The high volatility of bitcoin and other digital coins makes them very attractive for earning. Many people ask themselves the question, “How can I make money on cryptocurrency?” The answer to it can be different, here it is important to decide on the appropriate way and choose a competent strategy.
Much depends on your personal preferences, your willingness to take or refrain from risks, and other factors.
Among the common ways to make money include:
- cryptocurrency trading.
- partner programs;
How to start making money on cryptocurrency from scratch
How to earn on cryptocurrency? Below are the most accessible and effective types of earning on cryptocurrency.
Crypto-gaming is a fairly new phenomenon in the world of virtual currencies. Most often, players get the opportunity to earn by playing and competing with each other, as well as through in-game trading of tokens or NFTs.
The best cryptogames for earning in 2022: Tamadoge
Tamadoge is a gaming ecosystem based on blockchain and meme coin technology (TAMA). The project team has developed an idea that has high commercial potential. It is a P2E game that combines Tamagotchi and the popular dog meme. Thus, the project has every chance to attract a large pool of casual gamers. Even those who were not interested in the cryptocurrency market before.
In addition to the fun concept of the game, Tamadoge offers serious and thoughtful solutions that minimize risk and increase profits for future investors:
- deflation protection – transactions burn 5% of tokens, which keeps the value of the coin down;
- No taxes or transaction fees with TAMA;
- smart contract and approval from Solid Proof, the auditing company.
At the same time, the cost of TAMA is now quite democratic, and experts are predicting a price increase of up to 37000%.
The combination of the following factors – prospectivity, cost, affordability, payback, usefulness – ensured that the project had a good start in the industry and the audience’s location.
To make money from cryptocurrency, the option of trading is suitable. You buy and sell bitcoin (or other digital money), making a profit through rate fluctuations.
It is better to do it on a cryptocurrency exchange, because such sites are quite reliable.
In order to start trading cryptocurrencies you need:
- Register by creating an account on the Capital platform
- Go to the “Markets” section
- Choose one of the many cryptocurrencies and click Buy
The platform provides the ability to trade all major cryptocurrencies, including Bitcoin, Etherium, Dogecoin, Ripple, Litecoin, etc.
Recommendations for successful cryptocurrency trading
The rate of cryptocurrency can change significantly. Therefore, a trader needs to follow the available trends. You need to buy cryptocurrency when it starts to grow. By doing so, you are investing in promising assets. Keep an eye on the market situation. Sell assets before they start to fall in value.
Making skillful transactions, you can daily add 10-20% to your capital. In certain situations, a trader is able to get 200-300% profit per month. Some cryptocurrencies start to grow rapidly.
However, there are nuances in this business. There is a risk of losing your money, because the trend on the market may not be what you expected. That’s why it’s necessary to be cautious in trading.
What recommendations should you follow?
- First learn the basics of trading and only then start trading.
- Learn how to buy cryptocurrency on the platform you’re interested in, including payment methods and countries of service.
- Make transactions on a secure site.
- Be especially careful when dealing with exchangers and individuals.
- Be analytical, don’t let your emotions get in the way.
- Start trading with small amounts, gradually increasing.
- Choose your cryptocurrency carefully.
- Be especially careful when trading with leverage.
When trading, it is better to use your own money, which you are not afraid of losing. You can also use credit, but you need to be well aware of the degree of risk.
Cryptocurrency earning platforms
It is better to use reliable platforms to trade cryptocurrency. This will give you more guarantees. Of course, successful trading will require effort on your part. Earnings from asset trading don’t just appear by magic. You have to study this sphere first, analyze the market and gain trading skills. Once you get the hang of it, you’ll be able to earn a good income.
Let’s consider platforms where you can make money on cryptocurrency in 2022. These are reputable platforms that are popular among traders. Among the best in this area are: Capital.com and Avatrade. Both platforms use CFDs when trading, which gives users the advantage of fast execution of transactions and a lot of tools for market analysis, as well as providing an additional level of security. This is due to the fact that all funds are held in segregated accounts.
