Cryptocurrency is the modern day gold rush. Everyone is rushing in to get their piece of the pie. That means throwing their money at every coin they can find. Unfortunately, that also lead a lot of people to buy in at the all time high and lose a shit ton of money. There are lots of ways to make money in cryptocurrency though, and in this article I’m going to go over a few of them. I use multiple methods to create my income, and I think it’s a great approach.
There’s no one way to skin a cat they say, and that’s true for everything in life. Even investing. If you’ve tried trading and realized that you just plain hate it then fear not. I’ve got more methods for you to try that don’t involve chart analysis or needing to be a financial wizard in order to grow your portfolio. There’s lots of ways to earn cryptocurrency that can appeal to all kinds of people with many different skills and interests.
Buy and hold method
Buying and holding is how a lot of people made a crap ton of money in cryptocurrency. In fact many of them made that money, because they forgot about their coins! If you don’t want to be bothered with checking the market everyday and fretting over your trades then this is probably the method for you. Buy some coins, put them in a safe wallet (not on an exchange!), and wait for their value to grow. If you have a couple hundred bucks to invest you could soon see a very nice return for your investment if you pick the right coins. Don’t have a couple hundred bucks? Bring your lunch to work instead of buying it. Skip the Starbucks. Put that money in a jar until you’ve got enough for a small investment. Investing in cryptocurrency can be so cheap that even if you work at McDonalds you still have the ability to start building yourself a decent portfolio with a little patience. Just start.
Choosing the right coin will take a little research on your part. I like to start by choosing some small cap coins or coins that are not in the top currency list, because these coins still have the potential to make large gains. You can definitely make money trading ethereum or bitcoin, but it’s much easier for a one cent coin to double to two cents then for a hundred dollar coin to become a two hundred dollar coin. Choosing a coin that still has a lot of growth potential can result in very nice gains for a very small amount of money. Your tiny investment could be worth thousands of dollars in a few months if you pick the right coins.
I find these coins by going to sources such as Coin Market Cap or smaller exchanges like Cryptopia or Trade Satoshi where smaller coins are likely to be listed. Then it’s just a matter of carefully examining every single coin to find out whether that coin has potential or not. It’s a tedious process, but one that must be done to find good coins to invest in that are still cheap. Typically I look for a coin in the one to two cent range. You can of course get coins much cheaper than this, but it’s been my experience thus far that this price range is good for seeing a return in the shorter term. Typically coins in this price range have at least established themselves a little bit, and it’s easier to see if a market has formed for it. Picking up a coin for 2 Satoshis is awesome, but be prepared to wait a while for it to do anything if ever.
When evaluating coins I like to look at the community first. Even a coin without much new for tech that has an excited community can be successful. Take a look at Vertcoin as an example. Their Reddit page is full of loyal followers who love promoting the coin, and it’s helped it to succeed. Look for the coin’s bitcointalk thread, if they have a reddit sub, social media like twitter, or if they have an official discord channel. If it looks empty in their social channels then the development team may be lacking in promotional efforts. Invest cautiously. If they have a good number of followers and interaction that means people are actively backing the coin, and there’s a chance it could grow nicely. I also like to take a look at their website and see if it’s professional looking, but it’s not always the most important factor as it’s easy for a coin with a good community to rebrand itself later and rocket up into the stratosphere. Like it or not these are the first impressions people have of a coin. A coin with the best technical advancements in the world is worthless with no community backing it.
You should also evaluate the use cases for this coin. How many are in circulation? Why would people want it? What gives it value? Is it a privacy coin? Do they have a cool platform that can be useful? Does it have really fast transactions or low fees? What is on their development road map, and are the developers working on the coin diligently. Be careful investing in coins that have only one developer on their team as they could get burnt out and disappear when the work load gets the better of them. Asking yourself these questions should help you pick worthwhile coins. One more thing, coins trade on optimism, and that optimism comes from the news. You can use Coinmarket Calender or discord channels to find out what big news is coming up for coins before others catch wind of it. This could help you make some nice gains rather quickly if you’re lucky.
