Cryptocurrency is one of the most hyped investing topics right now. Several websites are flooded with articles bragging about how some people have turned into millionaires by investing in crypto-spheres.
Considering the growing popularity, you may find it a lucrative way to earn money. However, making money from crypto might sound quite tricky if you don’t know how to do it.
There are several proven ways of making money in the crypto-sphere. While some of them help you to earn a few coins, others offer relatively high earning potential.
Ways to Make Money Legitimately With Cryptocurrency
You might have done a lot of research and still couldn’t invest in crypto as you find them a bit technical. However, the truth is, earning money with cryptocurrencies is quite easy, and anyone can do it by using any of the following methods.
- Purchase, Hold, & Sell (HODL)
This is one of the easiest and most familiar ways to make money in the crypto-sphere. All you have to do is to buy some assets (such as stocks), hold them until the price becomes higher, and sell them.
Bitcoin (BTC), Ether (ETH), and Litecoin (LTC) are some of the safest choices to use this method. You can purchase any of these coins securely using SEPA and Bank Cards.
While it sounds pretty simple, it requires a lot of patience. Sometimes it takes a lot of time for a particular stock to reach the peak price. That’s why you need to monitor the price regularly.
Luckily, some mobile apps can provide you with real-time cryptocurrency alerts, so that you know which stock is ready to be sold.
- Day Trading Crypto
Instead of waiting to sell the currencies at a higher price, you can actually earn money by trading the market based on a coin’s performance.
Day trading requires you to look for patterns in financial trading charts at various intervals in the day. This method is not for beginners since you must have an excellent understanding of technical charting.
In fact, it is very essential to acquire necessary training from experienced traders before you start trading cryptocurrencies. The reason is not farfetched, the cryptocurrency market is one of the most volatile with hourly price moves mirroring years of action in the traditional finance markets.
While this method is a bit difficult, it also gives you a chance to earn a significant amount of coins if you’re good at technical charting. You can start trading by signing up on Binance.
- Staking Cryptocurrencies
Staking is basically the combination of holding crypto to sell at a higher price and earning extra income while waiting to sell. It’s quite popular as you will get the dividends of holding coins in your live wallet, with the chance of selling them at a higher price after a certain period.
If you want to earn money using the staking method, Tezos, NAV coin, Decred, PIVX, and Neblio are some of the right choices.
Tezos is the most popular as you will receive a 6% ROI per year. You will also earn money from this particular crypto when the price gets high since more users adopt it.
- Running Masternodes
If you want to earn coins smartly, running masternodes can be an excellent option. A masternode is basically a computer wallet, which has a complete copy of the ledger or blockchain in real-time.
So, why should you run the masternode? The answer is simple. You will be paid by some cryptocurrency networks for continuously performing some tasks using the masternode.
However, to earn money in this way, you need to have a minimum of 1000 to 2500 coins to get started. PIVX and DASH are some of the stake currencies with masternode functionality.
- Work for Cryptocurrencies
Are you a developer, designer, or writer? Then start earning in cryptocurrencies in exchange for your services.
There are some websites such as Coinbucks, Bituro, Jobs4Bitcoins, 21.co that will pay you in Bitcoin or Ethereum if you work for them.
Besides, Y’alls, Steemit, Earn, and Uptrennd, are some of the websites that will pay you in crypto for blogging. So, no matter whichever you are good at, use it to earn some coins.
- Earn Cryptocurrencies by Merchandising
If you’re a merchant, you can easily sell your products for cryptos, instead of cash.
Whether it’s an online business or an e-commerce website, accepting cryptocurrencies will give you the dual benefits of earning coins directly and crypto price appreciation.
However, you need to have access to different crypto payment processors to earn in the crypto-sphere by merchandising.
- Participating in Token Offerings
Initial coin offerings (ICOs), Security token offerings (STOs), and Initial exchange offerings (IEOs) can be a great way to inspire you to invest in cryptocurrencies.
The method is pretty simple. You sign up for a new cryptocurrency-related project, which is just launching and receive a certain amount of coins as a reward.
However, this method doesn’t work on a long-term basis since there may not be a new project sometimes. So, it’s essential to learn other ways instead of just relying on ICOs.
- Referring People
It is another excellent way to make money in the crypto-sphere since you’re helping other people to get into this business.
The referral program will pay you a certain amount of cryptocurrency for each friend you refer to. In this way, you will be rewarded for growing their user base while your friends will learn about an incredible product.
A number of crypto businesses like Binance offer a rewarding referral program for getting traders to sign up and trade on their exchange.
Mining is a great way of making passive income in the crypto-sphere. Just invest in some hardware equipment, set it up properly, and let it run.
Mining works by having a computer, which solves complex mathematical problems. When it can solve it, you’re rewarded by the coins.
To start mining, you need to purchase mining equipment with some additional hardware support. While it doesn’t require you to spend much on the hardware, the better the machine, the faster it can earn cryptos for you.
While there are so many ways to make money with cryptocurrencies, chances are not each of them will be a good fit for you. That’s why you must start with the simplest method with a small investment and continue this way until you’re comfortable to move further.
Also, avoid making risky purchases. not all cryptos are worth investing in. If you invest in a new coin due to the low price, there’s a high chance it could just disappear.
Always invest in the projects that have been around for a while with a good reputation, which will eventually help you build your fortune.