The quick rise of cryptocurrencies has taken many people by surprise. As a result, a lot of individuals around the world are becoming increasingly interested in discovering different ways to make money with cryptocurrency.
The array of options to earn extra money from this industry is indeed endless. In this article, however, we’ll only look at the most proven ones to help you increase your income.
We have personally used all the options given in this article. Therefore, you can trust us when we say all of these options offer good returns. With that said, you must be aware of the crypto-related scams before diving into this industry because, in a decentralized space like cryptocurrencies, the chances of you getting scammed are very high.
HOW TO MAKE MONEY WITH CRYPTOCURRENCY IN 2020
1. BECOME A CRYPTO MINER
Becoming a crypto-miner is the simplest way to make money from digital currencies. It’s like producing magic money from your home computer. Is there anything better? Definitely not!
However, when mining digital coins like Bitcoin, Ethereum, or any other cryptocurrency, you’ll need to consider factors like expensive mining equipment, electricity costs, hardware configuration knowledge and the physical space to operate.
Also, make sure to do your homework before mining your desired crypto. You don’t want to put all your time and effort into trying to make money with cryptocurrency, only to end up broke later on because of the wrong choice of coin.
While crypto mining is an excellent way to grow your crypto assets; its speed to generate coins is languid. In most cases, the miners can only make coins worth $1 or $2 a day, which is quite low compared to the cost of electricity, dedicated hardware, and the internet connection.
To start mining, you will need computer hardware specifically designed to mine coins. The general specifications of these computers include:
- A specialized graphical processing unit (GPU)
- Cooling means for the hardware
- Cryptocurrency mining software
- A stable internet connection
Before you start mining, remember that the growing popularity and value of crypto-coins has made the competition fierce between miners. As a result, only those who have extensive mining resources can stay in the game. If you don’t have enough computing power or financial resources, then mining may not be the right approach for you to make money with cryptocurrency.
What are the Advantages of Mining Cryptocurrency?
Increases Income: If you’re a full-time employee and want to increase your income, crypto mining is an excellent way to do that. However, you must have the right equipment to mine coins.
Cost-Effective: Mining cryptocurrency is cheaper than buying these coins. Although the upfront costs are high, the subsequent costs are way low. Besides, there is no risk of scams in mining, which makes it safer, too.
Best Way to Earn Crypto: Mining is also the best way to earn crypto. While traditional currency is released by banks, crypto can be earned at home through mining.
2. BUY AND HOLD – HOW TO EARN FROM CRYPTOCURRENCY
The term HODL is slang for holding the cryptocurrency rather than selling it. Buying and HOLDING is the most common way to make money with crypto. It involves buying digital coins and waiting until their value rises. Once they rise in price, the owner sells them at a profit.
Bitcoin, Ethereum, Ripple, and Litecoin are the most popular crypto coins among buyers.
This approach requires you to invest in coins that can shift rapidly in value and generate quick profits. Bitcoin and Ethereum are two of the most volatile digital coins as they continuously show massive price fluctuations. Because of this reason, these two coins are considered the safest investment options among all the cryptocurrencies.
However, you are welcome to invest in any coin that seems profitable to you.
Also, buying the most expensive coins isn’t what guarantees success. There are also countless small altcoins with decent price shifts and a promising future. Our advice is to explore your options before investing in a coin.
There are various strategies to hold cryptocurrencies. The main idea behind this approach is to gain huge profits. Buying and holding works best for long term investors as it requires a lot of patience. Short-term traders, on the other hand, get frustrated when the price starts to fluctuate.
If you are the type of person with little knowledge about how to make money with cryptocurrency in 2020, then buying and holding might be the right strategy. You just need to stay patient during price downfalls and look for opportunities to get high returns.
What are the ADVANTAGES of Buying and Holding Cryptocurrencies?
A Simple Strategy: Buying and holding crypto coins are as simple as it gets. You just buy a coin that you think may give high returns and keep hold of it until it becomes double or tipple in value.
Saves on Taxes: Since this strategy involves long term capital gains, the investor has to pay low taxes on return. On the other hand, strategies with short term capital gains include higher taxes.
