Invest in crypto but first get a job: how to make money on digital assets and how much can you earn

Reddit user mra137 doesn’t agree with the widespread belief that crypto is the best way to secure your financial future. According to him, getting a good job is better and more beneficial, especially if you already have a shitty job and can’t afford to buy much crypto in the first place.

Every opinion has the right to exist, and the statement sounds quite logical. So, let’s discuss this topic in more detail. 

Invest in yourself first

The Reddit user is sure that if you make $25–40k a year, you shouldn’t even spend huge chunks of your time looking into or researching crypto. He noted that many people claim to have spent hundreds or even thousands of hours on research. And they admit they are also poor. 

“If you are poor, it doesn’t matter how much research you do; if you can’t even afford to invest a grand, you will never see a return that will even support you for one year,” he said. 

Firstly, according to him, it’s better to spend the hundreds or thousands of hours learning tech that pays, like getting CCNA (Cisco Certified Network Associate) or learning how to program.

“If you are that into tech, why haven’t you done this?” 

Secondly, if you make $35k a year and decide to learn new skills and net a job that pays $75k a year, your effort has awarded you an extra $40k a year. Crypto, says mra137, will never bring you those kinds of annual returns. Unless you are a big player, but big players have good jobs too. 

So, for those who believe the crypto is the ticket to financial freedom and hate your sub $40k a year job, stop looking into crypto right now. Get some skills and get a better job instead, then come back. In short:

“Invest in yourself, then stock/bonds/crypto.” 

How to make money with cryptocurrency

The authors’ advice makes sense, and probably most investors do so. Having a good salary from a well-paying job, they wisely invest in crypto and create a source of passive income. Although the daily average volume of cryptocurrency trades is just 1% of the foreign exchange market, there is a lot of volatility in the crypto market. So, there is the potential to make short-term trades. Here are six strategies for how to make money with cryptocurrency. 

• Investing. The long-term strategy of buying and holding crypto assets for some time. Requires to identify more stable assets that will be around for the long term. You don’t need to worry about short-term price fluctuations, primarily when investing in solid and established cryptocurrencies like Bitcoin and Ethereum. For example, in May 2021, Ethereum was priced at $4,300 per token. Just one month later, the price of Ethereum had dropped to lows of $2,100.

“So, the question of how much money can be made on cryptocurrency largely depends on the investor’s strategy. It makes sense for risky investors who are prepared for losses but want to make high profits to catch X price, that is, to profit from coins that suddenly rose due to a combination of several factors.” 

• Trading. It is meant to exploit short-term opportunities. To be a good trader, you need to have the proper analytical and tech skills to analyze market charts on the performance of the listed assets. The main feature of cryptocurrencies that makes trading profitable is high volatility. In a trading session, the value of a quote can change by 10–20%, which is impossible for most securities and impossible for fiat money. For some people, trading is their primary source of income.  According to Ziprecruiter, as of July 12, 2022, the average annual pay for a cryptocurrency trader in the U.S. is $113,292 yearly.

• Staking. It is a way of validating crypto transactions. If you are staking, you own coins but don’t spend them; you lock the coins in a crypto wallet. A Proof-of-Stake the methods used by cryptocurrencies to verify the accuracy of new transactions added to the blockchain network then uses your coins to validate transactions. You receive rewards for doing so. The amount of staking rewards that can be earned varies wildly, depending on the staking platform, the cryptocurrency, and how many people are staking a given coin.

“With the more popular coins such as Ethereum, Cardano, and Polkadot, the rewards vary from 5% to 20%. With smaller cryptocurrencies, these rewards can even be above 100%,” says Eddie Rajcevic, a financial media network research team member at tastytrade.

• Crypto social media. Many multiple blockchain-based social media platforms reward users for creating and curating content. Also, you can earn native coins on the platform.
• Mining. It’s about how to earn money with cryptocurrency like the original pioneers. To mine, you need tech expertise and upfront investment in specialized hardware.
• Airdrops. It is a free distribution of tokens. Basically, such campaigns are initiated to tell potential customers about a new cryptocurrency or the launch of a new exchange.

That’s it. No matter how you look at it, no one would refuse a good passive income. As we discovered, it is possible to earn on cryptocurrency and, with a competent approach, quite big ones. The only important thing is to determine the source of funds and the strategy. And which one of them do you like the most, guys?