5 Fast Ways You Can Make Money With Crypto

It is surprising that so few entrepreneurs have caught on to the benefits of cryptocurrency. While there is risk, like all industries, the profit potential is orders of magnitude better than in traditional finance.

It is worth mentioning that the cryptocurrency industry is full of technical jargon, but many of the basic concepts are similar to what can be found in traditional finance, just with different labels. You can treat the terms “Web3”, “DeFi”, “cryptocurrency” and “blockchain” as practically the same thing.

The following are five easy ways to gain exposure to cryptocurrency and put your money to work for you in the most efficient way possible.

Related: 5 Things You Should Know Before Investing in Cryptocurrency

1. Direct investment

There is nothing wrong with mixing traditional and modern finance. Investing in a diverse portfolio of crypto assets and just waiting is a great way to make money, especially if you have experience and a preference for the fixed income market.

Despite its ups and downs, on an annual basis, the crypto market and broader decentralized financial markets have an excellent compound annual growth rate – better than perhaps any other market.

So if you work with three to five year time horizons, the returns of a crypto portfolio can be extremely lucrative. You can also invest in a mix of safer cryptocurrencies and higher risk tokens. There is a lot of room for innovation in cryptocurrency. Investing in this market is referred to as “HODLing” — holding on for dear life — due to the turbulent nature of cryptocurrency.

2. Creation of business

In the rise of any new industry, it is often the side industries that are most profitable. During the California Gold Rush in the 19th century, merchants involved in side industries (shovels, boots, beer, lodging) made the most money.

The cryptocurrency industry is like the emergence of a new internet. It needs legal assistance, PR, marketing, educational resources, blockchain engineers, network specialists, content writers, social media experts, investment specialists, portfolio managers, human resources, talent acquisition, affiliate marketing and more.

You can create a lucrative business around any of the above and more. You may be surprised how easily your existing expertise can be transferred to the Web3 markets. Much of it is just the same on a different infrastructure — The Web3 infrastructure.

Related: 4 Tips for Companies Looking to Enter the Crypto Market

3. Early business investment

The world’s best entrepreneurs don’t usually choose to start a new business. They simply invest in businesses that have the potential to generate a significant return with acceptable levels of risk. Entrepreneurs with capital to spare may gravitate towards new startups that are likely to succeed.

The biggest returns from cryptocurrency come from those who bought into specific projects early. MATIC, a Polygon token, went from $0.015 to $2.45 from 2020 to 2021. The price is now around $0.75, a multiplier of around 50.

Tokens like MATIC can be compared to shares in a company: as the broader Polygon company grows, so does the MATIC token, but the upside potential for Web3 firms is far greater than for the traditional financial markets.

For those who get into such projects early, the return can be very large. This is not typical and is very rare. But for entrepreneurs in the related industry, these are the opportunities to look out for.

4. Staking

Crypto staking is available for most cryptocurrencies including Ethereum, Cardano, Binance and Solana. Crypto staking is the same as receiving interest on a deposit account in a bank. The difference is that you retain ownership of your assets and the interest rate is typically between 4% and 8%.

So this is a fairly simple and straightforward way to earn money. There is still risk and you only receive the interest when your funds are locked — the funds must be saved to receive interest. But this risk is minimal. The more established blockchains (like those mentioned above) are unlikely to go anywhere. They are too powerful and your investment is generally quite safe.

Crypto staking is based on the right investment principle mentioned above. The price of your crypto asset (such as Ethereum) can increase in value while simultaneously receiving interest on this asset.

Related: How Crypto Education Can Transform Your Business

5. Liquid staking

Liquid staking is another way to make money in cryptocurrency. Liquid Staking was invented by Ankr, a Web3 infrastructure company, and it is a game changer in many ways. It allows users to earn interest from their staked tokens, but the tokens are not locked. This is done through a derivative token.

In other words, the derivatives market is introduced to the world of cryptocurrency through Ankr and other platforms. The derivative token can be used for trading, loans, yield farming and other investment mechanisms. You can get double use of it. You can potentially get a guaranteed 4%-8% and then lend the derivative token for another 4%-12%.

Of course, the market for these derivative tokens has not been developed and is by no means foolproof. This is not investment advice and all markets are risky. But the point is made that floating stakes offer creative ways of profit maximization that should pique the interest of risk-tolerant entrepreneurs.

Put everything together

There are many ways to make money in crypto and a lot of it comes down to what your skills and preferences are. A big problem with crypto is that there are so many options that it can be difficult to focus and stick to a given investment plan.

Ultimately, however, the timeless principles still apply. Stick to your plans and work on them until they succeed. Don’t jump at every shiny opportunity, because you’ll be split between too many different projects.

Choose your assets wisely and don’t bite off more than you can chew. Even just basic crypto stakes bring good rewards. Many people are still losing money in Web3 due to sheer greed and poor investment psychology. Separating the wheat from the chaff is an important investment principle across all markets.