservative yields, depending on the crypto you stake and the term’s length. For instance, staking a small-cap token generates higher profits than staking Ethereum, a larger-cap token.
In both cases, choosing the ideal platform is a crucial step that shouldn’t be overlooked. You need to look for one which offers a variety of cryptos to stake and is easy to use. Comparing rewards rates is also a factor you should consider when looking for a platform that provides impressive returns.
Play-to-earn games
A play-to-earn game is an excellent option for those with a limited budget. The concept is rapidly growing in the crypto space, as it comes with many advantages that traditional gaming developers can’t beat. Because the games are built on the blockchain network and backed by smart contracts, they ensure transparency and fairness to players.
In the games, players earn assets like armor or weapons, the equivalent of a unique NFT that they can later trade on the public market. This method is a fun way to make money with crypto, and it can be a great starting point as long as you put some effort and time into it.
Consider yield farming
Yield farming is another great way to earn passive income through crypto. To get started, you need to find a suitable DeFi platform that offers significant opportunities for interest rates. Yield farming is like a savings account, but instead of turning into a mortgage, the crypto is invested into a smart contract app.
Besides using smart contracts, yield farming also offers the opportunity of earning considerable interest rates. However, it poses risks, too, such as impermanent losses and fraud. And because of these risks, it may not be ideal for newer investors. It’s best to use this method only if you understand how it works and what threats you expose yourself to.
Join an affiliate program
There’s a way to earn rewards without putting your money into crypto. More precisely, affiliate programs allow you to direct customers to an app or website which will reward you whenever someone makes a purchase or signs up. The best part is that the membership for these programs is free!
Plus, the process is pretty simple – you have to create an account, and then you’ll be provided with an URL to spread on forums, blogs and your social media. With this method, you can start quickly and earn bonuses equivalent to the number of referrals you make.
Think about it – if you commit to it, money will come daily, weekly, monthly – and even yearly! But obviously, you have to put in the effort. Hence, if you’re looking for ways to make money with crypto but are restrained by your budget, consider joining an affiliate program. This method can work wonders, especially if you have many followers on social media.
Seek a crypto-related job
Finding a job in the crypto industry has become an option as digital assets have gained greater acceptance. This is one of the most legitimate ways to make money from crypto. The sector suffers from a talent shortage, and companies don’t only seek blockchain developers – they also need to fill non-technical positions.
Obviously, the first requirement of such a job is to understand crypto. Moreover, companies look for employees who already have experience with crypto themselves. Keep in mind that crypto jobs aren’t easy to find, as they aren’t advertised as much as other jobs. Thus, make sure to look for websites dedicated to finding talent in the industry.
Last words
There are different ways to make money with crypto, so consider all of them and choose the one that works best for you.