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How to make money on cryptocurrency in 2024 from scratch

How to make money on cryptocurrency in 2024 from scratch

Explore various methods to earn money with cryptocurrency in 2024, including mining, trading, holding, NFTs, and more.
14 minutes
12.05.2024
Editor Satoshi`s Secrets
How to make money on cryptocurrency in 2024 from scratch

In Brief

The article provides an overview of various ways to earn money with cryptocurrency, including mining, trading, holding (HODL), buying and selling NFTs, creating your own cryptocurrency, staking, lending, crypto funds, and ICOs. It discusses the advantages, disadvantages, and tips for beginners in each area, emphasizing the potential for profit but also the associated risks and complexities involved in these activities.

Mining or investing in staking? Conquer the NFT market, trade on an exchange, or fund a rising project? These are all ways to make money from cryptocurrency in 2024. We have prepared instructions for those who are getting into this market from scratch.

New oil, virtual Eldorado, money of the future that is already very expensive – such metaphors and comparisons describe cryptocurrencies.

Over the past couple of years, the number of people who have made their first fortune in digital coins practically from scratch has multiplied. It is not surprising that newcomers also think how to get rich on it. But they don’t know where to start. From mining, investing, trading, creating, and selling NFT – there are dozens of options.

Let’s tell you about ways to make money on cryptocurrency in 2024.

What is cryptocurrency?

Cryptocurrency is digital money, which is based on program code – it was calculated by a computer. Virtual payment systems with their own currencies, which are also called coins. All transactions in this system are protected by a cipher – cryptographic method.

At the heart of the cipher is the blockchain – a colossal database of identifiers and checksums. A new approach, the essence of which is decentralization and shared control. Blockchain can be explained more simply with an example.

Imagine a fantastic scenario where in the United States there was no Department of the Treasury, Federal Reserve, or other entities controlling the national currency and finances. This is what decentralization is all about. In this scenario, the entire country would agree to keep a shared ledger of expenses. Citizen A makes a transfer to citizen B — 5000 dollars. Citizen B transfers 2500 dollars to citizen C. No one has access to these funds except the sender and the receiver. Moreover, the transfers are anonymous. However, everyone can observe the flow of money.

Such a database is divided into blocks. In the example of the ledger, each block could be a page. And each page is linked to the previous one. A chain is formed — chain — as it is translated from English. Blocks have their own numbers (identifiers) and a checksum that prevents changes from being made without others noticing. Returning to the example of transfers, imagine that citizen A made a transfer of 5000 dollars, and then decided to change it to 4000 dollars. Citizen B, the recipient, and everyone else would notice.

What is this for? The most popular answer is to make money no longer dependent on the authority of central banks or financial institutions. Only mathematics, which guarantees security.

Investments

ActivityDescription
MiningGenerating new blocks through computer calculations
Cloud MiningInvestor rents mining power from another company, which mines cryptocurrency and returns profit
TradingExchange trading
Holding (HODL)If trading is active trading on the exchange, then HODL is buying, waiting for the price to rise, and then selling
Buying and Selling NFTsNFT is a digital certificate of copyright, and a large market of auctions for images, photos, music has emerged based on this technology
Cryptocurrency LotteriesAnalog of traditional lotteries
Creating Your Own CryptocurrencyLaunching a coin or token: a new cryptocurrency can be a key to access other services, or represent some financial asset
StakingStoring cryptocurrencies similar to a bank deposit
LendingLending cryptocurrency to exchanges or other users at interest
Crypto FundsTransferring assets for professional management by a fund, which selects earning strategies and, in case of success, returns investments with interest
ICOFinancing the launch of a new token

Without Investments

ActivityDescription
Creating NFTsSelling self-created photos, paintings, music
Teaching Others“Guides” (amateur educational materials), webinars, author’s courses, and recommendations for beginners – crypto coaches earn on this

Step-by-step instructions on cryptocurrency earning for beginners

Mining

Mining is the process of producing existing cryptocurrency by calculating new blocks using computer power. In the early stages of cryptocurrency, mining could be done with the power of a home PC. Over time, it has become increasingly difficult to obtain new blocks.

