In this day and age, many people are doing research on how they can make money online. With everything becoming more digital nowadays, that number grows every year, even more acutely during the recent pandemic. At the same time, cryptocurrency is continuing on with its goal to reach legitimacy. Because of this, search results for those looking to make money online will start overlapping with those looking to earn crypto online. This article delves into the best ways to do exactly that.
Fiat money has been the primary form of currency for decades. What sets it apart from other types of money is it receives backing from a specific government. Oftentimes, it serves as the dominant method to pay for goods and services, as well as taxes. The overall value of fiat money draws from both the strength and credit of the issuing body. Moreover, almost every country nowadays issues fiat currency. Put simply, its longevity stems from the strength of the government or bank that issues it.
We are seeing a shift in what is seen as the primary method of payment in recent years. It is a gradual process, but if you have been paying attention, you will notice. The medium of exchange that may take fiat’s place in the future is cryptocurrency.
As you can imagine, there is a considerable amount of hype surrounding cryptocurrency. With its continual growth as time goes by, it is attracting more and more investors. Casual venture capital enthusiasts are aiming to get a piece of this crypto pie. Once upon a time, it was difficult for the average person to earn currencies like Bitcoin and Ethereum. In the present day, there are a variety of avenues that allow individuals to acquire crypto in a straightforward manner.
Crypto implications in fiat
The core intent of fiat currency is to maintain stability. Still, we notice that in times of recession and rapid inflation this is not always the case.
In terms of hyperinflation, the magnitude of inflation is intense. So much so that when calculating it, the smallest change in calculation could lead to a huge difference in estimation. One can also attribute the difference to the lack of transparency of governments when it comes to financial policy. This, however, is not the case with cryptocurrencies. Among the primary value propositions pertaining to the popular crypto, Bitcoin is its transparency. We know how many coins are in circulation and we also have a record of every transaction on the blockchain.
When rapid inflation occurs, people need to be able to convert their wealth to a more stable store of value. If not, they risk losing a copious amount of value just by letting their fiat currency sit. This is indicative of another reason why cryptocurrencies such as Bitcoin are valuable. There is no central bank or government to alter Bitcoin’s monetary policy. Therefore, the digital currency acts as an alternative to a centralized currency that can be a victim of unfavorable monetary policy.
This is not currently the case thanks to Bitcoin’s extensive transaction times and huge price fluctuations. However, it’s possible that during rapid inflation occurrences, citizens may flock to cryptocurrencies like Bitcoin to secure their wealth. Similar to how they already do with gold. Until Bitcoin fully matures and the price is more stable store-of-value, stablecoins like Tether may prove to be quite valuable. Tether is tied to the U.S. dollar, but it at least depicts an efficient way for people experiencing inflation to transfer value. Specifically, to a comparatively more stable currency that the government issues.
Earn fiat or earn crypto – which is better?
A lot of people are quick to assume that there is only one way they can acquire Bitcoin. And that is by purchasing the premier crypto with their fiat assets. However, in recent years, several service providers operating within today’s freelance gig-economy are making changes. They make it possible for people to earn bitcoin in an incredibly simple manner.
With that said, it is crucial for people to stop thinking about Bitcoin in regards to its overall pricing. Instead, we should put more focus on its micro-earning potential. For instance, it can be beneficial for people to keep in mind that in terms of crypto, there are many different ways to acquire these assets. This is in stark contrast to fiat currency, which you can only earn by way of payments, sales, or transactions.
On top of all this, there is something else that is important for crypto enthusiasts. They need to have the ability to break down Bitcoin to its most basic unit of account: the Satoshi. This is mostly because a majority of startups that allow people to earn bitcoin typically offer payouts in the form of Satoshi (SAT). In this sense, we can easily see that a single SAT equates to 0.00000001 bitcoin. Alternatively, one can also say that each Bitcoin consists of up to 100 million satoshis. This essentially means that there will only ever be a total of 2 Quadrillion, 100 Trillion Satoshis in existence.
When it comes to the scarcity of Bitcoin, people will inevitably see that only a fixed number of Satoshi can undergo creation. Upon realizing this, their value will likely start to increase; especially before the 2020 bitcoin halving.
