Best Ways to Make Money In Crypto
Crypto is more popular and promising than it ever has been in the past decade. Before, it was regarded with skepticism and even contempt. People were almost certain that it was just a scam, an elaborate plan that only benefited the people at the very top. Even those who made profits were accused of being lucky, nothing more.
Today, the narrative has changed. Crypto has proven itself, despite still being a relatively volatile investment. Crypto coins are even being adopted into mainstream retail. The number of people making decent cryptocurrency profits has also increased.
But people still wonder how exactly profits are gained because several scams are still rampant in the crypto community. Investing in crypto also requires a great deal of knowledge, skill, and good old-fashioned wisdom. In this post, we’ll look at some of the ways people are using to reap huge benefits from crypto and how you can try them too.
Start Investing in Crypto now with ByBit!Is it a Good Time to Make Money In Crypto?
To rule out the idea that people only make money from crypto due to luck alone, let’s analyze the conditions in the market. What do the conditions right now tell us about crypto?
Top Reasons to Invest in Crypto Now
Current conditions working in our favor:
Attractive Prices Due to Technical Correction
The cryptocurrency market enters what is referred to as a technical correction whenever there aren't enough bullish investors. A technical correction often manifests as a steep 10% decline in coin price that lasts 7–10 days. However, the decrease must be less than 20% to be considered a correction. Overbought indicators can reset their values during these corrections, which helps with other market adjustments.
Right now, there is a crypto crash providing great conditions for a technical correction.
The lower prices also allow investors to ‘buy the dip’; an expression used to explain buying assets at low prices and holding them until the prices rise again. However, this method is only good for long-term investments.
Protection Against Inflation
Although it is untrue to say that crypto is immune to inflation, it handles it better than traditional currencies.
Bitcoin, along with most crypto assets dropped in value at the beginning of the pandemic, together with the stock market. This drop was in part due to the mainstream adoption of crypto that connected it more than ever to the stock market.
Crypto is also known to have foolproof methods to cap inflation, even if the price of a coin drops drastically. One way to make a store of value resistant to inflation is to make it scarce. The number of bitcoins will never exceed 21 million. About 19 million Bitcoins have been mined as of right now. Each time a new "block" is processed by miners, 6.25 bitcoins are added to the network.
The mining incentive will decrease by half again every four years until all of the bitcoin is mined, falling to 3.125 bitcoin in 2024. This Bitcoin protocol is a mechanism known as the "halving" that accomplishes this.
Portfolio Diversification
We mentioned how many people have never been eager about crypto. But as inflation and high-interest rates suffocate traditional markets, people need to think outside the box. Cryptocurrency provides the perfect opportunity since many people still haven’t tried it yet.
Relatively immune to the worst of inflation, cryptocurrency has provided a semblance of stability and an additional stream of income. The long-term benefits are also quite attractive to investors who seemingly have nowhere else to go during these times.
Relatively Lower Transaction Costs
In comparison to other financial services, cryptocurrency transactions are relatively inexpensive. For instance, a domestic wire transfer typically costs $25 to $30. Even more, money can be spent when sending money abroad.
In these tough financial times, the best strategy is to save as much money as you can. Even in the future, saving on exorbitant transaction fees will be a long-term plus you should invest in.
How to Learn Crypto - Onlline Educators, Books and CoursesAccessibility, Security, and Privacy
One of the reasons creating wealth isn't easy and never has been because of the hurdles people face in accessing funds and financial institutions. The institutions themselves can never assure anyone of the security of their funds. Transactions are also tracked closely, and not everyone is a fan of such scrutiny.
Especially in these times of economic turmoil, people need as much flexibility as they can get. They also want to access their funds as easily as possible. Crypto provides all these features.
Cryptocurrency can be used by anyone. An internet connection and a computer or smartphone are all you need to access your funds. Comparing the process of creating an account at a conventional financial institution to that of setting up a bitcoin wallet, the latter is incredibly quick.
There is no ID checking. There also isn't a credit or background check required. Nobody can get denied access to crypto for their past or current financial hardship.
Top Reasons Not to Invest in Crypto Now
Although crypto looks promising right now, here are some of the dangers lurking in the shadows:
Vague Economic Outlook
In theory, the crypto market experiences different cycles governed by varying conditions. Each of these cycles is estimated to last a maximum of 4 years. Some experts think it may last for only 2 years but get unpredictably and progressively worse before getting better.