Each block is connected to the previous one, and that one is connected to another, and so on. To perform the calculations, a lot of equipment is needed. Therefore, miners now create farms – complexes with a large number of graphics cards (they calculate faster than processors).

How to start: assemble a mining farm or purchase a ready-made one, choose a cryptocurrency for mining, and launch a mining application.

Pros and cons
+ Low risks: you mine coins that already have value.
– High entry barrier: mining equipment is expensive, and you have to pay for electricity.

Cloud Mining

Cloud mining is a method of passively mining cryptocurrency. As we mentioned, mining equipment is expensive, and there is a shortage of powerful graphics cards on the market – miners are buying them all up. But someone is buying them and mining cryptocurrency! Farms need money for development and electricity bills. They accept investments and, in return, share the mined coins with you.

How to start: choose a cloud mining service, sign a contract with them (usually, there are clear tariff plans), and wait for it to be executed.

Pros and cons
+ You can pay for mining with cryptocurrency or regular (fiat) money, without the need to delve into the intricacies of creating and maintaining farms – other people are doing that for you.
There are fraudulent projects on the market, and miners can deceive and not report the actual amount of cryptocurrency they have mined with your money.

Cryptotrading

“Buy low, sell high” – simple rules in a very complex game. Cryptocurrency trading differs from traditional trading in even greater volatility – the price instability. Is this good or bad? For the average person, it’s bad. But for an investor, it’s a real way to make 100% or even 1000% profit on the price difference in just a few hours.

How to start: register on one of the major cryptocurrency exchanges.

Pros and cons
+ High profits, trading can be done 24/7.
High risks, you need to invest in yourself, constantly improving your knowledge of trading, and be able to read and feel the market.

Holding (HODL)

The essence of the strategy is simple: you buy cryptocurrency and forget about it for months or years. Then you open your assets and sell those that have grown in value.

How to start: buy cryptocurrency on an exchange, digital exchange, or from another user, store it in your wallet, and wait.

Pros and cons
+ You are freed from the need to constantly monitor prices; your wallet balance remains your, let’s say, passive asset, an investment.
Average profitability and average risks: over time, the coin can soar by hundreds of percent or not change in price at all.

NFT Auctions

The abbreviation stands for “non-fungible token.” NFT works exist in a single copy and are therefore unique. Moreover, everyone can see who owns them, and this information cannot be changed. That’s why NFT works have gained value. For example, a motion designer drew an animation and sold it. Or Twitter founder Jack Dorsey sold his first tweet at auction for $2.9 million. The new owner became the owner of this message. What did it give him? Besides the sense of ownership, nothing. But collectors buy original paintings by Dali and Malevich, and someone thinks that you can watch them for free on the internet.

The mechanics of NFT auctions can be more complex than bidding in a classic auction. Each work can have its own purchase algorithm. For example, selling a painting in parts, and in the end, it will be received in full by the one who collected more pieces of the mosaic. Although there are also classic examples of auctions – whoever pays more becomes the new owner.

How to start: register on one of the NFT platforms.

Pros and cons
+ There is currently a buzz in this area, and you can make good money on it.
High risks: you can invest in something expecting that the next buyer will pay more, but the new contender may never appear.

Creating Your Own Cryptocurrency

First of all, you need to decide what you plan to release – coins or tokens. A token uses the blockchain technology of another coin, so launching it is faster since the code is publicly available. To release a coin, you need to understand programming and write code.

How to start: study the theory of cryptocurrencies, think through the concept of your own token or coin, develop a strategy for its promotion and market entry.

Pros and cons
+ There is always a chance of repeating the success of bitcoin or altcoins (all coins other than bitcoin) from the top 10 by capitalization.
There is a very low chance that the novelty will take off – to launch a worthwhile project, you need to assemble a large team not only of programmers but also of marketers and a team of lawyers.

Staking

This is the main alternative to mining, the process of cryptocurrency mining. The essence is that stakers store cryptocurrency in a wallet – they lock it in an account. It’s like placing a deposit in a bank. Not all coins are suitable for staking, only those with a PoS algorithm – which stands for “Proof of Stake.” Among them are coins like EOS, BIT, ETH 2.0, Tezos, TRON, Cosmos, and others. When the coins are locked in the holder’s wallet, they help to mine new blocks, speeding up transactions for other market participants. In return, the staker receives their reward.

