10 Ways to Make Money with Cryptocurrencies
How do you make money from cryptocurrencies? You’ve heard about the meteoric rise of Bitcoin and other cryptocurrencies in the news, and now you want to get in on the action. The problem is that most people know cryptocurrency as an investment vehicle, and investments aren’t your strong suit.
Plus, even if you did have money to invest, there are so many different cryptocurrencies out there that it would be nearly impossible to keep track of them all! Luckily, you can use your money-making skills to make money from cryptocurrencies without investing a dime. Here are 10 ways to make money with cryptocurrencies.
1) Join an ICO
One way to make money from cryptocurrencies is by investing in initial coin offerings, also known as ICOs. An ICO allows you to invest in a new cryptocurrency project before it launches. You can earn a return on your investment once that currency starts trading publicly on exchanges.
Although any cryptocurrency can be an ICO (meaning it used its own blockchain and tokens), most are Ethereum-based tokens (ERC20). Here are some steps to help you understand how they work: How Do ICOs Work?
2) Run a masternode
People who have a large amount of coins can choose to run what’s called a masternode. This requires downloading a wallet and keeping it open on their computer 24/7. In return, they get rewarded some coins for doing so.
It’s a very simple way to make money from cryptocurrencies without actually having them in your possession at all times. The biggest coin that offers masternodes is Dash (formerly known as Darkcoin).
3) Mine altcoins
There are many cryptocurrencies which have already been proven as profitable, and even more being discovered as we speak. Mining altcoins can be an excellent way to make money from cryptocurrencies.
If you’re not familiar with mining, it’s basically just utilizing your PC (or multiple PCs) and graphics card(s) to generate digital coins for a cryptocurrency network.
This is done by solving a set of complicated mathematical equations in order to prove that there was enough mining power behind each individual transaction.
4) Start your own cryptocurrency
Creating your own coin can be a good way to increase your profits when you trade cryptocurrencies. While it’s easier said than done, deciding whether or not it’s worth creating your own cryptocurrency and how you would do so is something that should be researched thoroughly.
5) Invest in trading
If you want to make money from cryptocurrencies, buying and selling for a profit is likely your best bet. But investing isn’t without its risks. In fact, if you don’t know what you’re doing, it could easily turn into one of your worst nightmares.
So before delving in and figuring out how to become a crypto investor—and before choosing a particular investment platform or strategy—make sure you do your homework first.
6) Invest in ICOs
Initial coin offerings, or ICOs, are an increasingly popular way for startups—especially blockchain-related startups—to raise money.
In theory, it’s a win-win: Investors get in on an early round of financing, and get coins that have been created by and distributed through smart contracts (so they have an actual value outside of speculative investment). The biggest ICO ever was Filecoin, which raised $262 million last year.
7) Create content about cryptocurrencies
Do you have a lot of experience in cryptocurrency? Or do you simply have a large social media following? Leverage your knowledge and/or audience to start making money. Start by creating content like blogs, courses, or videos that can help teach people about cryptocurrencies.
And if you’re working with a specific coin, make sure it fits well within your expertise; otherwise, people may be wary of trusting your advice.
8) Use Bitcoin as a payment method on your website
Integrating Bitcoin into your e-commerce platform is as easy as installing a plugin. At first, there might not be many people who buy using cryptocurrency, but every customer counts when you’re starting out.
A growing number of companies offer point-of-sale solutions that allow retailers to accept Bitcoin at their physical stores—and if they don’t, point them in the direction of BitPay or Coinbase and suggest they integrate it themselves (see No.
9) Start a blog where you review cryptocurrencies
One of your core business goals should be to build authority. This can be accomplished by starting a cryptocurrency review website. You’ll teach people about how cryptocurrencies work and how they can make money by investing in them.
The website will provide an added value of free information about cryptocurrencies that you may not be able to find elsewhere online.
10) Refer others to cryptocurrency exchanges and make money from it.
There are many ways you can earn money through cryptocurrency. But instead of selling them and hoping for a price surge, you could get involved in referring others and make money that way instead. Promoting a company is one good way of doing so.
There are also other more advanced methods such as arbitrage, mining, staking and masternodes. All these methods essentially rely on getting more cryptocurrencies than you initially bought or invested in as an input and then selling them off when it increases in value later on down the line.