How to make cryptocurrency in 2021: top 12 ways to make money on cryptocurrency without investments and with them
Every investor, trader or ordinary user can make money on cryptocurrency. There are many ways to earn cryptocurrency, both with investments and without cash costs. At Profinvestment.com we will go over them in detail.
Ways to earn cryptocurrency in 2021:
- Investing (hodl strategy): buy and keep coins in your wallet with the expectation of price increases. The investment portfolio can be made up of the main coins by capitalization: Bitcoin, Ethereum, Litecoin, Binance Coin, Matic, etc. You should watch out for new IEOs – new and promising cryptocurrencies can bring good profits.
- Trading: trade on cryptocurrency exchanges and earn on the difference in the rate of cryptocurrencies.
- Mining: buying a mining farm for mining cryptocurrencies. If there is no money to buy expensive equipment, then you should take a closer look at cloud mining.
- Cryptocurrency faucets. For viewing ads, such services distribute a small amount of coins for free. The amounts are small, only a few dozen satoshi. To make a lot, you need to use a large number of taps and spend a lot of time on them.
- Participation in IEO. Many projects are developing very successfully, and the cost of cryptocurrencies (tokens) has increased several times.
- Lending. Landing programs allow you to passively earn on cryptocurrency and receive a fixed income.
- Participation in bounty programs. This method allows you to earn money without investment. You just need to fulfill the conditions of the program and participate in promoting the project. For this you can get a certain number of tokens. The method was popular in 2017–2018, in the wake of interest in ICOs.
- Participation in airdrop. Sometimes projects for marketing purposes conduct a free distribution of tokens, but it will not be possible to earn much from this.
- Staking. Receiving a reward for holding cryptocurrencies in the wallet and confirming blocks.
- Cryptocurrency arbitrage. Earnings on the difference in rates in exchangers or on exchanges.
- Cryptocurrency business. Creating your own project
Crypto exchanges for buying, selling, trading cryptocurrency: EXMO, Localbitcoins, Binance, BitMEX, Currency, Livecoin and others.
Cryptocurrency and electronic money exchangers: ProstoCash, 60cek, Kassa, Baksman and others. It is a fast way to buy / sell currencies anonymously with low fees. To buy coins, the exchanger must have an address for receiving cryptocurrencies. If it is not yet available, we recommend that you familiarize yourself with the list of crypto wallets.
- 1 Ways to earn cryptocurrency in 2021
- 2 How to make money on major cryptocurrencies
- 3 How to make money on ICO cryptocurrency
- 4 How to make money on cryptocurrencies without investments
- 5 How to make money on the cryptocurrency exchange
Ways to earn cryptocurrency in 2021
Consider the current options for cryptocurrency earnings with and without investments. Each of the methods has its own advantages and disadvantages.
A cryptocurrency faucet is a site that periodically gives the user some cryptocurrency in exchange for doing small tasks. Tasks usually involve solving captcha, sometimes viewing ads or clicking on links. In bitcoin faucets, profit is measured in satoshi (1 satoshi = 0.000000001 BTC, one hundred millionth share).
To withdraw money, in most faucets, you need to collect the minimum amount – sometimes it takes only a few days, and sometimes it can drag on for weeks, it all depends on the profitability of a particular service and the established minimum threshold. Thus, it will not work to get rich quickly on this method. The real attraction is that cryptocurrencies have the potential to grow. So, 10 cents earned now on the tap in the future can turn into a dollar or even 10 dollars.
To start earning cryptocurrency, you first need to select a faucet. Examples of popular services:
✅ Satoshi Hero.
✅ Moon Bitcoin.
In addition, there are sites that collect and structure relevant information on all such resources. For example, the Faucet Hub, which currently hosts over 420 links to cryptocurrency faucets.
Having chosen a service that is suitable for the conditions and has a good reputation, you can begin to complete tasks. Coins will be credited to the balance of the site, they can be withdrawn to the wallet upon reaching the minimum amount. Some services support automatic payments, for this you need to enter the wallet address in the settings.
Numerous bitcoin games that can be found on the Internet allow you to earn no more than faucets, but this is done in a playful way. There is an opportunity to have fun from time to time, while earning additional income.
