10 No-Brainer Ways of How to Make Money With Cryptocurrency

Other Crypto Considerations

Knowing and understanding the strategies above will be really helpful — if you have a good grasp of the concepts around cryptocurrency. But if you aren’t clear on some of the basics, like understanding how crypto gains value, how to read the crypto charts, what an ICO is, or how to pay taxes on your crypto gains, you might want to take a beat before diving in.

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Cryptocurrency Mining

Another way to make money with crypto is to mine for it. This option does, however, require an outlay of capital upfront. You would have to buy a miner (or miners) or build them yourself. Either way, there will be a substantial investment in equipment required. You will also incur facilities costs because miners produce a lot of heat, so you can’t just stick them in a room and turn them on without some sort of cooling. 

If you are willing to invest capital upfront, mining can be profitable depending on market conditions. A helpful website to determine what to mine and how profitable it will be is whattomine.com. The type of miner you will need will depend on what you decide to mine. 

If you strictly want to mine Bitcoin, you need an ASIC miner like the Antminer S19 Pro. However, if you’re going to mine a variety of cryptocurrencies, you need a GPU miner.

Arbitrage between crypto assets

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Arbitrage involves trading one cryptocurren
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Arbitrage involves trading one cryptocurrency for another, or trading the same cryptocurrency on different exchanges. This method is preferred by people who are accustomed to day trading, and have an even higher appetite for risk than those who are simply day trading.

Being a hands-on trader reveals many imbalances in the market, and thus opportunities for profit each day.

For example, let’s assume XYZ coin is priced at ₹10 on one exchange and at ₹11 on the second. A person could then buy ten XYZ coins on the first exchange at ₹100, transfer the coin to the second exchange, and then sell the cryptocurrency for ₹110.

The absolute gain would seem to be ₹10. However, transaction costs could eat away as much as ₹8 and leave investors with a profit of only ₹2.

This is similar to how investors play fiat currencies against each other in traditional currency markets.

There could be more complex routes, such as transferring value between three currencies on the same exchange, to end up with a larger quantity of the first currency. This is usually done when the value of newer cryptocurrencies rises or falls considerably within minutes.

In other instances, ‘stablecoins’ whose value remains ‘tethered’ to specific national currencies – like Tether (USDT) which will remain at 1 USD – may be useful to benefit from imbalanced prices.

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3. Trading

If you are new to cryptocurrency this is one way that I would not suggest and really something I shouldn’t even be messing with. Hahah… but it’s so tempting!

Now I’m not talking about day trading. I have no interest in sitting behind my computer and checking charts and candle sticking and whatever day traders do. I mean, I don’t even have the lingo down so I definitely have no business day trading.

I have experimented with this before and I’ve made some money but I’ve also lost a lot of money. In both situations It all happened really, really quick.

If you’re not able to sit behind a computer or have access to your phone this is not something I would ever suggest.

This isn’t exactly what I did. Here’s what I mean….

What happens when you start researching cryptocurrency you’ll see how volatile it can be. When I saw Bitcoin take huge swings I started to ask myself, “Why wouldn’t I buy at the dip and then sell at the high?” 

Crypto Volatility Trading

It is so easy to get this confidence whenever you look at any sort of chart, stocks, ETFs, crypto, and you can just see this pattern. 

I didn’t start with Bitcoin, funny enough. I actually started trading Dogecoin.

I bought Dogecoin in my Robinhood account at 14 cents per coin, I put in $20,000. Fast forward, it wasn’t that much longer. Doge shot up to 75 cents a coin. I had a profit on paper and I realized again, on paper a $75,000 profit on a $20,000 investment in about 90 days, if I recall the time frame. 

At that time, I would have had to pay short-term capital gains if I sold. I was not familiar with the cryptocurrency tax rules. I’m almost embarrassed to even admit this out loud but, needless to say, I am very much familiar with the tax rules now. So much, in fact, I recorded this video about it:

With cryptocurrency, as of right now, the SEC or the IRS or any governing body does not recognize crypto as a security. And because of this, the wash sale rule does not apply!

The wash sale rule basically says if you sell something and you want to realize a loss, you have to wait at least 30 days to get back in to that security. If you do, then the capital loss is literally “lost”.

But with cryptocurrency, that is not the case so you can sell and buy in the same day.

I’ve since sold some of those positions and bought Bitcoin and Ethereum when the price dropped. I took advantage of this with my RobinHood account, BlockFi, and also in Coinbase.

But I want to reiterate this is not the strategy I would ever suggest to anyone. Unless you’re an active trader and you want to monitor this day in and day out, then it is all based on a hunch.

