With the growing demand of technology, the world has become more interested in earning money online. In this race, the concept of earning, making money with cryptocurrency has become very famous and everyone is interested in trying their luck to make money with this way.
When you decided to enter in cryptocurrency market the first question that comes to your mind is Can, I make money with cryptocurrency? What is cryptocurrency trading? How to make money with cryptocurrency in 2021? How to buy Bitcoin? Best ways to invest in cryptocurrency?
Although many people succeeded in making money with cryptocurrency in 2017 & 2021 but still cryptocurrency is not an easy business. There are a lot of chances and ways in which you can be scammed by some crypto projects as many projects did exit scam till now. Nowadays investing in cryptocurrencies is becoming very popular and new investors are showing a great deal of interest in this industry and are looking forward to making money with cryptocurrency.
In this article, 10 Best ways will be discussed to make money with cryptocurrency for Beginners in 2021.
Table of Content
- Can you make money with Cryptocurrency?
- 10 Best ways to make money with cryptocurrency for beginners in 2021
- Conclusion
Can you make money with Cryptocurrency?
Cryptocurrency trading and some other ways can make huge profits, but it is also a risky task to do. If you are investing in the cryptocurrency market you must keep in mind that you can face hardships. So, one must have the patience to work under stress to make money with cryptocurrency.
Late exploration by investment firm a16z shows that the crypto space develops in cycles. A cycle for the most part begins with an expansion in expenses of the crypto assets, driving social and conventional media buzz. The inclusion and fervor carry more individuals into space, providing new code, thoughts and making new tasks. This ultimately begins the following cycle.
Crypto cycles have peaked the years in 2011, 2013, 2017, and 2021. Crypto has seen the greatest peak in these years despite price falls. The pinnacle of the following cycle is probably going to agree with new mechanical leap forwards and rising crypto values. The pinnacle of the following cycle is probably going to agree with new mechanical leap forwards and rising crypto values.
There are several ways through which you can make money with cryptocurrency and generate a passive income. But it requires intensive knowledge and strategies to succeed in this field.
10 Best ways to make money with Cryptocurrency for beginners in 2021
There are several ways in crypto market that can be effective or profitable for beginners because they find it difficult to make money with cryptocurrency as most of them don’t know the right method and strategy that suit them the best. I will explore profitable ways for beginners to make money with crypto. Below are listed the top 10 methods to do so:
1. Bitcoin Mining
Bitcoin mining is a procedure that includes you to solve a computational challenge in order to generate new bitcoins. Bitcoin mining is necessary to maintain the ledger of transactions on which bitcoin is built. Mining has been extremely developed and polished throughout time as a result of the employment of advanced machinery that speeds up the process. Bitcoin mining offers a lot of opportunities in terms of assisting you in making money with cryptocurrencies.
Bitcoin mining is the process of creating new currencies and putting them into circulation. Bitcoin mining is a challenging procedure, but it may be rewarding if performed correctly.
Bitcoin mining is carried out using computers, but it still demands the use of highly specialized hardware and software. Because this operation demands a large amount of electricity, it is frequently carried out in locations where electricity is freely available. It must be carried out using modern computers capable of solving complex computational math problems quickly. Professional miners accomplish their tasks flawlessly, leaving small miners perplexed. Before you begin mining, you need research and educate yourself with the entire mining techniques and equipment. It is not a wise decision to rely on mining apps in the hopes of making a lot of money. You can utilize Bitcoin Pool to boost your efficiency by paying a fee.
Pros
- It is a secure method for transactions
- It is the most profitable way to make money with cryptocurrency
Cons
- The investments are high in Bitcoin Mining
- There are more competitors in mining
- It requires lot of electricity
- The investments are high in Bitcoin Mining
- There are more competitors in mining
- It requires lot of electricity
2. Staking Cryptos
Staking cryptos is another ideal way to make money using cryptocurrencies. Staking cryptocurrency is done by keeping and securing coins in a crypto wallet. The cryptos you have in your wallet can be used to gain rewards. You can earn a percentage-rate reward on these coins by staking your investments. Blockchain puts your staked coins on work which makes them earn rewards for you. Trust Wallet is an option where you can stake your coins straight from the crypto wallet. Also now exchanges allow staking like Binance, Coinbase, Kraken, CoinList, Kucoin, BitMax and many more exchanges. By staking some cryptocurrencies you can earn upto 70%-95% annual reward. For instance, PancakeSwap (CAKE) staking can give you 70% APY and Hydra (HYDRA) staking can provide you 90% APR.
