How to Make Money With Crypto

There are many ways to make money from the cryptocurrency markets. Not only does this include buying and HODLing digital currencies in the conventional sense – but also via staking, interest accounts, airdrops, play-to-earn games, and more.

In this beginner’s guide, we discuss how to make money with cryptocurrency in 2022 across 10 proven methods. 

10 Ways to Make Money With Cryptocurrency

If you’re wondering how to make money from cryptocurrency right now – consider the 10 methods outlined below.

Cryptoassets are a highly volatile unregulated investment product.

We explain how to make money from the above 10 methods in the sections below.

1. Investing in Promising New Coins Early – Overall Best Way to Make Money With Cryptocurrency

The overall best way to make money with cryptocurrency is to invest in the best altcoins as early as possible. After all, had invested in Bitcoin when the digital currency was first launched in 2009, you would have paid a tiny fraction of one cent. Similarly, Ethereum was trading at just $0.75 per token when its token was released in 2015.

Both of the aforementioned projects are now worth thousands of dollars and have subsequently generated significant returns. A more recent example is Lucky Block – which is building a decentralized app that will facilitate global lottery games via immutable smart contracts. When this promising cryptocurrency initiated its presale in January 2022 – LBLOCK was priced at just $0.00015.

Since then, CoinMarketCap notes that Lucky Block has breached a price of $0.009. This represents gains in the thousands of percent in just a couple of months of trading. With that said, Lucky Block is still a super-young cryptocurrency project, and thus – you can invest in this project early. This will give you the best chance possible of investing at a favorable price.

Cryptoassets are a highly volatile unregulated investment product.

2. Staking and Interest – Earn Passive Income on Idle Cryptocurrency Tokens

There are two notable concepts in the cryptocurrency markets that enable you to earn passive income on idle digital tokens that you own. The first is crypto staking, which involves locking your tokens away for a certain amount of time to help validate transactions on proof-of-stake blockchain networks.

Examples of leading staking networks include Cardano, Tron, and very soon – Ethereum. Crucially, you will receive a rate of interest for as long as your tokens are locked away. With that said, if you engage in staking on the eToro platform – you won’t be required to meet a minimum lock-up period. Instead, you can withdraw your tokens at any given time.

The second concept to consider when learning how to make money with cryptocurrency in a passive manner is through an interest account. In its most basic form, crypto interest accounts operate in a similar nature to a traditional bank. This is because by depositing your cryptocurrency tokens, you will be paid a rate of interest.

However, unlike staking, your crypto tokens won’t be deposited into a smart contract. On the contrary, your chosen provider will lend your tokens to those that need to borrow funds. And therefore, the borrower will pay you a rate of interest for as long as the tokens are being lent out.

The overall best crypto savings account in the market right now is offered by Aqru. This reputable platform allows you to earn 7% per year on Bitcoin and Ethereum deposits and 12% on stablecoins like Tether. All accounts offered by Aqru are flexible, so there are no lock-up terms to meet. Moreover, you can even deposit funds in fiat money and buy cryptocurrency via the Aqru app.

Cryptoassets are a highly volatile unregulated investment product.

3. Day Trading – Make Money by Trading Cryptocurrency Pairs

One of the most lucrative ways to make money with cryptocurrency is to actively engage in day trading. However – there is a slight catch – you will need to at least have a basic understanding of how to analyze prices to determine whether the token in question is likely to rise or fall in value. If you can do this, you can make money trading crypto throughout the day.

The overarching concept with crypto day trading is that you will look to take advantage of short-term volatility. Furthermore, seasoned traders in this market will rarely – if ever, hold onto a position for more than a day. And as such, the objective is to open multiple positions throughout the day making smaller, but frequent profits.

To day trade digital currencies, you need to find a regulated crypto exchange that meets two core criteria – low fees and support for plenty of markets. Regarding the former, if you are day trading crypto with an exchange that charges high fees, you will struggle to make the process worthwhile. After all, your profitable trades will get eaten away by commissions.

For instance, Coinbase charges 1.49% per slide – which means that this fee needs to be covered before you can close the trade at a profit. eToro, on the other hand, is much more competitive. Furthermore, eToro gives you access to dozens of leading digital currencies, so you will never be short of a day trading opportunity.

