cryptocurrency make money with cryptocurrency

The cryptocurrency market is now valued at over $1.1 trillion, driven by rapid growth over the past few years. This growth has also created abundant opportunities for market participants to generate income using cryptocurrency – many of which are more appealing (and lucrative) than ‘traditional’ methods.

In this guide, we’ll take an in-depth look at how to make money with cryptocurrency by covering 10 proven strategies before discussing two of the best platforms to partner with when looking to generate income with crypto.

How to Make Money with Cryptocurrency – Top 10 Strategies

Millions of people worldwide now invest in the best altcoins to buy as a way to boost their income. However, there are alternative strategies that can prove fruitful. With that in mind, detailed below are 10 of the best ways to make money from crypto – all of which will be discussed in the following section.

  1. Investing in Promising New Coins Early
  2. Staking & Interest 
  3. Day Trading 
  4. ‘HODLing
  5. Play-to-Earn Crypto Games
  6. Crypto Yield Farming & Lending
  7. Crypto Faucets
  8. Crypto Airdrops 
  9. DAOs 
  10. Crypto Mining

A Detailed Look at How to Make Money with Crypto

The list above presents some of the most profitable cryptocurrency strategies derived through extensive research and testing. Let’s take a closer look at these strategies and how they can help market participants make money with crypto.

1. Investing in Promising New Coins Early

Those wondering how to make money with cryptocurrency will be glad to know that investing in promising new coins can often provide tremendous income opportunities. However, to maximize income potential, investing in projects still in the early stages of their life cycle is best.

Bitcoin offers a prominent example of how this can benefit investors. According to CNBC, investors who purchased $100 worth of BTC back in 2010 would have seen their investment reach nearly $50 million in 2021. Although not every project will become the ‘new Bitcoin’, many projects do go on to produce triple-digit (or even quadruple-digit) returns for investors.

Tamadoge – Exciting New Meme Coin Project

tamadoge logoOne project that has begun generating colossal traction in the market recently is Tamadoge. This ‘meme coin’ sensation has carved out an exciting niche by combining play-to-earn (P2E) mechanisms with NFT integration. Through this approach, the ecosystem’s users can earn tokenized rewards (TAMA), which can be spent in-game or collected in a crypto wallet.

TAMA is one of the best ERC-20 tokens to launch this year, as evidenced by the considerable interest in the project’s Beta sale and presale phases. Tamadoge’s Beta sale sold out 66 days ahead of schedule due to investor demand, raising $2 million. Following this, Tamadoge’s team moved into the presale phase – with nearly $5 million being raised at the time of writing.

Tamadoge crypto

Speculative investors looking to make money from crypto may consider purchasing TAMA tokens while the presale is still ongoing, since the token price is being offered at a discount relative to the future CEX listing price. Ultimately, the best way to keep tabs on the project (and any important updates) is to join the official Tamadoge Telegram group.

tamadoge-logo

Battle Infinity – Top-Rated Metaverse Platform

Battle Infinity logoAnother new coin to be aware of is Battle Infinity. Battle Infinity is an innovative metaverse platform filled with P2E mechanics, ensuring there’s an abundance of ways for gamers to generate income. This is primarily done through the ‘IBAT Premier League’ – Battle Infinity’s built-in fantasy sports league.

Aside from this feature, Battle Infinity also offers a P2E gaming store, where users can play various other games to earn tokenized rewards. These rewards are distributed in IBAT, Battle Infinity’s native BEP-20 token, which users can utilize to purchase items from the in-game store. All of these features tie into the ‘Battle Arena’ – Battle Infinity’s enormous 3D world.

Battle Infinity crypto

Much like Tamadoge, the hype around Battle Infinity has been tremendous, resulting in the project’s presale phase selling out early and raising around $5 million in the process. IBAT has since been listed on PancakeSwap, enabling a whole universe of traders to get their hands on the token. Those looking to learn more about Battle Infinity can do so through the official Telegram group.

2. Staking & Interest 

Those wondering how to make money with cryptocurrency may also be interested in staking. Staking is a process inherent to ‘Proof-of-Stake’ (PoS) blockchains whereby token holders ‘lock up’ their tokens on the network to help validate transactions.

