Crypto Cashflow: 2024 Strategies
If you're looking to make money with cryptocurrency in 2024, the good news is that you can pick from a variety of opportunities tailored to your risk tolerance and skillset. The cryptocurrency ecosystem offers numerous pathways for potential profit generation, whether you're interested in active trading, decentralized finance (DeFi), or long-term investing.
Trading is by far the most popular option, offering numerous ways to earn with cryptocurrencies through trustless and proven crypto exchanges like CEX.IO. However, trading is only one in a vast sea of opportunities for anyone keen to leave a trace in such an innovative and rapidly evolving ecosystem. Read on as we explore how to make money with cryptocurrency in 2024.
In this article, we’ll cover the following topics:
- Cryptocurrency Trading
- Investing
- Staking
- Developing Blockchain Applications
Cryptocurrency Trading
As mentioned earlier, trading can be quite lucrative for many. For those new to cryptos and investing in general, trading refers to buying and selling financial assets, such as stocks, commodities, or, in this case, cryptocurrencies.
The best part about trading is that it's inclusive, meaning it can be done by professional traders, hedge funds, banks, and other financial institutions, as well as individual investors. This activity can be done on different platforms, including:
- Traditional stock exchanges
- Over-the-counter (OTC) markets
- Online trading platform
However, despite being lucrative, trading also bears a certain dose of risk every user should consider. Because of that, every crypto enthusiast needs to be mindful of potential pitfalls and work on enhancing their skills and knowledge, as well as implementing various strategies that can help them mitigate the risks. The most common strategies include:
- Day trading
- Position trading
- Swing trading
- Scalping
- Algorithmic trading
Regardless of the trading strategy employed, successful trading in 2024 requires a combination of market analysis, risk management, discipline, and emotional control. Because of that, traders must stay informed about market developments, continuously refine their skills, and adapt their strategies to changing market conditions.
Investing
Trading involves frequently buying and selling assets to profit from short-term price fluctuations. On the other hand, investing refers to purchasing cryptos with the expectation that the purchased assets' value will increase over time, thereby generating a profit. It involves a longer-term approach, typically focused on holding cryptocurrencies for an extended period.
There are a few ways enthusiasts can benefit from crypto investing, such as:
- Buy and Hold (HODL) – Buying and holding a cryptocurrency for an extended period, expecting the value to increase.
- Diversification – Spreading investments across multiple assets to mitigate the risk from sharper price swings and preventing a portfolio from being dependent on a single cryptocurrency's performance.
- Dollar-Cost Average (DCA) – Investing a fixed amount of money at regular intervals to accumulate assets over time, regardless of the asset's current price.
Investing is somewhat less risky than trading but also not as lucrative. Still, it is vital to stay cognizant of the potential risks involved in long-term asset holding and be aware of industry developments to make informed investment decisions.
Staking
In the process of staking, individual investors can hold and lock up their cryptocurrency holdings in a digital wallet to support the operations of a specific blockchain network. In return, participants receive rewards for allocating their coins. These incentives come in the form of additional cryptocurrency coins or transaction fees.
To participate, a user must meet specific requirements, such as minimum stake and staking duration. These conditions vary between cryptocurrency and network protocol. The amount of rewards you receive depends on factors such as:
- Stake size
- Duration of staking
- Overall network participation rate
Staking is a passive-generating activity, which is typically less risky than trading and investing. Still, every participant needs to understand the risks involved, which include:
- Slashing penalties for validators' misbehavior
- Potential loss of staked funds due to network attacks or security vulnerabilities
- Market volatility affecting the value of staked coins
Developing Blockchain Applications
Crypto enthusiasts with programming skills in blockchain technology can benefit from building decentralized applications (dApps) on existing platforms like:
- Ethereum
- Tron
- Binance Smart Chain
DApps can range from decentralized finance (DeFi) protocols, gaming platforms, and non-fungible token (NFT) marketplaces to supply chain solutions and more.
On the other hand, if building apps is not one's cup of tea, cryptocurrency space offers different ways to financially benefit from blockchain technology through :
- Bug bounties – finding and reporting security vulnerabilities and bugs in the crypto network's code base.
- Protocol development – Contributing to code improvements and developing new features to open-source blockchain protocols and platforms.
- Community engagement – Participate in community discussions, forums, hackathons, meetups, and other similar events organized by blockchain networks and earn rewards, tokens, and other incentives for contribution.
Overall, earning from developing blockchain applications requires a specific set of skills like technical expertise, creativity, as well as entrepreneurial spirit. Building innovative dApps, contributing to open-source projects, and actively engaging with the blockchain community allows developers to earn in the cryptocurrency space.