Dip trading method
Dip trading cryptocurrencies is not for the faint of heart. It can be tough, risky business if you don’t know what you’re doing. I do a little bit of this, but I have hard fast rules to keep me from doing something stupid and chasing evaporating profits. First, I only dip trade coins I want to hold. Chasing profits on a pumping coin that you know nothing about is a great way to get dumped on by whales, and a great way to lose lots of money! A coin that is up by 80% has already been pumped. Don’t let the whales use you to make their profits. Oh, and don’t believe what anybody says in any kind of ‘troll chat box’. It’s called that for a reason. Second, don’t panic sell. Since I’m only flipping coins I want to hold for a long time it’s okay if I’m wrong and I miss the dip. I can just hold until another opportunity presents itself, because one certainly will. The third rule is don’t get greedy. Take your profits, and don’t cry about how you could have had 5% more if you would have waited five minutes to sell. This will lead you to doing some really stupid shit. I learned this the hard way trading options contracts years ago. Up $4,000 today, down $5,000 the next, because I got greedy, and I didn’t quit while I was ahead. You won’t get rich today, but you might be in a couple years if you trade smart.
Coins trade in fluctuations. So, when a coin I’m holding long in my portfolio has a sudden spike I will sell off part of it. When it stabilizes at a lower level I will buy that dip so I can get more of it for later. I don’t typically sell all of it in the event I miscalculate, and it’s not ready to dip yet. Since this is a long hold I don’t care if I miss out on a little short term profit. If you don’t have a lot of money to invest, but you’d like to increase your portfolio this is a good way to get some more coins. I don’t do technical analysis. I simply sell for more and I buy for less. That’s it. Many people swear by their charts, but I don’t really see a reason to over complicate it.
Trading a dip can be especially profitable on a low cap coin like we discussed in the “buy and hold method” as you can quickly double the amount of your hold. While I said earlier that I don’t do in depth technical analysis I do sometimes see a pattern of volatility in one of my long coins. If that happens I’ll use those dips to flip it for a small profit. Either to get more of the same coin or to sell off part of it and reinvest in another coin. If you plan to do this it’s advisable to not use your entire stack. Try to flip half of them or less and see how it goes first. If you mess up you might lose some coins, but you can try again and get better at identifying when to sell and when to buy. You don’t need to flip every day either. A couple of times per week can still give you a decent gain and grow your stack. Wait for the right opportunities.
Similar to the dip trading method, but requires you to be very fast. Basically, the price of coins vary a little bit on each exchange. Sometimes that variance is actually quite pronounced. That means you can take advantage of this by purchasing the coins on the cheapest exchange, and then selling them on the highest exchange. Sometimes the windows for these opportunities is rather small so you have to be quick about it before it corrects itself. You also can’t expect to make a whole lot on a trade. Maybe a few satoshis here and there, but if it’s a large trade they will add up. I don’t do this personally, but many people do make money using this method. You can check for price differences on coins using Coin Marketcap or Cryptopia’s arbitrage page if you want to try your luck at flipping for some small profits.
Sometimes you can catch these differences if a coin has most of its trading volume on one exchange. You can purchase them for cheaper on the high volume exchange, but the sell price could be significantly higher on a smaller exchange. Check Coin Market Cap to see the price differences between a coin’s exchanges all in one place.
When the markets are treating you badly POS and master node coins can be your bread and butter. All you have to do with a staking coin to make money is let the wallet run in the background on your computer. It’s similar to mining, but instead of utilizing your hardware you simply are paid a percentage of your holding sort of like a dividend for holding a stock. If you choose a high producing staking coin you can make a lot of money every month doing it. Choosing the right one can be a tad more difficult, because a lot of them are very expensive. Some master nodes can cost over a hundred thousand dollars each, but there are more affordable ones that are still profitable. You can take a look at sites like masternode.pro to find them.
