Last Updated on December 28, 2022 by The Crypto Dweeb

Do you ever sit down and ask yourself the following questions?

Can you really make money with cryptocurrency?

What is the best crypto to make me money?

When can I quit my job and buy a Lambo or at the very least achieve financial freedom?

Chances are if you are reading this post you have thought of at least one of these questions. Cryptocurrency has become increasingly popular over the past decade, with more and more people looking for ways to make money with it. While there are certainly risks involved with investing in cryptocurrency, the crypto space is still prime with massive opportunities to make asymmetrical gains, despite being in a bear market.

In the last bull run of 2021, some users became instant millionaires. Others, like one individual who bought 8k worth of Shiba Inu, were able to become a billionaire. The cryptocurrency market is currently in a bear market, but typically now is the best time to invest in preparation for the next bull run to achieve massive gains..

Ok, that sounds incredible Dweeb. Now tell me how do I make money with cryptocurrency?

1. Buying and holding Crypto Assets (including NFTS)

One of the most straightforward ways to make money with cryptocurrency is by simply buying and holding onto a particular coin or other digital assets for a long period of time. This approach is often referred to as “HODLing” within the cryptocurrency community. The idea is that you buy a coin when it is undervalued and then hold onto it for an extended period of time, hopefully until it increases in value. This can be a risky strategy, as the value of cryptocurrency is highly volatile and can fluctuate significantly over short periods of time. However, if you can HODL through the ups and downs and the value of the coin eventually goes up, you could see a significant return on your investment.

Another lesser-known fact is one can also buy and hold NFTS and potentially make a lot of money. A non-fungible token (NFT) is a digital asset that represents ownership of a unique item or asset. NFTs are stored on a blockchain, which allows for verification of ownership and rarity. NFTs have gained popularity for their use in digital art, collectibles, and other digital media. Some examples include Bored Apes and Punks, both of which at one point had a floor price of hundreds of thousands of dollars at its peak.

2. Trading Crypto

Another way how to make money with cryptocurrency is by actively trading it on exchanges. This involves buying and selling cryptocurrency to profit from price changes. Trading can be a more complex and risky strategy compared to simply buying and holding, as it requires a deeper understanding of market trends and the ability to make quick decisions based on this information. However, if you have the knowledge and skill to trade successfully, it can be an effective way to make money with cryptocurrency. Having the ability to analyze market charts is critical.

3. Mining Crypto

Cryptocurrency Mining is the process of verifying transactions on a blockchain and adding them to the blockchain’s public ledger. Miners are rewarded with a small amount of cryptocurrency for their efforts. In the early days of Bitcoin, it was possible for anyone with a computer to participate in mining and potentially make a profit. However, as the popularity of cryptocurrency has grown, so too has the difficulty of mining. Today, mining requires specialized hardware and a significant amount of electricity to be profitable. As such, mining is typically only a viable option for those with a strong technical background and access to cheap electricity.

4. Staking as an Investing Strategy

Crypto Staking is a process by which individuals hold a certain amount of a particular cryptocurrency in a wallet and use it to help secure the blockchain. Staking is a way to generate passive income and is quite popular in the decentralized finance (DEFI) sector. A common term in the industry is called yield farming.

In return for their efforts, stakers are rewarded with a small percentage of digital assets in return. This can either be via the cryptocurrency they are staking or a secondary token. Staking is a more passive way to make money with cryptocurrency compared to mining, as it does not require the same level of technical expertise or electricity usage. However, it also tends to offer lower returns but still remains quite popular as people tend to value free tokens.

5. Running a master node

A master node is a type of node on a cryptocurrency network that performs a specific function and is often rewarded for doing so. Masternodes typically require a large amount of a particular cryptocurrency to be held as collateral, and they may perform functions such as validating transactions or participating in governance decisions. Running a master node can be a good way to make money with cryptocurrency, but it requires a significant upfront investment and a deep understanding of how the particular cryptocurrency’s network operates. Not to mention, it’s not the easiest for normies to understand.

6. Providing liquidity in the crypto market

Cryptocurrency exchanges rely on liquidity – the ability to buy and sell an asset easily and at a stable price – to function effectively. By providing liquidity to an exchange, you can make money by earning a small percentage of each trade that is executed on the exchange. This can be a good way to make money with cryptocurrency, especially if you are familiar with the exchange and the particular coin or token that you are providing liquidity for.

Adding liquidity typically though involves not using a traditional crypto exchange but rather a decentralized exchange (DEX). It involves adding equal amounts to both sides of the liquidity pool in exchange for a set of fees generated by each trade. Be wary of impermanent loss but it’s generally considered a safe investment and used by many successful traders interested in making money.

7. Earning Crypto tokens through airdrops

Airdrops and bounty programs are methods by which cryptocurrency projects distribute coins or tokens to the public seemingly for free. It’s a great way to earn money and reward those users who use the platforms.

Typically airdrops are never announced ahead of time and instead reward users after a certain cut-off date in the form of a snapshot. In the cryptocurrency space, airdrops are extremely popular as everyone likes the thrill and surprise of being rewarded for being a user of the protocol. This is the true nature of decentralization. Many airdrops have been worth 5 figures in the past. With a long-term strategy in mind, it may prove to be wise to start using as many protocols as possible as you never know which may one day airdrop a token in the future to its users.

Summary

In conclusion, the 7 best ways how to make money with cryptocurrency are the following:

• Buying and holding Crypto Assets (including NFTS)

• Trading Crypto

• Mining Crypto

• Staking as an Investing Strategy

• Running a master node

• Providing liquidity in the crypto market

• Earning Crypto tokens through airdrops

The cryptocurrency industry is filled with endless opportunities for individuals to make money. The global cryptocurrency market cap is almost at 1 trillion dollars and many, including myself, believe this number will exponentially grow in the coming years. If you wanted to make money with cryptocurrency, there’s no better time to start than today.

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