Saves Commissions: Buying and holding save a lot of money on commissions. Plus, the transaction fees are low as well.
Works Without Market Analysis: This strategy doesn’t require market analysis. You just buy the coins and sell them when it seems right. Factors like market timing and volatility are entirely ignored.
What are the DISADVANTAGES of Buying and Holding Cryptocurrencies?
High prices: Most of the coins worth HODLing have premium buying prices. If you’re going to buy and hold a coin for several years, make sure it’s one of the top coins.
Large Losses: Several investors who buy and hold crypto become frustrated during price falls, which leads them to suffer large losses.
Volatility is Ignored: Volatility is an important aspect of crypto trading. However, in buying and holding, investors often ignore this aspect. The only time they look at volatility is when there are bargains in the market.
Ignoring Market Analysis: Market analysis helps investors to determine periods of time where they should invest or avoid making investments. However, this aspect is also completely ignored in buying and holding.
3. MAKE MONEY CRYPTO TRADING – TRADE CRYPTO ON EXCHANGES
Trading crypto on exchanges is a great way for those who don’t know how to make money with cryptocurrency. It requires minimum effort but is also a bit risky. The best way to make money from this approach is to buy crypto when the price is low and sell it as soon as it goes high.
In fact, all successful traders spend a considerable amount of time learning the benefits and pitfalls of this process before making investments. You should also do the same if you are intrigued by the idea of earning money with crypto by trading on exchanges.
The risk in this approach is high but so is the income.
In how Many Ways can I Trade Crypto?
You can trade crypto in the following three ways:
Trading Websites – These websites connect buyers with sellers. They charge a fee for each trade you make.
Direct Trading – This type of trading involves person to person transfer. It allows people totransfer coins worldwide.Exchanges that offer this facility don’t have a fixed fee. Instead, each exchange charges its own price.
Brokers – These are also websites that sell cryptocurrencies. Anyone can buy digital coins from these sites for a fee set by the broker. These websites work a lot like foreign exchange dealers.
How to Find the Right Cryptocurrency Exchange?
Look for the following features to determine if a crypto exchange is trustworthy or not:
Reputation: The best way to know if an exchange is trustworthy is to look at the reviews left by its previous customers. You can also ask questions about an exchange on sites like BitcoinTalk or Reddit.
Payment Methods:The variety of payment options that an exchange offers can also give you a hint about its reliability. For example, if an exchange accepts payments through credit card, debit card, PayPal, or wire transfer, then it’s probably a reliable exchange. On the other hand, if an exchange only offers limited payment options, then it’s probably not best to trade with it.
Fees: The majority of exchanges have fee-related information on their websites. Each exchange may charge different fees. Therefore, it’s essential to learn about their transaction, deposit, and withdrawal fees before acquiring their services.
Geographical Limitations: Some exchanges only operate in certain countries. Make sure the exchange you choose is fully functional in your country to make transactions comfortably.
User Privacy: The vast majority of cryptocurrency exchanges require users to provide some ID in order to use their services. However, not all exchanges will ask for your personal information. Some will allow you to remain anonymous.
The reason some exchanges require user verification is that it protects the exchange against cryptocurrency scams and money laundering.
4. WORK FOR COMPANIES THAT PAY IN CRYPTOCURRENCY
This is a very common way to make money with cryptocurrency. Many companies pay in crypto, and anyone can work for them in any capacity. You can be a digital marketer, web developer, graphics designer, blogger, among other things to earn money that way. All you need to do is identify their problems and show them that you have the skills to provide the right solutions.
The best thing about working for such companies is that you will have a flexible schedule along with the benefit of working from your place.
Besides, the legit crypto paying firms offer handsome payouts. So, if you happen to come by a chance to work with one, don’t hesitate to take the opportunity.
Coinality, Angle.co, and Coinworker are few examples of such firms.
In recent times, it has become very easy to find companies that pay salaries in crypto. If you are looking for way to make money with cryptocurrency, then finding such a firm should be your top priority.
What are the Benefits of Cryptocurrencies?