Earnings on cryptocurrency by mining
The essence of this method is to process cryptocurrency transfers between users. The miner gets paid for this work, and it does not require any special efforts from him. The transactions are handled by a computer and special equipment.
However, the algorithm is quite complicated, so you will need powerful equipment, which costs a lot of money. It can be several video cards or special equipment customized for a particular cryptocurrency. So, mining requires a good investment. You will need several hundred thousand rubles.
Over time, this investment will pay off, and you will be able to make a profit. Usually it happens in 10-12 months, but you need a competent approach here.
An even greater role is played by the factor of uninterrupted operation. You need to create the necessary conditions for this. Pay attention to the placement of equipment, uninterrupted power supply, Internet, heat dissipation, air filtration. You need a technician who will replace burned parts in a timely manner, if such a situation arises.
Mining is characterized by the following advantages:
- high payback only if expensive equipment is available;
- a great deal of time is spent;
- obtaining goods with high liquidity;
This way of earning is not very suitable for beginners. It is better to resort to mining for people who already have some experience with cryptocurrency. When buying equipment, it is more reasonable to use your own funds rather than resorting to loans.
Cryptocurrency: how to make money on steaking
This is a kind of analog of a cash deposit, but in this case you open an account in cryptocurrency. Stacking is very similar to a bank deposit. Only the level of profitability here is much higher. The amount of monthly profit can reach 3%. To do this, it is enough to transfer cryptocurrency to a special exchange account. Since the exchange seeks to increase its capital in every way, it is ready to share part of this profit with you.
As a result, the user gets a good source of passive income, which becomes a serious plus. Also, unlike mining, you do not need to buy special equipment. Of course, there are some disadvantages to stealing. The yield is minimal for the crypto market. In addition, there are risks of exchange closure, which deprives you of your money.
Therefore, it is necessary to take the choice of the exchange seriously. It must be reputable and safe platform. In this case, you will be able to make good money. Stacking can be done by both beginners and experienced users. The specific yield from stacking is determined by the cryptocurrency you are using. In some cases, the profit can be insignificant – up to 20% per annum, in others – noticeably higher.
Investing in ICOs
The term ICO has a marketing component. Perhaps the creator wanted to do something like an IPO, but for the crypto market. But the name ICO (Initial Coin Offering) does not accurately reflect the essence of the process. There is no issuance of coins, so it is more appropriate to speak about tokens – the unit of information storage. It is tokens that are issued to the exchange, and only then the cryptocurrency itself appears. This approach was invented to avoid some legislative difficulties.
In an ICO, a new cryptocurrency is released. Usually it is connected with some project. For example, a company decides to start a new business. For this purpose, it needs funds, which are raised by issuing a cryptocurrency.
Investors are eager to invest in it because they are sure that these digital coins will go up in price after they go public. Or the company itself will buy back the cryptocurrency at a higher price. The specific terms are known at the time of issuance.
When you buy tokens, you can expect them to go up in value. You can also use tokens to perform transactions within the system. For example, you pay for the products of the company that issues these coins.
This way of earning is characterized by the following features:
- good prospects;
- high degree of profitability;
- potential risks.
Earnings from ICOs offer great prospects for both investors and creators of the new cryptocurrency. In the implementation of some projects, the token increased in value many times, and in some cases – even up to 500 times.
However, with this method, there is a danger of running into a dubious project. In addition, even the most promising idea can be successfully implemented in the beginning, and then be useless for the authors and investors.
This is a fairly simple way of earning income, quickly gaining popularity. There are a large number of affiliate programs – almost all major crypto-exchanges and crypto-exchanges have their own program. All you have to do is register with one (or several) of them. Provide your cryptocurrency wallet address and generate a link that will take the user to the desired site.
If a person who follows your referral link will do some action, you will get a percentage in bitcoins. In some affiliate programs you may even be charged for the transfer itself. On affiliate programs you can earn in social networks, your site or blog.
