• Written by: Harpreet Kaur
  • Mon, 24 Jan 2022
  •   India

Following the exponential growth of the crypto business, it’s no surprise that more and more people are becoming fascinated in cryptocurrency investment. Furthermore, because the year 2021 has proven to be significantly beneficial for investors, everyone is eager to profit from cryptocurrency investments. It’s no surprise that cryptocurrencies make it possible to send money quickly […]

How to Make Money with Cryptocurrency in 2022?

Following the exponential growth of the crypto business, it’s no surprise that more and more people are becoming fascinated in cryptocurrency investment. Furthermore, because the year 2021 has proven to be significantly beneficial for investors, everyone is eager to profit from cryptocurrency investments. It’s no surprise that cryptocurrencies make it possible to send money quickly as well as anonymously. This is only achievable, though, if you have the appropriate strategies in place. Here are ten ways to make money from cryptocurrencies in 2022.

However, in addition to gaining money, you must be careful of scammers because, in a decentralised arena like cryptocurrencies, the possibilities of being scammed are extremely great.

Top 10 Ways to make money with Crypto in 2022: 

Here are the top 10 methods you can opt and generate passive income in the world of cryptocurrency in 2022.

Buying and Holding

Buying excellent cryptocurrencies with a basic use case as well as holding them until they reach a decent market share is a safe approach to make money in the world of cryptocurrencies.

For instance, cryptocurrencies which are, for the most part, safe investments includes:

  • Bitcoin
  • Ethereum
  • BNB Coin
  • DOT
  • MANA
  • LINK
  • VET
  • Tezos
  • WRX Coin
  • KMD (Komodo)
  • Monero etc

One can buy as well as retain them for a prolonged period of time as they will increase versus fiat currencies such as the USD, EUR, among others.

Staking 

This method of earning is interesting since it provides a double benefit of price gain for holding strong crypto coins and an additional incentive in the form of dividends for staking the coins.

Staking is keeping crypto funds in a live wallet 24 hours a day, seven days a week, in order to receive new coins as an incentive for staking as well as maintaining the blockchain network. The following are some notable coins in this category:

  • Tezos (XTZ)
  • AVA
  • Komodo
  • Decred
  • NAV Coin

In other words, a popular approach for making money with cryptocurrencies is staking, which involves locking up a large stake’ for a lengthy period. Investors could stake their holdings (individually or collectively) to confirm transactions performed by others, allowing them to profit.

Become a Cryptocurrency Trader and take charge of a team

Several platforms exist that allow you to earn cryptocurrency depending on your trading abilities. These platforms let people follow your transactions, and then you can profit handsomely from the profits generated by your followers’ trades. It’s something that is starting to catch up in 2022, and if you do have cryptocurrency trading skills, you may profit in both the bear and bull cycles.

Knowledge can lead to just about everything, which is true for anything that someone can think of. Understanding about cryptocurrencies, such as how their price is set, how cryptocurrencies work, and which platforms one must purchase or sell them, would always be useful. It’s also a good idea to keep up with current events if you want to make a lot of money.

These are the sites that, at the time of this writing, would allow you to organise your own trading tribe as well as benefit from their trading profits:

Becoming a Liquidity Provider is a great way to make money

With the rise of DeFi, becoming a liquidity provider is a lucrative way to profit from your existing cryptocurrency holdings. As a liquidity provider, you would receive a percentage of every transaction that takes place on a specific decentralised exchange.

Impermanent loss is among the obstacles of becoming a liquidity provider, and it is something you must be aware of. However, there are services like as Bancor that allow you to supply liquidity without fear of temporary loss. d In 2022 and subsequent years, it is believed that we may see more Dex’s develop their own methods for dealing with transitory loss.

Here’s how to get started as a liquidity provider.

To become a liquidity provider, you can choose any prominent DEX. The only requirement is that you have cryptocurrency in your possession. Let’s say you want to provide liquidity to Bancor.