However, the truth of the matter is that nobody knows for sure. Even in the best-case scenario, we should expect drastic drops in value, which could deplete our investments. Therefore, you must only invest what you are willing to lose.
Unpredictable Global Economic Strife and Inflation
The socio-economic issues creating economic strife around the globe are extremely unpredictable. Nobody knows how long they will last, let alone what they may develop into. There is little we can do to understand or even control how they are affecting us.
How these issues will shape the crypto market can only be speculated. Therefore, you must again make sure that you are only investing what you are comfortable losing.
How to Invest in Crypto?4 Best Strategies For Making Money In Crypto
Given the current market conditions, these are the best ways to make money with crypto:
Long-term investing (holding)
Investing is the long-term strategy of purchasing and holding crypto assets for an extended period. In general, crypto assets are best suited to a buy-and-hold strategy. They are extremely volatile in the short term but offer enormous long-term growth potential.
The investing strategy requires the identification of more reliable assets that will be around in the long run. Long-term price increases have been observed in assets like Bitcoin and Ethereum, making them a safe investment in this sense.
Especially now, long-term crypto investments are a smart idea. Prices are relatively low, so when they go back up again, investors could potentially reap massive profits. However, you must be ready to observe a few drops as the market goes through the current hardships.
👍 Pros
•Attractive prices due to a technical correction
•Massive long-term profits
👎 Cons
•It is uncertain how low prices will drop in the next few years before they start rising again.
Trading
While investing is a long-term strategy centered on buy-and-hold, trading is designed to capitalize on short-term opportunities.
The cryptocurrency market is volatile. This implies that asset prices often change drastically over a short time, either by increasing or decreasing. Traders take advantage of these fluctuations to earn profits by buying when the asset is down, and selling when it shoots up in value.
To be successful in trading, you need to have the necessary technical and analytical skills to make good choices. To estimate price increases and declines with accuracy, you must evaluate market charts on the performance of the listed assets.
Therefore, trading is a good idea if you want quick returns. You just need to have enough skills to manage your trades successfully. You can also be interested in information how to turn $100 into $1000 in crypto trading.
👍 Pros
•Short term returns
• Good trading skills can lead to very high, daily profits
•Satisfying and energizing once you start making profits
•Accessible to people with any economic capability
•Numerous resources for learning
👎 Cons
•Gaining skills takes time and effort
•You must practice for a minimum of 6 months
•The current market conditions require extra vigilance and dedication, which could be stressful
Copy Trading Crypto (eToro as an example)
In the financial markets, copy trading allows users to automatically duplicate positions opened and managed by professional traders. Copy trading connects a portion of the copying trader's funds to the account of the copied investor, in contrast, to mirror trading, a technique that enables traders to only copy particular techniques.
The majority of investors see copying traders on eToro as a legitimate and sustainable way to supplement their income. Yes, you can earn money, if the traders you copy make money too. According to the broker, the top 50 traders' average profitability in 2019 was 29%.
👍 Pros
•Save time
•Reduces losses
•An excellent starting point for new traders
•Allows traders to learn from more experienced traders faster.
👎 Cons
•Professionals still make mistakes
•Manual copy trading can be straining
Staking
Staking is a method of validating cryptocurrency transactions. When you stake, you own coins but do not use them. You instead keep the coins in a bitcoin wallet.
Your coins are then used to validate transactions on a Proof of Stake network. You then get rewarded for lending your coins to the network. So, staking is essentially lending coins to the network for rewards.
These loans enable the network to maintain security and validate transactions easily. Your incentive is comparable to the interest that a bank would offer you on a credit balance. We can therefore say that staking is an amazing opportunity for earning passive income with crypto. You can also lend coins to other investors and earn interest on the loan. Many platforms make crypto lending possible. All you have to do is lend the money and get returns.
The Proof of Stake algorithm selects transaction validators depending on the number of coins stacked. This makes it considerably more energy-efficient than crypto mining and eliminates the need for pricey hardware.
👍 Pros
•Provides an opportunity for passive income
•Relatively safe and secure
•Assured of considerable returns since you are lending money to the blockchain itself.
👎 Cons
•If the value of your staked assets drops, it may negate the interest you receive.
Mining
Bitcoin mining is how the first cryptocurrency investors made money. Mining remains an important part of the Proof of Work method, available for anyone interested to try. It is the source of cryptocurrencies' value, so it will not go out of style any time soon.
