Making money with cryptocurrencies is still viable today. As always, it depends upon an individual’s ability to carry out various schemes and manipulations with digital money. We’ve gathered the most interesting—low and high risk— ways of earning crypto today.
But first off let’s make one thing clear. Some people still think that there’s a magical trick that, once discovered, will enable them to make tons of money with cryptocurrency without having to expend any effort. If you’re one of those people, we’ve got some bad news: there are no magic tricks here. Of course, people get lucky in this space all the time, and thereby end up making some easy money, however, to make a real, sustainable profit with digital currencies, you have to put some time and more often than not money into it.
Where to begin?
- Decide the way you want to earn with crypto. Are you ready to spend some money on it or not?
- Choose the cryptocurrency you want to earn with and learn all the information about it. We recommend following all the official accounts of the devs and joining a community tied to the coin.
- Create a cryptocurrency wallet. A decent multi-asset wallet will be a good start.
- Keep learning as much as you can to find new ways of making a profit.
Low risk earnings
It is one of the most low budget and simple ways to make money with cryptocurrency today. All you need to do is to do small tasks in exchange for satoshi (1 satoshi = 0.000000001 BTC). The tasks can consist of going to a certain web-site or watching an advertisement.
Finding cryptocurrency faucets is easy. The internet is now full of services that are ready to pay you mini-rewards. It is important to choose a proven portal that will really pay you. The highest rated services are Bonusbitcoin, Moon Bitcoin, FreeBitcoin and AdBTC.
You should understand that the total revenue from such portals is very small. Even if you non-stop press the buttons to view ads, you will earn an average of 5-40 cents per hour. Most likely the earnings reaped here will not be worth the time spent.
An airdrop is a free distribution of coins by new cryptocurrency projects to increase awareness and attract new contributors. You can find information about upcoming airdrops on special forums like Bitcointalk and social networks and in Telegram channels.
The rules can be different for each cryptocurrency. Some projects require you to share their posts on social networks, follow their accounts, write a small review or even store another cryptocurrency.
Currently, for example, the TRON Foundation is giving away BitTorrent tokens for every TRX holder each month until 20205. One way of getting in on the action with TRON is by setting up an account with Freewallet, which takes part in this event and provides every TRX holder on Freewallet with BTT as well.
This method is still relevant today and you can take advantage of airdrops to get a small portion of digital money. But in fact, such events are rare and they distribute extremely small amounts. Therefore, the maximum benefit from such things is to gain skills in working with a crypto wallet.
A well-known forum for crypto enthusiasts has been doing so called signature campaigns for many years. You can use your account to promote a cryptocurrency project and get a reward for every post you make. But only high level accounts can participate in these campaigns. So, it will take time to level your account up to the required level.
Each project makes their own rules for signature campaigns. The rules may vary in the amount of the reward, amount of posts needed for a reward, the length of the posts and even what you can write. Before engaging in one of these campaigns, make sure to thoroughly read through the rules and conditions and then decide if you can fulfill all the requirements. Also, learn about the project, its team and development prospects to avoid possible fraud.
Middle risk earnings
Buying and holding
Holding is the long-term storing of cryptocurrencies in order to make profit over the course of several years. It is one of the most common strategies when you want to make money with cryptocurrencies. For this you need several things:
- A significant amount of money which can be devoted to this pursuit. Under no circumstances should cryptocurrency be bought on credit. You should never put more money into cryptocurrency than you can afford to lose.
- Do your research before buying a cryptocurrency coin. You need to carefully study the project you are interested in to understand whether there really is a high-quality product behind it, whether it’s really an unprecedented technology that can globally affect change, and not some kind of dud.
- Have nerves of steel. After buying one or more of these cryptocurrencies, the main thing is patience. You need patience so as to not freak out and sell your assets after a couple of months because of a market fall or something else. It is also better to avoid holding cryptocurrency on exchanges, and keep it in your wallet in order to protect yourself from exchange hacks and mishaps.
Today mining is not really relevant if you want to make any kind of profit. The thing is that today mining requires expensive equipment and high electricity expenditures. You won’t turn a profit instantly but mining an amount of crypto and holding it with an eye to further market growth is quite possible.
