The question of "how to start making money on crypto" has long ceased to sound exotic. For many, it has become a way to increase capital, and for some, even a full-fledged business. But the crypto market is very multifaceted, and before entering it, it is worth understanding what methods there are to make money on crypto, which require investment, and which can be mastered even from scratch.

Below we will consider the main strategies: from classic Bitcoin purchases to rare but interesting methods such as arbitrage and games with cryptocurrency rewards.

Investing in crypto: the classic that everyone starts with

The very first and most obvious option when it comes to earning on crypto is to simply buy coins and hold them until the rate rises. The strategy is called HODL. It is used by both small investors and large funds.

Pros of HODL:

• Does not require constant market monitoring.

• Suitable for people who are busy with their main job.

• With the right choice of crypto (BTC, ETH, MATIC, SOL) it gives strong growth over the years.

Cons:

• High volatility - prices can fall by 50-80%.

• You need to be able to wait and not panic.

How to make money on cryptocurrency by active trading

The next path is trading, that is, active trading with the aim of earning on short-term movements. This is no longer investing, but rather a craft or even a full-fledged profession.

Trading can be:

• Day-trading - opening and closing trades during the day.

• Swing trading is holding a position for several days to weeks.

• Scalping - dozens of quick entries and exits per day, often using leverage.

To learn how to make money on cryptocurrency through trading, you need to:

• Learn technical analysis (levels, candlestick patterns, indicators).

• Understand capital management (risk management).

• Be able to use stop losses and take profits.

P2P Trading: How to Make Money in This Market Without Charts

Many beginners are afraid of trading because of charts and terminals. But there is a more “human” way - P2P trading. This is when you buy and sell crypto directly to other people.

P2P trading - how to make money on it:

• Buy USDT from the seller for cash or by card transfer at a favourable rate.

• You put your offer up a little higher and sell it.

• The difference will be your profit.

This strategy does not require complex knowledge of charts, but it is important to be able to find profitable offers. This is especially relevant in countries with different bank liquidity and demand for currency.

How to make money on cryptocurrency without investment: myth or reality

If you have no start-up capital at all, but you want to get into crypto, you can try earning money on crypto without investing. There are more options than it seems.

• Airdrops and test nets

New projects distribute tokens for subscriptions, reposts or participation in tests of their networks. Often, testing (test net) gives much more profit than a simple distribution of coins.

• Crypto faucets

These are sites that pay pennies in BTC, LTC or DOGE for captchas and clicks. You won't earn serious money, but it's interesting to try.

• Referral programs

Exchanges and wallets pay a percentage of your friends' commissions. Great for those who know how to recommend.

Mining: the classic way to get crypto

When people say "how to earn bitcoin", they most often mean mining. However, mining BTC at home is no longer economically viable. Industrial farms are needed for this.

But for beginners, there are other options:

• Mining altcoins on video cards (for example Kaspa, Ergo, Toncoin).

• Cloud mining, where you rent power.

It is important to understand that profitability depends on the rate, network complexity and electricity.

Staking and farming: how to earn money on crypto passively

If you want to earn cryptocurrency just by holding it, take a look at staking and DeFi farming.

• Staking: you freeze coins in a PoS blockchain (e.g. ETH, ADA, SOL) and earn interest.

• Farming: Provide liquidity to DeFi pools and get rewarded for it.

These are already serious tools for generating passive income.

NFT and gaming projects: how to make money on crypto in an unconventional way

GameFi is worth mentioning separately. Here you can get real tokens for playing. Top examples of the past are Axie Infinity, Stepn, The Sandbox. To start, you often need to buy an NFT character, but there are also projects where you can start for free and earn only time.

Arbitrage: How to Make Money on Cryptocurrency on Rate Differences

Another strategy for advanced users. The point of arbitrage is to buy crypto cheaper on one platform and immediately sell it more expensive on another. For example:

• BTC on X exchange costs $30,100

• BTC on the Y exchange $30,300
  By buying at X and selling at Y, you can make money on the difference.

However, given the fees and transaction speeds, this is only suitable for experienced users.

How to start earning on crypto and minimize risks

To avoid becoming a victim of sharp market movements or the actions of large players (crypto whales), follow these simple rules:

• Learn on-chain analytics and large transfers.

• Always place stop orders.

• Don't put all your money into one coin.

• To diversify your portfolio, buy several cryptocurrencies through a reliable exchange platform and store them in your own wallets.

The crypto market offers many ways to earn money: from classic investments to participation in test nets and farming. The main rule is not to invest more than you are willing to lose, and always keep part of your portfolio in stablecoins for insurance.

If you approach the process wisely, with a cool head and a clear plan, then how to make money on cryptocurrency will cease to be a mystery and will turn into a clear step-by-step process.

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