7 Ways to Invest in Cryptocurrency for Monthly Income
Every time I have a discussion with someone about ideas on making money online either passively or actively, crypto seems to be one of the most recommended pathways.
The idea people have of the crypto market is that there is freedom to make money, and the opportunities are almost limitless.
You could trade assets, provide liquidity for profit, farm new tokens, earn reward tokens, and even become a p2p exchanger.
So, there's really positive enthusiasm when it comes to the opportunity the crypto market presents to people looking to invest their time and resources to make money.
That's why I want to highlight some of the ways you can invest in cryptocurrency today if you want to start earning a monthly income either actively or passively.
I've tried some of these pathways, and they present varying levels of risks. Some with little or no risk, and others with significant risk.
So, your choice of how to make money with crypto would largely depend on your risk appetite and the capital you have.
Here are few ways to get started in the crypto market and create a consistent monthly income.
Become a P2P Merchant
Many of the cryptocurrency platforms have now settled for p2p trading as the primary method of moving funds in and out of the platform.
Popular crypto platforms like Binance, Coinbase, and Kucoin have p2p marketplaces where merchants set up shop to help users deposit and withdraw funds.
Anyone with the required capital threshold can become a p2p merchant on these platforms and make consistent income that comes from trade markups.
You have to be price savvy though, as there are a lot of arbitrageurs on these platforms and exchange rates could change abruptly.
However, the key like in many trading aspects, is to buy low and sell high.
If you consistently buy a crypto for a low price and sell it for higher, you'll be able to build enough profit to make a reasonable monthly income.
Start Liquidity Mining
This is one of the easiest ways to put your cryptocurrency to work and make a consistent monthly income.
In the crypto market, traders buy and sell crypto when they make trade orders.
These trade orders are often completed from a liquidity pool of the corresponding asset in the trade, and each completed trade incurs a small fee.
The liquidity pools are crypto assets pooled from holders who stake their holdings to provide liquidity for trades in hope that they'll receive a share of whatever fee is paid during trades.
Usually, these trade orders happen in a matter of seconds and are worth millions of dollars. So, fees generated from trades are quite significant and shared between the platform and liquidity providers.
Perform Tasks for Crypto Rewards
Crypto platforms often have reward programs where new projects try to get their first traction by rewarding users with tokens in exchange for engagement.
Users could perform tasks and earn pre-launch tokens or airdrops depending on their level of engagement.
Most of these tasks are free of charge, while some require users to support projects with other more established coins or stable coins.
However, it is important to note that many reward tasks are actually a waste of time and do not provide any real reward. So, users have to do their due diligence to find the right task to commit to.
Farm New Tokens
This is another method of liquidity mining, but for new tokens that are about to launch.
Users have to commit stable coins or other assigned coins towards supporting new tokens on platforms.
This support often gives the new token some form of momentum that attracts new holders to acquire or trade them.
In most token farming, the more stable coins you commit to new tokens, the more free tokens you can earn, which can be converted to stable coins or exchanged after the new token launches.
Trade the Markets
When most people think of making money with cryptocurrency, they often think of trading the markets as professional traders.
So, prospective traders have to acquire skills in chart reading, market analysis, and other financial trading concepts.
There are many ways to trade the crypto markets. You could trade the spot market, the margin market, or the futures market.
The spot market is less complex but allows for less leverage in trades, which makes it less risky than the margin and futures markets but the potential profit you can make is quite limited.
The level of complexity and leverage opportunities increases as you move from the spot market to the margin market, and to the futures market respectively.
While trading the markets gives you the most chances of making money from cryptocurrency, it's often the most risky way to go about it.
Just like in other financial markets, there are countless stories of traders who have lost a fortune by trading the crypto markets.
So, it's important for prospective traders to have a holistic view of the market opportunities and acquire the right trading skills while choosing trades carefully.
Copy Lead Trades
For crypto enthusiasts who want to trade passively, copy trading could be a genuine way to trade crypto without the need to acquire trading skills.
Traders are able to copy the trades of other more skilled traders and share profits made per trade.
Just like trading the markets, there's some risk of losing money with copy trades but that is drastically reduced because trade orders are copied from professional lead traders who have demonstrated skills in trading profitably over a long period of time.
With copy trading, traders could also spread their copy trades across a number of lead traders, which eliminates the risk of losing their whole capital with one copy trade.
Crypto Savings
Crypto savings are an almost guaranteed way to earn crypto in a consistent way.
It basically works like a normal savings account where deposits accumulate interests the longer the funds are locked.
Users can save in stable coins and other established cryptos, which come with varying interest rates and lock periods.
This provides the opportunity for users to create a diversified portfolio of crypto holdings that earn a consistent monthly revenue.
The good thing about crypto savings is that users often have immediate access to interest paid on saved crypto assets, which could be reinvested to earn even more crypto.
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