How to Make Money with Cryptocurrency – 7 Strategies for 2024

The question of how to make money with cryptocurrency has many answers, as the crypto world is full of opportunities for profit.

In this guide we’ll talk about the most effective ways to earn within the cryptocurrency market. From day trading, staking, HODLing, to earning money through faucets, aidrops and many more, all to help you make more informed decisions.

How to Make Money In Cryptocurrency

Let’s take a look at each of these methods more closely:

Staking and Interest – Earn From Idle Cryptocurrency Tokens

There are two notable concepts in the cryptocurrency markets that enable you to earn rewards on idle digital tokens that you own.

The first is crypto staking, which involves locking your tokens away for a certain amount of time to help validate transactions on proof-of-stake blockchain networks. Examples of leading staking platforms include Cardano, Tron, and very soon – Ethereum. Crucially, you will receive a rate of interest for as long as your tokens are locked away.

The second concept to consider when learning how to make money with cryptocurrency in a passive manner is through an interest account. In its most basic form, crypto interest accounts operate in a similar nature to a traditional bank. This is because by depositing your cryptocurrency tokens, you will be paid a rate of interest.

However, unlike staking, your crypto tokens won’t be deposited into a smart contract. On the contrary, your chosen provider will lend your tokens to those that need to borrow funds. And therefore, the borrower will pay you a rate of interest for as long as the tokens are being lent out.

The overall best crypto savings account in the market right now is offered by Aqru. This reputable platform allows you to earn 7% per year on Bitcoin and Ethereum deposits and 12% on stablecoins like Tether. All accounts offered by Aqru are flexible, so there are no lock-up terms to meet. Moreover, you can even deposit funds in fiat money and buy cryptocurrency via the Aqru app.

While we have covered one of the top interest accounts, the sections below will describe some of the best cryptocurrency tokens to hold and stake right now.

Sponge V2

Sponge V2 marks the evolution of Sponge Token, blending meme coin charm with practical features like a unique staking model and a Play-to-Earn (P2E) game. It’s strategically moving Sponge from just a meme coin to a more utility-driven asset.

The shift from Sponge V1 to V2 is enabled through a Stake-to-Bridge model. Users can stake their V1 tokens to earn V2 tokens, with a locked-in system ensuring a smooth transition to the new version. This approach is somewhat new, showing long-term engagement with the Sponge ecosystem.

The staking mechanism is central to Sponge V2’s appeal. Staked V1 tokens are permanently locked, supporting the transition to V2.  This model encourages long-term holding, with a minimum of 40% APY for 4 years, offering massive rewards for early takers.

Moreover, Sponge V2 introduces a new dimension with its P2E game. Players can use V2 tokens to play and earn more tokens, adding a layer of interactivity and utility to the token.

Sponge V2 has a total supply of 150 billion tokens. The allocation includes 43.09% for staking rewards and 8% for P2E rewards, ensuring a huge portion of the supply is dedicated to incentivizing user participation. 

The project leverages its existing 30,000-strong community to expand its reach through aggressive marketing campaigns. 

Building on the success story of Sponge V1, the team aims to replicate and exceed its previous achievements. Interested buyers can follow Sponge on X (Twitter) and enter its Telegram channel for the latest updates.

Day Trading – Make Money by Trading Cryptocurrency Pairs

If you’re wondering how to trade cryptocurrency and make profit, then this method is for you. Day trading is probably one of the most lucrative ways to make money with crypto, although there is a slight catch. The catch is you will need to at least have a basic understanding of how to use the best crypto tools to analyze prices to determine whether the token in question is likely to rise or fall in value. If you can do this, you can make money trading crypto throughout the day.

The overarching concept with crypto day trading is that you will look to take advantage of short-term volatility. Furthermore, seasoned traders in this market will rarely – if ever, hold onto a position for more than a day. And as such, the objective is to open multiple positions throughout the day making smaller, but frequent profits.

To day trade digital currencies, you need to find a regulated crypto exchange that meets two core criteria – low fees and support for plenty of markets. Regarding the former, if you are day trading crypto with an exchange that charges high fees, you will struggle to make the process worthwhile. After all, your profitable trades will get eaten away by commissions.

For instance, Coinbase charges 1.49% per slide – which means that this fee needs to be covered before you can close the trade at a profit – while MEXC offers up to a 50% discount on futures trading.

HODLing – Invest in Cryptocurrency and HODL Long Term

This method from our list of how to make money with cryptocurrency is arguably the best option for beginners. This is because HODLing  – which is a play on the term ‘Hold’, simply refers to the process of buying a cryptocurrency and holding onto your tokens in the long run. This is no different from buying stocks and keeping the shares for several years.

And in doing so, you don’t need to worry about short-term price fluctuations – especially when investing in solid and established cryptocurrencies like Bitcoin and Ethereum. For example, in May 2021, Ethereum was priced at $4,300 per token. Just one month later, the price of Ethereum had dropped to lows of $2,100, while at the time of writing it’s priced at $2,050.08.

This is just one example of many. The key point here is that the most effective way to invest in cryptocurrency is via a long-term strategy. Once again, in order to HODL your investments in the best way possible, you need to find a suitable exchange.

Coinbase is one of the most trusted and exchanges in the space, having never been hacked since it was launched in 2012.