This type of earnings excludes risk. You do not need to invest money in the project. You earn as an intermediary who brings clients. You get payment for your services in cryptocurrency. The main thing is to be able to attract people with a link. If you manage to do this, you can get a good income.
Lending is the lending of cryptocurrency assets at an agreed-upon interest rate. An investor can lend digital currency both to cryptocurrency exchanges, so that they have the opportunity to increase the liquidity of the asset, and to individuals. The main advantage of lending is the opportunity to passively earn a good amount of money on cryptocurrency, which you cannot get if you put fiduciary money in a bank on deposit.
Digital coin credit can be:
- No term. In case of termless banding, the interest rate is low, but the lender can withdraw his cryptocurrency at any time.
- With a fixed term. With this option, the loan rate is set high. However, digital money cannot be withdrawn from such a contract before its expiration date.
Digital currency funds are considered one of the smartest solutions for investors who have no experience with cryptocurrencies and don’t want to spend time exploring opportunities, but want to passively earn on rising cryptocurrency assets. A crypto fund is similar to an ordinary exchange-traded investment fund tied to a specific business sector. But only in the case of a cryptocurrency fund, its assets are bitcoins and other liquid decentralized currencies.
In order to choose a crypto-fund, an investor should study the reputation of several funds, look at their work history. Then it is necessary to discard those crypto funds, which are guaranteed to promise the highest returns – these are crooks, advertising a pyramid scheme. It is also better not to contact those organizations that have a lot of negative feedback from dissatisfied customers.
How to make money on cryptocurrency: tips for beginners
The hardest part of making money from cryptocurrency is to start investing your money correctly and safely in this tool. To facilitate the first steps in this craft, we have prepared some tips for beginning investors to pay attention to.
Do not invest in dubious projects
If the project does not have a sufficient number of reviews, it is hardly worth working with it. In addition, the project holder should share a package of documents proving the guarantee of payments and growth of the product.
Choose cryptocurrencies carefully
It is always more difficult to work with a new cryptocurrency, because its rate can be less dynamic than our usual options. Because of this factor, it is better to first read the opinion of experts and then invest.
We study all the details of translations
Before you transfer money to someone else’s account, be sure to study all the details of the transfer. If funds are credited to the wrong account, they are unlikely to be returned.
Keeping all the tools in a safe place
To keep all your cryptocurrency in a safe place, it is better to connect two-step authentication to your wallet. This is a tool that makes it almost impossible for outside users to log in to your wallet. And you will be able to use your funds securely and, if you lose your password, quickly restore it using your cell phone.
Don’t download unknown files
If the entrance to the wallet, on which the cryptocurrency is stored, is made through the computer, but in no case you should not install on it pirated games, movies and any other files. The fact is that the downloaded program can carry a malicious file that can hack the user’s e-wallet and transfer all funds to an unknown account.
Pros and cons of earning on cryptocurrency
Cryptocurrency is becoming a very popular resource for investment, in various sources we see the pros on how to use it to make money. In fact, there are also negative sides of this process. Therefore, we have highlighted the positive and negative sides of cryptocurrency, which any novice investor should know.
Positive features of earning on cryptocurrency
The advantages of working with cryptocurrency relate to both its issue and the process of conducting transactions of various kinds. We have identified the following positive features of cryptocurrency, which are as follows:
- Degree of protection. Cryptocurrency has a much higher security factor than conventional currency. If you properly arrange your wallet, even the most advanced hackers will find it difficult to get to it;
- Transaction amounts. Since the amount of funds to be transferred through a transaction is not controlled by any authorities, we can transfer even huge amounts of money after we have earned on cryptocurrency;
- Access to creation. Each of us has the opportunity to issue our own cryptocurrency. Of course, it is not the fact that it will be popular among investors. But the right approach to this tool will help to provide yourself with a stable income;
- There is no inflation. Cryptocurrency can be issued indefinitely because it has no high point. In addition, the cryptocurrency holder, unlike the state, does not need to trade oil to ensure that inflation falls. Because of this, cryptocurrency has virtually no risk of being subject to inflation;
- Privacy of personal data. To transfer any amounts in cryptocurrency format, you do not need to share personal data with banks or with the person who will receive funds from you. In addition, opening a wallet and storing cryptocurrency is also anonymous.
