Table of Contents
Undoubtedly, blockchain is one of the most popular topics of discussion. Blockchain technology has completely changed how we think about online transactions and is transforming the future in all areas, from quicker, safer financial transactions to better medical care.
The emergence of digital currencies as one of the hottest new investment assets has surprised many people who previously believed they would never have real-world value. Moreover, it sparked a ton of interest from people who either had never heard of cryptocurrency running on blockchain before or knew very little about it. There are now countless ways to supplement your income from this industry.
This blog post will discuss eight popular ways to make money with blockchain.
How to make Money with Blockchain
The world of blockchain offers exciting ways to make some extra cash. You can start by investing in cryptocurrencies or even try your hand at blockchain development. Let’s explore these opportunities together!
1. Blockchain Development
The first and most obvious way to make money with blockchain is to work as a blockchain developer. Demand for blockchain developers is extremely high now because so many people are trying to innovate in this space, and they all need blockchain developers to bring their ideas to life. As a developer, you’ll get to work on various projects and gain experience in multiple sectors.
You can speculate on cryptocurrency and make money. Still, those opportunities come and go, and many people lose money doing so, whereas becoming a developer provides a consistent way to make money over a long period. In the long run, this will likely increase your income, especially if you’re talking about a career in blockchain, which offers the opportunity to earn a six-figure salary as a remote developer. ZipRecruiter says the average blockchain salary is around $157,000 per year.
Undoubtedly, cryptocurrency trading is one of the most effective means of earning money from the blockchain but it is also the most challenging.
Trading, as opposed to investing, is a more short-term strategy that generates profits in bursts. You need first to own a cryptocurrency of some kind, then trade it for another currency on one of the many platforms available. Since the cryptocurrency market can be volatile, trading carries more risk.
This strategy necessitates strong technical and analytical abilities because the prices can dramatically change in minutes. For this reason, this option is suggested for those who have more experience with cryptocurrencies. In contrast, the investment is much safer for newcomers, especially if they are interested in more well-known cryptocurrencies.
You can also use a trading bot to handle all of your tradings if you want to get a head start by being able to trade around the clock. It takes work to set up a trading bot, but once it is running and the AI has learned enough about the characters and trading patterns, it can perform the task as well as you can.
Let’s understand crypto-trading bot, what it is, and how it works.
What Are Crypto Trading Bots?
Computer programs called “crypto trading bots” trade cryptocurrency assets automatically on your behalf. In most cases, you (the investor/trader) must sit at a desk and decide which cryptocurrency to buy/sell and when. When practicing trading, you should always pay close attention to market statistics.
Automating the evaluation and interpretation of market statistics is simple with cryptocurrency trading bots. They can collect market information, analyze it, determine the potential market risk, and conduct transactions for buying and selling cryptocurrency assets. For example, you can program a crypto trading bot to buy more Bitcoin when the price of BTC drops below a certain level.
This is how cryptocurrency trading bots can frequently save you time. It’s like hiring a professional to trade crypto while you sit back and watch your profits grow. However, using cryptocurrency trading bots is more affordable than paying for the services of real experts and gurus.
How Do Crypto Trading Bots Work?
The following essential elements are present in the majority of cryptocurrency trading bots:
- Market Data Analysis
This bot module will collect and interpret raw market data from various sources. It will also choose whether to buy or sell a particular cryptocurrency asset. Many bots let users decide what data is input into the signal generator sector for more accurate results.
- Market Risk Prediction
This module, like the others, uses market data to calculate market risk. Based on the information, the bot will determine how much to trade or invest. It is the most critical aspect of a crypto trading bot.
- Buying/Selling the Assets
This bot module employs APIs to buy and sell cryptocurrency assets strategically. Avoid purchasing tokens in bulk at times. However, some situations necessitate making purchases right away. The execution module handles such concerns.
Cryptocurrency mining is the most practical way to earn money using the blockchain. You’ve probably heard the term mining a hundred times before. Since it is the most renowned method of making money with cryptocurrency and its popularity made finding PC parts difficult, you might have heard about it on the news.
