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HOW TO MAKE MONEY WITH CRYPTOCURRENCY: 9 STRATEGIES

Updated on December 20, 2023
Written by
Frank Gogol
Written by
Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the
Stilt Blog, I write about the complex topics — like finance, immigration,...

See all posts Frank Gogol
Reviewed by
Rohit Mittal
Reviewed by
Rohit Mittal

Rohit Mittal is the co-founder and CEO of Stilt. Rohit has extensive experience
in credit risk analytics and data science. He spent years building cre...

See all posts Rohit Mittal

AT A GLANCE

* Investing for long-term growth.
* Trading to exploit short-term price fluctuations.
* Engaging in staking, lending, social media participation, or leveraging
airdrops and forks for additional opportunities.

Interested in turning Bitcoin into cash and navigating the crypto world? While
many have reaped significant profits, others have struggled due to a lack of
understanding. As the cryptocurrency sector expands, new entrants are keen to
find profitable avenues. With consistent growth since 2011 in developer
involvement, social media buzz, and crypto startups, there are numerous ways to
capitalize. Dive in to discover how to profit from cryptocurrency and get advice
from out resident expert, Rohit Mittal.

In This Article

Toggle
* Can You Make Money With Cryptocurrency?
* 9 Ways to Make Money with Crypto in 2023
* 1. Crypto Investing
* 2. Crypto Trading
* 3. Crypto Staking
* 4. Crypto Lending
* 5. Crypto Social Media
* 6. Crypto Mining
* 7. Crypto Giveaways
* 8. Crypto Gaming
* 9. Crypto Airdrops and Forks
* The Pros and Cons of Making Money With Cryptocurrency
* Other Crypto Considerations
* Sources ▼
* Read More
* FAQ: Making Money with Crypto in 2023

CAN YOU MAKE MONEY WITH CRYPTOCURRENCY?

Making money with cryptocurrency is possible, though it comes with risks due to
its volatility. Trading cryptocurrencies offers potential, especially with the
crypto market’s inherent fluctuations.

For example, a CNBC article from late 2021, a year when the market was strong,
reported that investing $1,000 in Bitcoin on January 1st of that year would have
resulted in a $632 in profit (a +63% return).

Platforms like Binance, Coinbase, and Robinhood facilitate crypto trading.
Beyond trading, there are multiple strategies to profit from cryptocurrency.
Dive in to explore six of them.

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9 WAYS TO MAKE MONEY WITH CRYPTO IN 2023

If you are wondering how to earn money with cryptocurrency, look no further!
Strategies for making money with crypto rely on three mechanisms:

1. Invest or Trade: Engage in the crypto market, similar to stock market
investments.
2. Stake and Lend: Use your coins to stake or lend to others.
3. Participate: Mine or earn rewards within the blockchain system.

Based on these three mechanisms, here are the nine strategies for making money
with cryptocurrency:

1. Investing
2. Trading
3. Staking
4. Lending
5. Crypto Social Media
6. Mining
7. Giveaways
8. Gaming
9. Airdrops and Forks

Each of these strategies is explored in more detail below.

1. CRYPTO INVESTING

Investing in cryptocurrencies involves purchasing and holding digital assets
with the expectation that their value will increase over time. This long-term
strategy banks on the belief that as cryptocurrencies become more widely adopted
and integrated into technological and financial systems, their demand and,
consequently, their value will rise. Investors aim to profit by eventually
selling their holdings at a higher price than the cost at which they were
acquired, realizing a capital gain. This approach requires patience, a strong
belief in the underlying technology or utility of the asset, and a tolerance for
the market’s inherent volatility.

HOW TO DO IT

Investing in cryptocurrencies as a strategy typically involves conducting
thorough research to select which digital assets to buy, often focusing on those
with strong fundamentals and long-term growth potential. Investors usually
purchase crypto through an exchange, hold their assets in a wallet, and monitor
the market for significant trends or changes. The investment is often held over
months or years, through market ups and downs, with the intent to sell for a
profit at a future date when the asset’s value has appreciated significantly.