These are the main advantages of working with cryptocurrency. And they apply not only to bitcoin or other popular counterparts, but the entire cryptocurrency.
Negative aspects of making money on cryptocurrency
And although cryptocurrency has a large number of pluses and positive features, any user who wants to make money from cryptocurrency, will have to face some disadvantages of this process. They look like this:
- There is no way to get back the lost funds. If the user transfers any amount of cryptocurrency to the wrong account, there is no way to get the funds back. This can only be done if the person to whom the funds were sent returns them to the account of the sender;
- There is no legal regulation. A large number of services do not allow us to use cryptocurrency as a payment instrument, because this resource has no legal regulation. Due to this factor, we have no opportunity to use, for example, bitcoin as a full-fledged currency;
- A higher risk of being left without funds. Since all funds are stored in the user’s wallet, which is located on the Internet, the biggest problem is the forgotten password of the wallet. In such a case, it will be incredibly difficult to get the cryptocurrency back;
- No control by banks. Banks do not control your funds, and only the digital encryption and the wallet holder are responsible for their safety;
- Rapidly changing rate. We’ve all seen the news that cryptocurrency exchange rates can fluctuate by several thousand dollars over the course of a day. Because of this, there is a risk of losing money when making a transaction at the wrong hour.
Nevertheless, most of these disadvantages can be a plus for some users. For example, the absence of bank controls allows transactions of any amount. To compensate for these disadvantages, you just need to handle cryptocurrency with care and caution, and keep your passwords in a safe place.
A few facts about cryptocurrency that you need to know
To begin with, let’s understand what cryptocurrency is all about. The simplest and most general answer is as follows: it is an electronic currency, which is issued not by states and banks, but by Internet users and companies. To control the absence of counterfeiting in cryptocurrency there is a special encryption of cryptocurrency. Due to the fact that this process takes place in an automated format, it becomes almost impossible to counterfeit cryptocurrency.
Now let’s talk about how an ordinary, familiar currency differs from today’s popular cryptocurrency. The factors that distinguish these two types of currencies are as follows:
- Issue of currency. Paper and metal money, which are used in the states, is issued only by the country, an ordinary person cannot do it. With cryptocurrency, this process looks completely different – anyone can issue it;
- Form of funds. Currency issued by states can be touched with your hands because it has a physical state. As for cryptocurrency, you cannot physically feel the token, you can only study it in your electronic wallet;
- Control of Issuance. In states, this process is controlled by central banks and other bodies related to finance. As for cryptocurrency, the control is carried out by special electronic encryption.
When it comes to buying goods, services or any other resources using cryptocurrency, the process is extremely similar for both conventional currency and cryptocurrency. Moreover, the process of purchasing goods through cryptocurrencies is becoming easier and faster. Moreover, cryptocurrency enters the global market, and not only users, but also states start to work with it. As an example, El Salvador recognized Bitcoin as its official currency.
The cryptocurrency market continues to actively develop and cryptocurrency is becoming an effective means of generating income. It is a promising market with great opportunities. For most of the methods above, a computer alone will not suffice.
What is the most effective way to make money from cryptocurrency? It is impossible to give a definite answer to this question, because every person is different. Much depends on the characteristics of your personality. Someone will want to take a risk and start trading bitcoin with credit funds. Another one will be more suitable for mining. Some of you will prefer to make some money on affiliate accounts. All of the above methods may be relevant. And it is impossible to say that one of them is better than the other.
Choose something that is close to you, that you understand and feel confident in. With this approach, you will be able to make a profit. Perhaps you will find a method that has not been touched upon in this article. Determine your own strategy, let it be effective for you.
It is also important to consider market trends – choose a promising cryptocurrency. Beware of dubious sites and HYIP projects. Always consider potential risks and try to minimize them. Start with simple ways to make money, and then move on to something more complex.