Besides buying cryptos and keeping them in a private wallet, there are many other ways to make money in the digital asset arena.

The aim of this guide is to discover how to make money with cryptocurrency in eight defined methods.

This includes everything from crypto presales and staking to day trading and win-win games.

Top 8 Ways to Make Money with Cryptocurrency in 2023

Before learning how to make money with cryptocurrency, consider the eight methods listed below:

• Invest early in presales and the best new cryptocurrencies
• Staking and interest – Earn passive income from cryptocurrencies
• Play-to-Earn Games – Earn free cryptocurrency by playing NFT games
• Liquidity mining and lending – Deposit and lend cryptocurrencies to earn interest
• Day trading – Actively trading crypto to take advantage of volatility
• Long-term investment and hodl – Buy and hold crypto for long-term gains
• Airdrops, giveaways and faucets – Get free crypto assets for completing tasks
• Mining – Help verify blockchain transactions remotely via cloud mining

To make money with crypto, it is best to first understand how each of the above methods works.

Best Ways to Profit With Crypto

In this section of our guide on how to make money with cryptocurrency, we will discuss in detail the eight methods listed above.

We will cover the topics not only in terms of how each method works, but also what risks and upside potential are expected.

1. Invest early in pre-sales and the best new cryptocurrencies

‘First mover advantage’ is a concept that some of the world’s most successful investors will incorporate into their investment strategies. The idea is to invest early in an innovative crypto product, best utility token or service, which will typically offer the most affordable entry price possible.

In other words, those who had the foresight to invest in Ethereum at $0.31 per token during its pre-sale launch are now looking at gains of over 1.6 million percent. Or over 600,000% could be gained by purchasing BNB for $0.11 when it was first launched in late 2017. Getting exposure to the most promising cryptos in 2023 requires the best crypto portfolio allocation.

While first mover advantage will no longer be possible with legacy projects like Bitcoin, Ethereum, BNB or Cardano, there are plenty of other undervalued cryptos and deflationary cryptocurrencies on the table. In fact, by doing research, it is possible to find several low-volume cryptocurrencies that offer assets at preferential prices through a pre-sale campaign.

The number of cryptocurrency exchanges is increasing day by day, and cryptocurrency exchanges are improving day by day and their transaction volumes are increasing. Assets that have their own tokens on cryptocurrency exchanges offer a good investment opportunity. For example, WhiteBIT Token (WBT) is the official cryptocurrency of the WhiteBIT cryptocurrency exchange. Investors with WBT have a dozen advantages in transactions made in the stock market. When it was first released, its price opened at $1.9 and reached $14.6 within 2 months. The token, which brings very good amounts to investors, also increases its price every day by increasing its volume with the projects carried out by the stock exchange.

2. Staking and interest – Earn passive income from cryptocurrencies

Those wondering how to make money with cryptocurrency for a passive income stream have a few options to consider. One of the best methods to consider in this regard is to sign up with a notable crypto staking platform. In summary, staking is a tool that allows investors to create interest in crypto assets that would otherwise sit idle in a private wallet.

Assets will be deposited behind the scenes into a blockchain protocol to keep the network secure and operational. The deposited tokens will then generate interest, which will be transmitted to the investor after the agreed period. This could be a fixed period of, for example, 30 or 60 days.

Alternatively, some staking platforms offer flexible terms. This means that the investor can withdraw their tokens at any time. In terms of returns, this generally depends on the cryptocurrency staked and the length of the term. In most cases, staking a smaller token over a longer lockup period will yield the highest return.

3. Play-to-Earn Games – Earn free cryptocurrency by playing NFT games

When considering how to make money in crypto, a popular option for those on a budget is to consider play-to-win games.

This concept is growing rapidly in the cryptocurrency arena as it offers many advantages that traditional game developers cannot compete with. For example, play-to-win games are often built on the blockchain network.

4. Liquidity mining and lending – Deposit and lend cryptocurrencies to earn interest

Wondering how to make money in cryptocurrency in the most passive way possible? If so, the best option on the table would probably be liquidity mining (Yield Farming) or lending. Let’s start with the tool that offers a way to earn passive income by lending cryptocurrencies to a decentralized exchange.

For those unaware, decentralized exchanges use an automated market maker (AMM) model, as opposed to traditional order books found on centralized platforms. This means that AMM requires a sufficient level of liquidity so that investors can buy crypto without a dealer on the other end of the exchange.

5. Day trading – Actively trading crypto to take advantage of volatility

It is possible to make money by trading cryptocurrencies, and it is the most popular method of making money from crypto. Day trading offers an alternative to long-term investing, as the process requires the investor to actively buy and sell digital assets to take advantage of market volatility. In fact, the investor will most likely enter and exit several positions throughout the day and will avoid keeping a trade open beyond standard market hours.

To make a profit with day trading cryptocurrency, the concept is to make small but frequent returns. It should be noted that in order to make money with cryptocurrency through a day trading strategy, there must be a solid understanding of how to analyze the markets. This means doing high-level research on the pricing relationship between two currencies.

For example , daily profits can be achieved with correct analysis with BTC / USDT , the most popular and known trading pair . Even though you do not earn much profit in one transaction, you can earn high amounts depending on the trading intensity you make.

6. Long-term investment and hodl – Buy and hold crypto for long-term gains

In stark contrast to day trading, the most successful traders in the crypto space will adopt a long-term buy and hold strategy. Therefore, it raises the question of how much to invest in cryptocurrencies to make a profit? Not only does this typically provide the best possible chance of witnessing massive growth, but it is also the most suitable strategy for beginners. Ultimately, investors just need to purchase the cryptocurrency of their choice and leave the tokens in a special wallet.

Nothing else needs to be done until it is time to withdraw money. Most importantly, when implementing a long-term buy-and-hold strategy, investors can avoid the need to constantly check market prices. Additionally, remaining in a long-term cryptocurrency position allows the investor to escape short-term volatility and wild price swings.

7. Airdrops, giveaways and faucets – Get free crypto assets for completing tasks

There are several other options to consider that offer a virtually risk-free way to earn crypto.

The first method is crypto airdrops. The process typically refers to newly launched projects giving away free crypto assets as a way to increase their presence in the market they wish to target. To participate in a crypto airdrop, users usually need to complete a basic task such as following the project on social media or whitelisting their wallet address.

Similarly, some projects will favor crypto giveaways. This works in a similar structure to crypto airdrops, as the project will require users to complete certain tasks to be eligible for the giveaway.

There are various ways users can win free tickets for the raffle, such as following the project on Twitter or joining the Telegram group. For the best possible chance of winning, users are advised to complete all possible tasks. This will result in the maximum number of free ticket entries.

8. Mining – Help verify blockchain transactions remotely via cloud mining

The last option to consider when learning how to make money with cryptocurrency is mining. This refers to the process of connecting specialist hardware to a desktop device with the guise of connecting to the blockchain network. In turn, the hardware will consume electricity for the purpose of verifying blockchain transactions.

When miners are successful in validating a block, they earn rewards in the form of crypto. Unfortunately, mining large volumes of cryptocurrencies like Bitcoin is no longer possible for the average user. Rather, the process is dominated by large-scale mining rigs with vast resources and access to the most specialized hardware technology on the market.