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13 Best Ways to Make Money with Cyrptocurrency in 2024


Can You Actually Make Money with Cryptocurrencies?

Yes, you can make money with cryptocurrencies. Cryptocurrencies have been around since 2009, and there are more than 10,000 in the market. It sounds a bit overwhelming, but we will share our top methods for making money with crypto in 2024.

Takeaways

  • Diversified Income Strategies: You can earn money in the crypto market by staking, mining, lending, and NFTs, among others. Each method has its risks and rewards. Plus, they suit different skills and risk levels.
  • Risk Management and Education: Understand the risks of crypto investments. These include market swings, regulation uncertainty, scams, thefts, and tech problems. Keep learning to make informed decisions and reduce potential losses.
  • Opportunities for Passive and Active Income: You may prefer passive income like staking and lending. Or more active methods like day trading and NFT trading. The crypto market offers chances for both long-term investing and short-term profit. Adjust your strategies to match your goals and how much risk you can handle.

What is Cryptocurrency?

Cryptocurrency is a digital asset stored on a ledger. It is also called crypto. In this blog post, we will discuss the legitimate ways to earn money with crypto.

Staking - Proof of Stake

Proof of Stake (POS) is a blockchain consensus mechanism. It handles transactions and makes new blocks. Staking involves lending your crypto to a pool. This action helps secure the network. In return, users get rewards for their support. Every user receives staking rewards as an incentive for their participation.

The process is simple. You don't need to understand all the technical terms of this protocol. You can begin staking your crypto by downloading a wallet. For example, the Cardano blockchain has one of the best POS protocols. It has been running since 2020 without any issues. If you want to learn more, this video explains how to stake your ada with a Lace wallet.

Staking crypto is the easiest, zero-effort strategy for making passive income. Here are the top crypto coins to stake in 2024 to generate extra income.

Blockchain Crypto Reward Rate - Annually Minimum Deposit
Cosmos Atom 16.00% 0.05 Atom
Polkadot Dot 11.86% 350 Dot
Avalanche Avax 8.39% 25 Avax
Solana Sol 7.22% 0.01 Sol
Polygon Matic 5.31% 1 Matic
Algorand Algo 4.57% 1 Algo
Ethereum Eth 3.28% 32 ETH
Cardano Ada 2.93% 2 Ada (Refundable fee)

The estimated APY (Annual Percentage Yield) for delegators (not validators) is subject to change. It does not account for inflation or deflation. Here is the live chart to check POS rewards from different blockchain platforms.

Proof of Work (PoW - Mining)

Proof of Work is a different protocol type in a blockchain. It encourages miners to solve the cryptographic puzzle to be the first within the block. Bitcoin miners operate powerful hardware. They use a lot of electricity to solve puzzles and secure the network. The first to solve the puzzle gets the Bitcoin reward.

Bitcoin, Ergo, Litecoin, and Dogecoin secure their networks using the PoW protocol. Before starting mining, there are also important things to consider.

There is a mining cost. These mining costs are,

  • Electricity
  • Initial setup
  • Crypto price volatility
  • Hardware and software configuration
  • Maintenance and repair costs.

Always do your research to find out if mining is profitable. Here is a video that covers how to make passive income by mining Ergo at home.

Lending

Lending is also possible in crypto. There are plenty of centralized and decentralized lending platforms to choose from. It is a straightforward process. You deposit your crypto to lend to someone and earn interest payments in return.

The most popular centralized lending platforms are Kucoin, Crypto.com, and Coinbase. You will find the most popular cryptos with APY in the earn section on the website.

Decentralized lending platforms are also very popular among crypto lenders. You will deposit your crypto into a given pool in a decentralized lending platform. Afterward, you will start earning interest.

Both platforms offer high-interest rates, like up to 12% annual percentage yield. Borrowers need to deposit collateral to get their crypto loan. It is important to consider that lending can be risky. If the value of your crypto drops, you may need to deposit extra collateral.

Make Money with Early Investments - Initial Coin Offerings

Initial Coin Offerings (ICOs) are a fundraising method for early crypto projects. ICOs are comparable to IPOs in traditional finance. People who support the new crypto project can buy their crypto during the ICO. It is also known as a crypto presale. Most ICOs are not regulated, so ensure they are legitimate before investing.

Crypto Airdrop

Crypto Airdrop is a distribution method for new coins for early users. You can only be eligible if you complete certain tasks within the blockchain. It is a marketing strategy to increase crypto projects' brand awareness and adoption.

How Does Crypto Airdrop Work?

  • The project team shares airdrop details on their website, social media, or forums.
  • Participants provide wallet addresses and complete tasks.
  • The team verifies eligibility and sends free tokens to wallets. You can use the tokens according to the project's terms.