  1. Bancor can be accessed with a web browser.
  2. Wallet connect or Metamask can be used to link it to your digital wallet.
  3. After you’ve connected, go to Stake, pick the pair, then give liquidity.

There are three benefits to providing liquidity:

  1. When someone utilises the platform for decentralised exchange, you will receive incentives in the form of platform tokens (Ex: BNT) APR or transaction fees.
  2. Price increase over time

Masternodes

Using cryptocurrency masternodes to produce smart passive revenue is another option to make money in the cryptosphere. A masternode is a cryptocurrency full node or desktop wallet that, similar to Bitcoin full nodes, retains a complete copy of the blockchain in real-time and seems to be fully operational to execute particular duties.

Different cryptocurrency networks compensate masternode users for completing such duties. However, in order to start operating a masternode, you have to have a certain amount of coins. The minimum amount required to create a masternode varies for every cryptocurrency, however it is often in the range of 1000 to 25000 coins.

Accept cryptocurrencies If You’re a Merchant

If you’re a merchant, another option to make money with crypto currencies is to accept them in return for your goods or services. You get access to a wide range of cryptocurrencies including Bitcoin payment processors as a merchant, which can assist you in taking cryptocurrencies. Even founders of internet companies including e-commerce platforms can use this method to gain from both crypto price increase as well as direct crypto earnings.

Arbitrage in Cryptocurrencies

Since we are all aware, the cryptomarket is a free market that’s also unregulated by the authorities, which is why there are so many price discrepancies as well as volatility among exchanges. Another approach to make money in the cryptosphere would be to purchase a cryptocurrency through one exchange that is being sold at a cheaper price than on another exchange, allowing you to purchase low and sell high on either exchange to make a profit. Arbitrage is the term for this. Cryptohopper is a cryptocurrency trading bot that teaches you how to arbitrage trade and allows you to perform it.

Lending Cryptocurrencies

Another strategy to earn profit in this industry is to follow the common adage “you must put your money to work.” Unless you already have Bitcoin or Ethereum in your wallet, you may put this to work as well as generate income by lending it out. Several peer-to-peer Bitcoin lending platforms enable you to do so while also providing you with a reasonable 2 percent to 8% return on your Bitcoin transaction.

Because this area of lending is just so uncontrolled, pick carefully who you lend your Bitcoin to and also ensure they follow the platform’s standards to ensure you are paid. Slowly but steadily, new regulated players, such as BlockFi, are emerging in this market.

Mining Cryptocurrencies

Another fantastic approach to generate income in the cryptosphere is through cryptocurrency mining. This alternative, however, does not appear to be very profitable to us at this time, that’s why it is just at the bottom of the list.

This isn’t to say that the method isn’t effective. Yes, if you are willing to make early expenditures in mining equipment such as ASICs as well as GPUs, as well as further supporting hardware. Additionally, in order to mine as well as earn from cryptocurrencies, you must have access to low-cost electricity to power your mining equipment, as well as the technological knowledge of how to maintain the hardware as well as software mining equipment.

Mining has now become an extremely competitive endeavour in recent years, requiring a significant initial investment, which is why people really aren’t interested in this strategy.

Blogging

Anyone can make money blogging as well as writing on platforms that pay you in cryptocurrency if your article is popular. Also, unless you already understand your material is valuable, you may directly monetise it for cryptocurrency, allowing the reader complete access to the information.

Conclusion

Thus, these are the effective ways to make money with cryptocurrencies. There are numerous frauds as well as illegal MLMs out there which promise enormous profits. My advice is to avoid participating in these scams since they are not worth your time if you want to gain legitimately. The Bitconnect MLM scheme, which collapsed in one day, is a current example.

We will be returning with much safer and much more legitimate ways to profit from cryptocurrency soon. Keep an eye on Crypto Bulls Club till then, and keep out of trouble.