The main types of cryptocurrency games:
✅ Games and lotteries on faucets and stock exchanges. Many faucets have a section with games in which you can win a significant amount – several times higher than is usually given for completing a task. Some cryptocurrency exchanges (like YoBit and Crex24) also offer gaming functionality. The games themselves are usually guessing games or something similar, depending on luck.
✅ Online casino. In many countries, gambling at casinos is prohibited by law. But this does not apply to cryptocurrency casinos, since they are difficult to subject to regulation. Thus, users from any country can trade with maximum anonymity. Of course, there are also disadvantages – firstly, the casino is generally a risky form of earnings, and secondly, in the event of deception or fraud, the user is not protected by anything.
✅ Mobile games. Small applications for logic or erudition that will help pass the time and get some income. Examples are Bitcoin Billionaire, Cryptoword, Blockchain Game.
✅ Browser strategies, RPGs, trading games, simulations. Separate sites that require registration and allow you to convert virtual money earned in the game process into cryptocurrency.
Some of the games require you to invest money, while others operate on the principle of taps and do not imply investments. If the game includes investments, you must first carefully study the reviews and make sure that the project is honest.
Earn cryptocurrency on your phone
In the Google Play store on Android, you can find many applications for earning bitcoins on your phone, on iOS there are much less of them. Some of the applications are used for mining – they use the resources of the phone and periodically accrue earnings. The benefits of them are questionable: income is minimal, while the phone heats up more and quickly fails.
But there are a large number of applications that claim to give away cryptocurrency for free, for example, games that give out free Satoshi for watching ads, or applications that work on the principle of faucets and give a random amount of Satoshi for completing tasks. There are hundreds of such applications on Google Play.
It is up to the user to decide whether the efforts made are worth the very modest earnings they offer.
Another category is crypto exchange applications. There you can really make money in the same way as it happens in the browser version, making transactions for the purchase and sale of cryptocurrencies.
Cryptocurrency mining emerged in 2009 and quickly turned into an arms race. Those who started mining bitcoin back then could now earn thousands of dollars – but it was a risk, it was possible, on the contrary, to lose everything. Today, bitcoin mining is not something that a beginner should recommend. Large initial investments, constant maintenance costs, the complexity of the process itself are the reasons why mining is no longer suitable for home earnings. Bitcoin is currently being mined on an industrial scale.
However, there are coins whose difficulty has not yet reached such a high level, so you can stop your attention on them.
Principle of operation
The miner, for his part, provides computing power to verify all transactions carried out on the blockchain network. For this, he receives a monetary reward, part of which is spent on maintaining equipment and paying for electricity.
To mine cryptocurrency, you need a few things:
✅ A software or hardware wallet is a password-protected place that stores information about transactions and access keys to funds.
✅ Mining software like CGminer.
✅ A mining pool is a community of miners who combine the power of their equipment to make their income more stable.
✅ A cryptocurrency exchanger or exchange through which the received cryptocurrency will be exchanged for real money or vice versa.
✅ Stable high-speed internet access.
✅ A suitable room that will be cool enough as the equipment generates a lot of heat. Cooling is one of the main aspects of successful cryptocurrency mining.
✅ Directly equipment for mining – for example, a farm of video cards or ASIC miners.
In addition, it is necessary to constantly read and learn to keep abreast of technological changes and new methods of process optimization. Finding the best ways to tune can increase productivity and profit accordingly.
You can earn cryptocurrency using a landing page – that is, by borrowing your funds at interest. Some exchanges provide such an opportunity, there are also special platforms focused on this. On the exchanges, the invested funds usually go to lending to margin trading.
Examples of crypto exchanges that support the landing page feature:
✅ Binance (a special Binance Lending platform has been opened, where you can deposit unused currency for two weeks and return it with a profit). The specific interest rate differs for different types of assets.
Examples of special sites that provide an opportunity to make money on a landing page:
Cryptocurrency arbitrage is similar to that used in traditional markets. It implies making a profit by buying assets in one market and selling them in another, with a positive difference in price. This method is considered risk-free trading, since buying and selling occurs at the same time, so it is almost impossible to lose money.