The best ways to earn crypto
With all of the above in mind, we can now transition into discussing the best ways to earn crypto. There are an abundance of methods you can utilize, but for this article’s purposes, we will condense them down into a top 10 list.
1 – HODLing
This is without a doubt the easiest way you can earn cryptocurrency. That is to say if you can handle the volatility. You earn fiat in real life, buy into a cryptocurrency you have faith in, and ‘hold on for dear life’. The key is to buy low, sell high, and repeat on a long-term scale. Your patience from this could prove to be beneficial in the long-run.
A safe way to earn crypto money is to purchase good cryptocurrencies that possess a fundamental use case. Then, you hold onto them until they obtain a fair market share. Cryptocurrencies like Bitcoin, Ethereum, Binance, Monero, Nexo, and Tezos, for example, are safe buys a majority of the time. You can buy and hold them for a longer period because they usually appreciate the fiat pairs of USD or EUR.
A general rule of thumb for crypto HODLers is this the following:
The less time and energy you prefer to spend in the cryptocurrency space, the longer-term your expectations should definitely be.
Unsurprisingly, there is an obligatory baseline of attention you need to pay when moving your money around. However, let’s assume that after your research, you determine another cryptocurrency bull run is inevitable. If so, then dollar-cost average in and maintain coin security.
The next level from there is gaining knowledge of how the markets work. This will prepare you for selling some of your holdings when the market is overbought. Moreover, buy the dip as soon as it oversells. This is obvious for the veterans in the field, but always remember that emotions are what drive the markets. Nobody is capable of predicting the top or bottom of the market. The more buying/selling you carry out, the more risk/volatility you will subject yourself to.
2 – Staking
The concept of staking basically boils down to holding crypto coins 24/7 in a live wallet. In other words, you are earning new additional coins as a reward for both staking and securing the blockchain network. Some of the more noteworthy coins in this segment include:
- Tezos (XTZ)
- NAV Coin
Tezos is by far the most popular and is a highly funded coin that offers a 6% ROI year-on-year. However, that’s not the best part. The best part is that you will earn money whenever the value of Tezos increases as more users adopt it.
There are some proof-of-stake coins that allow users to stake their cryptos in exchange for a reward. It shares numerous similarities to establishing a masternode, though it requires a lot less involvement. The typical requirement is storing your coins in a specific wallet. The more coins you stake, the bigger the reward you will receive. For example, the Komodo platform offers up to 5% on an annual basis. The Cardano platform plans on introducing the option to stake cryptos and Ethereum is following suit.
Finally, there is EOS, which permits users to stake their tokens in exchange for useful network resources. Rather than earn crypto by getting more EOS tokens, stakers can rent network resources to DApp developers in exchange for a specific fee.
3 – Buying and holding cryptocurrencies for dividends
An additional smart way you can earn crypto is through buying and holding virtual currencies which pay you dividends.
For context, a dividend is a token reward that shareholders receive for their investment in a company’s equity. Most of the time, its origins are from the company’s net profits. The major portion of the profits remains within the company as retained earnings. These are indicative of the money to be that is handy for the company’s ongoing and future business activities. The remainder, however, can be subject to allocation to the shareholders as a dividend.
There are times when companies will still make dividend payments despite not making satisfactory profits. They may do so to preserve their established track record of conducting regular dividend payments.
There are plenty of great cryptocurrencies that will pay you a fair share just for holding them. What’s more, there is no requirement for you to stake them, especially in a wallet. A few of these types of cryptocurrencies include NEO, NEXO, and KuCoin.
4 – Masternodes
Admittedly, masternodes are still a rather low-key concept in the cryptocurrency space. Besides that, they are still an exceptional way to earn crypto as passive income.
Running masternodes of cryptocurrencies to earn lucrative passive income is a smart way of earning in the field of cryptocurrency. Put simply, a masternode is a cryptocurrency full node or computer wallet that keeps the full copy of the blockchain in real-time. It is very similar to that of Bitcoin’s full nodes. What’s more, it is constantly up and running in order to perform certain tasks.
