As an emerging market, virtual currency is still in the blue ocean stage and there are many opportunities. This is well known. However, many people equate investing in virtual currency with trading, which is not true. Trading is just one way to play virtual currency. There are many other ways, including free ways to get free money and ways that require a lot of money. There are simple ways suitable for lazy people and more complex ways suitable for people with professional knowledge and high risk tolerance. However, no matter which way you play, as long as it suits you and can make money, it is a good way.
Next, we will introduce 10 ways to make money quickly by playing with virtual currencies, but the method of earning Bitcoin for free may not be very effective, because "nothing is free" in this world, and to get Bitcoin, you need to invest a lot Time and energy, and the return is very low or just a waste of time, so you can understand, but it is not recommended to invest too much energy. Finally, there are 5 most effective ways to make money from cryptocurrency, which I think are worth studying.
First, let’s take a look at some ways to make money playing virtual currency.
Ways to Earn Cryptocurrency for Free
Method 1: Receive airdrop
Airdrop, to put it simply and crudely, is giving away virtual currency for free. Generally, there are two forms: active and passive. Active airdrops require you to do tasks for the project, such as registering an account, interacting on the chain, etc., in order to get token incentives. However, passive airdrops do not require you to do anything, as long as you hold a certain token, you can get rewards, such as the BCH airdrop for holding Bitcoin (BTC) in 2017, and the ETHW airdrop for Ethereum holders after the Ethereum merger in 2022.
Advantages
No additional investment is required, get virtual currency for free.
Disadvantages
It takes time (active), has a low success rate (passive), and the tokens may not be worth much.
●Suitable for people
As a beginner, I don’t dare to invest real money, but I have plenty of time.
How to operate
At present, airdrops are not just the behavior of individual users, but some teams have already started to scale up. Therefore, you can pay more attention to some KOLs' social media such as Twitter and Instagram, or join Telegram or Discord groups to quickly obtain high-quality projects through them. The specific process is different for each project, but there will be operation guides, so don't worry about not knowing how to play.
Method 2: X to Earn (Playing Games with Virtual Currency)
X is an unknown number in mathematics, representing a variable, and X to Earn refers to the virtual currency rewards obtained by completing tasks, including Play to Earn, Move to Earn, Watch to Earn, Write to Earn, etc. These are mainly in the GameFi field, and the more popular projects include Axiety Infinty and STEPN.
Advantages
There is a certain fun in combining sports entertainment with making money.
Disadvantages
Generally, you need to pay to buy props and equipment. As the number of people increases, the rewards will decrease and depreciate, and they are often controlled by the game guild.
●Suitable for people
Gold farming expert and game player.
How to operate
Prepare a wallet, then find the project's official website, connect the wallet (equivalent to registering a game account) and start playing.
Method 3: SocialFi
SociaFi=Social + Finance, combining social activities with finance. Through social activities such as creating content, liking, commenting, forwarding, etc., you can get virtual currency rewards, and the most typical one is the Bihu platform.
Advantages
Anyone with creative ability can join, no investment is required.
Disadvantages
Token prices are poor, unknown creators find it difficult to get rewards, there is a lack of high-quality content, plagiarism is rampant, and projects lack a business model, so they are likely to die easily.
●Suitable for people
KOL, social enthusiast.
How to operate
If you are a creator, you can publish content on platforms such as Mirror and Twitter to get rewards from fans. If you are an ordinary user, you can choose other platforms such as Audius and get platform currency Audio through sharing, liking and other interactions.
Method 4: Create NFT
Many well-known NFTs, such as Bored Ape Yacht Club and Azuki, were created and sold by teams, earning considerable income. However, individuals can also create NFTs and sell them on NFT platforms. Among them, an Indonesian man made his selfies from the age of 17 to 21 into NFTs for sale, with a transaction volume of 400 ETH and a floor price (minimum price of 0.095 ETH.
Advantages
Anyone can create it without any restrictions. The works can be paintings, music, performances, etc., and support multiple forms such as photos, videos, audio, etc.
Disadvantages
Maybe no one will buy it, it lacks application value, requires professional knowledge, and freezing data requires gas fees. Some countries do not allow NFT trading, and there are certain legal risks.
●Suitable for people
A well-known person who has artistic talent or a certain number of fans.
How to operate
Prepare your original artwork and wallet, then choose an NFT platform such as Opensea, Rarible, etc., and use your wallet to connect to the platform to upload your work. Note: Be sure to keep the wallet private key or mnemonic phrase, otherwise these NFT assets will be lost.
The most effective way to make money from cryptocurrency
Method 5: Mining with a mining machine
Usually, mining refers to mining virtual currencies through professional mining machines, including Bitcoin (BTC), Litecoin (LTC), Filecoin (FiL), etc. There are generally two forms, buying mining machines to mine, or entrusting them to a third party.
Advantages
The output is relatively stable and does not require you to keep an eye on it every day. It is a form of passive income.
Disadvantages
The payback period is long, the legal risks are high, the capital monopoly is serious, and the investment costs are high.
●Suitable for people
Institutional investors have very cheap electricity resources.
How to operate
If it is entrusted to a third party, you do not need to operate it yourself, you only need to prepare a wallet address to receive virtual currency. It should be noted that you must confirm that the mining machine or the third party is authentic and reliable. If you mine by yourself, you need to find a remote, low-temperature, low-electricity site. After placing the mining machine, you also need to download the mining software. Generally, when you buy a mining machine, the miner will provide a specific operation process.
