7 Ways to Make Money From Crypto

If you follow investment trends, you’ve likely heard about cryptocurrency and how much buzz it has generated over the last few years. Currencies based on blockchain technology are very novel and while they have attracted their share of controversies, they continue to be profitable.

In fact, more active crypto wallets exist today than ever before so clearly, investors have faith in the asset class. If you want to profit from cryptocurrency as well, you should be aware that there are many different ways to do so. In this article, we’ll touch on some of the most popular. 

1. Presales

Presales are one of the best ways to make money off cryptocurrency because they grant you access to tokens even before they reach the wider market. Before a crypto token is released onto exchanges and the like, its developers might sell a portion of the token supply for a lower price to early investors. 

The idea is that should these tokens perform well when they enter the markets, the presale investors can make even more profit by reselling them. As Kosta Kostadinov writes, you can explore the top presale opportunities and find tokens for virtually every niche imaginable. Besides the possible profit, presale investors also gain access to some perks that others will be excluded from. 

2. Speculative Trading 

Perhaps the most common way to make money from cryptocurrency is speculative trading. This simply involves buying tokens at a certain price and then reselling them when they increase in value. While this is simple as a concept, many things make it more complicated. For example, it would require you to know the market well enough to choose the best tokens and when to sell them. This can be done through crypto exchanges, peer-to-peer platforms, trading bots, and so on. The value of any given token is determined by the forces of demand and supply, so speculative trading will require research and constant market watching. 

3. Mining 

Mining is the process through which proof-of-work tokens are created and is a popular activity among crypto investors. Mining Bitcoin, for example, will require buying some specialized hardware or downloading some software. The hardware will then have to complete complex mathematical puzzles to confirm transactions on the network and each block of transactions attracts a certain amount of tokens as a reward. Crypto mining can be very energy intensive and some investors have gone as far as stealing electricity to power their operations. On top of this, tokens like Bitcoin experience halvings every few years, which sees the number of rewards per block reduced. But with proper planning and cost-saving measures, crypto mining can be quite profitable. 

4. Staking

While proof-of-work tokens are created through mining, proof-of-stake tokens are generated through the process of staking. Tokens like Ethereum, Solana, and Cardano can be staked i.e. existing tokens locked within the network to validate transactions and in return, more tokens are given as interest. Staking is quite beneficial in that it is very low-risk and while it does not bring as high of a return as speculative trading in some cases, it can be done passively. Investors can choose to Stake their tokens via exchanges, wallets, or by running or joining staking pools. Staking pools see several investors pulling together resources to stake and then splitting the rewards. For investors who want to earn crypto with less risk and effort on their part, staking is a good option.

5. Lending 

Because the demand for crypto is high, some investors are willing to borrow them for various reasons. This represents an opportunity for crypto investors via lending. Several platforms will allow you to lend your crypto to others and charge interest. These platforms are governed by smart contracts, so token transfers are done automatically. This means that there is less of a chance of anyone cheating the other and investors can earn income passively. If you have cryptocurrency you are not actively trading, you could consider lending it to earn more interest on the various available platforms.

6. Lotteries

Believe it or not, crypto lotteries are very much a thing and can even offer a better deal than traditional lotteries. In traditional lotteries, people pay money and hope to win a larger amount. If they don’t, they have forfeited their initial payment. On the other hand, several no-loss lotteries exist in the crypto space. When players deposit their initial funds, they are pulled together and staked to earn interest. Whoever wins the lottery wins both their initial payment and all of the interest. Those who don’t win get their money back and this eliminates any risk. Those who already enjoy playing the lottery with fiat currency could very well do so with cryptocurrency.

7. Gambling 

For centuries, fiat currency was the only option for anyone looking to gamble. Now, cryptocurrency has found its way into the mix. All over the internet, there are gambling sites that take cryptocurrency alongside or even instead of fiat currency. Gambling with crypto has several added benefits, including the chance of making tokens that will increase in value, having more privacy and control, and faster transactions. A quick look online will show the wealth of platforms that accept cryptocurrency for various gambling games and these are only becoming more popular. If you already bet online, making the leap to cryptocurrency will be fairly easy. 

Conclusion 

The crypto industry has no shortage of opportunities to make money for investors, and you’d be best off exploring all of them. From speculative trading to staking to even lotteries, there is something for every investor type, every risk tolerance, and every preference. Look into each of these and decide which most appeals to you and, of course, only invest amounts you are comfortable losing.