 In addition to buying crypto and storing it in a private wallet, there are additional ways to generate money in the crypto industry. Learn more in this article.
When Bitcoin and other cryptocurrencies like Ethereum were first released, nobody could have predicted their subsequent meteoric rise in value and popularity. So now, you want to know how to make money with cryptocurrencies and whether or not it’s too late to hop on the gravy train of financial success it launched.Â
Recent research has shown that there has been a trend since 2016 that more and more individuals are adopting cryptocurrency and engaging with it in various aspects. This is resulting in the rapid development of the ability to make money in the cryptocurrency market. This article will showcase the latest and most effective ways to earn money in the crypto industry.
Latest cryptocurrency-related income streams
Most crypto assets are extremely risky due to their unpredictability, and some require specialized knowledge or experience. If you’re wondering how to make money with cryptocurrency, one popular option is to invest in crypto trading.Â
Compared to the daily average volume of trading in the foreign exchange market, cryptocurrency trades make up a much smaller percentage, but because it is highly volatile, the opportunity for short-term trading exists. While the crypto market may be modest now, it has enormous growth potential.Â
Furthermore, in 2023, there are other ways to make money in the crypto space beside the typical token trade, which will be discussed below.
- NFT Market
Knowing what an NFT is and why it’s valuable is a prerequisite to discussions of purchasing and selling them. The current craze in the cryptocurrency world is the non-fungible token, or NFT for short. They’re one-of-a-kind pieces of digital art and collectibles. The fact that they are one-of-a-kind makes them suitable for trading on a blockchain.Â
It may sound strange, yet many creative people have reaped enormous financial profits through NFTs. An image of Jack Dorsey’s first tweet was sold for $2.9 million and is an excellent example of the outrageous prices people are willing to pay to acquire the rights to NFTs.
Even more surprisingly, NFTs have existed for quite some time, with the reason for their lower profile in the past being that cryptocurrency were not as mainstream as they are now. Since the standard trading method is now better known and utilized, it is only natural that NFTs have also been receiving increased focus.
While any digital image can technically be acquired as an NFT, there are a few basics we can go through with you first. First, think long and hard about the marketplace you’re buying from and the kind of digital wallet you’ll need to purchase that cryptocurrency.
If you already own an NFT, you can simply upload the content to a legit and secure marketplace like JPG Store and then follow the platform’s instructions to convert it to an NFT there. Then, select the currency you wish to sell and either wait for a buyer or observe the bidding battle as it unfolds.
In a nutshell, investing in NFTs is similar to investing in cryptocurrencies, but with a twist. Determining the true worth of an NFT can be tricky because you never know when its popularity will suddenly surge.
- Crypto Trading
Crypto trading is a technique with shorter time horizons and more frequent profit spikes. To do so, you must first acquire some cryptocurrency and then sell it on one of several exchanges and swap it for some other kind of money. Due to the extreme volatility of the cryptocurrency market, trading in it carries a higher degree of risk.Â
Trading in this manner demands superior technical and analytical abilities, as price swings can occur within minutes. Therefore, we would argue that this choice is best for individuals with more experience with cryptocurrencies. At the same time, the investment is safer for newbies, especially if they’re interested in more popular cryptocurrencies.Â
In addition, you can utilize a trading bot to handle all your trading for you, giving you a competitive edge by allowing you to trade at any time, day or night. Of course, setting up a trading bot is no walk in the park, but once it’s up and running, the AI can execute the job as well as you can, if not better if it learns enough about the characters and trade patterns.
- Play-To-Earn Games
If you’re a gamer looking to make extra money but can’t afford to invest in bitcoin, Play-to-Earn (P2E) is your best bet. Though far from perfect, there are many games in which you can play at a casual or hardcore level and be rewarded with cryptocurrency.
Axie Infinity, run by Sky Mavis of Vietnam, is one of the top play-to-earn games. In this game, you can also find NFTs in the form of virtual pets that you can acquire and care for. These NFTs can be exchanged for game currency, which can be used to buy real-world currency.
Imagine a Pokémon-like game on the blockchain, with a built-in social network and an economy that extends beyond the game itself. Since its release in March 2018, when it has grossed over $3 billion, its popularity has only increased as more and more people realize it can be used to make money.
Axie Infinity is just one of many NFT games currently available. However, they may not now offer much in the way of excitement to serious gamers when compared to the most popular games on the planet. It is likely to change as cryptocurrencies become more of a norm in online activities, leading to greater depth and better visuals in NFT games in the future.
- Crypto Lending
Crypto lending is one of the finest ways to generate money passively with cryptocurrencies. There has been a rise in the demand for tokens that can be used to generate passive income as the popularity of crypto assets continues to rise. Crypto-yield farming is a common practice for producing passive income.Â
For example, on decentralized exchanges like PancakeSwap and Uniswap, you can lend your cryptocurrency to a liquidity pool. Even if you don’t have any prior knowledge or experience in the market, you should be able to complete the process efficiently. The liquidity pool is a place to put money temporarily before you may reaccess it.
There are many other options to choose from in making money in the cryptocurrency space in 2023. Hopefully, you’re considering at least one or two of the options given earlier. Take your time and learn more about the industry before investing money; practice sound money management, and you can slowly earn a profit once you’ve gained your edge.
Takeaway
Making money with cryptocurrency can be done in various ways besides the ones this article has listed above. Because there are so many options in the cryptocurrency market, it can be challenging to settle on just one. In any case, if you put in the effort and stick with it, you can get to a point where Crypto can become an additional source of income for you.
