How To Make Money Fast With Cryptocurrency in 2023
Written by
Kelli Francis
Edited by
Amber Barkley
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Cryptocurrency is known for its volatility, and 2023 so far has been no exception — not least because of the failures of Silicon Valley Bank, Silvergate Capital and Signature Bank — but its potential for upswings keeps investors wondering how to make money fast with cryptocurrency.
In the wake of these bank closures, the value of the crypto market fell by more than $70 billion — only to rally again once the U.S. government announced that depositors at SVB and Signature Bank would quickly be restored access to their money. That government backing seems to soften crypto’s risk profile, leaving many wondering how to make money with cryptocurrency in 2023.
How To Make Money With Cryptocurrency
Unless you opt to invest in cryptocurrency stocks, your first step is to buy crypto. After you’ve acquired your first crypto investment, try any or all of these tactics for making money with crypto:
1. Trading
You can buy crypto and hold it until its value rises, then sell for a profit — and even engage in day trading if your goal is quick income.
But be wary: cryptocurrency and day trading are both high risk, so never invest more than you can afford to lose.
2. Staking
If you’re interested in holding cryptocurrency, you can stake it — or agree to park it on an exchange or in a staking pool for a period of time. You’ll earn more crypto for keeping yours in place, because doing so helps fund blockchain operations.
Generally, you earn crypto by staking because you’ll receive interest or dividends, often at a high rate. However, you often have to commit to a period of time to lock your crypto in the blockchain, and you’ll be subject to the risks of keeping your crypto on an exchange.
3. Lending
You can also opt to loan your cryptocurrency holdings out, allowing you to charge interest — sometimes with annual percentage yields of 15% or more.
However, this makes your crypto less liquid, meaning it’s harder to sell. More than one crypto lending platform has struggled with liquidity in recent months.
4. Giveaways
You can earn free crypto in various ways, from looking for giveaways, also referred to as airdrops, to completing small tasks on websites in exchange for crypto coins, called faucets.
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While it’s easy to get free crypto through airdrops or faucets, you’re not likely to earn much. And you’ll need to be careful, because some of these “free giveaways” are scams in disguise and will give you malware instead of free crypto.
5. Mining
Mining is the computing process through which new coins are released into circulation. Not all coins are created through mining, but many are, including bitcoin. It can be profitable but requires extensive equipment and is very energy inefficient, meaning it’s often expensive to get started and you might not make that investment back.
Know your local laws if you want to start mining for crypto. It’s illegal in several countries and some U.S. states.
6. Gaming
You can earn crypto through play-to-earn NFT games like Axie Infinity, Zed Run and Gods Unchained. Complete tasks and compete with other players to win crypto or NFTs, which you can then reinvest into the game, hold or sell.
Some of these games offer free demos, so you can try them out to make sure you enjoy them, but you’ll typically need to invest in NFTs to play for profit.
Getting Started With Cryptocurrency
There are tens of thousands of cryptocurrencies to choose from — so it’s important to do your research and understand the market before you make your first crypto purchase. Bitcoin and ethereum are both good options to start, as the two biggest cryptos in terms of market cap. You could also focus on cryptocurrencies with specific use cases, like cardano and chainlink.
What Are the Top Factors in Evaluating a Cryptocurrency?
As with any investment, it’s important to find the right fit for your goals. Common factors to consider include transaction fees, decentralization, storage options, whether or not the currency is backed by a government currency like the U.S. Dollar and whether there’s a limit on the number of coins that can be generated.
The Pros and Cons of Making Money With Cryptocurrency
You can make money, and fast, with cryptocurrency. However, you must follow industry news, know crypto trading best practices, guard against theft, do your research on coins and crypto exchanges and have an exit strategy ready in case you need one.
Making money with crypto is a possibility for those who can navigate the market’s volatility with their eyes and ears open.
FAQ
Here's some insight into the most frequently asked questions about making money with crypto in 2023.- How can I make a fast profit with crypto?
- Watching prices, entering and exiting investments at the right time and entering early are common ways to make a quick profit with crypto.
- Can I earn daily from cryptocurrency?
- Yes. With research and the right strategy in place, it's possible to earn daily income from cryptocurrency. For example, if you're skilled in an NFT game, you'll probably be able to earn daily by winning competitions.
- Can you make $100 a day trading crypto?
- Depending on your starting investment and return, it may be possible to make $100 per day or more with cryptocurrency – especially if you're an experienced day trader.
- Is cryptocurrency a good investment right now?
- The viability of crypto as an investment can fluctuate. Pay attention to market conditions, bank news, blockchain developments and the performance of individual cryptocurrency investments over time.
- When timed and executed well, crypto can be a lucrative investment for some investors. Just be sure you have a high tolerance for risk before you enter the market.
- Is cryptocurrency a safe investment?
- No, cryptocurrency is not a safe investment. It is very high risk – but it also has the potential for high rewards.
- Like many other investments, crypto offers its investors no guarantees. If you have funds you can afford to risk, you could reap considerable rewards, but you could also lose your entire investment.
Amber Barkley contributed to the reporting for this article.
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