Cryptoassets are a highly volatile unregulated investment product.

4. HODLing – Invest in Cryptocurrency and HODL Long Term

This method from our list of how to make money with cryptocurrency is arguably the best option for beginners. This is because HODLing  – which is a play on the term ‘Hold’, simply refers to the process of buying a cryptocurrency and holding onto your tokens in the long run. This is no different from buying stocks and keeping the shares for several years.

And in doing so, you don’t need to worry about short-term price fluctuations – especially when investing in solid and established cryptocurrencies like Bitcoin and Ethereum. For example, in May 2021, Ethereum was priced at $4,300 per token. Just one month later, the price of Ethereum had dropped to lows of $2,100.

Had you panicked and sold your ETH tokens, you would have made a loss of approximately 50%. However, had you engaged in HODLing – by November of the same year, Ethereum was trading at nearly $4,900 per token. This is just one example of many. The key point here is that the most effective way to invest in cryptocurrency is via a long-term strategy.

Once again, in order to HODL your investments in the best way possible, you need to find a suitable exchange. eToro also fits the bill here, as you can invest in 60 leading cryptocurrencies from just $10 at industry-leading fees. Moreover, this exchange is approved by relevant licensing bodies in the US, and thus – you will be able to HODL long-term safely and securely.

Cryptoassets are a highly volatile unregulated investment product.

5. Play-to-Earn Crypto Games – Earn Rewards for Playing Crypto Games

When thinking about how to make money on cryptocurrency, you might be surprised to learn that this can be done by playing games. Make no mistake about it – the play-to-earn crypto game marketplace is now worth billions of dollars. There are many variations and types of titles in this space, albeit, perhaps one of the best crypto games to consider playing is Decentraland.

Put simply, Decentraland offers a metaverse that enables players from all over the world to create a virtual avatar, chat with other people, and most pertinently – buy plots of land. Once you have purchased a plot of land and built your own real estate project, this is then represented in the form of a unique NFT.

Then, you can sell your real estate NFT in the open market. Although this concept might sound farfetched, some plots of land in the Decentraland metaverse have sold for millions of dollars. This means that by investing early, you have the chance to buy an NFT at the best possible price.

Cryptoassets are a highly volatile unregulated investment product.

6. Crypto Yield Farming and Lending – Generate an Attractive APY on Your Cryptocurrencies

Another beginner-free way to make money with cryptocurrency right now is via yield farming and lending. Although both of these investment concepts allow you to earn interest passively, they actually refer to slightly different methods. First and foremost, crypto yield farming refers to the process of lending your idle tokens to a liquidity pool.

In the vast majority of cases, you will be providing much-needed liquidity to decentralized exchanges. Some of the leaders in this market include Pancakeswap and Uniswap on the Binance and Ethereum blockchain networks, respectively. When you deposit funds into a liquidity pool, it is often locked away for a minimum amount of time.

And, for as long as the tokens are in the liquidity pool, you will be paid a rate of interest. In many cases, the newer and less liquid that a cryptocurrency is, the higher the respective APY offered by the pool. When it comes to crypto lending, this refers to the same concept that we discussed earlier – insofar that you will deposit your digital tokens into a savings account.

And in doing so, your tokens will be lent to those that wish to borrow funds. When engaging in crypto lending, it is important that you choose your preferred platform wisely. This is because you always run the risk of borrowers defaulting. Once again, this is why Aqru stands out – as the platform only lends crypto to high-grade borrowers that have been pre-vetted.

Cryptoassets are a highly volatile unregulated investment product.

7. Faucets – Earn Free Cryptocurrency by Completing Simple Tasks

Cryptocurrency faucet websites give you the opportunity to earn free digital tokens by completing tasks. There are many platforms in this space and the specific tasks that you are required to complete will vary from one site to the next. For example, some crypto faucet platforms require you to complete captchas.

This is something that can be achieved by anyone – so no prior experience is needed. You then have crypto faucets that come in the form of a mobile app. These often require you to play newly launched games and when you complete certain milestones, you will earn free crypto.