Pros:

* Potential for significant long-term gains.
* Diversification of investment portfolio.

Cons:

* Volatility can lead to substantial losses.
* Requires understanding and research of the crypto market.

Rohit’s Advice: Don’t be swayed by the high volatility and noise surrounding
daily price movements. As an investor who’s weathered several crypto winters,
I’ve found that the key is a long-term perspective, coupled with thorough
research into each project’s fundamentals. Remember, it’s not about timing the
market, but time in the market that often yields results.

2. CRYPTO TRADING

Trading cryptocurrencies is an active approach to profiting from the market’s
fluctuating prices. Traders use a variety of methods, including technical
analysis, to identify buying and selling opportunities, often executing multiple
trades within a short period to capitalize on small price movements. The goal is
to make a series of small profits that add up over time, which requires a good
understanding of market trends and the ability to act quickly in response to
market changes. Unlike investing, trading is a more hands-on strategy and can be
a full-time endeavor for many.

For those who can transition to crypto day trading professionally, the average
salary in the U.S. is $94,266.

HOW TO DO IT

Trading cryptocurrencies requires setting up an account with a cryptocurrency
exchange where you can buy and sell digital currencies. Successful traders often
rely on a mix of technical and fundamental analysis to make informed decisions
about when to execute trades. They also must stay up-to-date with market news
and events that could affect prices. It’s common for traders to use tools like
price charts, trading indicators, and stop-loss orders to manage risks. They
need to be disciplined, ready to cut losses, and take profits at pre-defined
levels.

Pros:

* Potential for high returns.
* Flexibility in investment strategies.

Cons:

* High risk due to crypto’s volatile nature.
* Requires constant market monitoring.

Rohit’s Advice: The most crucial lesson I’ve learned from crypto trading is to
never let emotions drive your decisions. Set clear rules for entry and exit
points and stick to them. Also, make sure to use only a small portion of your
portfolio for trading; this mitigates risk and keeps your overall holdings
stable.

3. CRYPTO STAKING

Staking is a process unique to certain cryptocurrencies that use a
proof-of-stake (PoS) consensus mechanism. By holding and ‘staking’ their coins,
participants can contribute to the network’s security and governance. In return
for locking up their assets to validate transactions and support the network,
stakers are rewarded with additional coins, similar to earning interest in a
savings account. This method of earning income with crypto is particularly
attractive as it provides an opportunity to accumulate more cryptocurrency
without needing to put in the significant effort required by other methods.

HOW TO DO IT

Staking cryptocurrencies involves holding funds in a cryptocurrency wallet to
support the operations of a blockchain network. Essentially, you lock
cryptocurrencies to receive rewards. To start staking, one needs to own a
cryptocurrency that uses the proof-of-stake model and keep the coins in a
compatible wallet. Some exchanges offer staking services, allowing you to stake
directly through their platform. It’s important to research and understand the
specific staking process for the chosen cryptocurrency, as it can vary from one
to another.

Pros:

* Passive income through interest or dividends.
* Supports the crypto ecosystem.

Cons:

* Crypto may be locked for a set period.
* Exchanges can be vulnerable to hacks.

Rohit’s Advice: Staking has been a relatively lower-risk way for me to grow my
crypto assets compared to trading. But it’s vital to choose platforms and coins
with a strong track record and a clear staking process. Always do your due
diligence, and consider the lock-up period and the liquidity of the asset before
staking.

4. CRYPTO LENDING

Lending provides a way to earn income from cryptocurrency holdings without
selling them. By offering your crypto assets on lending platforms, you can earn
interest from borrowers who use your funds for various purposes, such as trading
or financing their own projects. The lending market in the cryptocurrency space,
especially within decentralized finance (DeFi), has grown significantly,
offering competitive interest rates compared to traditional savings accounts. It
is, however, not without risk; platform security and borrower default are
factors that lenders must consider.