There are different types of cryptocurrency arbitrage. The main ones are:
✅ Simple arbitration. Implementation of the simple scheme described above – buying a coin on one exchange and instantly selling it on another. At this point, you can make a profit due to inaccurate pricing on one of the exchanges or both at once.
✅ Intra-exchange triangle. It is used in case of divergence of quotes within the same exchange. For example, 1 BTC is bought for $ 9,000, then Ripple is bought at the rate of 1 BTC = 9430 XRP, and then Ripple is sold for dollars, which turns into $ 9250, which is $ 250 more than the amount initially spent.
✅ With the use of exchange deposits. One of the main problems of arbitration is how to transfer funds from one exchange to another as quickly as possible. This method is designed to solve it. It implies that both exchanges hold funds used for arbitrage. For example, there are deposits on two exchanges – 2 bitcoins and 100 XRP each. When an inter-exchange spread occurs in a Ripple / BTC trading pair, you need to buy XRP for BTC on the first exchange, and sell all XRP on the second. Then equalize your deposits on both platforms.
There are special programs to make the process as easy as possible.
Cryptocurrency trading – speculation on changes in the price of a currency by selling and buying assets through the exchange. You need to create an account on a suitable platform, create a buy / sell order, thereby opening a position. The funds received as a result of trading can be withdrawn or stored on the exchange account for further use.
Exchanges charge users with commissions for operations, usually in the region of 0.1-0.2%, this is necessary for their development. Nowadays, cryptocurrency trading is so popular, including among institutional traders and investors, that billions of dollars in transactions are made every day.
Many people are trading on a regular basis, earning a stable income from this. To do this, they use various tools and software and carefully analyze previous trends in price formation.
Popular exchanges for earning cryptocurrency by trading:
Airdrops, lock drops, bounty
Airdrop – a way to provide users with free coins or tokens. The distribution format usually looks like this: at a pre-announced moment, the creators of the project, relatively speaking, take a “snapshot” of the blockchain and everyone who currently holds Bitcoin, Ethereum or other designated cryptocurrency in their account receives a number of free tokens.
Options for obtaining tokens:
✅ Just keep the required currency in your account.
✅ Create a thread on the Bitcoin Talk forum and receive tokens for it as a reward.
✅ Certain projects only issue tokens to people from certain countries.
Lockdrop is a concept best known for the Edgeware project, which distributed its EDG tokens in this way. To get EDG, people had to keep ETH in their account, and the larger the amount stored in the account, the more tokens were sent as a reward.
A bounty campaign is an opportunity to earn cryptocurrency for completing certain advertising and informational tasks that help promote the ICO. Bounty campaign participants do not need to keep funds in an account or invest somewhere. Tasks usually include reposts, likes, comments on the Internet, usually on Twitter or Facebook, as well as activity on the Bitcoin Talk website, translations of information materials, assistance in software development, subscription to email newsletters, etc. For completed tasks, remuneration is prorated their complexity.
There are sites that track all such programs, for example, BountiesAlert and AirdropAlert.
Cryptocurrency Staking (PoS) is a block validation mechanism alongside PoW. It requires much less energy consumption, and the scale of potential earnings depends on how many coins the user has in the account. Thus, the network encourages users to keep certain amounts of coins on the account, and the principle resembles a bank deposit.
The staking process itself is straightforward. As long as the wallet is working and connected to the network, the participant has the right to receive an award (this is one of the disadvantages of the method – the wallet must always be online). But from a technical point of view, everything is simple, a beginner can handle it. In addition, some exchanges now offer a staking service, that is, it is enough to keep the currency in the exchange account in order to periodically receive income in percentage terms. An example is Binance Staking.
A masternode is a type of node in cryptocurrencies with a Proof-of-Stake mechanism. These nodes perform two functions at once: they process information about the blockchain and verify transactions for authenticity, as miners do in Proof-of-Work cryptocurrencies.
Launching a masternode is not cheap, but it is still cheaper than acquiring mining equipment and then constantly maintaining it, as well as paying for electricity.
A masternode operates on the basis of a collateral or a user’s share in the network – in order to create it, you will need to block a certain number of coins on your account – 1000, 10,000, etc., depending on the popularity of the currency. In addition, a rather complex technical setting will be required. But then you don’t have to do anything else, the node will independently verify transactions, and the owner will receive a reward.