How to start: buy coins, “freeze” them in a wallet with a special deposit smart contract.

Pros and cons
+ No need to invest in equipment as with mining – it is enough to buy coins, put them in a well-protected wallet, and wait.
Coins can depreciate due to price volatility.

Lending

Giving money on loan to a crypto platform or individual. It’s like the usury of our time.

How to start: choose a reliable partner, sign a contract with them.

Pros and cons
+ The opportunity to earn passive income with interest higher than banks.
You can fall victim to “scam” fraud and lose your investment. This often happens with lending to new exchanges or private borrowers.

Crypto Funds

Suitable for those who recognize the full potential of cryptocurrencies but either do not want to or do not have the necessary amount of time to engage in trading and other investments. You give money to the fund, it chooses liquid assets, buys and sells them, and then shares the profit with you, taking its percentage. Crypto funds have different investment strategies: moderate in terms of risks or high-risk.

How to start: decide on one or several funds, conclude a management agreement with them for your assets.

Pros and cons
+ The opportunity to entrust your assets to competent management and make a profit.
Risk of fraud, as there are funds that practice only high-risk investments.

ICO (Initial Coin Offering)

A company issues its coins or tokens to the market and asks investors to sponsor the project. Each company and investor hopes that the novelty will “take off” and can be sold profitably in the short or long term.

How to start: choose a project on one of the platforms or exchanges, invest in it.

Pros and cons
+ Realize the dream of any investor: “get in” at the minimum to sell soon after with a great profit.
After an ICO, the company may change the terms of dividend payments, close, or simply not gain liquidity in the market.

Creating Your Own NFT Artwork

A way to earn for creative or famous people. An NFT object can be not only a painting, photo, or song, but also real objects. You just need to create a digital certificate of ownership for them.

How to start: create a cryptocurrency wallet, register on an NFT creation platform, and list your product for auction.

Pros and cons
+ A talented or famous person (blogger, celebrity) can sell an item with an NFT certificate for a high price, which in reality does not have even a small part of the value paid for it.
The buyer may never materialize.

Education

If you can explain complex things in simple words, have a certain level of knowledge, charisma, and can engage people, then you can earn well through teaching.

How to start: create your guide or lecture series, start promoting it, and sell access to your knowledge.

Pros and cons
+ Thanks to the power of social networks, you can promote yourself without financial investments, build an audience, and start earning by talking about cryptocurrencies.
If you can’t create high-quality, useful, and interesting content and build an audience, you won’t sell anything.

Tips for beginners

  1. Learn from errors, take setbacks in stride. The market quickly and clearly reveals missteps.
  2. Find a mentor to guide, explain, and offer advice.
  3. Develop an earning strategy, adhere to it, and adjust based on market conditions.
  4. Open a crypto wallet, deposit spare cash, and begin with small experiments.
  5. Investing carries significant risk but offers substantial returns. Avoid placing all funds into one project.
  6. The same principle applies in cryptocurrencies as in other fields: understand, immerse, study, and persevere.
  7. Select a crypto sphere that resonates with you. This makes delving into the topic more engaging and success more attainable.
  8. For newcomers, avoid investing in ICOs. Many are drawn by the idea of depositing $50 and getting rich quickly, but in reality, few coins make it to the exchange, resulting in losses.
Is it possible to earn cryptocurrency without mining?

Nowadays, it is more difficult to make money with mining than without it. Mining has become the domain of large companies in those countries of the world where electricity is cheap and it is possible to quickly obtain new technical solutions to increase the computing power of the farm. Most people earn cryptocurrency in other ways.

What is the safest way to make money from cryptocurrency for a beginner?

For beginners, I can emphasize two relatively safe ways. The first is arbitrage: buying a coin on one exchange where it is cheaper and selling it on another where it is more expensive. I note that arbitrage is difficult to master. The second way is holding a cryptocurrency portfolio. Buy it and hold it for six months, a year. The third – investment funds in the DAO format (stands for “decentralized autonomous organization”). You can buy a token of a promising DAO or join the organization and participate in management.

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