To start making money with cryptocurrencies, you don’t need a huge amount of money

 At Paxful, we believe there is more to Bitcoin than simply its price, but we understand that millions of people around the world have found ways to earn extra income through cryptocurrency.
For the average person, making money with cryptocurrencies can be an intimidating idea, but we’re here to tell you that you don’t need a huge amount of money to start. In fact, it’s easy to get started with a small investment.

Keep an eye on the price per Bitcoin – a higher percentage means buyers are willing to pay more than the current market price. Your earnings depend on how you want to be paid. If you sell BTC to a buyer who wants to pay using Paypal or bank transfer, you can earn up to 25% profit. You can even earn up to 50% if you exchange your BTC for unused gift cards.
Or, if you can’t buy and sell on the go, you can use a cryptocurrency trading bot to automate your trading. The bot continuously monitors the market and can buy and sell cryptocurrencies once set parameters are met.
Difficulty level: Medium
high speed

Let’s take a look at some of the ways you can make extra money.

1. Buy and hold

Hodl, that is, hold on for the good life, has become one of the mantras of the community and many cryptocurrency enthusiasts, meaning to continue to hold one’s cryptocurrency, even during bear markets.

Holding is a convenient but relatively low-risk strategy that may yield high returns. The challenge with this strategy is combating panic.

All you have to do is choose to buy a cryptocurrency (preferably when its value drops), hold it, and sell it when it reaches your desired value. You can get started with as little as $10 on a platform like Paxful, and of course you'll make more if you invest more and sell at the right time - but it's never easy. Remember, the more money you invest, the greater the risk you face.

This strategy is similar to traditional investing and is a long-term way to make money with cryptocurrencies.

Difficulty level: Easy

Speed: slow

2. Cryptocurrency Lending

You can also make money with your cryptocurrency by borrowing money, which is similar to borrowing (or lending) money at a certain interest rate. The platform you choose determines the cryptocurrencies you can lend or use as collateral.

Users can choose between a centralized or decentralized financial cryptocurrency lending platform. A centralized platform will have a central authority to manage and oversee operations and verify the identity of users.

Decentralized platforms, on the other hand, are processed by computers and allow users to operate semi-autonomously. Since these platforms run on the blockchain, the verification of transactions is done by the community as all transactions on the platform are easily viewable.

As for the interest rate, it may be a fixed rate or a floating rate. A fixed interest rate is a stable interest rate charged on the loan amount, while a floating interest rate changes based on market movements.

Difficulty level: Easy

high speed

3. Make money by playing games

If you've heard of NFTs (non-fungible tokens), you've probably also heard of games like Decentraland. These games allow users to earn money by playing the game, and as a reward, players can earn tokens that are sold on the public market.

If you're willing to put in the time and effort to make money while playing games, then this method may be the best entry point for you.

Difficulty level: Medium

Speed: Medium

4. Buy and sell

Trading digital assets is how most traders make money with cryptocurrencies. The idea is simple: buy cryptocurrency at a low price and sell it within a short period of time.

If you haven’t jumped in yet but want to give it a try, you can conveniently trade Bitcoin on Paxful. From the home page, select Buy Bitcoin (BTC) in the box on the left to buy. Set the amount you want to spend, select your preferred currency, and select your desired payment method.

Click the Find Offers button to see all sellers, then sort by price: lowest to highest to see the lowest price.

Pay attention to the "Dollars Earned" section. This data represents the amount of money you gained (or lost) on that trade. A lower percentage means you are buying BTC at a lower price than the market price. A higher percentage means you'll pay slightly more than the market price.

Once you've completed your purchase, it's time to sell the Bitcoins you just earned. Click the Sell button in the main menu and select the type of cryptocurrency you want to sell. Ideally, you'll make a little profit from the sale, so you'll want to sort the buyers by price: highest to lowest.

5. Mint your own NFTs

Mint your own NFTs with the ultimate goal of creating unique, attractive, and profitable tokens. For example, digital artist Beeple created an NFT called Everdays: The First 5000 Days, which sold at auction for $62 million.

The value of the market is that projects like Built With NFT, in partnership with Satoshibles, are able to leverage the popularity of NFTs to benefit developing countries in Africa with the help of the Built with Bitcoin fund. It also marks a change in the cryptocurrency market: In the past, only the Ethereum blockchain had access to NFTs, but the advent of Stacks allows users to use smart contracts, dApps, and NFTs on the blockchain. With the help of Stacks, we can now mint our own NFTs on the Bitcoin blockchain.

There are no restrictions on the format of NFTs, so we can safely say that when it comes to ideating, you are only limited by your own imagination. You can browse the NFT market to learn about the community and get some inspiration.

First, you need your own "product" (e.g. a song, painting, digital artwork, or even a physical object, etc.) and enough cryptocurrency to mint it. You will also need a cryptocurrency wallet to store payments. Note that the blockchain you choose also matters, the most popular is the Ethereum blockchain.

Once you have an NFT, you can create and activate an account on OpenSea (which can cost $70-$300) and then mint the NFT into that account for $10-$30. The platform will then charge a 2.5% fee on each sale. Of course, there are other marketplace platforms for selling NFTs, and some even offer free minting services, shifting the cost of minting to the NFT buyer.

Difficulty level: Hard

high speed

Precautions

Most people will remind you to avoid fear, uncertainty, and doubt (also known as FUD), and the fear of missing out, also known as FOMO. These are not just buzzwords in the cryptocurrency community, they should be taken seriously. You can think of these as the consequences of being poorly informed. That's why in the community, you'll often be advised to do your own research, whether new or experienced.

Also remember, there are many online tools that can help you. For example, you can use the Fear and Greed Index as a social barometer to help guide trading.

DeFi serves people, not the market

Everyone can make money with cryptocurrencies. Going back to the goals of decentralized finance, the focus is on developing something that works for people, not the market. Just like Bitcoin users, the point is not how much passive income is earned, but whether people are using Bitcoin for its original purpose.

Of course, those looking to earn extra income can start with a small portion of their own salary and save the money they earn to reinvest. Your trading and investing strategy will depend on how fast you want to make money, after all the flexibility is in your hands.

The point is, making money with cryptocurrencies depends on how well you operate. Regardless of what people think, getting started with cryptocurrency investing or trading doesn’t have to be expensive, and it’s never too late to get started.