HOW TO DO IT

Lending your cryptocurrency can be done through several platforms that connect
lenders with borrowers. To lend crypto, you deposit your funds into a lending
platform, where they are then lent out to borrowers who pay interest. When
lending, it’s crucial to consider the platform’s credibility, the security of
your funds, and the interest rates offered. DeFi lending platforms often offer
higher returns and require you to interact with smart contracts, while
centralized platforms may provide a more user-friendly experience with varying
interest rates.

Pros:

* Potential for high returns.
* Passive income source.

Cons:

* Reduces liquidity of your assets.
* Some platforms have faced liquidity challenges.

Rohit’s Advice: In lending, diversification is your best friend. Spread your
lending across various platforms and borrowers to minimize risks. Also, remember
to thoroughly assess the collateral and the creditworthiness of the borrowers.
I’ve learned to focus on platforms that offer solid smart contract audits and
insurance funds.

5. CRYPTO SOCIAL MEDIA

Participating in crypto social media platforms is a novel way to earn money with
cryptocurrencies. These platforms reward users with cryptocurrency for creating
content, engaging with posts, or contributing to the community in other valuable
ways. For those who have a knack for creating popular content or engaging an
audience, this can be a lucrative avenue, not to mention it helps foster a sense
of community and shared ownership in the platform’s success.

HOW TO DO IT

Engaging with crypto social media platforms as a money-making strategy entails
joining platforms that reward users with cryptocurrency for content creation,
curation, and interaction. To profit from these platforms, create or share
content that is likely to generate engagement, such as likes, comments, and
shares. Regular participation and building a following can increase your
earnings potential from these platforms’ reward systems.

Pros:

* Earn crypto for activities you might already be doing on traditional
platforms.
* Helps in understanding and staying updated with the crypto community.

Cons:

* Earnings can be inconsistent.
* Platforms may not have the same reach or user base as mainstream social
media.

Rohit’s Advice: Earning crypto through social media requires you to be actively
engaged and genuinely interested in creating valuable content. My success came
when I focused on providing real insights and fostered genuine discussions,
rather than just chasing the rewards.

6. CRYPTO MINING

Mining is one of the oldest methods of making money with cryptocurrency. It
involves using specialized computer hardware to solve complex mathematical
puzzles, which in turn secures the network and processes transactions. Miners
are rewarded with newly minted coins and transaction fees. This process requires
a significant upfront investment in hardware and ongoing costs for electricity,
making it challenging for individual miners, especially in areas with high
energy costs. However, for those with the resources to start mining, it can be a
steady source of income.

HOW TO DO IT

Mining cryptocurrencies requires obtaining the necessary hardware, such as ASIC
miners for Bitcoin or high-end GPUs for other cryptocurrencies. Once the
hardware is set up, you need to install mining software and join a mining pool
to increase the chances of earning rewards. The mined cryptocurrency can either
be held or sold on the market. Due to the energy-intensive nature of mining,
it’s crucial to consider electricity costs and the efficiency of the mining
setup.

Pros:

* Direct way to acquire new coins.
* Potential for significant returns.

Cons:

* Energy-intensive.
* Requires substantial equipment investment.
* Not always profitable.

Rohit’s Advice: If you’re looking to get into mining, be aware of the energy
costs and the initial investment in hardware. It’s essential to calculate your
potential return on investment carefully. I found that joining a mining pool
increased my chances of earning rewards, as it combines resources with other
miners.

7. CRYPTO GIVEAWAYS

Giveaways in the cryptocurrency context, often known as “crypto giveaways,”
offer the chance to receive free tokens as part of a promotion or marketing
campaign. While not a traditional method for making money, if the received
tokens increase in value, there is a potential for profit. Participants must be
cautious and discerning to avoid scams, as the allure of free tokens can
sometimes be used as bait by malicious actors.