These are the primary benefits of cryptocurrencies:
The Next Big Thing: According to financial experts, top tier digital coins such as Bitcoin, Litecoin, Ethereum, etc. can transform the future of payroll execution. However, the high volatility of these coins is something that can stop them from dominating traditional currency.
Easy to Use: Cryptocurrencies are easy to use. Being paid in cryptocurrency means you can change it into fiat currency at any time. You can also use crypto assets as they are. Plenty of outlets and restaurants accept crypto payments, which has made life a lot easier for crypto users.
No Borders: All the top coins can be used worldwide.Moreover, you can convert your crypto assets into any currency at any time. Typically, people convert cryptocurrencies into USD or other digital coins based on the exchange rates.
Low Transaction Fees: Cryptocurrencies use a decentralized peer-to-peer system called blockchain for transactional purposes. Because of that, there is no intermediary involved to transfer coins between two parties. Since the transaction takes place between the two parties directly, the transaction fees are also meager.
5. SIGN UP TO CRYPTO FAUCETS
Crypto faucets aren’t very popular, but they are an effective mean of earning money through digital coins. Essentially, crypto faucets are a reward system that runs in the form of a website or a mobile app to reward qualified users in crypto.
The most popular crypto faucets are the Bitcoin ones. These faucets pay in Satoshi which is a hundredth of a millionth BTC.
To earn money from faucets, you will need to complete tasks as per the requirements of a website/application. The tasks may include playing games, watching videos, leaving reviews on products, and viewing certain ads.
Each completed task earns you a small share of cryptocurrency and you will need to complete quite a large number of tasks to earn money in bigger sums.
Are Crypto Faucets Profitable?
Crypto faucets don’t really pay big payouts. Their only way of earning is ad traffic due to which most of the faucets are saturated with pop-ups, ads, malware disguised as advertisements. Additionally, most faucets don’t pay you right away. This means that you’ll need to use a faucet several dozen times to receive a payout in your digital wallet. Usually, these payouts are so small that you’ll need to use a faucet for several days to earn a significant amount of coins.
What are Some Highest Paying Bitcoin Faucets?
For those looking to make money with cryptocurrency, these are the best paying Bitcoin faucets:
- 99 Bitcoins: Pays satoshi for solving captcha
- CryptoAddicted: Pays satoshi for doing different tasks
- Moon Bitcoin: Pays mining bonuses, referral bonuses, and daily loyalty bonuses
- FreeBitcoin: Pays through referral program, weekly lottery, and hi-lo games
- Family BTC: Pays satoshi for viewing ads and doing several other tasks
6. BECOME A CRYPTO WRITER
Writing on cryptocurrency is another cool way to make money with cryptocurrency. However, this will require you to have in-depth knowledge and a broad vocabulary on the matter.
Due to the increasing popularity of digital coins, more and more websites are looking for individuals who can write in this industry. Plus, they offer great packages to the right individuals. Hence, finding an online platform where you can write on crypto could take your earnings to a whole new level.
To kickstart your crypto-writing career, build a content writer profile on globally renowned platforms such as Upwork or Freelancer.com. These have thousands of clients looking for crypto writers, and you are more than likely to find an appropriate employer for yourself quickly.
You may find helpful 11 Excellent Ways to Earn Online Money by Typing
Checking out the “Careers” section in major crypto websites can also be a useful option to find a suitable crypto writing job.
What are the Top Places to Earn Crypto as a Writer?
These are the top websites to earn crypto as a writer:
Publish0x: This website pays crypto to both the readers and writers. Obviously, the writers receive high payouts for creating content that keeps the readers engaged from start to finish. However, readers get their share too for spending time on the website.
Steemit: This website is both a social media and publishing platform. It pays you for writing articles on crypto coins. Unlike Publish0x, Steemit only pays the writers who create compelling content.
Bounty0x: Bounties pay fixed rewards to individuals who efficiently complete given tasks. The rewards are given in crypto, and the tasks generally include writing and publishing article about new developments in the crypto world.
Final Thoughts – Make Money With Cryptocurrency
So, these are some common ways to make money with cryptocurrency. We encourage you to try the ones that work for you. If you have already tried one of the methods mentioned above or something out of the box, please share your experience with us in the comments below.