However, it is important to note that the rewards on offer at crypto faucet platforms are minute. In fact, in most cases, each task that you complete will barely yield a few cents worth of crypto. Nonetheless, you are not required to deposit any money, so crypto faucets allow you to earn rewards in a risk-free manner.

8. Airdrops – Cryptocurrency Tokens Deposited Into Your Wallet for Free

In a similar nature to faucets, airdrops allow you to earn free cryptocurrency tokens without needing to deposit or spend any money. The main concept here is that some newly launched projects will distribute their native tokens directly into people’s wallets as a means to enter the cryptocurrency into circulation.

This is as opposed to a conventional presale and fair launch directly onto a cryptocurrency exchange. And as such, the project will not raise any funds when they initiate an airdrop. Although this might sound too good to be true, there are numerous examples of airdrops that have since gone on to become multi-billion dollar projects.

A prime example of this is Bitcoin Cash. When this digital currency was launched in 2017, it airdropped its BCH tokens to all wallet addresses that were in possession of Bitcoin. This was done on a 1:1 basis – meaning that for every 1 Bitcoin owned, you would have received 1 Bitcoin Cash.

In another example, popular cryptocurrency Stellar has airdropped millions of dollars of Lumens tokens since the project was launched in 2014. On the other hand, you do need to tread with caution when receiving an airdropped token. This is because scammers will often create and distribute a worthless token to random wallet addresses with pump and dump intentions.

9. DAOs – Buy a Share in a Decentralized Autonomous Organization

In addition to the metaverse and NFTs, decentralized autonomous organizations (DAOs) are expected to play a significant role in the future of cryptocurrency and blockchain technology. In its most basic form, DAOs refer to projects that are collectively owned by the community. And, in order to become a part-owner of a DAO, you simply need to hold the respective token.

There are many DAOs operating in this space and each project is unique from the next. One such example is Uniswap. This project is home to a decentralized exchange that enables people to buy, sell, and trade digital currencies without the presence of a centralized third party. Uniswap has since launched its DAO cryptocurrency and thus – the project is owned by token holders.

And, this means that any profits generated by the Uniswap exchange are subsequently distributed to those holding its DAO token on a proportionate basis. Moreover, those holding a DAO token have a say in how the respective project is run. This means that in order for a DAO project to make a decision about future development, it must first go to a vote.

10. Mining – Mine Cryptocurrency by Connecting Hardware to Your Desktop Device  

The final method to consider from our list of the best ways to make money with cryptocurrency is through mining. In a nutshell, mining refers to the process of connecting specialist hardware to a desktop device, which, in turn, connects to the blockchain of the respective cryptocurrency. The idea is that miners enable the network to operate in a decentralized manner.

This is because transactions are validated when the mining equipment solves complex mathematical equations. And in return, miners are rewarded with newly minted cryptocurrency tokens that enter into circulation, and each block is verified. For instance, in the case of Bitcoin, a new block is created every 10 minutes, and this mints an additional 6.25 BTC.

This 6.25 BTC – which as of writing is worth over $660,000, is paid to the miner that successfully solved the equation for the respective block. Although at first glance this translates into a significant amount of money, Bitcoin mining consumes an unprecedented amount of electricity due to the complex nature of each mathematical equation.

Moreover, the amount of specialist hardware required to stand a chance of mining a new Bitcoin block is also considerable in dollar terms. With that said, there are many other cryptocurrency projects that require miners and in many cases, competition is thin on the ground. Ultimately, you just need to ensure that the mining rewards you receive are worth more than you invest.

Best Platforms for Trading & Investing in Crypto

So now that we have discussed the 10 best ways to make money with cryptocurrency – now we need to discuss suitable platforms that you might consider for this purpose.

To save you countless hours of research, the best platforms to make money from crypto are reviewed in the sections below.

eToro – Best Crypto Trading Platform

We briefly mentioned eToro earlier and for good reason. Put simply, eToro is the overall best platform to invest in and trade cryptocurrencies. Crucially, irrespective of whether you are looking to HODL cryptocurrency over many years or engage in a short-term day trading strategy – eToro has you covered. 