Play-to-Earn Crypto Games – Earn Rewards for Playing Crypto Games

The play-to-earn crypto game marketplace is now worth billions of dollars. There are many variations and types of titles in this space, albeit, perhaps one of the best crypto games to consider playing is Decentraland.

Put simply, Decentraland offers a metaverse that enables players from all over the world to create a virtual avatar, chat with other people, and most pertinently – buy plots of land. Once you have purchased a plot of land and built your own real estate project, this is then represented in the form of a unique NFT.

Then, you can sell your real estate NFT in the open market. Although this concept might sound farfetched, some plots of land in the Decentraland metaverse have sold for millions of dollars. This means that by investing early, you have the chance to buy an NFT at the best possible price.

Crypto Yield Farming and Lending – Generate an Attractive APY on Your Cryptocurrencies

Although both of these investment concepts allow you to earn money with cryptocurrency, they actually refer to slightly different methods. First and foremost, crypto yield farming refers to the process of lending your idle tokens to a liquidity pool.

In the vast majority of cases, you will be providing much-needed liquidity to decentralized exchanges. Some of the leaders in this market include Pancakeswap and Uniswap on the Binance and Ethereum blockchain networks, respectively. When you deposit funds into a liquidity pool, it is often locked away for a minimum amount of time.

And, for as long as the tokens are in the liquidity pool, you will be paid a rate of interest. In many cases, the newer cryptocurrencies often have higher APY offered by the pool.

When it comes to crypto lending, this refers to the same concept that we discussed earlier – insofar as you will deposit your digital tokens into a savings account. And in doing so, your tokens will be lent to those that wish to borrow funds. When engaging in crypto lending, it is important that you choose your preferred platform wisely. This is because you always run the risk of borrowers defaulting. Once again, this is why Aqru stands out – as the platform only lends crypto to high-grade borrowers that have been pre-vetted.

Faucets – Earn Free Cryptocurrency by Completing Simple Tasks

Cryptocurrency faucet websites give you the opportunity to earn free digital tokens by completing tasks. There are many platforms in this space and the specific tasks that you are required to complete will vary from one site to the next. For example, some crypto faucet platforms require you to complete captchas.

This is something that can be achieved by anyone – so no prior experience is needed. You then have crypto faucets that come in the form of a mobile app. These often require you to play newly launched games and when you complete certain milestones, you will earn free crypto.

However, it is important to note that the rewards on offer at crypto faucet platforms are minute. In fact, in most cases, each task that you complete will barely yield a few cents worth of crypto. Nonetheless, you are not required to deposit any money, so crypto faucets allow you to earn rewards in a risk-free manner.

Airdrops – Cryptocurrency Tokens Deposited Into Your Wallet for Free

In a similar nature to faucets, airdrops allow you to earn free cryptocurrency tokens without needing to deposit or spend any money. The main concept here is that some newly launched projects will distribute their native tokens directly into people’s wallets as a means to enter the cryptocurrency into circulation.

This is as opposed to a conventional presale and fair launch directly onto a cryptocurrency exchange. And as such, the project will not raise any funds when they initiate an airdrop. Although this might sound too good to be true, there are many great crypto airdrops that have since gone on to become multi-billion dollar projects.

A prime example of this is Bitcoin Cash – when this digital currency was launched in 2017, it airdropped its BCH tokens to all wallet addresses possessing Bitcoin. This was done on a 1:1 basis – meaning that for every 1 Bitcoin owned, you would have received 1 Bitcoin Cash.

In another example, popular cryptocurrency Stellar has airdropped millions of dollars of Lumens tokens since the project was launched in 2014. On the other hand, you do need to tread with caution when receiving an airdropped token. This is because scammers will often create and distribute a worthless token to random wallet addresses with pump and dump intentions.

Best Platforms for Trading & Investing in Crypto

So now that we have discussed how to make money trading crypto – we need to discuss suitable platforms that you might consider for this purpose.

To save you countless hours of research, the best platforms to make money from crypto are reviewed in the sections below. Some of the best crypto courses will teach you how to pick the right crypto trading platforms to match your experience and needs.

Aqru – Best for Crypto Staking, Interest, and Lending

If you like the sound of earning crypto interest, Aqru is the way to go. As we noted earlier, Aqru is a trusted crypto lending site that offers some of the most competitive APYs in this space.

To reiterate, you will earn an APY of 7% on Bitcoin and Ethereum. If you’re seeking even higher gains, Aqru offers an APY of 12% on stablecoins. As of writing, this includes DAI, Tether, and USD Coin. In addition to high yields, Aqru stands out in this marketplace because all of its savings accounts are flexible.

This means that you can request to withdraw your cryptocurrency tokens whenever you wish. We also like the fact that your interest payments are credited into your Aqru account daily. You can then reinvest these payments back into a crypto savings account to benefit from compound interest.

When it comes to getting started with Aqru, you have the option of depositing digital tokens directly into the platform. Or, if you don’t have any cryptocurrency to hand, you can also fund your account in USD, EUR, or GBP. Supported payment methods include bank transfers and debit/credit cards.

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Conclusion

Our guide on how to make money with cryptocurrency has covered a range of methods, each with the potential to enhance your financial portfolio. However, it’s essential to remember that investing in cryptocurrency carries inherent risks due to its volatility.

Therefore, investors should always do thorough research and consider their risk tolerance before making any financial investment.

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