HOW TO DO IT

Participating in giveaways to make money with cryptocurrencies often involves
joining a blockchain project’s community, such as following them on social media
or signing up for newsletters. Projects may require participants to perform
tasks, like sharing posts or tagging friends, to qualify for the giveaway. While
this method requires minimal effort, it’s also less reliable as a consistent
income source, and the value of free tokens can vary widely.

Pros:

* Opportunity to earn free crypto.
* Minimal effort required.

Cons:

* Potential scams or malware risks.
* Earnings may be minimal.

Rohit’s Advice: Always approach giveaways with a healthy dose of skepticism.
Legitimate giveaways are few and far between, and they should never require you
to send your own crypto first. From my experience, the safest giveaways are
directly from well-known and reputable projects or individuals.

8. CRYPTO GAMING

Gaming has emerged as a new frontier in the crypto space with the advent of
‘play-to-earn’ models. In these blockchain-based games, players can earn in-game
cryptocurrencies or NFTs which can be traded or sold, potentially for real-world
currency. This convergence of gaming and finance has created a burgeoning
industry where skillful play or strategic trading of in-game items can lead to
tangible earnings.

HOW TO DO IT

Making money through gaming in the crypto space typically involves playing
blockchain-based games that have a play-to-earn model. To start, one needs to
understand the mechanics of the game and how earnings are generated, which could
be through in-game currency, NFTs, or other digital assets. Players may need to
invest in starting assets or characters, depending on the game’s design. Profits
are made by selling earned in-game assets on various marketplaces or exchanges.

Pros:

* Fun way to earn crypto.
* Growing industry with increasing opportunities.

Cons:

* Some games require initial NFT investment.
* Market can be unpredictable.

Rohit’s Advice: The ‘play-to-earn’ model can be incredibly rewarding, but it
also requires time and effort to understand the game’s economy and mechanics. My
advice is to enjoy the gaming aspect first and view any earnings as a bonus.
This way, you avoid burnout and can make strategic decisions when trading
in-game assets.

9. CRYPTO AIRDROPS AND FORKS

Lastly, airdrops and forks are events that can result in receiving new
cryptocurrencies. Airdrops occur when projects distribute free tokens to
existing holders to drive engagement or as a loyalty reward, while forks happen
when a blockchain diverges into two paths, potentially granting holders of the
original currency an equivalent amount of the new one. Both scenarios can result
in the acquisition of new assets without a direct purchase. These assets can be
held in anticipation of value appreciation or sold for immediate profit,
depending on the holder’s strategy.

HOW TO DO IT

To benefit from airdrops and forks, cryptocurrency holders should keep informed
about upcoming events. For airdrops, this often involves holding a specific
cryptocurrency at a certain time to qualify for the free tokens. For forks,
holders of the existing cryptocurrency typically receive new tokens at a
one-to-one ratio. Staying active in the crypto community, joining project
announcements channels, and holding a diversified portfolio can increase the
likelihood of benefiting from these events.

Pros:

* Free tokens can lead to unexpected gains.
* Opportunity to explore new projects without financial commitment.

Cons:

* Many airdrops have little to no value.
* Potential scams or fraudulent schemes.

Rohit’s Advice: With airdrops and forks, one piece of advice is to stay informed
about the projects you invest in and the broader crypto community. This
knowledge helped me benefit from airdrops and forks without being caught
off-guard. Also, always secure your holdings in a wallet you control to be
eligible for these events.

THE PROS AND CONS OF MAKING MONEY WITH CRYPTOCURRENCY

Cryptocurrency, a digital or virtual form of currency, has taken the financial
world by storm. As with any investment, there are potential rewards and risks.
Let’s delve deeper into the advantages and challenges of making money with
cryptocurrency.

PROS OF MAKING MONEY WITH CRYPTOCURRENCY

1. Quick Returns: Cryptocurrencies can offer substantial returns in a short
time frame due to their volatility.
2. Global Market: Cryptocurrencies operate 24/7, allowing trading at any time
from anywhere in the world.
3. Diversification: Crypto offers a new asset class, allowing investors to
diversify their portfolios.
4. Low Entry Barrier: Unlike traditional investments, you can start trading
crypto with a relatively small amount of money.
5. Decentralization: Cryptocurrencies operate without a central authority,
offering a level of transparency and security.