The most famous cryptocurrency with masternodes is Dash.
Investing in cryptocurrency
Over time, the potential of cryptocurrencies becomes more and more evident, which means that their value will continue to grow. Therefore, investing in them is seen as a promising action. There are at least four reasons why people invest in bitcoin or other cryptocurrency:
✅ The desire to insure equity capital against the dangers of a fall in the dollar – there is an opinion that sooner or later it will happen.
✅ The desire to make money in the event of a significant increase in the currency, be it in a year or two.
✅ Supporting the social value of free and independent money, which should replace conventional money.
✅ Love for new technologies and belief that they are the future.
Unfortunately, many people fall prey to the hype around digital money and invest in it thoughtlessly, fearing to miss something important. You can’t do that; investing is a serious matter that requires strong theoretical training.
Ways to invest in cryptocurrency:
✅ buy it through the exchange;
✅ purchase through a p2p exchanger;
✅ buy through the exchanger.
You can buy cryptocurrency in the Matbi multi-currency wallet exchanger. The platform is very simple and easy to use. Matbi currently supports 4 digital currencies: Bitcoin, Litecoin, Zcash and Dash. Buying Bitcoin takes on average 10 to 15 minutes. You can replenish the balance of your personal account in rubles using bank cards. The exchange of rubles for cryptocurrency occurs instantly and without commissions. If you are a long-term investor, then you can leave digital assets in storage in the “cold” wallets of Matbi and wait for the rate to rise. If not, you can send cryptocurrency to other bitcoin addresses. Official site: matbea.com.
You will also need to choose a reliable wallet where coins will be stored until better times, for example, Blockchain.
This means creating your own exchanger, exchange, mixer, faucet, etc.
Of course, the process will be laborious and costly, but the result can surpass all expectations if you correctly approach the technical part and marketing. This can be said about any business, but the cryptocurrency differs in that in fact it is not normally regulated in any country in the world, which can cause difficulties. At the same time, there are no specific documentary requirements, so exchangers and exchanges open without any licenses. However, if you wish, you can try to get a license from any European country where cryptocurrencies are more loyal.
To create and promote the site, you will need at least several specialists:
✅ SEO specialist;
✅ information security specialist.
According to estimates for 2019, the creation and initial promotion of the exchanger costs an average of 1 million rubles, after which the investments gradually begin to return due to commissions. It is easier to create a crane; it earns from advertising banners. As for the exchange, this is the most complex structure, which also requires the presence of experienced blockchain specialists on the staff, and the costs will be much higher.
How to make money on major cryptocurrencies
A small analytics on how much you could earn on cryptocurrency in 2017 using the example of the coins with the highest capitalization:
- Bitcoin (BTC) is the very first and most recognizable cryptocurrency. Capitalization rose to $ 192 billion. There are 16.7 million coins in circulation; the total emission is limited, a total of 21 million will be produced by 2040. About 2-4 million bitcoins will be lost forever due to various reasons. The rate has increased more than 11 times since the beginning of the year. Thus, having invested $ 1,000, one could now earn $ 11,000 on the bitcoin cryptocurrency. Analysts predict further growth of the rate up to USD 50 thousand. Continuing article: how to buy bitcoins for rubles.
- Ethereum (ETH) is the second largest cryptocurrency on the blockchain by capitalization. The total market value of the coins as of December 4, 2017 is $ 44 billion. There are currently 96 million Ether coins in circulation. The cost of the cryptoasset as of January 1, 2017 was about $ 10; traded today at $ 458. It would be possible to make money on the Ethereum cryptocurrency and increase the initial capital more than 45 times. Review: How to Buy Ethereum.
- Bitcoin Cash (BCH, BCC) is a decentralized cryptocurrency, a fork of bitcoin, appeared as a result of the division of the main network at block 478558. It has the following advantages: increased block size up to 8 MB, faster transactions, lower commissions, etc. Capitalization today is $ 26 billion. The rate increased from $ 400 in August to $ 1550 on December 4, that is, more than 3 times. As you can see, those who invested in cryptocurrency made good money. Our forecast: growth will continue to $ 2,500-3,000.