Mining a cryptocurrency is the least risky option because mining rigs generate the currency in your wallet. The only greater risk is whether you will keep the money and mine more when its value drops.
You don’t need to put as much effort into mining cryptocurrencies as you would into the other methods if you want to become a highly profitable miner. You will, however, need to invest in mining rigs, which are essentially PCs that will only be used to run a program that mines the cryptocurrency. Of course, you might also need help finding the parts for those rigs.
If you’re willing to take a chance, mining can give you the most significant profit boost if you choose to mine a cryptocurrency that is both simple to produce and is steadily increasing in value.
4. Staking Coins
This is another way to make money with cryptocurrencies; it provides double potential earnings through price growth and dividend payout from selected coins in exchange for staking (or proof-of-stake) their digital assets.
Through staking, you can earn extra coins for helping to secure a specific crypto network by keeping your coins in a live wallet. NAV Coin, PIVX, Neblio, Decred, and many other coins are a few examples of coins that can be staked.
Most cryptocurrencies, including Ethereum, Cardano, Binance, and Solana, support crypto staking. Staking cryptocurrencies has the same effect as earning interest on a bank deposit account. The main distinction is that you continue to own your assets.
When you choose a program, you’ll be made aware of the staking rewards it provides. Cardano (ADA) staking and Ethereum 2.0 staking offer 4% to 7% annual percentage yields (APY) as of July 2022 on the cryptocurrency exchange Kraken. Because the Ethereum 2.0 network upgrade still needs to be completed, there are a few restrictions for staking Ethereum on Kraken.
Once you’ve decided to stake cryptocurrency, you’ll get the promised return when it’s due. You will receive your return from the program in the staked cryptocurrency, which you can then hold as an investment, offer for staking, or exchange cash and other cryptocurrencies.
The program may also have limitations, such as a three-month commitment to staking before you receive your tokens back.
5. Lending Cryptos
Centralized finance (CeFi) describes the range of digital financial services made available to investors and traders through cryptocurrency and blockchain technologies. These services function much like those offered by traditional high-street banks but with a focus on cryptocurrencies. One of these services is Crypto Loans. With the help of this loan service, investors can obtain liquidity for their investments while keeping their cryptocurrency holdings in place by using them as collateral. This procedure enables you to invest in good resources while keeping your holdings secure in a cold wallet.
The ability to respond to changes in the cryptocurrency market is the best possible thing about crypto lending. It is best to invest in good assets when the cryptocurrency market is in a downturn. This tactic is described by the term called “Buy the dip”.
Experienced investors can shorten these transactions from the point of purchase to the point of sale. Less professional investors must wait for the best opportunity to sell their cryptocurrency. “Buying the dip” has historically been successful in the cryptocurrency market.
Both parties have linked their accounts and wallets in a crypto-lending relationship. And an agreement is formalized by writing a smart contract, or piece of code, on the blockchain.
Crypto lending can be a profitable way to make money; all you have to do is select the appropriate asset to invest in your loan. CoinRabbit, a website offering cryptocurrency-backed lending and savings services, is one such platform that makes this connection possible.
- Almost always, you can use your cryptocurrency as security to get a loan in over 107 different currencies.
- The application process is straightforward, and with funds available in your account in 15 minutes, you can respond to market changes as quickly as Eliud Kipchoge.
- The user interface on CoinRabbit.io is clear and straightforward, making it ideal for anyone looking to get started with cryptocurrency lending.
- CoinRabbit uses multiple layers of security to protect users’ funds: the collateral kept in cold wallets and the risk management of each transaction ensure that there is never any chance of ever losing your money.
If you are passionate about content creation, like writing essays, blogging or completing surveys, earning through blockchain networks as a freelancer is the best choice. Independent contractors now have a new way to monetize their expertise thanks to blockchain networks. It provides a platform to advertise their services and receive payment in cryptocurrencies.
