The cryptocurrency markets provide a variety of opportunities on how to make money with cryptocurrencies. Entrepreneurs are exploring cryptocurrency as a full-time job or a side business because of its profitability.
Since Bitcoin and other cryptocurrencies have experienced such significant growth, they have become as valuable and effective as traditional currencies in the digital economy. Despite the fact that the cryptocurrency market is still in its infancy, many people are profiting from it.
Today, you can buy anything using cryptocurrencies like Bitcoin, Dogecoin, Ethereum, and others, including coffee, hamburgers, cars, jewelry, insurance and more. In this full guide, we go through 4 ways to make money with cryptocurrencies in 2023.
Make Money With Crypto? Here’s 4 Ways to Do It
1. Invest in early coins
The best strategy to make money with cryptocurrencies long-term is to invest early in promising new coins.
Investing as early as possible in the top altcoins is generally the best approach to make money with cryptocurrencies.
After all, you would have spent a tiny fraction of a cent if you had purchased Bitcoin at the time of the digital currency’s initial debut in 2009. Comparably, when Ethereum’s token was introduced in 2015, it was only trading at $0.75 per token.
The projects above have both produced sizable returns and are now each worth thousands of dollars.
2. Hold cryptocurrencies for a long time
The second way for beginners to make money with cryptocurrencies is undoubtedly this one.
This is due to the fact that buying a cryptocurrency and holding onto your tokens over the long term is known as “HODLing,” a play on the word “hold.” This is equivalent to purchasing stocks and holding them for a long period of time.
And by doing this, you may avoid worrying about sudden changes in price, especially if you buy in reputable and long-standing cryptocurrencies like Bitcoin and Ethereum.
For instance, the price of Ethereum in May 2021 was $4,300 per token. The price of Ethereum reached a low of $2,100 just one month later.
You would have suffered a loss of about 50% if you had panicked and sold your ETH tokens. By November of the same year, Ethereum was trading at around $4,900 per token. This is only one of many examples.
The important thing to remember is that using a long-term approach is the best method to invest and make money with cryptocurrencies.
3. Make money playing games
You might be shocked to find that there are ways to make money with cryptocurrencies by simply playing games.
The industry for cryptocurrency games is currently worth billions of dollars. Although there are many different kinds and variations of games in this category, Decentraland is perhaps one of the best cryptogames to take into consideration.
Decentraland provides a metaverse where individuals from over the world can create virtual characters, interact with others, and most importantly, purchase real estate.
Once you have acquired a piece of land and constructed your own real estate project, this is then shown as a special NFT.
Players can travel to Decentraland’s special market to trade and manage in-game virtual assets.
You can sell real estate, wearables, special avatar names, transfer the ownership of your LAND, and more using the marketplace as a player.
4. Make money leveraging on airdrops
Airdrops provide you the opportunity to get free cryptocurrency tokens without having to pay for them up front.
The basic idea is that newly created projects will transfer their native tokens straight into users’ wallets as a way to get cryptocurrencies into mainstream use.
This differs from a traditional presale and fair launch that is conducted directly on a cryptocurrency exchange.
As a result, when they start an airdrop, the project won’t raise any money. Even if it might seem too good to be true, there are many instances of airdrops that later grew into multibillion dollar projects.
Airdrop is a marketing strategy used by cryptocurrency businesses to promote the launch of a new cryptocurrency. Startups give free coins or tokens to users of crypto wallets on their platform. If you get on this early, you can make money when the coin goes mainstream.
Bitcoin Cash is a great example of this. All wallet addresses that held Bitcoin were given airdropped BCH tokens when this digital currency was introduced in 2017. You received 1 Bitcoin Cash for every 1 Bitcoin you had because this was done on a 1:1 ratio.
Another example is the well-known cryptocurrency Stellar, which has airdropped millions of dollars’ worth of Lumens tokens since the project’s 2014 launch.
On the other hand, when you receive an airdropped token, you do need to tread cautiously. This is due to the fact that con artists frequently produce and distribute a useless token to random wallet addresses with the purpose of pumping and dumping.
Don’t get on any airdrop because it’s free. Study the foundation of the creators before making a decision.
What you intend to do with your cryptocurrency and how long you want to invest in it will determine how much money you can make with it.
In as much as the guide above are profitable, endeavour to diversify your portfolio, invest with a long-term mindset, and seek for financial counsel when necessary.