- Ripple (XRP) – Ripple’s technology is a platform for making instant, non-refundable, low-fee payments between two parties. The company cooperates with many well-known banks to implement its protocol into their system for fast international transfers. All transactions are secure and algorithmically verified. The internal currency of Ripple is the 4th in the ranking in terms of capitalization, which is $ 9.7 billion. The XRP asset price moves in the range of $ 0.18-0.28. Further advances in technology adoption will push the cost higher. In continuation: How to buy ripple.
- IOTA, a digital currency, is a system of transaction protocols for the IoT, which on December 4, 2017 ranked 5th in terms of capitalization ($ 7.8 billion), displacing the Dash cryptocurrency. The project is successfully developing, the value of the token is growing. ICO was held in 2015, about $ 500 thousand was raised for further development. During this time, the rate showed an increase from $ 0 to $ 2.91. As you can see, a lot of money could be made on the IOTA cryptocurrency. Profitability – over +650693%.
- Dash is the first decentralized internet currency, a fork of Bitcoin. Allows you to make fast, anonymous and secure transfers anywhere in the world. Has a 2-tier architecture. The cost has increased more than 50 times since the beginning of the year. Today it is trading at $ 767. You could make very good money on Dash: the cost has almost tripled in the last month alone.
- Litecoin (LTC) is another bitcoin fork. All the years, it was the second in terms of capitalization and recognition after bitcoin. As of today, the capitalization is $ 5.5 billion. The course has grown 25 times: from $ 4 to $ 102.
If we consider the rest of the cryptocurrencies (Monero, Zcash, Etereum Classic, Neo and others), then they also grew well in value. Thus, investments in this asset brought good returns and made it possible to make money on cryptocurrency. You can make up an investment portfolio with major cryptocurrencies, since the potential for rate growth is still great.
Rating of top 15 cryptocurrencies by capitalization and their cost as of December 5, 2017:
Ways to buy cryptocurrency:
- Cryptocurrency exchangers. You need to choose reliable services and buy currency. For example, trusted exchangers ProstoCash, Xchange, 60cek, where you can buy Bitcoin, Ethereum, Dash, Litecoin, Zcash, Bitcoin Cash and other valuable coins.
- On the exchange. Purchase and exchange of cryptocurrency. The most popular platform is EXMO, which presents the 13 most popular coins. Account replenishment with fiat currencies (dollar, euro, ruble, hryvnia) is available.
- Buying bitcoin on the well-known p2p exchange Localbitcoins.
How to make money on ICO cryptocurrency
In addition to the main cryptocurrencies (in terms of capitalization), there are other coins, the number of which exceeds 1300. Basically, they appear during the ICO (initial placement of coins), you can make very good money on this.
In simple words, a startup project in the ICO process releases its own cryptocurrency, which is called a token. Investors buy tokens, hoping that their value will increase over time and they can be sold on the exchange, earning on the difference in the cryptocurrency rate. And there is every reason for this: if a company develops successfully, then the value of its token grows. Investors can earn by receiving dividends from profits, but only if it is spelled out in a smart contract. ICO platforms are Ethereum, Omni, NXT, NEO, Waves.
Top 5 ICOs with the highest profitability of all time:
- NX. Cryptocurrency profitability: + 2563281%.
- IOTA: +729353%.
- Ethereum: +149682%.
- NEO: +129155%.
- Stratis: + 102,211%.
These ICO projects were carried out in different years, and as you can see, its current cost is several times higher than the initial one.
Top 5 ICOs that collected the largest amount of investments in 11 months of 2017 ($ million):
- Filecoin (257).
- Tezos (232).
- EOS (185).
- Paragon (183).
- Bancor (153).
Cash collection statistics in 2017 in the context of each month:
The number of ICOs carried out in 2017 increased dramatically, as did the total amount collected. Theoretically, any startup can participate in this event and release its own cryptocurrency, but it is necessary that the idea of the project be related to blockchain technology.
Continuing the article: Exchange of bitcoins for rubles.
There are many projects, so finding a really worthwhile one, the token of which will increase in price several times, is more and more difficult. When choosing an ICO, you need:
- To get acquainted with the information on the project website, be sure to read the whitepaper, roadmap, FAQ, issue prospectus and other basic documentation, which sets out in detail the essence and ways of the company’s development for several years. Find out what advantages token holders have, forecast how much investors can earn on cryptocurrency with the growth of its rate on the exchange.