Freelancers can find work and receive payments in cryptocurrencies such as Bitcoin and Ethereum using Upwork, Bitwage, and CryptoGrind.
There are many advantages to freelancing. You do not have to quit your job to become a freelancer; you can try it out on top of your regular job. If you enjoy freelancing and want to build a client base to supplement your income, you can start today by going to a website like upwork.com, creating a profile, and looking for jobs.
Another advantage of freelancing is increasing your income faster than with a regular job. When you work at a regular job, you have to either ask for a raise or change jobs, and you can only do this so many times before it becomes a problem, but with freelancing, you can raise your rates, especially when you get new clients.
7. Airdrops and Forks
To increase awareness, airdrops and free tokens are distributed. An exchange might conduct an airdrop to attract a large user base for a project. Participating in an airdrop may give you a free coin to use to make purchases, investments, or trades.
A protocol upgrade or change that produces new coins causes a blockchain to fork. If you have coins on the original chain, you should be able to get free tokens on the new network. This means you get a free coin for being in the right place at the right time.
8. Crypto Payments and Affiliate Marketing
- Accepting cryptocurrency as payment for services is one way to make money with the blockchain. You can start taking cryptocurrency payments if you sell goods or services. This can be achieved by setting up a crypto wallet and advertising that you accept cryptocurrency payments.
- Affiliate marketing is another way to invest in cryptocurrency. You can participate in affiliate marketing programs offered by blockchain-based platforms or exchanges if you have a considerable social media or blog following.
- An affiliate can promote a good or service and get paid when someone uses their referral link to purchase affiliate marketing’s revenue-share CPA or hybrid agreement.
- Affiliates can advertise cryptocurrency-related goods and services on a variety of platforms. One of these platforms is YouHolder, a global cryptocurrency marketplace that enables affiliates to make money from selling goods and benefits associated with cryptocurrencies, such as exchanges, wallets, mining services, savings accounts, and more.
Putting it all together
There are many ways to make money using blockchain technology, but risks and difficulties exist. However, in the end, the fundamental ideas remain relevant. Continually work on your plans until they are successful. Avoid grabbing hold of every chance you see because doing so will cause you to be divided among too many different projects.
Staying informed, thoroughly understanding the technology and its applications, and managing risk effectively is necessary for success in the blockchain industry.
1. Can you make money as a blockchain developer?
Yes, you can make money as a blockchain developer. Blockchain developers typically make between $150,000 and $175,000 per year as salaried employees, making it one of the highest-paying programming specialties.
2. How to earn 1 BTC per day without investment?
Since mining Bitcoin requires a sizable amount of processing power, electricity, and mining hardware, earning 1 BTC per day without investment is likely impossible. But there are some ways to make a bit of Bitcoin without spending money, like signing up for a Bitcoin faucet or performing tasks on websites accepting Bitcoin as payment.
3. What crypto is making the most money?
The cryptocurrency making the most money right now is Bitcoin. Since the inception of cryptocurrencies in 2009, Bitcoin has been the most lucrative and valuable, and its value has only increased over time.
4. Is it hard to learn blockchain?
Because it necessitates a thorough understanding of distributed systems, computer science, and cryptography, learning blockchain can be complicated. However, with the proper guidance and dedication, learning the fundamentals of blockchain technology is possible. There are also numerous online resources, such as courses and tutorials, that can assist you in better understanding the technology.
5. How many hours a day do crypto day traders work?
The number of hours crypto day traders work per day can vary greatly depending on their personal preferences and strategies. Some traders work only a few hours daily, while others work 8-10 hours or more.
6. Which language is used for blockchain?
For developing blockchain applications, Solidity is the most popular language. It is a high-level language that helps create smart contracts for the Ethereum blockchain.
7. What should I learn first in blockchain?
The first thing you should learn about blockchain is the technology’s fundamentals and components. To do this, one must understand the ideas behind mining, smart contracts, consensus algorithms, and distributed ledgers. It would be best to learn about the various types of blockchains and how they differ, such as public, private, and consortium blockchains.