In return, stakers will receive ‘staking rewards’, which tend to come in the form of more tokens. Due to the popularity of crypto staking, many leading brokers and exchanges now offer to facilitate the process for token holders.

Quint.io

Depending on the project, staking can provide generous yields; for example, StakingRewards.com notes that PancakeSwap offers CAKE holders over 60% per year if they lock up their tokens. However, one project that looks to take the staking mechanism to the next level is Quint – a new metaverse-based ecosystem with an array of exciting possibilities.

Quint’s flagship feature is its ‘Super Staking’ mechanism, which offers both tokenized and physical rewards. By locking up QUINT, the ecosystem’s native token, participants have the chance to win several top prizes, including luxury holidays, airline tickets, supercar experiences, and more.

Quint super staking

At present, Quint is offering a yield of 15% per year on QUINT deposits, with a built-in auto-compounding feature that boosts returns up to 16.18% per year. Combine this with the potential to win physical prizes, and it’s clear why Quint has emerged as one of the best platforms to make money with crypto this year.

3. Day Trading 

Another popular strategy that market participants can employ is to make money trading crypto. By identifying the best crypto to trade, participants can generate consistent profits that allow them to compound their accounts over time.

One of the most widely-used approaches in the market is ‘day trading’. As the name suggests, this involves opening and closing positions on the same day – usually after just a few hours. With this approach, the aim is to generate small profits regularly, which will help grow a trader’s account exponentially.

Day trading crypto

Day trading is a popular strategy in regards to how to make money in crypto – yet it requires extensive market knowledge and a relatively high risk tolerance level. Most investors will know that the crypto market is inherently volatile, meaning price movements can be erratic.

However, day trading the most volatile cryptocurrency tokens can be lucrative, as many of these tokens can move 10% (or more) in a matter of hours. Thus, by completing in-depth research and developing a solid trading plan, day traders can put themselves in a position to produce regular returns.

Your capital is at risk. Crypto asset investments are highly volatile and speculative. 

4. ‘HODLing’

Beginners wondering how to make money on cryptocurrency may wish to consider ‘HODLing’. This approach was popularized by retail traders on Reddit during the GameStop short squeeze and refers to the process of holding a buy position, regardless of how volatile the price action is.

This approach seems relatively straightforward on the face of it, as all that’s required is to identify a good buying opportunity, make the purchase, and then let the position run. In reality, HODLing isn’t as easy as this since market volatility can often play with an investor’s emotions and cause them to doubt their decision.

HODLing crypto

However, many of the fastest-growing cryptocurrency projects have showcased extreme volatility in the past before going on to produce exponential returns. A prime example of this is Bitcoin, which has gone through several ‘bear phases’ in its journey. As the image above highlights, if early investors opted to HODL, then they’d be sitting on a fortune right now.

Although HODLing is an ideal approach for beginners wondering how to make money with cryptocurrency, it only works if the project has inherent value. Due to the sheer volume of coins in the market, many will fall by the wayside and not reach the heights BTC did – so it’s crucial to do prior research before buying and holding.

Your capital is at risk. Crypto asset investments are highly volatile and speculative. 

5. Play-to-Earn Crypto Games

Participating in the best play-to-earn games can be an excellent approach for those wondering how to make money in crypto. Put simply, play-to-earn (P2E) games allow players to earn rewards through skilled gameplay – usually by battling other players or completing in-game tasks.

These rewards are distributed in the game’s native token. For example, one of the most popular platforms in the P2E space is Axie Infinity, which rewards users in AXS – the project’s native ERC-20 token. AXS can then be used to purchase in-game items (structured as NFTs) or withdrawn to an external crypto wallet.

Axie Infinity P2E game

Through this approach, those who play the best crypto games can produce a regular income stream in an enjoyable way. Aside from tokenized rewards, many P2E games also have a built-in NFT ecosystem, whereby users can purchase/create in-game items and then sell them to others.

This approach provides another way for players to make a return whilst also benefitting from any value increases in the token itself. So although most investors prefer to make money trading crypto, participating in P2E games can also be a great way to create a secondary income stream.

