How to Make Money with Cryptocurrency 2024 | 10 Ways to Trade Cryptocurrency & Make Profit

How do you make money with cryptocurrency today in 2024? If you are a complete beginner and you’re like, what is that crypto stuff? We’re gonna go into more about earning money about crypto in this article. Making money with crypto isn’t as easy as it sounds. With the current good coin-bad coin ratio, you’re just as likely to be kissing your money goodbye as you are to earn a profit on a decent investment. 

Let’s talk about how to make money with crypto. The first way, obviously, is investing low now. This really depends on where you feel the markets gonna go…

The truth? There really isn’t any specific fool-proof strategy to making money with crypto. However, while it’s not rocket science, profitable crypto investing requires considerable knowledge and understanding of how the market works.

Through a combination of sheer persistence, some luck, and choice strategies, successful investors are the ones who have been able to make more than they have lost. As a result, they’ve been able to turn in profit regularly.

It’s hardly something that happens overnight, though. It’s the reward of patience, even when the odds seem to be going against you. However, there are some sure-fire strategies that you can employ if you’re a serious investor. 

Before proceeding further, it is pertinent for you first to understand how cryptocurrency works. This way, the money-making strategies will make more sense.

How does crypto work?

Cryptocurrency is inseparable from the blockchain. This is where it operates and thus has its value either appreciated or depreciated over time.

The blockchain itself is a decentralized, publicly distributed ledger containing all the details of every transaction ever done on the network. 

Mechanisms are in place to validate each transaction transparently, with all the nodes or users participating in this verification via different consensus models. Thus, the market is automatically regulated, and it is impossible to double-spend tokens. 

Crypto’s popularity has grown in recent years, seeing its adoption as an accepted means of payment by many organizations and businesses. The most valuable cryptocurrency, Bitcoin, stems from its status as the first cryptocurrency on the blockchain.

Like any stock, its value has risen due to its demand and the increased limit to its supply. Presently, the total amount of Bitcoins cannot exceed 21 million. Some tokens have a limitless supply, but as you’d expect, this is reflected in their relatively low values.

How To Earn With Bitcoin This 2023

Another factor that also affects the value of tokens is speculation. 

Many cryptocurrencies have had their values double or even quadruple overnight in the aftermath of well-timed speculation by a famous individual. For instance, Dogecoin, a personal favorite of new Twitter CEO Elon Musk, has had its value rise due to timely tweets speculating on the coin’s future.

The blockchain network itself also rewards participants, who earn rewards by solving the complex mathematical puzzles involved in validating each new block of transaction. The process is called mining and involves vast amounts of computational power and electrical energy.

However, not all cryptocurrencies use this mining method, which is frowned upon in many quarters because it is not energy-efficient. In truth, several other factors drive the value of crypto.

To make the best of your investments, it’s ideal to diversify your portfolio and track your earnings and market trends using platforms like CoinStats. This platform also offers its own crypto wallet, so you can make purchases, trade, and monitor market trends all from one dashboard. 

Crypto is relatively easy to buy. Provided that you do not have worthless coins in your portfolio, selling them should not be difficult either. The best tokens are highly liquid assets, with the exchange platforms providing investors with a great way to quickly trade tokens for other tokens or exchange them for fiat. 

The more acceptance a token gets as a means of payment, the more its value appreciates. Also, blockchains and tokens powered by the out-of-date proof-of-work consensus protocol are likely to be less valuable in the future than tokens that use alternative protocols like proof-of-stake. 

However, a cryptocurrency can also have its value drop if too many people in the market are selling it in favor of other tokens. 

At this point, you have gleaned sufficient information about cryptocurrency to proceed. Without further ado, I present to you, in no specific order, the top five ingenious ways to make money with cryptocurrency:

Best 5 Easy Ways to Make Money with Cryptocurrency 2024

1. Invest early into promising new projects

A new project has the potential to deliver profits in the long term as long as the developers are serious about it. There are a few ways to identify a project with enormous potential. For one, there’s a passionate community around it, mainly on a Discord server. 

Also, its ICO must be substantial enough to launch it successfully. Imagine just how wealthy the initial Bitcoin investors are today. The truth is that back then, they took a punt on the future of the token. It took time, but they have reaped tremendous results.

If you make intelligent dealings, you too might just be cashing out on the next Bitcoin, albeit an altcoin, sometime in the near future.

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2. Lending and staking

For this option, investors have the DeFi innovation to thank. Decentralized finance, pioneered on the Ethereum blockchain, has opened the doors to increased profitability for willing investors and developers. 

Using a wide range of financial services known collectively as DApps, users can earn a passive income on their tokens by lending specific crypto pairs into liquidity pools. These DApps are loan services. For everyone who borrows a token involving one of your pairs.

Also, investors can earn by staking tokens into the blockchain’s consensus protocol. This is the equivalent of mining in a proof-of-work ecosystem. 

In a proof-of-stake consensus mechanism, users earn on the number of tokens they have staked. Their tokens are held in reserve to help validate transactions within the network, and they earn based on the volume of tokens staked. 

How to Start Bitcoin Mining

3. HODLing

HODL stands for “hold on for dear life”, and is a popular yet effective strategy to make money with crypto. Basically, it involves buying a token at its floor price and holding on to it for as long as it takes in the hope that its value appreciates.

This means that you’ll have to resist the temptation to sell it for a small profit when its value initially spikes. The point is to hoard the token in the hope that its real value will far outstrip its current market value.

This strategy is more about patience than anything. But over time, it is proven to yield dividends. 

4. Mining 

You can also choose to lend computational power to the blockchain for mining to earn rewards. If you have the resources for a rig or are willing to devote a few mobile devices to the task, then you can successfully mine cryptocurrency and make money from it. 

5. Yield farming

Yield farming involves contributing tokens across different liquidity pools in the hope of earning a yield. Here, the trick is to contribute the right trading pair to ensure maximum returns.

Top 10 Best Yield Farming Crypto Platforms

The rewards add up daily and are paid out in crypto. You can then put your earnings back into the pool, adding them to the yield farm to get faster and better rewards. You can also withdraw it and convert it to fiat if you like.  

Conclusion 

Cryptocurrency investing is not rocket science. However, it’s not as easy as stock trading. The markets, as are the tokens themselves, are inherently volatile.

You can have your investments go up in smoke after a series of poor trading decisions. On the other hand, there is the potential for tremendous profit as long as your strategy is sound.