Even though the crypto industry is growing rapidly, very few entrepreneurs are aware of the benefits of cryptocurrency. Despite the risks of crypto, its profit potential is far greater than traditional currencies.
If you want to make money with crypto, you must familiarize yourself with the industry’s technical jargon. Though the fundamentals are similar to traditional finance, they carry different labels. If you have a good knowledge of traditional finance, understanding crypto should not be hard for you.
Nonetheless, you don’t need a lot of technical know-how to make money with crypto. Here are some proven ways to make money with crypto in 2022:
Investing
Investing is one of the most common ways to make money with crypto. Though investing in crypto is very much similar to investing in a business, crypto investments work better with the buy-and-hold strategy. It may sound scary to invest your money into something that does not have any concrete value. However, this strategy has proven quite effective in the past for a lot of people.
Anyone who has been saving up crypto since it was worth some cents is now yielding massive returns on their investment. Crypto investing is for you if you have a good understanding of financial markets, follow crypto news and can predict market shifts.
Crypto Lending
The financial services available to traders and investors through blockchain and crypto technologies are referred to as centralized finance (CeFi). These services operate much like high-street banks.
Crypto loans are a type of centralized finance that enables investors to acquire liquidity on crypto while using crypto funds as collateral. This allows them to invest in various assets while holding their tokens in a safe cold wallet.
With crypto lending, you can make necessary changes according to market fluctuations. For example, you use the ‘buy the dip’ strategy and invest in certain assets when their prices fall.
These operations can be shortened from the purchasing to the selling point. However, if you don’t have experience, you should wait until you feel it’s the perfect moment to sell your token for the best price.
Crypto loans are a profitable way to make money as long as you know what asset to invest in. Many sites provide crypto savings and crypto-backed lending services. You can use such platforms to choose the right asset for your loans. A crypto-lending relationship forms once the respective accounts of both parties are linked, and a smart contract is deployed on the blockchain.
Trading
If you are looking for a short-term strategy to make money with crypto, you should consider trading crypto tokens. Many platforms allow you to trade your crypto tokens for another currency. As the crypto market is very volatile, this method can be a bit risky.
In the crypto space, prices go up and down in a matter of minutes. Therefore, if you don’t have good technical or analytical skills, you should go for investments instead. Trading is for people who are familiar with the crypto market dynamics.
If you are already trading and want to up your game, you should set up a bot that will do the trading for you 24/7. Trading bots gather information about trading patterns and try to emulate you.
Mining
Mining is the most popular yet most difficult method of making money through crypto. This method requires massive computation power that can only come from large hardware. It is the least risky option on the list, as you’ll be making the currency yourself without any heavy investment.
However, you’ll have to make a small investment in mining rigs which are PCs that operate programs for mining cryptocurrency. Finding the components of those rigs can be very difficult sometimes.
Mining can be extremely lucrative if you mine an easy-to-generate cryptocurrency that’s increasing in value over time. Plus, you can become a professional, highly profiting miner without putting as much effort as required in trading or investing.
Play-To-Earn Games
If you are a passionate gamer who wants to make money with cryptocurrency, this no-investment method is a great option for you. There are many games you can play casually or dedicatedly to earn cryptocurrency rewards, such as NFTs.
Non-fungible tokens (NFTs) are unique digital works that are traded on the blockchain and cannot be copied, replaced, or subdivided. They are recorded on the blockchain to verify their ownership and authenticity.
Axe Infinity by Sky Mavies is one of the many NFT-based games that use Ethereum-based cryptocurrencies to power its in-game economy. These games are based on blockchain and have an in-built social network. Some of these games may be available in a live casino.
In Axe Infinity, players can gather NFTs that appear as axolotl-inspired digital pets called Axies. You can sell the collected NFTs for the in-game currency and then trade it for a traditional currency. You can also make money by buying and exchanging NFTs.
Staking
If you are deep into the game of crypto, you should use this method to make money. With staking, you can lend any coin you obtain, whether through trading, mining, or investing, to a network that can further use it in transactions, and you receive a commission for each transaction.
If you want to generate massive profits through staking, find a network that performs a lot of crypto transactions on a daily basis.
eSports Betting
Esports has become more popular than traditional sports. Many eSports events have already garnered more views than the Super Bowl. The ever-increasing popularity of eSports has given birth to a new market, i.e., eSports betting.
Though the entire concept of eSports betting is still new to many bookmakers, the odds can be very interesting sometimes. There are tons of crypto betting sites that allow you to place bets on online sporting events. However, not all casinos or betting sites allow you to bet on all the events happening online.
Some sites cover a broad range of games, while some only allow you to bet on the winning team and do not offer creative betting options.