If you mine a cryptocurrency, you receive new coins as compensation for your efforts. This incentive is necessary because mining requires technical expertise as well as an upfront investment in specialized technology that consumes a lot of energy.
👍 Pros
•Massive returns
•Exciting for tech professionals
•Assured profits with every successful mining
👎 Cons
•Expensive upfront investment in equipment
•Time-consuming
4 Best Ways To Make Money in Crypto Without Investing
Are you facing trouble directly investing in crypto? Here are 4 methods to earn money from crypto without investing:
Coinbase Earn
To get crypto with Coinbase, you simply have to watch a few educational videos about an available cryptocurrency you want and complete a test or task to test your knowledge. This method is best for beginners since you earn as you learn.
Airdrops
A crypto airdrop is the free and unsolicited distribution of a cryptocurrency token to numerous wallet addresses. The main purpose of airdrops is to attract new users and attention, which increases the number of that specific crypto's owners and the currency's availability.
Crypto Bonuses
Crypto bonuses are free crypto coins given to users who perform certain tasks, as an incentive to perform said tasks. There are several types of bonuses depending on the platform. The most common is an account creation bonus. This bonus is given to people who open an account for the first time.
Top 15 Crypto Sign-Up Bonus Offers and PromotionsReferral Programs
A referral program is one in which an online broker or cryptocurrency exchange generates a unique registration link for its members. When a new account is created via a trader's registration link, the trader receives a set quantity of free crypto or money.
Best Crypto Affiliate ProgramsBest Crypto For Making Money In 2024
In a bear market like this one, it is advisable to invest in cryptocurrencies with long-term potential and a reputation for relative stability. The aim is to take advantage of the situation but minimize risk as much as possible at the same time.
However, that is not the only thing to consider when deciding which crypto assets to purchase. As we have always said, regardless of the type of market we are in, traders must always proceed with caution. Having said that, these are the best cryptocurrencies to consider right now:
| Current Price | Market Cap | 1 m return | 1 y return | ||
|---|---|---|---|---|---|
1318.02$ |
161.4B |
-16.37% |
-60.40% |
||
18765.03$ |
361.2B |
-11.23% |
-60.28% |
||
31.45$ |
11.1B |
-10.86% |
-79.41% |
||
0.44$ |
15.0B |
-2.22% |
-80.69% |
||
6.31$ |
7.3B |
-12.72% |
-81.36% |
||
16.96$ |
5.0B |
-23.95% |
-75.80% |
||
0.35$ |
17.5B |
4.60% |
-66.39% |
||
0.75$ |
6.6B |
-5.21% |
-43.32% |
||
0.02$ |
1.6B |
-15.56% |
-75.57% |
||
262.80$ |
42.7B |
-7.37% |
-35.67% |
Best Crypto Exchanges to Make Money in Crypto
Summary
Gone are the days when people had mountains of reasons why we should avoid crypto. You can make a lot of money with crypto if you are careful. With the right knowledge, proper understanding of the market, and patience, you can make a lot of money from crypto. Always remember to avoid shortcuts as much as possible and seek financial advice before making big investments.
FAQ
Can Crypto Make You Rich?
Yes. It is possible to get rich by investing in cryptocurrency if you do it properly and avoid shortcuts. But it is also very possible that you lose all of your money, even after being as careful as possible. Investing in crypto assets is risky, but it can be profitable if done correctly and as part of a diversified portfolio comprising non-crypto assets as well.
Can I Invest in Crypto Without Large Capital?
Yes. There is no minimum investment requirement for any cryptocurrency. Many organizations sell fractional amounts of cryptocurrency, and many cryptos trade for less than $1 per coin, making them accessible to any investor.
How Long Will it Take to Get Rich With Crypto?
It all depends on your skills and the investment method you use. If you want short-term returns, you should consider trading, but to get enough skills to make high daily profits, you will need to have training for a minimum of 6 months.
Can I Make a Living Off Crypto Alone?
You could make a living off crypto, but it is a great risk. The best investment strategy is always to have a diversified portfolio. At the end of the day, crypto is extremely volatile.
Glossary for novice traders
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1
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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2
Cryptocurrency
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
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3
Bitcoin
Bitcoin is a decentralized digital cryptocurrency that was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto. It operates on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers.
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4
Investor
An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.
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5
Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.