First and foremost, this platform is heavily regulated – so you can engage with the cryptocurrency markets safely. This includes approval with regulators in the US, UK, Cyprus, and Australia. eToro offers nearly 60 leading cryptocurrencies to its 25 million+ registered users – so you can easily diversify. 

Some of the most traded cryptocurrencies on the eToro website include Bitcoin, Ethereum, XRP, Dogecoin, Shiba Inu, BNB, and Cardano. And, we like the fact that the minimum trade size is just $10 – you can attempt to make money from cryptocurrency without needing to risk large sums of capital.     

The minimum deposit for US clients is also set at $10, so this will suit those of you on a budget. We also mentioned earlier that eToro supports crypto staking. Unlike other staking platforms in this space, eToro does not require you to lock your tokens away for a minimum number of days or weeks. Instead, you can withdraw your tokens at any given time.

eToro also allows you to make money from cryptocurrency in a 100% passive nature across two leading products. First, you can invest money into a smart portfolio that is managed by eToro. There are many portfolios that focus on cryptocurrency and your basket of digital assets will be rebalanced and maintained on your behalf.

Second, if you like the idea of crypto day trading but don’t have the required time or knowledge, eToro enables you to copy the positions of an experienced investor like-for-like. You can access the eToro platform online or via its leading crypto app. Either way, eToro allows US clients to deposit funds fee-free via a debit/credit card, e-wallet, or bank transfer.

What We Like:

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Aqru – Best for Crypto Staking, Interest, and Lending

If you like the sound of earning passive income, Aqru is the overall best platform to make money with cryptocurrency for this purpose. As we noted earlier, Aqru is a trusted crypto lending site that offers some of the most competitive APYs in this space.

To reiterate, you will earn an APY of 7% on Bitcoin and Ethereum. If you’re seeking even higher gains, Aqru offers an APY of 12% on stablecoins. As of writing, this includes DAI, Tether, and USD Coin. In addition to high yields, Aqru stands out in this marketplace because all of its savings accounts are flexible.

This means that you can request to withdraw your cryptocurrency tokens whenever you wish. We also like the fact that your interest payments are credited into your Aqru account on daily basis. You can then reinvest these payments back into an Aqru savings account to benefit from compound interest.

When it comes to getting started with Aqru, you have the option of depositing digital tokens directly into the platform. Or, if you don’t have any cryptocurrency to hand, you can also fund your account in USD, EUR, or GBP. Supported payment methods include bank transfers and debit/credit cards.

What We Like:

• Earn 7% per year on Bitcoin and Ethereum deposits
• Stablecoins yield 12% per year
• Both crypto and fiat deposits accepted
• No lock-up terms – make a withdrawal at any time
• Great reputation
• One of the best places to earn interest on Ethereum

Cryptoassets are a highly volatile unregulated investment product. 

Conclusion

This guide on how to make money with cryptocurrency has discussed 10 proven methods to consider in 2022. Some of the best methods that we came across include cryptocurrency savings accounts, play-to-earn games, yield farming, staking, and a long-term HODLing investment strategy.

With that said, the overall best way to make money from cryptocurrency is to invest in promising digital assets that are still at the very start of their road map journey.

In doing so, you can often invest in the project’s token at a highly favorable price. The best project for this purpose that we identified is Lucky Block – which is revolutionizing the global lottery industry.

Cryptoassets are a highly volatile unregulated investment product.

Frequently Asked Questions on Making Money with Cryptocurrency

How do I make money with cryptocurrency?

If you’re wondering how to make money on cryptocurrency, there are many methods to consider. In addition to investing in and trading digital currencies like Bitcoin, you can also generate gains via staking, interest accounts, yield farming, faucets, airdrops, play-to-earn games, and much more.       

What is the best way to make money off crypto in 2022?

Perhaps the best way to make money off crypto right now is to invest in newly launched projects. Lucky Block is a great example here, as the project was only launched in January 2022.         

Can you make money from mining crypto?

Making money from Bitcoin mining specifically is no longer possible without investing significant amounts of money in specialist hardware and ongoing electricity consumption. You can, however, either join a Bitcoin mining pool or simply mine a less competitive cryptocurrency.