If you don’t want to buy costly mining gear you can use cloud mining. In this case, you pay a company to rent and use their equipment. But be carefull, there are a lot of fake companies. Of the proven companies providing such services, Genesis Mining and Hashing24 rank among the best.
Staking is the “mining” of a cryptocurrency on the Proof-of-Stake (PoS) algorithm. You deposit a certain amount of coins to facilitate operations on the blockchain and get reward for this in return. By doing this you can generate some passive income without the cost of acquiring expensive equipment, but you need to keep your device always online to take part in staking. The reward is distributed according to the amount the ‘miners’ deposited for staking.
For example, If Jack has 1% of all issued coins, he is entitled to 1% of the reward received when finding a new block. This is a very rough description, but it shows the general principles behind the PoS algorithm.
There are plenty of coins available for staking. The most popular are DASH, Lisk, VeChain, NEO, Tezos and Cosmos.
High risk earnings
Crypto trading is one of the main ways to make money on cryptocurrency. Trading cryptocurrency coins and tokens is not much different from trading valuable metals and stocks. The main task remains the same: to buy as cheap as possible, sell at a higher price and make a profit. The main difference between cryptocurrency trading and the stock market is the high volatility of the exchange rate.
Trading is not based on guesses and luck. Successful traders spend a lot of time learning principles, strategies of trading and understanding market behaviour patterns. For sustainable success, a crypto trader must learn these basic skills, how to:
- analyze cryptocurrency and its trading volume;
- use charts and quotes;
- make sales and purchase transactions;
- track bid history.
Once accomplished, they can trade on the rising and falling market pretty well, but they are also aware that they can easily lose their money in a few minutes. It is a highly profitable but extremely risky venture.
A very popular way to increase capital is to become a lender on one of the credit platforms and issue loans in Bitcoins and altcoins. Such services act as intermediaries between borrowers who need cryptocurrency and lenders who are willing to provide their coins at an interest rate.
Since this type of loan is quite a risky business, interest rates are quite high. At first glance lending seems like a very attractive way of making passive income for lenders. Earn 15% per year on your coins, who would say no?
But it is worth taking into account that such loans do not actually have collateral. So there’s a significant chance that your money won’t be returned.
Participating in an IEO
IEOs (Initial Exchange Offering) are a form of crowdfunding to fund a project, buying their tokens for a very cheap price expecting that they will significantly grow in the future. It can be a highly profitable and very risky way to make money on cryptocurrencies.
Basically it is a mutated version of an ICO but the campaign is conducted on an exchange platform. An exchange assumes responsibility for the quality of a project, assessing the viability of the products being developed, risks, financial condition, market position, etc. The fact that the trading platform takes reputational risks in the offering increases the trust level for potential token buyers.
Anyway, tokens can easily fall in price after a token sale. One of the most popular IEO campaigns was that of the BitTorrent Token. Despite the huge hype that accompanied the project, the cryptocurrency isn’t performing well today on the market.
Place to store cryptocurrencies
Ok, you’ve acquired some cryptocurrencies by trading, purchasing, doing faucets or something else. You need a secure place to store them. Freewallet: Crypto Wallet is an easy to use, multi-currency wallet that will keep your digital coins safe:
- Store 150+ coins and tokens in one place. Available on iOS, Android and the web.
- Buy BTC, LTC, ETH, BNB, XRP, TRX and BCH with your credit card.
- Seamlessly exchange cryptocurrencies right in the wallet.
- Make free transactions within the Freewallet eco-system.
- Monitor the exchange rate of coins and see your balance in fiat money.
- Protect your coins with high-grade security features including 2FA, multisig and transaction limits. The majority of assets are kept in cold storage. It guarantees that your coins won’t get lost or stolen.
Feel free to sign-up with your Facebook, Gmail, email, or mobile number and try Freewallet.
Disclaimer: This article should not be considered financial advice and serves only as informative material. The cryptocurrency market is subject to high volatility and regulatory uncertainty. You should do a substantial amount of research before engaging in financial activities with cryptocurrencies.
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