Can You Make Money Anymore With Crypto in 2023?
Do you want to know the different ways you can make money from cryptocurrencies? Continue reading if you want to know different money-making channels.
So you are now ready to venture into crypto, but you don’t know exactly how people make money from cryptocurrencies.
Those who have little knowledge about the crypto industry wonder if there are any other ways one can make money apart from day trading and long-term investments.
You are one of many who need clarification about the channels through which one makes money with crypto.
Brace up as you will be learning the different methods you can apply to make lots of money from the crypto industry.
Can I Make Money With Crypto?
Yes, the truth is one can make tons of money through different channels in the crypto industry.
Spoiler alert! Although there are different channels available to make money from cryptocurrencies, there are risks associated with them. The crypto market is volatile, meaning there’s always erratic movement in the price of cryptocurrencies.
If you are knowledgeable on how to exploit crypto volatility, it can help you make a huge amount of money. However, a mistake with your decisions can lead you to lose all the money you invested in the crypto industry.
Day trading is one of the most prominent methods of making money from cryptocurrencies, the same way it is one of the riskiest.
Crypto-day trading is entering and exiting the market at timed intervals ensuring that you make a profit off a cryptocurrency.
To start day trading, you need to understand how to use different analyses and information to determine what will happen next in the crypto market. While day trading, you need to learn how to utilize and comprehend the information from a crypto converter, technical indicator, or analysis.
Another name people call long-term investment within the crypto industry is HODLing, and the process is quite simple for beginners.
Fundamental cryptocurrency analysis might be helpful whenever you make a long-term investment.
For long-term investment, the short-term up and down in prices don’t count; rather, it is the long-term growth of its price. A good example is Bitcoin; as of 2015, the price of Bitcoin was less than $500 but is currently more than $20,000 in 2022.
Staking is an underrated method of making huge amounts of money from cryptocurrencies; only a few people utilize it.
Staking is a passive way of making money from cryptocurrencies where you need to lock your crypto tokens away for some time to earn rewards. Proof-of-Stake blockchain networks use locked tokens to validate and process transactions on their blockchain.
Those participating in staking are known as “stakers” or validators; the bigger the amount they stake, the bigger their rewards. Sometimes those participating in staking try to breach the system and take more profits; you could be penalized if caught.
Yield Farming and Lending
The concept behind crypto yield farming and lending is quite simple and is another method of earning passive income.
To participate in crypto yield farming, a transaction must occur between you and a liquidity pool. You have to release those cryptocurrencies you are not currently using to the liquidity pool.
Upon depositing the cryptocurrency to the liquidity pool, it will have a minimum time frame in which it will be locked without access. Decentralized crypto exchanges such as Pancakeswap and Uniswap mostly need the liquidity you provide with your cryptocurrency.
When the crypto is in this liquidity pool, those who need lenders within the crypto industry can go there to borrow. For those whose funds are used in facilitating the borrowing, you will be paid interest at certain intervals.
Airdrops and Faucets
Both airdrops and faucets are free ways to make money from cryptocurrencies; you don’t need to deposit any money.
In substitution for money, you may be required to perform some tasks before you are eligible for rewards from airdrops and faucets.
Airdrops are a kind of marketing strategy used by new cryptocurrency projects to reach more people; those who help in the promotion earn rewards in return. Typically those who participate in an airdrop will earn cryptocurrencies used in the blockchain of the new crypto project.
Faucets are like airdrops; you must complete tasks on a website or app to earn rewards. Sometimes the most common activities you need to perform at faucets are watching ads, posting on social media, and completing surveys.
Although airdrops and faucets are free, you should be very careful as cybercriminals use them to hack into people’s wallets.
Those interested in the crypto industry are often confused about how they can make money from cryptocurrencies. Those who know 1 or 2 methods are eager to learn other channels they can utilize to make money from cryptocurrencies.
Above, we discussed some ways you can make money from cryptocurrencies, such as staking, day trading, and yield farming.