11 ways to profit from Crypto
You can profit through Airdrops, Affiliate Programs, Bug bounties, Staking, Lending, and more.
An airdrop is a marketing activity by a new crypto project. A small amount of crypto is sent out for "free" to increase awareness. It's not entirely "free" as you may need to do some promotional work like retweeting a post, sharing a link with your network, etc. If you want to bypass this work, you can signup for automated services.
You can use sites like AirdropAlert to find the best airdrops.
2. Crypto Affiliate Programs
Most crypto exchanges, trading platforms, and wallet services offer commissions if you refer new customers to them. All you need to do is signup for a referral code and then share links to your social networks.
3. Learn Crypto - Earn Crypto
Some cryptos pay you to learn about them. This is great because you are getting paid to learn interesting stuff! All you need to do is watch some videos, take a quiz, and get rewarded in the crypto you have just learned about. A great place to start is Coinbase and CoinMarketCap.
4. Play to Earn games
Did you know that you can get free crypto just by playing blockchain-based games? Some of the top Play to Earn games are Decentraland (MANA), The Sandbox (SAND), Axie Infinity (AXS), and Gala (GALA).
HODL is an acronym for "Hold on for Dear Life". Most bitcoin investors I know fall under this category. So while they don't "book" profits, their net worth can skyrocket or crash depending upon crypto prices. You really need to be a "believer" and a long-term player for this.
Some crypto exchanges pay dividends similar to how companies pay dividends to shareholders. An example is KuCoin, a crypto exchange that pays 50% of all trading fees as dividends to Kucoin Shares (KCS) holders.
Bitcoin uses "mining" to validate transactions. This costs a huge amount of electricity and computational power. Many other cryptos e.g. Solana, Terra, Cardano use a more eco-friendly way of validating transactions - proof of stake. This requires you to temporarily "lock" your crypto in a wallet or exchange.
Example: You could earn an annual return of 92.25% by staking The Graph (GRT). You can check out the staking rewards for various cryptos at StakingRewards.
8. Lend cryptos
You can lend your crypto and earn interest. Examples: The annual interest on Bitcoin is currently 4.75% while that on Tether (USDT) is 12.51%.
9. Provide liquidity
Providing liquidity on Decentralised Finance (DeFi) platforms is an excellent, though slightly complex, way of profiting from crypto. You can get started with Uniswap, an automated liquidity protocol for Ethereum tokens. Each liquidity pool has a smart contract to enable swapping tokens and adding liquidity.
10. Bug bounties
Many projects pay serious money if you find bugs in their platform/code. This requires a ton of "hacking" talent.
11. Day trading
People gamble on a lot of things - horse races, dog races, lotteries, and even cockroach races! In fact, there are many "prediction markets" out there for gamblers. Well, day traders gamble on cryptos. This is probably the riskiest and most stressful way to try to make money.