In order to perform such tasks, various cryptocurrency networks need to pay the masternode owners. Be that as it may, for running a masternode, you must possess a minimum number of coins to start. The minimum amount that you need to start with a masternode is different for all the cryptocurrencies. However, it typically falls in the range of 1,000 to 25,000 coins.
A couple proof-of-stake currencies that have the masternode functionality include the likes of DASH and PIVX.
5 – Day Trading
If you have a solid understanding of and are good at technical charting at various intervals, then this method is for you.
Day trading is the purchase and eventual sale of a security within a single trading day. It usually takes place in any marketplace. However, it is more common in the foreign exchange (forex) and stock markets. More often than not, day traders have experience and the proper amount of funding. They frequently employ excessive leverage and short-term trading strategies. With them, they are able to take advantage of small price movements in highly liquid stocks or currencies.
The idea of this method is quite simple. You buy low and sell high whenever you reach a target. It works exceptionally well for a technical charting person. This is mainly because crypto – being such a volatile market – can fluctuate 20-50% in a day. It largely depends on the choices you make.
You can day trade different cryptocurrencies on an array of exchanges. Some of these include Binance, KuCoin, and BitMEX.
6 – Cryptocurrency microtasks
Are you someone who has extra time on their hands? If so, you can do some microtasks for another person or some service and earn cryptocurrencies in exchange. These microtasks can be anything from downloading new apps for testing to watching videos to even doing online surveys. There are a wide variety of these tasks.
Two notable services that provide you with such micro-tasks are Bituro and Coinbucks. These services pay you in different coins like Bitcoin and Dogecoin, among others.
7 – Arbitrage
It is common knowledge that the cryptocurrency market is a free market that is beyond the government’s control. This, above all else, is why we have a lot of price differences across different exchanges. Moreover, there is also a volatile nature.
With that in mind, another way of earning in the world of crypto is to purchase a certain cryptocurrency from one exchange. One that is selling on a significantly lower price in comparison to another exchange. This effectively creates an opportunity to buy low and sell high on another exchange. This way, you will earn a good cut in between, which is ‘arbitrage’.
Cryptohopper is an example of crypto trading bots that teaches you, as well as lets you execute, arbitrage trading. Usually, you will find 5% to 40% of spread; if you know how to make use of it, that is. Exchanges such as Bittrex and Poloniex frequently provide such opportunities.
To get an insider’s look at cryptocurrency arbitrage, check out our article, “Guide to Cryptocurrency Arbitrage – How I made 1% Profit an Hour.”
8 – Blogging
You are able to earn some crypto by blogging and writing on certain websites. Ones that will pay you in cryptocurrencies if readers like the content you publish. Additionally, if you know that your content is valuable, you can directly monetize your content for cryptocurrencies. Specifically, for giving the full access of the content to the respective reader.
A crypto blogging platform takes the conventional idea of “upvotes” and transforms them into satoshis. Probably the most popular example of one of these types of platforms is Steemit, blockchain-based blogging, and social media websites. The more upvotes a post receives, the more the author will receive in payment. The amount an article makes is put on public display on each post. Likewise, the amount the author has in their on-site wallet is available.
9 – Faucets
Crypto faucets are an interesting idea. They typically range from websites full of ads to full-on games. The common thread between them is paying out small amounts of crypto in exchange for your time. The basic ones require participants to complete a CAPTCHA, others payout the survey’s completion. There is even one app that pays out satoshis in exchange for killing aliens.
Generally speaking, this is arguably the least lucrative way to earn crypto. That is, assuming you find a minimal amount of success with the other of the methods on this list. However, faucets are also one of the easiest and most consistent ways in which you can fill your bags.
10 – Lending
The crypto market has indeed been developing over the course of the last decade. At this point, it’s becoming possible for people to lend their bitcoin across an array of different online platforms. In return, they receive fixed monthly interest. In this regard, there is currently a large number of peer-to-peer lending markets. Not to mention the surplus of crypto exchanges that permit individuals to lend money, as well as leverage their trades.
Suppose you are someone who is already HODLing Bitcoin or Ethereum. If so, then you can put your money to work and effectively earn some profit on it by lending it out. There are a lot of peer-to-peer Bitcoin lending platforms that allow you to do this. All the while, it gives you a return of 12%-18% in the form of bitcoins.