How To Make Money Fast With Cryptocurrency in 2023

Cryptocurrency is known for its volatility, and 2023 has been no exception — not least due to the failures of Silicon Valley Bank, Silvergate Capital, and Signature Bank — but its potential for upsides has investors wondering how cryptocurrency can make money quickly.

Read: 3 things to do when your savings hit $50,000

As a result of these bank closures, the value of the crypto market fell by more than $70 billion – only to bounce back when the US government announced depositors at SVB and Signature Bank would quickly regain access to their funds. This government support appears to be mitigating crypto’s risk profile, leaving many wondering how to make money from cryptocurrency in 2023.

How to make money with cryptocurrency

Unless you decide to invest in cryptocurrency stocks, your first step is to buy crypto. After making your first crypto investment, try any or all of these tactics to make money from crypto:

1. trade
2. Mark out
3. loan
4. Giveaways
5. Mining
6. Play

1. Trade

You can buy and hold crypto until its value appreciates, then sell for a profit — and even day trade if your goal is a quick income.

But be careful: cryptocurrency and day trading both involve high risk, so never invest more than you can afford to lose.

2. Staking

If you are interested in holding cryptocurrency, you can stake it – or agree to park it on an exchange or staking pool for a period of time. You earn more crypto by keeping your cryptocurrencies in place as it helps fund blockchain operations.

In general, you earn crypto by staking because you receive interest or dividends, often at a high rate. However, you often have to commit to a specific period of time to lock your crypto on the blockchain, and you are subject to the risks of keeping your crypto on an exchange.

3. Lending

You can also choose to lend out your cryptocurrency holdings so you can charge interest — sometimes with an annual percentage return of 15% or more.

However, this makes your crypto less liquid, which means it is more difficult to sell. More than one crypto lending platform has struggled with liquidity over the past few months.

4. Giveaways

You can earn free crypto in a variety of ways, from finding freebies, also known as airdrops, to completing small tasks on websites in exchange for crypto coins, known as faucets.

While it’s easy to get free cryptos through airdrops or faucets, you probably won’t make much. And you have to be careful because some of these “free giveaways” are scams in disguise and give you malware instead of free cryptos.

5. Mining

Mining is the computing process that brings new coins into circulation. Not all coins are mined, 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 may not recoup that investment.

Know your local laws if you want to start mining for crypto. It is illegal in several countries and some US states.

6. Play

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 invest, hold or sell back into the game.

Some of these games offer free demos so you can try them out to make sure you like them, but you usually need to invest in NFTs to play profitably.

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 making your first crypto purchase. Bitcoin and Ethereum are both good options to start with as they are the two largest cryptos in terms of market cap. You could also focus on cryptocurrencies with specific use cases like Cardano and Chainlink.

What are the most important factors when evaluating a cryptocurrency?

As with any investment, finding the right solution for your goals is important. Common factors to consider include transaction fees, decentralization, storage options, whether or not the currency is backed by a government currency like the US dollar, and whether there is a limit to the number of coins that can be generated.

The pros and cons of making money with cryptocurrency

Cryptocurrency is a fast way to make money. However, you need to follow industry news, know crypto trading best practices, protect yourself from theft, do your research on coins and crypto exchanges, and have an exit strategy ready in case you need one.

Making money from crypto is a way for those who can navigate the volatility of the market with their eyes and ears open.

Amber Barkley contributed coverage for this article.