How to Make Money with Cryptocurrency: The Complete Guide

Cryptocurrencies continue to grow in popularity, providing many options for earning money not only for beginners, but also for experienced investors. The years 2024-2025 promise to be full of innovations in the cryptosphere, offering new opportunities to increase income. In this article, we will analyze in detail how to earn on cryptocurrency, which methods are the most promising, and give useful recommendations.

Cryptocurrency - what it is

Cryptocurrency is a digital or virtual currency based on blockchain technology. It keeps transactions secure and decentralized, eliminating the need for banks or other financial institutions. Examples of the most well-known cryptocurrencies are Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The essence of cryptocurrency is the ability to transfer and store value digitally. This opens up a wide range of opportunities for investment, trading, and even the creation of new financial ecosystems.

Options for earning money from cryptocurrency

There are many options for making money with cryptocurrency. Choosing the right method will depend on personal interest, capital, and goals. Let's take a closer look at each of them:

Starting a cryptocurrency trading bot

Trading bots automate the buying and selling of cryptocurrencies by analyzing the market in real time. This method is especially suitable for those who want to make money on short price fluctuations, while not devoting all their time to this business.

Advantages:

• Trade automation.

• Availability 24/7.

• Ability to use ready-made strategies.

Disadvantages:

• Risks of misconfiguration.

• Dependence on the quality of software.

On the Veles platform it is possible to create and flexibly configure the necessary parameters of both futures and spot trading bots, for their testing you can conduct backtests or use ready-made cryptocurrency bots. 

You can read more about ready-made bots and their settings in our article - Selection of spot bots from Veles.

Mining

Mining is the process of mining cryptocurrencies, in which network participants use the processing power of their devices to verify transactions and create new coins.

Pros:

• High income potential.

• Supports the operation of the blockchain.

Minuses:

• High cost of hardware.

• High power consumption.

Cloud mining

This type of mining allows you to mine cryptocurrency without the need to buy equipment. Instead, users rent computing power from specialized companies.

Advantages:

• No equipment is required.

• Suitable for beginners.

Disadvantages:

• High risk of fraud.

• Less profit compared to traditional mining.

Cryptocurrency trading

Cryptocurrency trading is one of the most popular options for earning money in the cryptosphere. It involves buying and selling assets on exchanges in order to profit from changes in their prices. Such a method is universal and suitable for both beginners and experienced users, but requires knowledge, a clear strategy and adherence to discipline.

The main strategies of cryptocurrency trading

1. Day Trading

Day trading consists of opening and closing positions within one day. The goal is to profit from small price changes. 

2. Swing Trading.

Traders hold assets for several days to several weeks based on price fluctuations.

3. Scalping

Scalpers open dozens of trades per day, taking small profits on each one. 

4. Long-term investments (HODL)

Investors purchase cryptocurrency and hold it for months or years in anticipation of significant growth.

Benefits of trading:

1. High liquidity

High trading volumes on major exchanges such as Binance, Bybit, OKX allow you to buy and sell assets quickly without significant losses on the spread.

2. Round-the-clock access

Cryptocurrency markets operate 24/7, which makes them attractive to traders from all over the world.

3. Asset diversity

There are thousands of coins on the market, from large (Bitcoin, Ethereum) to little-known but promising ones.

4. Leverage

Many exchanges offer margin trading to increase profit potential.

Risks of trading: 

1. High volatility

Cryptocurrency prices can change dramatically in a short period of time, increasing the risk of loss.

2. Lack of regulation

The crypto market still remains poorly regulated, which is what creates risks of various manipulations

3. Psychological pressure

Emotional stress from significant price changes can lead to impulsive decisions.

4. Fraud

The risks of hacker attacks and phishing remain high, especially if trading on unreliable platforms.

Holding

Holding involves holding a cryptocurrency for a long time in anticipation of its growth in value. This method is suitable for those who do not really want to spend time on active trading.

Example: Investing even a small amount (for example, 20$) in Bitcoin in 2012, when its price was 2-20$ would bring by 2024, at a price per Bitcoin equal to almost 100.000$ - a profit of 100.000$ (or 5000 Xs from the investment). 

Cryptocurrency Gaming

Cryptocurrency games are one of the most accessible and exciting opportunities to make money in the world of digital assets. They combine gamification with blockchain technology, allowing users to earn real money or cryptocurrency through gameplay. This method of earning has become particularly popular due to the development of the Play-to-Earn (P2E) and Tap-to-Earn model, where players are rewarded for participating in the game.

Airdrop, Lockdrop, Bounty Programs

These methods of earning are a strategy to attract attention to cryptocurrency projects with minimal investment on the part of users. Such programs allow participants to receive free tokens or other rewards for performing simple actions or supporting the project.

Benefits:

• Free participation.

• Potential high profitability.

• Opportunity to receive tokens without direct costs.

• Support for new projects in the startup phase.

• Suitable for people with different skills.

Disadvantages:

• High competition.

• Risks of fraud.

• Funds become inaccessible for the duration of the freeze.

• Risks of smart contracts or token price drops.

• Labor-intensive.

• Low returns for performing simple tasks.

Steaking

Staking is only possible on networks that use the Proof-of-Stake (PoS) consensus algorithm or variations of it, such as Delegated Proof-of-Stake (DPoS). In return for “freezing” your assets, you are rewarded in the form of additional tokens, making steaking an easy passive income option in the cryptocurrency sphere.