You can also browse through bitcointalk forums to get some ideas on new staking coins you can pick up before the price rises and shuts you out. Syndicate is by far the best staking coin I’ve ever used. I can’t remember exactly where I even heard about it, but at the time it was a dead project that the development team had abandoned so the price had declined significantly. However, it still had a pretty dedicated community, and it was still paying out nicely in staked coins so they were still using it. Eventually community members picked it up and started developing it, and the value grew. However, even if the growth of your staking coin is slow it’s okay, because it’s still making you money. When choosing a coin be wary of projects with too many coins in circulation. If the supply is too large it could be difficult for them to hold value.
Staking coins are great for supplementing your income or using as a means to invest in new long hold coins. Keep in mind that not every POS coin is a winner. I’ve dumped some others that were real stinkers and didn’t perform. They had low coin value and they didn’t earn enough of a percentage to be worth my investment. There are plenty other good ones out there though, and I feel that in the near future more people will want master nodes or staking coins for passive income which will only raise their value.
Proof of work is the original way to get your cryptocurrency. If you know how to build computers then there’s no reason (other than money) that you can’t build yourself a part time mining rig. While the immediate return is not as good as proof of stake is for me I’m actually mining for newer coins that I want to hold. Full disclosure, the amount I make through mining is not significant, and I’m mostly hoping that they’ll be worth something in the future. If you want to make a profit with mining then you’ll need to spend a lot of time running the numbers. You’ll also need to keep an eye on it. This is not a passive venture at all, and it’s more like a business.
If you have a gaming rig you can start mining immediately. Even if you don’t particularly want to learn anything about mining you can use Nice Hash to get yourself up and running, and see how it all works. If you’ve got high dollar hardware you could earn an extra couple hundred dollars per month in cryptocurrency without much effort on your part. You can still mine if your hardware isn’t top notch, but you won’t get nearly as much money due to your lower hash rate. However, it’s still a pretty nice way to earn some extra income from equipment you already have. If you decide mining is pretty cool, and you want to pursue it full time then you can make more profit if you learn how to use mining software and pools to mine for yourself instead of selling your hash rate to others, but Nice Hash is the easiest way if you don’t want to be bothered to do coin research or learn anything. You can read about how to make some money from your gaming PC with Nice Hash here.
If you don’t have a high dollar computer, and you don’t know or want to learn how to build one it’s still possible to make some money with mining by renting hash rate. The benefits to this scenario include the fact that you won’t need thousands of dollars in upfront cash to build a top tier machine, you won’t have to worry about your parts quickly becoming obsolete, and you don’t need to maintain your machines 24/7 to make sure your miners are operating efficiently. It also gives you the ability to be immediately profitable with mining if you wait for a good price on hash rate. Since you don’t have to earn back the money you spent on computer parts or worry about electricity costs it’s easier to see exactly what your immediate expenses are with this method, and whether or not a buy will put you into the green, the black, or the red. With Nice Hash there’s also no contracts like other cloud mining rental services, and you can mine almost any coin that you want.You can try it out for for around $50 to test the waters and see if you can turn some mining profits. Though with a bit of learning you could easily make more on your own using a pool. This is good if you only plan to casually make your gaming hardware earn back a little of your money.
Affiliate program method
Did you know a lot of popular cryptocurrency services have affiliate programs? Do you have a blog or a dedicated Twitter following? There are lots of Bitcoin affiliate programs that will pay you for referring new users to them. It’s typically a few dollars here and there, but some of them will even pay you for the life time of that referral. If you’ve got the skills to create useful tutorials, reviews or helpful articles it’s a good way to supplement or in some cases totally replace your income. There are full time affiliates for websites like Amazon that make six figure “salaries” for themselves.
Keep in mind that if you plan to start a website for this it’s more work than it seems. You’ll need to spend a lot of time learning about SEO optimization, how to write articles people want to read, and learn how to get your site discovered. The work is not difficult though. It’s just work. If you’re willing to commit to learning all the information is available for free online, but it’s also a long term commitment. It can take several months before you start seeing any real search engine traffic coming in from the likes of Google. The best part about blogging though is that it can be totally free. If you’ve got an hour a day before or after work you can work on content, and in a few months you can start establishing a part time or full time real passive income for yourself. You don’t have to write about cryptocurrencies either. In fact, there’s way better paying affiliate programs. Finance and web hosting affiliate programs will pay you hundreds of dollars per sale. There’s plenty of other affiliate programs too that you can utilize for every topic imaginable, and some of them are adopting “bitcoin payouts” for affiliates so you can still earn cryptocurrency for your work.