CONS OF MAKING MONEY WITH CRYPTOCURRENCY

1. High Volatility: The same volatility that can lead to high returns can also
result in significant losses.
2. Security Concerns: Cryptocurrencies are susceptible to theft from hacking.
It’s crucial to use secure wallets and exchanges.
3. Lack of Regulation: The crypto market isn’t as regulated as traditional
financial markets, leading to potential scams and fraud.
4. Knowledge Barrier: To succeed, one needs to stay updated with industry news,
understand trading best practices, and be aware of market trends.
5. Uncertain Future: The future of individual cryptocurrencies is uncertain.
It’s essential to have an exit strategy.

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.

And if you’re looking for an awesome, secure crypto wallet to earn with, check
out ZenGo. It offers unparalleled security. Being the only self-custodial wallet
without private key vulnerability, it’s powerfully backed by MPC. Always
recoverable and boasting a pristine record of never being hacked, ZenGo sets the
gold standard.

SOURCES ▼

* https://www.cnbc.com/2021/12/28/how-much-youd-have-if-you-invested-1000-in-top-cryptocurrencies.html
* https://www.ziprecruiter.com/Salaries/Cryptocurrency-Trader-Salary

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FAQ: MAKING MONEY WITH CRYPTO IN 2023

HOW CAN I MAXIMIZE MY PROFITS QUICKLY IN THE CRYPTO MARKET?

To maximize profits swiftly, monitor price trends, time your investments wisely,
and consider early entries into promising projects or coins.

IS IT FEASIBLE TO EARN A DAILY INCOME FROM CRYPTOCURRENCY?

Absolutely. With diligent research and a robust strategy, you can earn daily
from cryptocurrency. For instance, mastering an NFT game can lead to daily
earnings through competition victories.

CAN I REALISTICALLY MAKE $100 A DAY TRADING CRYPTOCURRENCY?

Yes, it’s possible, especially for adept day traders. However, your daily
earnings largely depend on your initial investment and the market’s performance.

GIVEN THE CURRENT TRENDS, IS CRYPTOCURRENCY A WISE INVESTMENT?

Crypto investment viability varies with market dynamics. Stay updated with
market conditions, financial news, blockchain innovations, and track the
performance of specific cryptocurrencies to make informed decisions.

HOW SAFE IS IT TO INVEST IN CRYPTOCURRENCY?

Cryptocurrency is inherently risky. While it offers the potential for high
returns, it’s equally possible to incur significant losses. Always invest what
you’re prepared to lose.

HOW DO I START WITH CRYPTOCURRENCY TRADING?

Begin by researching and selecting a reputable crypto exchange. Educate yourself
on market trends, different cryptocurrencies, and trading strategies. Starting
with a small investment can help you understand the market without significant
risk.

ARE THERE ANY TOOLS OR PLATFORMS YOU RECOMMEND FOR CRYPTO TRADING?

There are numerous platforms like Coinbase, Binance, and Kraken. It’s essential
to choose one based on its security features, user interface, and transaction
fees. Additionally, tools like CoinMarketCap or TradingView can help track and
analyze market trends.

HOW CAN I PROTECT MY CRYPTOCURRENCY INVESTMENTS?

Ensure you use secure wallets, enable two-factor authentication on your
accounts, and regularly back up your wallets. Avoid sharing sensitive
information and be wary of phishing scams.

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FRANK GOGOL

I’m a firm believer that information is the key to financial freedom. On the
Stilt Blog, I write about the complex topics — like finance, immigration, and
technology — to help immigrants make the most of their lives in the U.S. Our
content and brand have been featured in Forbes, TechCrunch, VentureBeat, and
more.
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