Make Money With Cryptocurrency
I’ve written a bit about cryptocurrency and how the technology behind it is likely to have a tremendous impact on our society in the next few years. I’ve also mentioned that while the term “cryptocurrency” is often used to describe the 1500+ different types of coins and tokens that are currently available, they’re not all intended to be used as money.
They can be used as money, however, and it’s possible to make money with cryptocurrency in a number of different ways. Not only that, but you don’t necessarily have to have a lot of money to get started if you want to make money with cryptocurrency. That’s good, because right now, Bitcoin is selling for more than $8000 each, and obviously, buying a lot of those would be beyond the ability of most people who are trying to make money online.
In this post, I’ll describe three ways to make money with cryptocurrency. You may wish to try one or all of them.
Make Money With Cryptocurrency by Investing
The most common way to make money with cryptocurrency, and perhaps the easiest, is to invest in it and wait. It can take many years for stocks to increase in value significantly, but the crypto market moves much more quickly (and is much more volatile!)
If you invested $100 in Bitcoin back in 2010, you’d likely have $10 million or so worth of Bitcoin today. It’s unlikely that any of the different coins that are currently available will increase in value to that extent, but coins often exhibit explosive increases in value.
Ethereum, for example, increased in value from a low of $8 to a high of $1385 during 2017. If you bought at the low point and sold at the high point, you’d have seen a profit of 173 times your investment.
Again, such increases are unlikely for any particular coin, but they do happen, they have happened, and they could easily happen again. Lots of people have learned to make money with cryptocurrency by simply investing some money at a cryptocurrency exchange, such as Coinbase or CEX, buying one or more kinds of coins, and waiting for them to increase in value.
What kinds of coins do you buy in order to make money with cryptocurrency? That decision is up to you, and you should do your own research. I’m not in the business of giving financial advice, but there are plenty of forums and information sites, as well as Reddit, which has a large section on cryptocurrency.
Make Money With Cryptocurrency by Selling Bitcoin
The most common way to buy cryptocurrency in general, or Bitcoin in particular, is to buy it from an exchange. These are sites that are much like stock exchanges, where you can deposit cash (or cryptocurrency) and exchange it for cryptocurrency (or sometimes, cash it out for money.)
That’s not the only way to acquire cryptocurrency, however. There are also sites where individuals can buy and sell Bitcoin from other individuals, and the people selling the coins can dictate both the price as well as the type of compensation.
You’d think that what most people would want in exchange for Bitcoin would be cash, but it’s actually possible to buy Bitcoin from an individual using any one of a number of things that have value but aren’t really cash, such as Amazon gift cards, eBay gift cards, iTunes cards, Walmart gift cards and more.
You can also pay with cash, money order, bank deposits, and more. Paxful, in fact, offers more than 300 different methods for buying Bitcoin.
Sites such as Local Bitcoins and Paxful match up buyers and sellers, and you can choose the method you’d want to use to pay, and the site will show you the asking price for that particular payment method, along with any limits imposed by the seller.
The prices that you’ll pay for Bitcoin using any method that is not direct cash will often be considerably higher than it would be if you paid cash. That’s because the seller has to turn your gift cards back into cash themselves, and there are overhead costs associated with that. The sites listed above will show you the price, and Paxful will show you how much you’re paying on the dollar for any given method – that is, how many dollars worth of Bitcoin you’re getting for each dollar you spend.
For gift cards, you might get anywhere from 50¢ worth of Bitcoin per dollar to 88¢ worth of Bitcoin, depending on the amount you’re buying and the type of card you’re using for payment.
Here’s where you can make money with cryptocurrency – it’s easy to create an account at these sites, and you can become a seller. You can make money with cryptocurrency by purchasing Bitcoin on an exchange for whatever the going rate happens to be, and then you can resell it at Local Bitcoins or Paxful by accepting any method that works for you, and you can charge whatever price you like.
Some sellers at Paxful are reselling Bitcoin for 50% more than they paid for it, and that’s a pretty good markup. Yes, a single Bitcoin costs thousands of dollars, but you don’t have to buy thousands of dollars worth of Bitcoin to get started. You can buy small amounts and resell those, as many buyers are only interested in buying $50-$250 worth at any given time.
There are many ways to turn gift cards into cash, and a simple Google search can show you how to do that. You could also accept gift cards or bank deposits while still reselling Bitcoin at a premium.
Paxful has a thorough section on how to set up an account to sell Bitcoin there. Local Bitcoins has some extensive documentation as well as a user forum that can provide some helpful information.
Both Paxful and Local Bitcoins have a feedback system that’s similar to the one at eBay, so you can establish a reputation for being a good seller and that, in time, will bring you more business. Some sellers have had literally thousands of transactions.
If you’re resourceful and patient, selling Bitcoin on one of those sites is something that can be started for a relatively small investment and it can be quite profitable.
Make Money With Cryptocurrency as an Affiliate
The third way to make money with cryptocurrency is to work as an affiliate. There are many ways to use your affiliate marketing skills to profit from Bitcoin or other cryptocurrency:
- Refer customers to exchanges. All of the major exchanges offer referral fees. Some, like Coinbase, offer a flat fee for referring a new customer who makes a deposit. Others, such as CEX, share a portion of the revenue that the site makes from trades with their affiliates.
- Promote tools, software, and related products. Companies that produce hardware wallets, such as Ledger, or sites that sell tracking software, such as Cointracking, have affiliate programs that you can use to earn revenue.
Cryptocurrency may be changing the world, but it’s not going to eliminate affiliate marketing. That will remain a solid way to make money online regardless of the market niche you choose.
Still, if you’re interested in Bitcoin or other cryptocurrency, it’s good to know that opportunities to make money with cryptocurrency are there.