If there’s a service or tool you enjoy using try searching for “company name affiliate program” to see if they’ve got any offers for you. Most of the time it’s easy to get approved, and you can start building your new blog right away. If you can get the right traffic then you can get paid for it!
Do you already own a business or want to start one? Why not accept cryptocurrencies for your wares! There’s already some great ecommerce options for Bitcoin and other cryptocurrencies out there for merchants. Not only will this give you the opportunity to earn some crypto for your stuff, but you might have crypto enthusiast customers already who will appreciate the option to pay with their favorite coins.
There’s also the added bonus of the lower fees involved when buying and selling with cryptocurrency, and no worries about fraudulent chargebacks from bad customers. If you already own a shop using a platform like OpenCart or Shopify then there’s most likely already a cryptocurrency plugin available to you. Many of these will require little work on your part other than clicking install and choosing which coins you want to accept for your goods. Many of these payment processors also provide free point of sale apps for Android or iOS so you can sell stuff for cryptocurrency in person too.If you’re interested in selling your stuff for crypto I have a full article on it that will detail many great methods for accepting different coins for your business, art, music, farm stand, or whatever else you may wish to sell.
This method requires a lot of dedication, but you can make some money on sites like Dtube and Steemit. You should understand how it works first though. While I still think it’s more advantageous to have your own website and collect affiliate commissions I guess there’s no reason you can’t do both. (It is possible to use affiliate links on Steemit, but some people don’t like it and may try to flag you for it.) You should know that these sites will only pay you for the first 7 days your article or video is posted. After that you will not get paid for more traffic that your blog posts generate. I’m better at creating evergreen content that gets found in Google so that set up isn’t great for me. If you don’t manage to garner any upvotes in the first 7 days then your payout is zero.
The other thing about these sites is that voting is not equal among members. Voting is skewed based on how much Steem you have invested in the platform. So, that means it’s possible for fifty people to upvote your post, but you may not earn any money. Why? These fifty people were all new users, and they have no voting power to pay you with. If you want to make any money here then you need the larger users to notice you, and that’s easier said then done sometimes. This is especially true in a very large tag such as “cryptocurrency” where your posts get immediately drowned in a flood of other submissions never to be seen. Still that’s how I got my first cryptocurrency seed money. A few of my posts luckily got curated by bigger users, and I was good to go. However, I quickly invested that money into staking coins and made a much larger profit for the work. I’m not really interested in being a ‘Dtube’ personality, but if you are it is possible to get rewarded for it on Steemit and Dtube if you’re willing to play the game. Dtube might actually be easier now, because sometimes the Dtube bot will throw a few dollars at you.
PS. If you plan to try vlogging or blogging here try to create a channel or blog in a smaller “niche” tag where it’s easier for you to be seen. Everyone wants to post about crypto, but less people want to post about fishing or keto for example. If you can establish yourself in your own niche it will be easier for you to succeed than in a very crowded one.
Sell cryptocurrency method
If you’ve already got some crypto and you want to make more have you considered selling it to other people? There are sites around where people are looking to buy Bitcoin or other cryptocurrencies locally or through means not using an exchange. A lot of enterprising individuals have capitalized on this, and they make themselves a tidy profit by selling to them. How much profit you make depends on a lot of factors, but generally people on these sites are will to pay at least a 10% markup to purchase their cryptocurrency through alternative means.
If you’re interested in being a supplier then you can try your luck at doing so on Local Bitcoins. Keep in mind though that in some places such as New York they require you to be “licensed” to sell Bitcoin. That means you could be breaking the law by selling your coins to others if your state has some kind of similarly stupid ass law. I’m not sure exactly how many people have actually been arrested or charged under these “laws” though. So, get your facts straight and approach this one at your own risk. In most other states I believe it’s perfectly fine though.