There are many ways to make money online. If you want, you can play real money-paying games right now at a casino online site. Another option is to try your luck in the exciting world of cryptocurrencies: even now, millions of people around the world are doing it.
But is the crypto space still profitable as of 2022? Is it possible to still find investment opportunities that are worth your time and money? Below we answer these questions and list the main options (along with how efficient they are) that you can use to make money in the crypto space.
Mining & Staking
This was the original method of making money with cryptos and is still valid for first-generation currencies. “Old-school” cryptos like Bitcoin allow you to earn free BTC for mining. In other words, you get a reward for using your computer to create new coins.
At one time, this was a very profitable method and was done by many. It’s still possible right now: if you want, you can mine Bitcoin, Ethereum, and many more popular cryptos to win them for free. Theoretically, 1 BTC can be mined in 10 minutes, so at first glance, you may think that this is not a very difficult task.
The problem is that it will be impossible for you to compete with “farms” of companies established for this purpose alone. There are crypto mining facilities in many countries of the world, and they can mine much more efficiently than you by using hundreds of computers at the same time.
You cannot compete with them: even joining mining pools or purchasing cloud mining services is no longer a solution. Moreover, the cost of energy required for mining is increasing, and crypto prices are so volatile you may have to pay more electricity bills than your investment.
Nowadays, mining is not an option for individual users. A different technology, staking, can still be an option, but it is far from profitable yet.
Running a Master Node
A master node is simply the name of the computer that verifies all transfers on the blockchain. It does not do mining, but it is vital for the execution of blockchain transactions. Just like mining, master node users can earn free crypto as a reward. DASH and PIVX are the most popular cryptocurrencies that reward master node holders.
This is a passive income generation method: the master node can operate independently of the user and does not consume as much energy as mining. Therefore, it has a very low risk.
Unfortunately, this method is no longer valid for individual users. Popular cryptos no longer need more master nodes, and/or their rewards are greatly reduced. Other altcoins using this system can still be quite generous but have no real value in the market.
Since it is a passive method, running a master node is still a good option among investment options, but it is very difficult to get a satisfactory income.
This method is actually no different than investing in any asset. In the traditional investment model, you buy an asset at a low price and sell it when the price goes up: the difference is your profit. This model can also be used in the crypto space.
There are hundreds of altcoins on the market, and new ones appear almost every day. It is also obvious that some of these cryptos will increase in value in the future (based on their price at the time of their release). All you have to do is find and “HODL” these cryptos. In other words, wait until prices rise.
This method has an average level of risk as all you need to do is sell as soon as you make a profit by following the price changes. If you can choose the cryptos that will gain value correctly, you can make a high profit. However, reaching for the expertise and experience to make this determination is not an easy task.
In addition, there is always the possibility that you will be negatively affected by some malicious tactics such as pump & dump. Still, when risk/return analysis is done, “HODL” is still one of the best choices for individual users.
Of all the options we’ve listed, this one has the highest earning potential. But for the same reason, it also has the highest risk. This method can be compared to a kind of “arbitrage” technique. You buy multiple cryptos and trade them with each other, tracking instant price changes.
The price difference will create your profit. It’s none of your business whether cryptos gain or lose value, as your goal is to use price changes to your advantage. The important thing is that price changes should always guarantee a profit when you trade different assets.
The problem is that technically what you’re doing is arbitrage, and there aren’t many exchanges that allow it. Even if you find such an exchange, the volatility of cryptos will always work against you: you have to make a decision within seconds, which can be quite difficult even for professionals. Moreover, even one wrong decision can result in the loss of your entire investment.