If you want to learn more, here is a guide to learn other ways to make money with airdrops.

Providing Liquidity in Crypto Pools

Liquidity pools are collections of tokens locked in smart contracts (intelligent computer programs). They provide liquidity for users to exchange crypto assets. In traditional finance, buyers and sellers must find matches. Then, the transaction happens. Liquidity pools act like a buffer, holding a large reserve of crypto. Users do not need to wait for a long time to trade, making swapping crypto much faster and easier.

Liquidity providers earn LP tokens by adding their crypto to the pool. For example, you deposit $10 worth of crypto into the pool. The pool has a total worth of $100, so you will receive 10% of the LP tokens because you own 10% of the total liquidity in the pool.

When traders buy or sell crypto on a liquidity pool, they pay a fee for each trade. Then, the liquidity pool distributes transaction fees to liquidity providers as a reward. Liquidity providers can claim their rewards regularly.

Holding Long Term Crypto

Buy-and-hold is one of the most popular strategies for crypto investors. Once investors buy a certain type of crypto, they leave it in their crypto wallet for the long term. This strategy is also known as 'Hodl'. It is a crypto slang that means "hold on for dear life." Investors prefer solid cryptos with a fixed supply for long-term holding. For example, the total supply of Bitcoin is 21 million. This creates scarcity and has contributed to Bitcoin's increasing price since 2008.

Understanding Bitcoin Halving

The Bitcoin halving event highlights the success of the Hodl strategy. Bitcoin halving is an important event in the crypto industry and it happens every four years. The reward for Bitcoin mining is cut in half. It means Bitcoin miners receive %50 fewer bitcoins for verifying transactions on the blockchain network.

Bitcoin halving reduces the number of new Bitcoins entering circulation. It creates scarcity and leads to price appreciation. On April 19, 2024, the Bitcoin network completed its fourth halving. The next halving will happen in 2028.

bitcoin-halving-price

Dollar Cost Averaging

Dollar-cost averaging (DCA) is an investment strategy in traditional finance and crypto. It involves purchasing crypto regularly, regardless of its price. You can invest weekly or monthly and stick to your schedule over time. It helps you reduce short-term market volatility. It is very difficult to time the market. Instead of tracking Bitcoin charts daily, you can use dollar cost averaging. This strategy will save you from the stress of constantly checking the price.

Day Trading

foreign-exchange-rates-chart-highlighting-EUR/USD

Image credit: TradingView

The current crypto market cap today is around $2.6 trillion. It is way lower compared to the stock market, $106 trillion. Due to its small market cap, crypto is very volatile. Crypto can drop %10 - %15 in a single day. Big crypto day traders can heavily impact market prices. This volatility can be a good opportunity for small investors to take advantage of.

Macroeconomics can impact day trading with crypto as well. Because macroeconomic factors are large-scale forces. They influence whole economies and can leave their mark on the ever-changing crypto market. These economic factors, such as,

  • Interest rates
  • Inflation
  • Economic growth can affect the crypto market.

It is crucial to track the broad economic outlook. Knowing what's happening in the macro economy is important. It can help you make better trades.

Earn Extra Income with NFTs

bored-ape-yacht-club-nft

What is an NFT?

An NFT is a unique virtual currency that certifies ownership and authenticity. It is irreplaceable. For example, Bitcoin is fungible. You can trade one bitcoin for another with the same value. However, every NFT is unique. NFT is proof that you own a specific piece of digital content, such as a picture, art, virtual land, music, or video.

Here are several ways to make money with NFTs.

  • Create and sell your own NFT: If you are an artist or musician, you can create your own NFT on a blockchain platform. Once you mint your NFT, you can sell in a marketplace such as OpenSea or Binance NFT Marketplace.
  • Trade NFTs: You can trade NFTs. This means buying low-priced NFTs and selling them at a higher price. To succeed in NFT trading, you'll need to understand the market well and be able to spot undervalued NFTs.
  • NFT staking: Staking NFTs allows you to earn passive income. You can earn rewards as a crypto. NFTx and Binance NFT Marketplace are the biggest platforms to stake NFTs.
  • Play to Earn Games: Crypto gaming has made a significant process. Users can play fun games and earn crypto in the form of NFTs.

The most popular Android crypto games are:

To discover even more games and apps where you can earn real money and cryptocurrency, explore our blog post on the 21 Best Games That Pay Real Money.

Affiliate Programs - No Investment needed

You can earn commissions by referring customers through cryptocurrency exchanges' affiliate programs. When your referral completes a transaction, you will earn a percentage of the fees they pay. You can make money without any investment with these programs.

Here are the biggest affiliate programs in the crypto industry.

You can earn up to 50% commission on each transaction. Each of the exchange platform's requirements is different. It is important to read and understand each affiliate program's terms before joining.

