8 Ways to make money with crypto
When it comes to making money with cryptocurrency, most people will probably think of it in the context of a simple investment product. You buy Bitcoin, hold on to it, and hopefully, at a later date, you’ll be able to sell it for a better price and cash out the profit.
But while it’s possible to earn passively from cryptocurrency, when seen as part of a comprehensive ecosystem, you’ll quickly find that there are many more ways to engage with this, making the most of price movements and different revenue models.
So let’s look into the different ways you can make money with crypto.
Buying and holding
Buying and holding is the most straightforward way to make money with crypto. It’s important to realise, however, that there are hundreds of different cryptocurrencies that each derive their value in different ways. The most important point here is to study various currencies and buy the ones you truly believe hold the potential for long-term growth.
Holding for dividends
With some currencies, simply holding them is enough to generate a moderate income. For keeping them in circulation, you may receive dividends for Neo, KuCoin, Neblio, or Komodo.
Miners play an incredibly important role in the crypto ecosystem - they validate transactions, keep the blockchain intact, and through their work generate a fresh supply of cryptocurrency. It’s also a highly lucrative business.
However, as more miners with better equipment get involved, the more difficult (and expensive) it is to compete. This method is therefore not as easy as it used to be. However, if you’re interested you may want to look into becoming a member of a mining pool - where any potential revenue is shared. This requires a bit of homework into the world of crypto for which there are plenty of sources.
Becoming a cash point
Another great way to earn money with crypto is by applying with Bitspark to become a cash point. People everywhere are beginning to see the benefits of blockchain-based payments and money transfers and for anyone who wants to invest in crypto, cash on and off-ramps are vital.
By becoming a cash point and facilitating trading between cash and crypto in your local currency, you are able to earn a commission and if you market your cash point well, this can be a very profitable business. Cash points are user-generated and therefore they emerge all over the world. Our recent story about the Australian Cash Point is a great example of how this works.
Day trading is perhaps the most active way to engage the market. It entails trading different currency pairs and taking advantage of small - or sometimes significant - price movements. Here, perhaps, it’s less about studying the underlying protocol or business model as much as it is about engaging in technical analysis to come to a view on the market.
In this context, over the past two years, we’ve seen the rise of crypto derivatives which enable participants to trade with leverage and benefit from both upward and downward price movements. This financial product is risky, however, and requires some research and practice if you wish to master it.
If you’re into day trading, may also want to consider investing in a trading bot which you yourself configure and then let free to do the trading for you.
Another way to earn money with crypto is by getting paid in crypto. There are some websites (eg. Bituro, earn.com, Coin Bucks) that specialise in this. You may be required to fill in a survey, test an app, debug a website, or click through ads.
Perhaps more lucrative is offering freelance services in exchange for cryptocurrency. It will be important to study tax laws in your country, however, as you may be required to report such income.
Referrals & rewards
Every Bitspark customer has a unique referral code. With that, you can invite new people to join Bitspark and earn a steady commission. Say you invite a friend, for every exchange that person makes using Bitspark, you earn 0.3% of the exchanged amount paid out in Zeph - the Bitspark rewards token which can be traded for other crypto at any time. As an extra bonus, the people you sign up will earn 0.2% of the amount they exchange paid out in Zeph as well.
There is no limit to how many people you can sign up, no expiration date to referrals and no limit to the amount you can earn. You can build out your Zeph Empire as far as you are willing to take it.
Similar to day trading, this method enables you to earn a profit price movements but more specifically price differences - trading arbitrage often means you’re engaging multiple markets and taking advantage of market inefficiency.
There are several ways to do arbitrage trading. For example, you may buy Bitcoin on one exchange for X amount of money, and quickly sell it on another exchange where it’s selling at a premium. Another way is to buy Bitcoin with, say, USD, sell it for another fiat currency, and then exchange that currency for USD.
This method requires you to study different markets closely, and it generally requires you to move large amounts of assets for it to be truly lucrative.