Ways to make money with cryptocurrency have been quite a long journey since 2009 when bitcoin became public. And over the years the number of cryptocurrencies other than bitcoin is uncountable, then as the day goes by more are springing up.
The crypto space is a very huge one that an estimation of over 300 million individuals of the world population is actively involved in cryptocurrency in one way or the other. And it is also estimated to reach 1 billion active participants in 2024.
In this post, I will show you how to make money with cryptocurrency on the Binance Exchange, and if you are interested to learn, then stick to the end of this article.
What Is Cryptocurrency?
Cryptocurrency is a digital currency that uses cryptography to verify transactions and records maintained by a decentralized system, boycotting the centralized authority or system. For instance, bitcoin is a decentralized cryptocurrency that makes available the outlets for financial freedom that is beyond the control or restriction and confiscation.
About Binance
Binance is the largest cryptocurrency exchange in the world when it has to do with daily trading volumes of cryptocurrencies, with an average daily volume of $2 billion, with 1.4 million transactions per second 24/7. Binance was founded in 2017 by Changpeng Zhao and registered in the Cayman Islands. It supports over 500 cryptocurrencies which users can trade comfortably.
In the course of 4 years, Binance has become an authority as an exchange that every company that starts a coin project wants to list it on Binance because they know how valuable it would be and how people hold Binance in high esteem.
Risk Warning
Before you venture into what I would have to tell you in this post, please just have it at the back of your mind that I am not a financial advisor in cryptocurrency matters. Also, note that the cryptocurrency market is very very volatile! In as much as you can make so much profit from trading crypto, you can lose everything in one fell swoop, too, be warned!
When I said “volatile,” what I mean is the cryptocurrency markets are extremely unpredictable most of the time; that is to say, they swing upwards and downwards in a crazy manner. Even professional traders still get hit by the volatility.
Two Common Terms In Cryptocurrency
# Investing (Long-Term)
This is a long-term plan of buying cryptocurrency assets and storing them or holding them over time to gain more profits in the long run through rising in value.
# Trading (Short-Term)
Another name for it is day trading, where people take advantage to exploit the short-term opportunities embedded in the cryptocurrency markets. Professional traders have deep analytic knowledge and skills to monitor the price action (charts) and know where to pick trades. Though this kind of trading is very risky, there is the possibility of still making money.
1 Common Crypto Term On Binance To Make Money With Cryptocurrency
# Spot Trading
It’s a way of buying and selling cryptocurrency assets at the current market price which is termed the “spot price.” The spot price is the aspect of trading in which a cryptocurrency asset can be bought or purchased and sold immediately. That is because this particular price is created by buyers and sellers who post their orders.
If you look at the screenshot above, you will see on the right side that there is a red and green section, which represents the buying and the selling (buyers and sellers creating market prices). To break it down, the red prices are the sell orders, while the green prices are the buy orders. These prices changes per second because the market is extremely liquid.
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5 Ways To Make Money With Cryptocurrency On Binance
1 Investing And Trading
# Investing
This is one major way to make money with Cryptocurrency on Binance. This method entails that you buy cryptocurrency assets and hold them till their value rises. For instance, if you bought bitcoin in 2020, between December 2020, in February 2021, bitcoin reached its all-time high of $65,000 making a lot of investors rich. So, if you invested $1000 in December, you would have made at least $8,816 in February or April in 2021.
# Trading
Trading cryptocurrencies on Binance involves a high level of technical knowledge and skills of how the markets work; the ability to analyze the markets (charts) and trade cautiously. You can make money with cryptocurrency trading (doing buying and selling – trading crypto pairs like USDT/SHIB or BTC/ETH). For me, I would not advise you to choose this option until you are well-grounded so that you won’t wipe your wallet clean.
2 Staking Or Lending
The second way to make money with cryptocurrency is staking or lending. When you hear crypto enthusiasts say, “stake your coins,” that’s more like saying put your coins on hold or lock it up. Staking here is almost like having a fixed deposit bank account where the money you save there cannot be touched until a certain time.
When you stake your coins, that means you’ve locked your coins from being spent or used for a period of time. It can be 30 days, 3 months, 6 months, or 12 months, then after this period is over you receive or “unstake” your coins with profit or interest for the staking period. When you stake, your coins are utilized to validate transactions thereby giving you dividends for lending your coins.
3 Offer a Service/Freelancing Using Cryptocurrency As Payment Method
One of the ways you can make money with cryptocurrency is to offer a service or your skills and use cryptocurrency as a method to receive payments from clients. This may not trip you or what you really expected, but it works. Have you tried paying for a service online and you are confronted with multiple options for payment ranging from Credit/Debit Card, PayPal, Paystack, Flutterwave, and then Cryptocurrency? That’s what I’m talking about!
You can actually add one of the cryptocurrencies as a payment method such as bitcoin, litecoin, ethereum, etc. The need for using cryptocurrency as a payment method is to avoid high fees associated with some payment processors like Payoneer and the likes.
4 Follow Cryptocurrency Platforms On Social Media
You may be tempted to trivialize this just because you feel it’s not necessary, but following these platforms can actually give you insight into what is happening in the crypto space, who knows if an opportunity can come up from there. I belong to so many cryptocurrency groups and channels both on WhatsApp and Telegram, and my phone buzzes every minute with alerts of the latest money-making opportunities in cryptocurrency.
5 The Reward System (Airdrops)
Airdrops are free tokens given out generously in order to generate awareness of a specific cryptocurrency project going live. When you participate in airdrops, you get a percentage of the tokens distributed, which you can sell later to real cash when the project is fully developed in value.
Airdrops opportunities come in incessantly, in a day you can receive over 200 airdrops alerts from new projects creating awareness to build a large following. But most of these airdrops are scams especially Telegram bots (though not all), few ones are genuine. However, if you wish to join a premium Telegram channel to get profitable airdrops and other cryptocurrency opportunities, CLICK THIS LINK.
Final Thought
In my final note, before you go into any project regarding the cryptocurrency marketplace, please do thorough research to know its validity before making a final decision to invest your money. I will say also that cryptocurrency is a very big opportunity to make a full-time income from home, and that you have to acquire the necessary knowledge and skills needed to excel in this space.
Conclusively, use YouTube and Google to learn for free, and also pay for classes so that you can gain access to enjoy certain profitable coins from your mentors. I believe you have gained some value from this post, do well to share and comment, perhaps suggesting other ways to make money with cryptocurrency. Thank you!
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