6. Crypto Yield Farming & Lending

Crypto yield farming and lending are two popular strategies that those wondering how to make money with cryptocurrency can employ. Both methods allow crypto investors to put their idle holdings to work – yet yield farming and lending differ in how they produce a return.

Yield farming refers to depositing cryptocurrency into liquidity pools, which are inherent to many decentralized finance (DeFi) protocols. As their name implies, these pools provide the liquidity needed to facilitate smooth trading and price stability. In return for depositing tokens, participants will be rewarded with a high yield.

Crypto yield farming

Crypto lending works similarly because crypto holders deposit their holdings with a lending platform. However, these holdings are then loaned to third-party borrowers, such as retail traders and institutions. Like all lending activities, there’s always a chance of default – which is why yields on crypto lending are so high.

So which approach is better? There’s no clear answer here, as both offer a seamless way to generate a consistent return on idle holdings. However, there’s no such thing as a ‘free lunch’ in the markets, so be aware that all yield farming/lending activities come with an element of risk.

7. Crypto Faucets

Another way to generate crypto income is to use the best crypto faucets. Crypto faucets are rewards platforms that enable users to earn crypto by completing simple tasks. These tasks are quick and easy to conduct – although they are incredibly monotonous.

Examples include completing CAPTCHAs, sharing content, viewing digital ads, or filling in forms. The critical thing to note with crypto faucets is that the rewards for completing these tasks are minuscule. Hundreds of tasks must be finished before the payout become worthwhile.

Crypto faucets

With crypto faucets, there’s often a minimum amount that a user must accrue before being able to withdraw to an external crypto wallet. Again, this provides another challenge that makes crypto faucets less appealing than other approaches. However, since there’s no risk involved, many people opt to use faucets in their spare time to produce extra income.

8. Crypto Airdrops 

Market participants wondering how to make money with cryptocurrency in a frictionless manner may wish to consider crypto airdrops. Many of the best TikTok crypto projects have provided airdrops in the past, which is akin to handing out free tokens. Projects do this to raise awareness and generate buzz amongst the investor base.

There are no strings attached with crypto airdrops, although most of the time, the amount being airdropped is relatively low. Assuming the project becomes listed on a DEX or CEX, those who have received the crypto airdrop can then sell their tokens or hold them to benefit from price increases.

Crypto airdrops

Some projects that airdrop crypto will require participants to complete a small task to be eligible to receive tokens. These tasks tend to revolve around raising awareness for the project; for example, following the official Instagram account or joining the Telegram group. However, it’s crucial to remember that airdrops will never require initial investment – so if a project asks for this, it’s likely a scam.

9. DAOs 

Decentralized autonomous organizations (DAOs) are a concept popularized over the past few years, mainly within the DeFi and blockchain gaming niches. As defined by Forbes, a DAO operates autonomously and encodes all decisions on the blockchain. Essentially this means that there is no ‘centralized authority’ that makes decisions.

This contrasts with most organizations governed by a CEO and board of directors. Instead, DAOs are governed by the community members – specifically those that hold the project’s native token. For example, the Uniswap DAO is governed by those who own UNI.

Crypto DAOs

There are many ways to make money through a DAO, such as by staking or yield farming. Since the community votes on governance proposals, there’s potential for new ideas to spring up that offer income-generating possibilities for token holders. Finally, since most governance tokens are listed on major exchanges, DAO members can also benefit from any value increases that may occur.

10. Crypto Mining

Rounding off our discussion of how to make money with cryptocurrency is crypto mining. Mining is usually discussed concerning Bitcoin, which popularized the concept through the network’s validation process. Essentially, mining involves validating transactions on the Bitcoin network and creating (minting) new coins, which miners earn as a reward.

Mining is crucial to how the Bitcoin network operates since there is no centralized authority to ensure transactions are legit. Furthermore, there’s no ‘central bank’ related to BTC, meaning mining is the only way to add more coins into circulation.

Bitcoin mining

Although this approach seems simple, it requires relatively advanced hardware, which is necessary to solve complex mathematical problems related to finding a target hash. Mining is also inherently competitive, as many miners are trying to find the target hash simultaneously – and the miner who finds it first is the one who receives the reward.