That’s pretty much what I was doing. I know that long term that is a surefire recipe for disaster. So yes, I’ve had some nice wins. But eventually I’m going to get burned. 🔥

Play-to-Earn games

If you are looking for a way to earn money with cryptocurrency without actually investing any of your money while also being an avid gamer, then this is certainly the best option for you. While still not perfect, there are quite a lot of games that you can play on a casual or a hardcore level and earn some kind of cryptocurrency as a reward for your progress.

One of the best play to earn games is Axie Infinity, which is operated by a Vietnam-based company Sky Mavis. This game will also allow you to acquire some NFTs, which appear in the form of digital pets. Those NFTs can be sold for the in-game currency, which can be then traded for traditional currency.

If you are familiar with Pokemon, think of it as a blockchain version of that, with a social network built-in and an economy that goes beyond the game. So far, this game bade over $3 billion in total sales from March 2018 when it was released, and it is raising in growth every day as more people are discovering that it is a viable income option.

Axie Infinity is just one of many NFT games out there, and while these games are probably not that exciting to hardcore gamers when compared to some of the most popular games on the planet, with time, they will certainly improve on both depth and graphics thanks to cryptocurrency becoming somewhat of a standard in various online activities.

Way#8. Crypto Arbitrage

The cryptocurrency sector is largely unregulated; this has resulted in a lot of variations in terms of assets valuation, pricing of products, and so on. Most exchanges decide for themselves the prices their assets at are listed, and this has brought avoid the difference in the volatility and liquidity of assets. If well researched, one can make a kill from these price variations through buying from cheap sources and selling on overpriced exchanges. This is pretty much what describes arbitrage.

If you get your act together, you can find anything between 5% – 30% in price spreads across various exchanges. Consider signing up on various platforms and compare asset prices to find any meaningful variations to capitalize on.

Beware of crypto scams

According to CNBC, regulators believe crypto scams are the top threat to investors and have urged caution in 2022.

The North American Securities Administrators Association told investors to be very careful and do plenty of research before buying into a crypto investment. The biggest red flag of a crypto scam is a guaranteed high return with no risk, the NASAA says.

It’s also important to secure your crypto wallet so that scammers can’t get in and send your money somewhere you’re unable to recover it.

What is Bitcoin?

Bitcoin [BTC] is the most popular and most valued cryptocurrency. BTC transactions are processed and verified by people called miners. When miners process enough transactions, using specialized computers, they’re rewarded with some BTC. Essentially, the act of verifying transactions is what creates more BTC. So as long as miners want more cryptocurrency, the blockchain will function.

Diversify Your Holdings

By their very nature, cryptocurrencies are speculative investments. If you risk your whole portfolio on a single crypto, your risk increases exponentially.

Just as you should with a stock portfolio, diversify your crypto holdings among the handful that you have researched that have long-term viability. This should increase your chances of finding long-term winners and minimize your risk of blowing up your entire portfolio.

Way#5. Day Trading

More than 80% of cryptocurrency investors believe that the only effective way (if not the only way) to earn money in this space is through day trading.

But what most of them don’t know is that day trading is more than just holding an asset until its value rises; it takes a lot to be a day trader, but most importantly, you need to have the proper analytical and technical skills.

You’ll need to analyze market charts on the performance of the listed assets; this is perhaps the most involving way of earning from cryptos but I believe one of the most rewarding.

You can start day trading on any exchange today; all you need to do is to sign up, buy some assets, analyze, and you’re all set.

You an also start trading through an automatic trading platform like bitcoin profit  which allows users to decipher the signals emitted by the trends on bitcoin and other cryptocurrencies and start perform successful small trader.

Tip: If you’re going to be a day trader, consider mastering the art of analyzing stocks using the technical and fundamental methods; they are widely used to evaluate all traded assets.

Tips From Experts: How To Invest In Crypto Currency Safely 

Investments are always risky. Experts say cryptocurrency is one of the riskier investment choices in the market. However, digital currency is also the hottest asset.

Currently, the global cryptocurrency market cap is $2.66T and it is expected to rise impeccably. If you’re willing to invest in digital currencies, the following tips will help you make educated choices.

Research Exchanges

Learn about cryptocurrency exchanges before investing a dollar. These platforms provide a medium to buy and sell cryptocurrencies. According to Bitcoin.com, more than 500 exchanges are available to choose from. Do your research, read reviews, and speak to an experienced investor before proceeding. Various telegram communities are there guiding & sharing their personal experiences. Crypto Gaming Bulls is one of them.