Cold staking is also another process opted by investors to earn money with cryptocurrency. This process allows the investor to stake the coins in a wallet that has no connection with the internet. Some of the coins you can stake include Tether, NEO and Stellar (XLM).
Pros
- Staking is very simple and effortless.
- It helps to earn massive income.
- It has very low risk factors
Cons
- The investment and deposit for the staking are sometime unaffordable for the average investor.
3. Long Term Investment
Long-term holding is a technique that can be beneficial to bitcoin investors. Investors who use the long-term hold strategy invest or buy for the long term. Investors in this method do not plan to sell a stock for a long length of time and instead plan to retain it for years. Long-term investors focus their efforts on the fundamental research of the coins in which they have an interest. Fundamental market analysis is concerned with value creation, asset reputation, market expansion, and asset genuine value.
Many people earned massive profit from Bitcoin, because they bought Bitcoin in 2012 to 2016 when Bitcoin price was $2 to $1,000, and they held these coins for several years. In 2021, price of bitcoin had raised to 64,800 USD and investors who invested early made a huge profit. Also, some altcoins made huge gains, following five coins have earned massive profit. Cardano currently trading at 545x profit from its ICO Price, DREP trading at 494x, Axie Infinity is trading at 430x, Matic Network is trading at 399.24x, Cocos BCX is trading at 315.17x, Flow at 236x and NEO at 232.6x.
- It gives your money more time to grow
- It can give you huge gains like 100X to 200X
- Investors are required to select the coins one time rather than keeping an eye on the market every day
Cons
- It requires a long time to earn money with this method rather than the other strategies
4. Day Trading
If you want to make money with cryptocurrencies, day trading is also a feasible alternative. Day trading is a type of investing in which investors acquire and sell coins in a single day rather than waiting months or years for interest to occur. This technique is more well-known in the Forex and stock markets.
To be effective and productive in day trading, you must be very professional and diligent. Day traders are usually well-educated and well-funded individuals. A day trader’s ability to research and understand markets requires sufficient technical knowledge and skills. Crypto is a volatile market where the prices keep on fluctuating so day traders must pay special attention to the details. To make exact predictions about the increases and decreases of the prices, a day trader is required to analyze market charts to track the performance of listed assets. Binance, Coinbase and Kucoin are most popular exchanges for day traders.
Day traders usually use following strategies
- Scalping
- Range trading
- News based trading
- High frequency trading
Among investors, news-based trading is the most useful approach. If a trader wants to make money with cryptocurrency and not just do it as a pastime, he need have a thorough understanding of the market.
Pros
- Day trading is a quick method in which you don’t have to wait for years to earn
- The market is transparent so it is easy to choose your trading options
Cons
- Crypto is a24/7 market but there are only fewer hours you can find suitable trade
- If you are not expert in day trading, you can’t make money with this method
5. Cloud Mining
Cloud mining is a method for investors to mine cryptocurrencies such as Bitcoin and Ethereum without having to purchase and run the hardware and software themselves. Investors in cloud mining companies can participate in the bitcoin mining process from faraway. To begin cloud mining, simply log into your account using your laptop, phone, or other device. After that you just have to click on mining and the work will start. For example, Genesis Mining- Largest cloud Bitcoin company allows anyone to open account, purchase desired package and start mining.
Two types of cloud mining are hosted mining and leased hash power. Hosted mining, in which miners retain control of their cryptocurrency, is the most popular approach among investors. The hardware is purchased by the consumer, and he is responsible for its upkeep.
Leased hash power is common for altcoins where the person opens his account with the cloud mining company and select contract period and hashing power via its website. No doubt cloud mining is a very effective process to make money with cryptocurrency and has a lot of advantages, but also has a few disadvantages.
Pros
- It is not compulsory to have technical knowledge and training.
- You do not have to invest on buying hardware or other stuff
Cons
- Earnings with cloud mining is not very high
- There are more chances of scam in cloud mining
6. Lending to margin traders
Lending to margin traders is a novel technique to profit from bitcoin. Margin trading is a type of trading that involves borrowing money to trade with. Because the crypto market fluctuates, lending to margin traders is a tremendously rewarding but dangerous strategy. Here you do not have to scare of the borrower running away with your money because exchange/platform does not allow the borrower to cash it out.
It is helpful in increasing the investment exposure. You can easily lend your cryptos on exchanges like Binance, Kucoin, CoinDCX and others. To lower the risk, one should lend cryptocurrencies on more than one exchanges so that if any exchange gets hacked funds can be lost.
Pros
- It allows you to earn rewards without any effort
Cons
- Perhaps the biggest disadvantage is that you’ll be at high risk of losing all your funds if the exchange closes down or if they run away with your funds.