As the Bitcoin network has expanded, more and more computing power is needed to participate in mining. Due to this, BTC mining is often completed by companies with enormous resources, meaning this approach is now challenging for the everyday investor.

Best Platforms to Make Money with Cryptocurrency

Now that we’ve discussed several ways to generate income using digital currencies, including how to earn free crypto, let’s focus on the platforms that can help facilitate this process. Many platforms within the crypto space allow market participants to produce income – yet eToro and AQRU stand out from the crowd.

With that in mind, let’s explore these platforms further, highlighting how they can help people make money with crypto online:

eToro – Best Platform for Making Money by Trading & Investing in Crypto

eToro logoThose looking to make money with crypto through trading or investing should look no further than eToro. For those unaware, eToro is one of the world’s largest online trading platforms, boasting over 28 million users at the time of writing. eToro has a stellar reputation in terms of safety and is regulated by FinCEN, FINRA, FCA, ASIC, and CySEC.

eToro provides a user-friendly platform for those looking to make money via trading or investing. A total of 78 cryptos are available through the eToro platform, all of which can be invested in from just $10. In addition, eToro ensures that fees are easy to understand since all trades accrue a simple 1% transaction fee (plus the bid/ask spread).

eToro review

There are also no deposit or monthly account fees to contend with, and eToro allows users to fund their accounts from as little as $10. Numerous deposit methods are supported, including credit/debit cards, bank transfers, PayPal, Skrill, and Neteller. Another appealing aspect is that the account opening process is fully digital and easy to accomplish – with a free demo account on offer to all users.

eToro also excels in regards to trading features, with the ‘CopyTrader’ feature being one of the most prominent. CopyTrader allows users to automatically copy the trades placed by others – with no hidden fees attached. Finally, eToro even offers a free crypto wallet app supporting hundreds of crypto-assets.

Your capital is at risk. Crypto asset investments are highly volatile and speculative. 

AQRU – Best Platform for Making Money with Crypto Staking, Interest, and Lending

AQRU logoOn the other hand, market participants who are more interested in generating passive income may wish to partner with AQRU. AQRU is an all-in-one cryptocurrency investment platform offering yield-generation and exchange services. One of AQRU’s flagship features is the ‘Earn’ service, which offers up to 8% APY interest on specific coins.

By depositing their crypto with Earn, AQRU users can generate a yield with no lock-up period. Supported cryptos include USDC, BTC, and ETH, all of which earn interest daily. Those interested in generating interest with AQRU don’t even need to have crypto in advance, as the handy payments gateway allows users to purchase coins using a bank transfer or a credit/debit card.

AQRU review

Moreover, once a user is happy with their returns, they can withdraw in just 24 hours, either in FIAT currency or crypto. FIAT withdrawals are free to make, with no fees charged during the yield-generation process. In addition, registered users who refer a friend will receive a bonus payment of 100USDC, which can be withdrawn or used to generate a return.

AQRU has even launched its own exchange platform (AQRU Exchange), allowing users to swap cryptos for just 0.35% per transaction. The exchange supports 11 cryptos at the time of writing, although more are expected to be added soon. Finally, AQRU even offers free deposits and withdrawals in FIAT, making it highly cost-effective to swap tokens.

Your capital is at risk. Crypto asset investments are highly volatile and speculative. 

How to Make Money with Cryptocurrency – Conclusion

To conclude, this guide has taken an in-depth look at how to make money with cryptocurrency, covering 10 popular strategies that have been proven to work in the market.

Investing in promising new coins remains one of the most popular approaches – and Tamadoge is a frontrunner for those interested in this strategy. Given that the Tamadoge project has raised nearly $5 million in just over a month due to massive demand from investors, there’s certainly potential for this coin to explode once CEX listings occur later in the year.

tamadoge presale

Those looking for a viable alternative to Tamadoge may also wish to keep an eye on Battle Infinity. This metaverse project sold out its presale allocation in record time and has recently been listed on PancakeSwap. The IBAT token’s price surged over 380% in the first hour of going live – highlighting the buzz around this project.

Battle Infinity

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Alan Draper

Alan is an expert on crypto and finance who serves as the chief crypto editor for AugustaFreePress.

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