- It is important to see who is on the project team, where they worked before. The site must have this information, plus links to social pages.
- Understand at what stage the implementation is: just a “bare idea”, “beta” version, or an already working project. If the company is already working, it needs investments for expansion, then this should have a positive effect on the price of the token when entering the exchange. The same applies to those projects that already have a beta version. If the project does not yet exist, then the cost of the token depends on the implementation of the prescribed stages in the ICO documentation. Most of the projects are of the latter type, so you need to be extremely careful when investing in them.
- Find out with which exchanges there is an agreement for the placement of a token after the ICO. The larger the cryptocurrency exchange, the better for the value.
- Get information about who is behind the project and is the guarantor. If it is a large bank or financial institution, then the reliability of the ICO should not be in doubt. But in 99% there are no guarantees of a refund, everything rests on trust in the project, so you need to conduct a thorough analysis of it according to the above conditions.
ICO consists of several stages:
- Presale or pre-token sales: at this stage, you can get a bonus if you buy a new cryptocurrency for a certain amount. The presale lasts only a few days.
- Main sales (main stage): everyone can buy tokens. This stage lasts a month, but it can be extended if the minimum limit has not been collected.
To buy tokens, you need to register on the ICO website and select a payment method: cryptocurrencies (usually Ethereum, Bitcoin) or fiat (pay with a bank card or transfer). For each method, instructions will be given with conditions and further actions.
Top 5 tokens by capitalization (Platform – blockchain platform on which iCO was held; Market CAP – market value; Price – value).
Investing in ICOs is a new and good way to make money on cryptocurrency in 2017.
How to make money on cryptocurrencies without investments
You can make money on cryptocurrencies without investments by taking part in a PR campaign to promote an ICO project. It is necessary to fulfill the conditions of the bounty program: to repost posts on social networks, write comments, articles, wear a signature on the forums, etc. For completing tasks, points are awarded, on which the number of coins earned depends.
Bounty players are allocated a budget, usually 1–2% of the total investment, and split between them at the end of major sales. Having received the project tokens, users can sell them on the cryptocurrency exchange and withdraw money to fiat or wait for further growth and sell them even more profitably.
Review article: Investing in cryptocurrency.
How to make money on the cryptocurrency exchange
You can make money on the cryptocurrency exchange by changing the exchange rate, every day and seven days a week. In simple words, this is speculative trading in cryptocurrency according to the principle “buy cheaper, sell more expensive”. Daily fluctuations of coins can reach 5-10% or more, which means there is a good chance to make money on it.
Cryptocurrency trading on the exchange consists in creating an order-order to buy or sell or simply exchange.
Let’s show on the example of the EXMO platform, the first in the ranking of cryptocurrency exchanges in popularity in Eastern Europe. The trading interface is very simple, it will not be difficult for a beginner to understand, especially since the site is in Russian. The listing includes 13 cryptocurrencies and 45 trading pairs: Bitcoin, Ethereum, Litecoin, Zcash and others.
- You need to register on the exmo.me website and top up your account balance (USD, EUR, RUB, UAH)
- If there is no convenient way, you can buy an EXMO code. To do this, just go to the online exchanger and purchase the code of the desired denomination for the available currency. For example, on the Xchange website, buy the Eksmo code for Sberbank rubles:
Then upload it on the exchange website in the “Wallet” section – “EX-code” – “Top up”.
- The EXMO exchange implements the functionality of a simple exchange of fiat and cryptocurrency. To do this, go to the “Exchange” tab, select currencies and perform the exchange operation. For example, buy 1 BTC (Bitcoin) for 12 thousand US dollars:
- For more professional trading, go to the “Trades” tab and select a cryptocurrency, then a trading pair
- Then place an order: “Limit” or “By Market”.
- “By market” – an order to buy or sell will be executed instantly at market value.
- Limit execution – the cost is set by the user himself. If the cryptocurrency rate drops to the specified level, the order will be executed.
Thus, buying and selling, you can make money on the cryptocurrency and on the change in its course.