Know-How to Store Your Virtual Currency

When you purchase crypto coins, you need to store them. You can choose a crypto wallet to stock up on an exchange or in a digital “wallet” (one of the cryptocurrency wallets described in the blog). While there are several types of wallets, each has its advantages, technical and security requirements. As for trading, you should research your hosting options before investing.

Diversify Your Investments

Diversification is at the heart of any correct investment strategy, and the same is true when investing in cryptocurrencies. For instance, you should not invest all your money in the Bitcoin network only because you know the name. There are thousands of options, and it is best to split your investment into multiple digital currencies.

Prepare for Volatility

The crypto market is always volatile, so be prepared for some ups and downs. You will see the price fluctuate wildly. If your portfolio or mental well-being is beyond your control, cryptocurrencies may not be your best bet.

Cryptocurrency is trending right now, but remember, it is still in its infancy. Investing in something new can be difficult, so be prepared. If you’re considering joining, start by doing your research and investing strategy conservatively.

Directly earning in cryptocurrency

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Those who won’t have the capital to invest
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Those who won’t have the capital to invest in cryptocurrencies or buy expensive mining equipment have the option of earning cryptocurrency directly.

One way to do this is to sign up to a crypto exchange. Some crypto exchanges like Coinbase and BuyUcoin, offer a tiny quantity of free coin to users who sign up.

Some niche employers, with remote workers across borders, find it simpler to pay salaries in cryptocurrencies rather than fiat money due to forex fees.

Specialised social media sites — most famously Reddit — encourage participants to tip or donate coins to users who share important information. Non-franchise eateries are also starting to welcome payments in cryptocurrency.

Such miniscule earnings may not net large profits on trade, but they are an example of how cryptocurrencies are used as a medium of exchange for goods and services — akin to fiat currencies like the Rupee or Dollar.

Staking

The technique that is recommended only to those who are experienced with the world of cryptocurrencies is staking. How to make money with cryptocurrency via staking you wonder? Well, it essentially puts you into the role of a bank.

Any coin you come by, whether it is by investing, trading, or mining, you can lend to a network so it can use them in their transactions, giving you a small percentage for each transaction. Finding a network that has a lot of trading is the key element in thriving in profits via this technique, which is where the previous knowledge is very handy.

Is it Too Late to Make Money With Cryptocurrencies?

Not at all. It is still very early in this asset class. There will undoubtedly be innovations in the crypto space that we can not even imagine right now. These new directions will most likely provide even more ways to make money with cryptocurrencies.

How can I make money from it?

With the gift of the internet comes the ability to find companies who want to give you cryptocurrency in exchange for your time. Once you receive your crypto-coins you can exchange them for either a bitcoin or a fiat currency.

Below are some of the companies that offer you a chance to earn crypto-coins without investing your own money.

Become a Miner

If you’re looking to “earn” your way to riches in the crypto space, rather than speculating directly in the market, one option is to become a miner. Crypto miners are rewarded with coins by validating transactions on the blockchain. To do so, they must solve extremely complicated mathematical equations, which requires extensive computing power.

These days, most mining is done by companies with vast server farms processing equations 24/7, making it hard for an individual miner to compete. But one way to participate is by investing in a mining pool, in which a large group of investors pour their money into a vast mining operation, which has more chance at succeeding. Just remember there are no guarantees in the mining space either.

Steemit

Steemit is a social media and blogging platform that pays users for posting content. You earn crypto-coins for posting your photos and publishing your posts.

You can then use this cryptocurrency to purchase goods or services on the platform or transfer it to various exchanges such as Bittrex and Binance, convert it to Bitcoin, or transfer it to your bank as fiat currency. You can download the app, called eSteem, on android or IOS.

Conclusion: Analyze Market Charts Before Getting Into It

Well, after reading this article you must have got an idea about how to make money with cryptocurrency. To make a safe investment and to gain a profit you must research before investing. Twitter is the best source of information to rely on for the latest updates about the crypto industry, for instance, CyrptoMinati Capital recently tweeted about their opinion on the investment in TheSandBox.

It is vital to know the crypto before investing. You should thoroughly study the ups and downs of the market. One thing you must ensure, have your wallet ready before the journey starts.

Make sure that you make all your strategies before investing. Picking up cryptocurrency is a crucial task that requires all the research and details.

Before picking up the crypto, make sure you watch out for its future in the market. Long-term and short-term are a part of the study. Thus, it sums up to doing a thorough research and watching the past and the present performance of the cryptocurrency you are willing to trade.

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