Meme Coins

meme-coin-doge

Trading meme coins for profit is risky. These coins quickly rise in value due to internet trends. To succeed, you need to know what's trending, gauge the market, and act fast. However, be cautious. Their fast gains equally mean significant losses. Invest wisely and avoid risking more money than you can afford to lose. Here are some important things to consider before investing meme coins,

  • Strong Community: Meme coin should have a strong community of supporters.
  • Secure: The coin should be safe and secure from scams and thefts.
  • Credibility: Meme coin should have trustworthy creators and partnerships.
  • Deflationary: The total supply of the coin should decrease over time.
  • Likable by Millions: The meme coin should be liked by many people.

Dogecoin, Shiba Inu, and Snek are the most popular meme coins in the market.

Top Altcoins in 2024

2024 could be the beginning of the bull run. SEC approved 11 Bitcoin Spot Etf in 2024. The regularity of clarity is increasing and boosting investor confidence. Besides Bitcoin, some altcoins have a high potential to break all-time highs.

Crypto 8 May 2024 All-Time High 2021 2024/2025 Price
Cardano (Ada) $0.45 $3.09 ?
Litecoin (Ltc) $81.84 $410.26 ?
Ethereum (Eth) $3,021 $4,878 ?
Ergo (Erg) $1.23 $18.72 ?

Here are the top altcoins on our list

Cardano

Cardano is a layer-one blockchain platform. It runs decentralized applications through smart contracts. Ada is the native token of the Cardano blockchain and it is a top 10 cryptocurrency on the market cap rankings. Cardano has published over 190 peer-reviewed papers. It is a third-generation blockchain, after Bitcoin and Ethereum.

Key strengths of Cardano:

  • Scalability and Sustainability: Cardano is an energy-efficient technology. It is an Unspent Transaction Output (UTXO) blockchain that supports high transaction volume. This makes it ideal for large decentralized apps.
  • Backed by Science: Cardano has published more than 200 peer-reviewed scientific papers. This is the first blockchain developed through scientific research and peer review.
  • Decentralized: Researchers from the University of Edinburgh developed The Edinburgh Decentralization Index. It confirms that Cardano is the most decentralized blockchain.

Ethereum

Ethereum is the biggest layer one blockchain platform. It enables decentralized applications (dApps) and smart contracts. Ether is Ethereum's native currency and the second-largest crypto by market cap.

Key strengths of Ethereum:

  • Large Network: Ethereum has a large global community and extensive dapp ecosystem.
  • Programmability: It attracts developers who seek to improve the network's programmability.
  • High Liquidity: Ether is the most liquid asset in the Defi ecosystem. It attracts millions of people to the network.

Ergo

Ergo Blockchain is a platform for decentralized financial contracts. It utilizes advanced cryptography and DeFi functionality. It builds on a decade of blockchain theory and development. It incorporates cutting-edge research on cryptography, consensus models, and digital currencies.

Key strengths of Ergo:

  • Advanced Cryptographic Features: Ergo integrates advanced cryptographic tools such as Sigma Protocols. Sigma protocols allow for zero-knowledge proofs in smart contracts. They prove something is true without revealing all the details. Sigma protocol enhances security and privacy in transactions and smart contracts.
  • Innovative Economic Model: The system has a unique economic model. It focuses on using resources wisely and ensuring long-term stability.
  • Decentralization and Accessibility: The Autolykos Proof-of-Work protocol promotes fairness and decentralization. It also ensures robust security and lightweight client interactions. It helps make the platform accessible to a wider audience.

Litecoin

A former Google developer, Charlie Lee, created Litecoin (LTC) in October 2011. It was one of the first alternative coins introduced. Litecoin is a secure and easy-to-use option for transactions and storing value.

Here are the advantages of Litecoin.

  • Litecoin has a faster block time of 2.5 minutes and can process more than 50 transactions per second.
  • Litecoin has low transaction fees, which cost only a few pennies in fees.
  • Litecoin is accessible and available on most major crypto exchanges. For example, brokerage sites, Bitcoin ATMs, and fintech apps like PayPal.

Earn Crypto with Moincoins

You can start earning crypto through Moincoins today. We have over 15 offerwalls available and you can complete small tasks and start accumulating crypto. The best part is you do not need to invest or trade. Moincoins offers a user-friendly platform that makes earning crypto easy without any experience. You can check out our best offerwalls for earning crypto.

The Bottom Line

Investing in cryptocurrency involves high risk. The regulation of crypto is still unclear and can create uncertainty for investors. It's important to be aware of these uncertainties before investing. While investing in crypto can make significant gains. There is an equal chance of losing money as well. Everyone's risk tolerance and investment goals are different. It is very important to always do your research.

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