Benefits:

1. Passive income

Staking allows you to earn tokens by simply holding them in your wallet, without actively trading or mining.

2. Reduced energy consumption

Unlike mining, steaking requires significantly less computing power, making it an environmentally friendly and more affordable way to support the blockchain.

3. Long-term strategy

Staking incentivizes holders to preserve assets for the long term, which can positively impact the price of a token.

4. Blockchain support

You contribute to the decentralization and security of the network, which is especially important for young projects.

5. Accessibility for newcomers

Many centralized and decentralized crypto exchanges offer convenient tools for staking, this makes the process much easier for novice investors.

6. High yields for some tokens

There are projects that offer attractive yield rates (up to 20% or more), which makes steaking profitable for holders.

Disadvantages:

1. Asset freezing

During staking, your tokens become inaccessible and you won't be able to sell them quickly in case of a sharp drop in price.

2. Cryptocurrency volatility

Even if your staking generates revenue, a decline in token value can zero out your profits.

3. Platform risks

If you're using centralized platforms for steaking, there's a risk of hacking, bankruptcy, or other fund management issues.

4. Token inflation

Some projects create new tokens to reward steaking participants, which can lead to inflation and a decrease in their value.

5. Platform commissions

Many exchanges and wallets take a commission for staking, which can reduce your actual profit.

6. Complexity of validation for individual projects

Some blockchains require a high initial investment or special hardware to participate in staking.

Lending

Lending in cryptocurrency is the process of lending your cryptoassets to other users or platforms in exchange for interest. It allows coin holders to earn passive income without selling their assets and helps borrowers gain liquidity without having to sell cryptocurrency.

Bitcoin Cranes

Bitcoin cranes are websites or apps that offer small amounts of cryptocurrency for completing simple tasks (watching ads, participating in surveys).

Example: Apps like FreeBitco.in allow you to earn money from daily visits.

Affiliate programs

Most centralized exchanges, crypto projects and other platforms offer affiliate programs, where users can receive a portion of commissions and other bonuses for attracting new members. Veles Finance platform provides a referral program, you can receive 30% of earnings from referred users.

Arbitrage

Arbitrage in cryptocurrency is a strategy that involves making a profit due to the difference in the price of one asset on different exchanges or in different trading pairs. The essence of arbitrage is to buy cryptocurrencies at a lower rate on one of the platforms and sell it at a higher price on another, making a profit from this difference.

Advantages:

1. Minimization of market risks

2. Availability 24/7

3. low entry threshold

4. Possibility of automation

5. Independence from the general trend of the market

6. Huge number of trading pairs and exchanges

7. High liquidity

8. Global availability

9. Relatively simple strategy

Risks:

1. Periodic market volatility

2. Commissions

3. technical delays

ICO

ICO (Initial Coin Offering) is one of the ways to attract investment for newly created cryptocurrency projects through the sale of tokens at the initial stage of the project's formation. Investors buy these tokens with the hope that their value will increase after the project is launched and goes public. For ICO participants, this is the way to make money, but there are certain risks involved.

Advantages:

1. Opportunity for significant profits

2. Early access to new technologies

3. Bonuses and discounts

Risks:

1. Fraud (scam)

2. Non-refundability

3. Volatility

4. Legal risks

How much you can earn on cryptocurrency

Earnings depend on the chosen method, starting capital and market conditions. For example:

• Mining/staking/landing/arbitrage can bring $100-$500 per month if you use modern equipment or have relatively large capital.

• Various types of trading can generate returns of up to 50-100% per month, but also involve high risks.

• Airdrops/retrodrops/cryptocurrency games often bring a small income - up to $500 per month, but do not require investment, while in projects that require investment you can get much larger amounts due to the small number of participants and complex criteria.

How to properly prepare for cryptocurrency trading

1. Learn the basics: understand the principles of blockchain and cryptocurrencies. Our tutorials will help you with this, and all the information on setting up and operating principles of trading bots can be found in Veles Academy.

2. Choose an exchange: the most popular crypto platforms are Binance, Bybit, OKX, HTX, Gate. io and BingX.

3. Get verified: for security and to meet regulatory requirements.

4. Start small: invest only the amount you are willing to lose.

5. Use cold wallets: to store large amounts of funds on them.

Recommendations from an expert

1. Diversify your investments: don't invest all your allotted funds in one coin.

2. Study the market: follow news and trends.

3. Use strategies: automate processes with the help of trading bots from Veles.

4. Assess the risks: every investment is associated with possible losses.

FAQ

1. Is it possible to make money on cryptocurrency if you are a beginner?

Yes, you can. You can try to start with free ways such as airdrops, retrodrops or bounty programs.

2. What are the most profitable ways to make money in cryptocurrency?

The most profitable are - cryptocurrency trading and arbitrage, these methods can bring large income, but involve higher risks.

3. how safe is the crypto market?

The crypto market is high risk. Use two-factor authentication and store assets in safe wallets.

4. How to start investing?

First, register on the exchange, then fund your account and choose a suitable asset to invest in.

5. What is volatility?

It is the degree of change in the price of a cryptocurrency over a certain period. High volatility means rapid and significant price fluctuations.