1) HODLING
In 2013, on a post in the Bitcoin talk forum, someone accidentally misspelled HOLDING as HODLING. The term quickly became popular to describe the strategy of buying bitcoin and holding.
"At 10:03 a.m. UTC on Dec. 18, GameKyuubi posted "I AM HODLING," a drunk, semi-coherent, typo-laden rant about his poor trading skills and determination to simply hold his bitcoin from that point on." - Investopedia
GameKyuubi was right. Although the price of Bitcoin fell from $716 to $438 that day, it has since risen to astronomical highs. Therefore, hodling has proven to be one of the best to make money with crypto. With the ever-increasing move toward mass adoption and the recent influx of institutional investors, hodling will likely continue to be a good strategy.
2) TRADING
Crypto is volatile. However, that can provide opportunities for trading. Yes! You can make a killing, or you can lose it all if you are not careful. Trading opportunities are vast and include spot markets, derivatives, futures, and more.
If you want to get serious about trading, you will need to do a lot of research and become comfortable with the various types of orders available on the exchanges.
3) MINING
In the early days, it was possible to mine large amounts of bitcoin on a single laptop. DANG, IT! Why didn't we all do that? There are still opportunities for those who are willing to fork over the cash and spend the time. However, it is becoming increasingly difficult to quickly recover the investment. That said, if one believes crypto will experience massive growth in the future, it still makes a lot of sense to mine and hold.
- STAKING
Bitcoin uses a system called Proof-of-work. In this system, miners do the heavy lifting. They keep the blockchain going and earn rewards for that. Over time it has become increasingly difficult to mine bitcoin without expensive, customized hardware. As a result, mining has become monopolized by big players. The average person can no longer mine bitcoin, the solution, Proof-Of-Stake.
In a proof of stake system, you earn rewards by holding the coin. You can think of it as receiving interest.
The fantastic thing about this is that you can earn rewards through staking (passive income) and hodling (price movement) at the same time. Here is a super-sweet list and reward calculator.
5) FARMING
Liquidity farming, or yield farming, is similar to staking in that you receive rewards for the coins you hold. However, the process is very different. When you yield farm, you are providing liquidity to a decentralized exchange, like app.uniswap.org. Typically, you must lock an equal amount of two coins, for example, ETH and WBTC. You then earn rewards from the fees the exchange charges its users - through its automated "Smart Contract." A word of caution. Research carefully because it is possible for the developers to either have a bug in their smart contract code or write malicious code and take your money.
Here is a list of yield farming opportunities.
6) AIRDROPS
Airdrops are sweet! An airdrop is when you receive tokens simply because you hold another. One of the most notable airdrops, the Uniswap airdrop, was worth $3000+. Today I found another airdrop that I was eligible for that netted me $360 worth of MIR. I found it at the site below. Be sure to check it often.
7) INTEREST BEARING ACCOUNTS
Earn up to 10.1% on your crypto or stable coins when depositing into interest-bearing accounts from abra.com and blockfi.com.
There you go, seven simple ways to make money with crypto. You can hodl, mine, stake, farm, find air-drops, and utilize interest-bearing accounts.
Until next time, press on, and may you prosper greatly.