7. Yield Farming:
Yield Farming, like many of the other approaches listed above, has its own niche where you can make money with cryptocurrency. Yield farming is a method of lending crypto assets with the goal of receiving a large payoff in the form of additional cryptocurrency. It is a really unique and imaginative process, but it is also, to some extent, perilous and dangerous.
To put it plainly, yield farming Protocols boost liquidity providers (LP) to stake or secure their crypto resources in a liquidity pool that depends on a smart contract-based liquidity pool. These profits are displayed as a yearly rate yield (APY). As more financial backers add assets to the connected liquidity pool, the worth of the returns ascend in value. Liquidity providers in most yield farming protocols are rewarded with the governance tokens which are usually eligible to be traded on both centralized exchanges and decentralized exchanges such as Binance and Uniswap respectively. Seven most popular yield farming protocols are Compound, MakerDAO, AAVE, Uniswap, Balancer, Synthetix and Yearn Finance.
Pros
- The profit earned by yield farming are much higher that cannot be compared with others
- It requires complex strategies due to which it not very common among other investors
Cons
- Yield farming can sometimes be astonishingly difficult and can be proved to be a financial risk for both borrowers and lenders.
- Yield farming is somehow complex for the new comers
8. Run cryptocurrency Master Nodes
Master nodes are full nodes that reward node operators for performing the blockchain’s core consensus operations. A master node is a controlling component in some cryptocurrency networks, and it requires an introductory collateral of tokens (or a “stake”) to operate. A master node is more than just a node; it also serves as a casting node for recommendations for improving the Dash system. It also creates instant transactions, known as “InstantSend. It performs a function of “PrivateSend” in which the fact that you have sent money is kept confidential. The concept of running bitcoin master nodes is complex, yet it is a preferred way to earn money with cryptocurrencies. The master node serves as a digital wallet that keeps track of Blockchain transactions. Node operators keep track of coins in exchange for a fee that many cryptocurrencies pay them. Crypto firms are increasingly outsourced master node operator assistance for a fee. The particular reason for circumstance the cycle is complicated, one must have a minimum number of coins under their master nodes. Dash, a fork of Bitcoin, was the first virtual currency to adopt the master node model.
Pros
- Passive income can be easily generated
- Master nodes provide easy access to new coins
Cons
- It is a time taking and complex process to run a master node
9. Earn Interest
Another common way of generating money with cryptocurrency is to earn interest on it. In theory, a cryptocurrency interest-earning account functions similarly to a traditional savings account. You can deposit your Bitcoin or altcoin with no lockup period or deposit limits, earn compound interest on your asset, and get payouts and withdraw your assets at any moment. The best platforms to earn interest on your crypto assets are following:
- BlockFi- With a BlockFi Interest Account (BIA), your cryptocurrency can earn up to 7.5% per annum
- Nexo- Unlock the power of your crypto, earn up to 12% interest paid out daily
- Crypto. Com- Earn up to 8.5% on your crypto and up to 14% per annum (p.a) for stablecoins
- Celsius Network- The first and only platform that earns you up to 17% yield on your crypto, rewards you every week and lets you borrow cash at the lowest rates.
Pros
- High interests/Bonus Rates
- Daily/weekly payouts
- Secure
Cons
- Slow support
- Must pass KYC to earn interest
- Country restrictions
10. Join Airdrops
Joining airdrops is also a proven method to make money with cryptocurrency. It is a kind of marketing stunt in which the coins or tokens are sent to participants/lucky winners wallet addresses. These tokens are distributed by the team to spread the awareness of their cryptocurrency.
The most famous airdrop in crypto happened in Sep 2020 as Uniswap offered 400 UNI that were claimable by each address that had ever called the Uniswap v1 or v2 contracts. This includes ~12,000 addresses that have only ever submitted failed transactions. This airdrop now worth $8,800 as of today’s (01 August 2021) price of $22. The best websites/Telegram Channels to find airdrops are following:
- Coinmarketcap
- Airdrops. io
- Airdropalert
- Bsc News
- Airdrop Ninja
Pros
- Free money for the users
- You can make money without any investment
Cons
- Airdrops can be scam sometimes
Conclusion:
So that is all you need to know if you want to make money with cryptocurrency. It is not something complex for the beginners as well to start investing in cryptocurrency, but you need to be very careful so that you do not fall for any scam. Above mentioned methods are the easiest methods to follow for the beginners to start their crypto journey and make money with crypto. These methods provide the opportunity of learning and earning at the same time. You can make money with cryptocurrency as a beginner and can be successful as well.
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