Want to make money with crypto? Then there are several ways to do it. Not only can you buy and sell cryptocurrencies directly with a short-term or long-term strategy in mind, there are many other ways to make money with crypto. You can even make money with crypto when the price values fall. We explain what options you have and also talk about the risks.
Buying and selling cryptocurrencies
Initially, you can invest directly in cryptocurrencies by buying cryptocurrencies and selling them when the price has increased. There are thousands of cryptocurrencies to choose from. Please note because the risk is often high, especially with the smaller and lesser known crypto coins. The two most well-known cryptocurrencies are Bitcoin and Ethereum. Other cryptocurrencies such as Cardano and Dogecoin can also count on a lot of enthusiasm.
You can invest in cryptocurrencies by creating an account with an exchange. Then you buy the crypto coins and sell them at the desired time. You can often set the price value at which you automatically buy and sell. It is a good way to limit the potential losses.
Investing in crypto CFDs
In the previous case, you can only make money with crypto if crypto prices rise, not if they fall. However, it is also possible to make money through derivative products at falling crypto prices. You speculate on volatility: you predict whether crypto prices will rise or fall, and based on your prediction, you make a profit or loss. For example, you create a bitcoin profit login, after which you can start investing in crypto CFDs. Also, among others, Libertex and Plus500 are well-known CFD brokers that offer crypto CFDs. The difference with Bitcoin Profit is that they don’t have a trading robot.
You don’t always have to actively buy and sell crypto coins to make money with crypto. You can also stop cryptocurrencies. It is a passive form of earning money with crypto. You store the crypto coins in a wallet for a longer period of time. You will then receive a reward for this. It can be compared to saving in the bank. Only the interest is higher than what you get from the bank. In addition, it can be done with a relatively low risk, namely by betting stablecoins. Stablecoins are cryptocurrencies that are pegged to a fiat currency, such as the US dollar.
Investment in stablecoins
By investing in stablecoins, you can also make money with changing exchange rates. This allows you, for example, to invest in US dollars and make money when one dollar gives you more euros. By investing in stablecoins, you don’t actually need to buy dollars. It is also a very accessible form of investment in currency. Tether is a well-known example of a stablecoin. It is pegged to the US dollar.
A disadvantage is that not all stablecoins are actually covered by the fiat coin, but often follow the fiat coin artificially via an algorithmic system. Things can go wrong if the crypto market goes down. This happened in the past, for example with TerraUSD (UST). This used a link with another token, called LUNA. After LUNA crashed, TerraUSD lost its 1:1 peg to the US dollar and the price plummeted to almost ten cents. Tron’s algorithmic stablecoin USDD has also already lost its 1:1 peg to the US dollar.
Make money online with NFTs
Finally, you can also make money in the crypto market through NFTs. For example, you invest in a football picture or in a piece of digital art. You keep this in your possession for some time to sell it later at a profit. There are many success stories about NFT investing. One downside is that NFTs are much less easy to trade than cryptocurrencies. In general, this is therefore considered a risky investment.