In this article, we have highlighted ten different ways to earn with crypto. Each of these methods has been proven effective and reliable.
Let’s get started with the top 10 ways to earn with crypto.
1. HODLing (Buy + Store on your Personal Wallet)
HODL is a popular term gotten from the misspelling of the word “HOLD.” It means to buy and hold bitcoin and other cryptocurrencies for a significant period of time. It is one of the popular methods through which people earn money with cryptocurrency. It refers to buying a coin like Bitcoin from a cryptocurrency exchange and holding for an extended period waiting for its value to rise significantly. HODLing is seen as a long-term investment in cryptocurrency because it requires buying a particular coin at a certain time without any plan of selling it soon. It can be considered as betting that the cryptocurrency will increase in value in the near future.
For example, users use trading charts similar to forex trading to forecast Bitcoin’s price movement. It includes events like Bitcoin halving, regulation, and industry news to know when the price will rise or fall.
2. Trading (Buy and trade on Exchange)
It is also another avenue that users can earn money with cryptocurrency. However, unlike buying and holding, trading means that you buy a cryptocurrency at a low price and sell it at a higher price. However, it requires adequate and practical knowledge about the market – how the market performs and different ways to succeed while trading cryptocurrency. You will need to have clear foresight and a crystal ball to succeed in trading. And giving the volatile nature of cryptocurrency, this method might be tricky for beginners. But for experienced traders, volatility is just another word. Trading cryptocurrency on an exchange is one of the remarkable ways of earning through cryptocurrency.
Lending is one unique avenue that users can earn with cryptocurrency. However, not all exchanges have this unique feature. Yet, one of the popular exchanges, Binance, has this feature. Through lending their cryptocurrencies, users can earn interest on their underlying crypto assets. For example, Binance allows users to lend their crypto assets such as BTC, BUSD, USDT, ADA, and ALGO and earn up to 6% in annual percentage yield (APY).
With Binance Lending, users have two choices – either choose Flexible Savings or Locked Savings. With Flexible Savings, users can deposit their crypto assets and redeem them anytime. Whereas Locked Savings offers higher profit, but a fixed duration. The options for lending duration are; 7, 14, 30, or 90 days. You will select the best option that is convenient for you. The platform is already designed to calculate your interest as per your duration for the lending period and you can agree for the lending amount and the interest rate. Above all, it is one of the many avenues to earn with cryptocurrency.
Staking is an alternative to mining. It requires keeping funds in a wallet while performing various network functions (like validating transactions) to receive a staking reward. The stake (token holding) incentivizes the maintenance of the network’s security via ownership.
Staking has proven over time as a way of earning with cryptocurrency. Binance is one of the leading exchanges where you can maximize this excellent opportunity. The Exchange allows users to automatically stake their tokens and earn from the tokens staking programs. With the Binance flexible staking, users can earn extra tokens from 25 supported cryptocurrencies with no strings attached.
Mining is one of the popular ways to earn through cryptocurrency. It is one of the avenues most investors explore to earn crypto. Users can mine crypto’s using integrated circuit (ASIC) devices, CPUs, GPUs if they have considerable capital to get started. With these GPU and ASIC mining machines, a person with access to cheap electricity can earn cryptos by buying some machines.
Some coins can be mined with a central processing unit (CPU), allowing people to earn coins if they have few personal computer cores at their disposal. However, mining using ASIC and GPU will require an upfront cost to get started, while the CPU will make your computer slower. Also, different mining methods require running mining devices to make a considerable profit. If people decide to mine cryptocurrency, they will have to join a mining pool since individual mining is not as profitable as it used to be in the past.
A mining pool is when miners join forces to boost hashing power to generate blocks faster as difficulty rises. However, by pooling their resources, they mine blocks more quickly, and the rewards are divided based on the contributions.
Above all, the mining of cryptocurrency is a good way of earning with cryptocurrency.
6. Yield Farming
Yield farming grants people the opportunity to earn investment income by putting their funds in decentralized finance (Defi) protocol.
It happens when an investor deposits a digital asset (crypto) in a lending or market-making protocol to earn fees or interest in exchange for providing liquidity. Besides, the users also receives an extra yield in the form of the protocol’s governance token.
Let’s take, for example, a yield farmer can decide to lend Ethereum on Compound and, in return, earn a yield, depending on how much, Compound charges borrowers of ETH loans. Also, the Compound tokens are distributed to the liquidity provider depending on the amount they contribute to the borrowing and lending pool.
In yield farming, you have to invest in order to earn. And it requires full knowledge and experience about how the system works before you can start earning. Yield farming is mostly beneficial for those who are ready to invest heavily in the system. It is so that the return will cover more than the fees while giving you a considerable return on investment. If you are investing a few hundred dollars, the fees will likely fizzle any earnings you realize.
7. Fund projects (ICO)
Funding for initial coin offering (ICO) projects is another lucrative avenue to earn with cryptocurrency. However, it might require a considerable amount of capital to get started. The price of ICO’s is skyrocketing every day while turning investors into millionaires. Investing in ICOs can earn you shares or dividends within a short time.
Basically, it involves buying certain cryptocurrency from a project which is yet to be launched. That way, you can grab that cryptocurrency at a minimal price and sell it once the projects takes off. For example, while raising funds for its ICO, Ethereum tokens (Ethers) were priced at $0.31 per token and currently it’s trading at $600 per token. That’s one of the massive ROI you can ever expect from your investment.
8. Browsing Brave
Brave is one of the browsers that prioritizes the protection of the user’s privacy. The browser aims to stop users from being tracked online. In order to achieve that, the browser stops advertisers from tracking users, which changes the significant ways many websites make money.
If you are looking to earn cryptocurrency like bitcoin without investing any money, you might look at Brave Browser. You might consider ditching chrome for the browser. Brave browser is faster, safe, and more secured than any other web browser.
Examples of how users earn using the browser include;
- Earn up to $7 worth of BAT in referral for inviting users to download and try the platform.
- Earn BAT by watching ads and surfing the web, etc.
However, if you have the patience to view Brave Ads, like push notifications, you can earn a token of BAT. It is one of easiest avenue for users to earn cryptocurrency without making any investment.
9. Buying with Lolli extension
Lolli is a prominent bitcoin’s rewarding site and browser extension that allows users to earn cryptocurrency like bitcoin when they shop from one of their partner merchants. Lolli gives users free bitcoin or cash when you shop at over 1000 top stores. However, the partner merchant store determines the reward (%) for the user that purchased the goods.
The merchant store pays Lolli whenever you shop through those stores via Lolli. Once a user makes a purchase, the merchants pay Lolli, who pays the user – sending the user free bitcoin to the user’s bitcoin wallet. The only disadvantage is that Lolli is a USA-based service only and not available yet for users globally.
10.Using Crypto for Business Transactions
It is one of the popular ways of earning with cryptocurrency. There are various ways that you can earn with cryptocurrency globally. Cryptocurrencies can be used to pay for goods and services. It can also be used as a medium of exchange. By using crypto for transactions, businesses can save a substantial amount of money on transaction fees compared to bank/wire transfers, especially the bigger transfers. Various crypto based payment gateways have popped up during the last decade and these gateways can be leveraged smartly to save transaction costs for businesses. However, the transaction cost depends upon the underlying blockchain network (Omni, Ethereum, EOS, Tron) that is used for processing the payment.
With PayPal, one of the leading financial institutions unveiling bitcoin for buying and selling in their platform, cryptocurrency has stepped in the world of possibilities of being used for more business transactions in the future.
For more articles about cryptocurrency check out our Top 10 page.
Written by: Narender Charan