It’s little wonder there’s renewed interest in learning how to make money with cryptocurrency. Although sharpening your trading skills and throwing yourself into the markets is the most common way of generating income.
1. Get involved with crypto staking
Speaking of Ether, work is continuing apace on the move to a Proof-of-Stake ecosystem, in an upgrade that’s being touted as Ethereum 2.0. Staking involves locking up your cryptocurrency and receiving a reward by serving as a validator node – verifying transactions as they come in. The cost of running your own node can be prohibitively high for casual investors (it requires a stake of 32 ETH), but a plethora of trading platforms now allow you to get involved with much smaller amounts – without requiring to have technical know how.
2. Explore yield farming and liquidity mining
Some of the most popular ways to make money with cryptocurrency these days can be found in the world of decentralised finance (DeFi). Yield farming has proven especially sought after. Otherwise known as liquidity mining, this essentially can be described as a more technical, involved alternative to staking.
3. Seek out arbitrage opportunities
Another top tip as you learn how to earn money from cryptocurrency is to keep an eye out for arbitrage opportunities. This is where crypto enthusiasts capitalise on the fluctuations in prices that can emerge between trading platforms. While Exchange A may be selling BTC for $46,000, Exchange B might currently have a quoted price of $46,200. Exploiting the difference between the two can unleash some very healthy profits – but there are risks to consider. Prices can change in the blink of an eye, and you’ll also need to account for the transaction fees that might eat into your razor-thin margin.