Method 6: DeFi Mining
Usually, mining requires mining machines or computing power, but DeFi mining does not. DeFi mining refers to making contributions to decentralized finance (DeFi) such as adding liquidity, mortgage lending, leasing, trading, etc., and receiving virtual currency rewards, mainly including liquidity mining, lending mining, trading mining, etc.
Advantages
The rewards are relatively generous and the coin price usually performs well.
Disadvantages
It requires high professionalism and involves the risk of loss.
●Suitable for people
More professional financial professionals
How to operate
Find the official website of the corresponding DeFi platform, such as DEX (Uniswap) and lending (Compound), and choose the corresponding product according to the currency you hold. If you don’t know how to operate, you can find the operation manual through the project’s Gitbook, which generally has a detailed guide. Since DeFi has a high risk factor, you must study its potential risks and not blindly rush in for mining rewards. Pay special attention to mortgage lending. Price plunges often trigger liquidation risks, and you may lose the big picture while gaining more.
Method 7: Deposit coins and receive interest
Depositing coins to earn interest is similar to the deposit business of a bank. You will earn interest by depositing coins into the platform. There are two main types: demand deposit and fixed deposit. Demand deposit can be withdrawn at any time, while fixed deposit can only be withdrawn when it expires. Generally speaking, the more coins you deposit and the longer the time, the more interest you will get.
Advantages
The operation is simple, there is no threshold restriction and the risk is relatively low.
Disadvantages
The returns are relatively low, and the interest may not offset the risk of falling currency prices.
●Suitable for people
Long-term investors and coin holders
How to operate
Products that earn interest on coin deposits are generally launched by centralized platforms, such as OKX and Binance. You can find the corresponding products and apply for them through the official website.
Method 8: Buy low and sell high
This is the easiest way to make money playing with virtual currency. Similar to stock trading, virtual currency can also make a profit by buying low and selling high, which is usually called spot trading. Spot trading generally requires time, that is, medium- and long-term holding (hodl coins). If you pursue short-term swing trading, the risk will increase, and the loss will be large when the market falls, and the income will be limited, unless the capital volume is large.
Advantages
The threshold is low, the operation is simple, and it is more stable than futures contracts.
Disadvantages
It requires investment, certain trading knowledge, and patience.
●Suitable for people
Short-term trading is suitable for trading enthusiasts and professional traders, while long-term holding is more suitable for novices.
How to operate
Virtual currency trading is relatively simple: register an account on the exchange, verify your real name, top up, and buy and sell. It should be noted that you must choose a reliable virtual currency trading platform.
Method 9: Futures Contracts
Virtual currency was born in 2008, but it was not until 10 years later, in 2018, that virtual currency futures contracts appeared. After their launch, they were well received by users. Virtual currency futures contracts only require a small amount of margin to open leveraged transactions, and the trading direction can be long or short. This method is more exciting because it is a high-risk and high-return strategy that allows traders to have the opportunity to profit between rising and falling prices.
Advantages
Support long and short positions, high returns, and small investments for big gains.
Disadvantages
The risk is high, and there is a possibility of liquidation, which may lead to the principal being zeroed out. It requires a very high trading psychology. It does not meet the long-term goals.
●Suitable for people
Aggressive investors are willing to take losses and pursue high returns.
How to operate
There are different types of virtual currency contracts. You only need to choose a trading platform to open an account, monitor market trends and trade when necessary. The trading method is basically the same as spot trading, so you can refer to the above content. When operating, you need to pay attention to the fact that you can adjust the leverage multiple, position size, stop loss and stop profit in Mitrade.
Method 10: Arbitrage
Generally, the same currency has different prices on different exchanges/platforms. If the price difference is too large, there is an opportunity for arbitrage trading. Simply put, you can buy on an exchange with a low price and immediately sell on an exchange with a high price. Note that if the price difference is not large enough to cover the transaction fees, withdrawal fees, etc., it may result in losses, which means arbitrage failure. Therefore, you must calculate and not blindly guess.
Advantages
Low risk and stable returns.
Disadvantages
There are fewer opportunities and you need to be quick. Once you operate a little slower, the spread may be smoothed out.
●Suitable for people
Professional users with large amounts of capital who are sensitive to prices and skilled in operations.
How to operate
Arbitrage is the superposition of spot trading and deposit and withdrawal of coins. It is not difficult to operate. However, it is generally necessary to pre-register on multiple platforms, otherwise it will be too late to register after discovering the price difference.
Play Cryptocurrency on Binance in 3 Steps
As the world's largest cryptocurrency exchange, Binance is the first choice for entering the cryptocurrency circle. At the same time, mainland users can also register and use Binance for deposit and withdrawal transactions.
1. Go to Binance official website or open Binance App (fill in referral code: RFHBT7IA to enjoy 20% maximum rebate)
Binance official website registration link: New and old users can enjoy the highest rebate by clicking here
Apple users please go to the Taiwan App Store to download, Android users please go to the official website to download the App
2. Register using your +86 mobile phone number or email address, set a strong password and submit your registration
Recommended emails include Gmail, Outlook, etc.
3. Perform standard identity authentication: Use ID card + face for real-name authentication
