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7 Ways To Make Money With Cryptocurrencies In Nigeria

 

From the outside, making money from cryptocurrency may seem like a single-path endeavour: you buy it, wait for its price to appreciate, and then sell for a profit. That’s how most people earn from it. And it’s the only way that many know.


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But what if you can create multiple streams of income from cryptocurrency?

That’s exactly what many crypto enthusiasts around the world are doing. They’ve realized that there’s an ecosystem around these digital currencies and assets and that they can reap from its various aspects.

These people are making a lot more money than the average crypto investor. You can too.

The Many Ways To Make Money From Cryptocurrency

Here are seven ways to earn from cryptocurrency.

Hold for Price Appreciation (HODL)

As we’ve mentioned, this is the strategy that’s most widely used by crypto investors. They purchase cryptocurrency and keep it (the popular term for this is ’HODL’). They expect that its price will appreciate over the long term so that their investment will be worth a lot more in the future.

Of course, the success of this approach depends on future price trends. The crypto market is quite volatile; there’s always a chance that the coin will lose some of its value in the short term. Holding on for longer (several months or years) may allow its value to appreciate.

If you’re going this route, it’s advisable to stick with well-known cryptocurrencies that have a larger market capitalization (Bitcoin, Ethereum, etc). Smaller cryptos (e.g. most meme coins) are more likely to fail at some point. You may lose all your money if they do.

Crypto Day Trading

Instead of HODLing, you could buy and sell cryptos daily, or as often as price swings allow for profits to be made. This is similar to the distinction between stock investors and day trading.

Typically, crypto day traders look to scalp small profits off price movements during trading hours. They expect that these small gains will accumulate in time to become truly significant.

Like day trading with other assets and commodities, this one is quite risky. The trader hopes that he or she makes more wins than losses and that the positives are big enough to be worth their effort.

Hold For Dividends

Some crypto companies will actually pay you dividends for holding their coins over a long period. This is different from price appreciation. What happens here is that the crypto company involved shares a fraction of its profits with people who hold its coins.

There are at least two ways to earn dividends on these assets. You can either stake them (keep a proof-of-stake in a special crypto wallet) or HODL (buy and hold them, like in point one above).


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Dividend-paying coins include Komodo, KuCoin, and NEO.

Leverage Price Spreads

At any given time, trading platforms may have different prices for the same cryptocurrency. Sometimes those differences are quite significant; they could exceed 20%.

If you’re smart and observant, you’ll pick up on these disparities quickly enough to make a profit from them. You may buy cryptocurrency from an exchange with a lower price quote, sell it at on a platform with a higher quote, and pocket the difference. This is called crypto arbitrage.

Here’s an example. Let’s say a cryptocurrency currently sells for $10 at exchange X, and $11 at exchange Y. You could buy the crypto from exchange X, sell it at exchange Y, and make a 10% profit on it.

Earn From Crypto-Related Content

There’s a lot of interest in cryptocurrency these days, and it’ll keep growing for the foreseeable future. People want to know more about it.

You can meet their need for information, and make money while at it. The options here are numerous: start a crypto blog, get paid to write for one, create graphics (e.g. infographics) for crypto brands, or run a YouTube channel about digital coins.

Join Affiliate Programs

Many crypto companies have an affiliate program. If you sign up for them, you could earn money by getting people to buy their products.

The hard part will be finding a product promotion strategy that works. One approach would be to create content that encourages people to use their products. This content could include a Call-to-Action (CTA) and a link to the product you’re promoting.

You may do the promoting on social media as well. Just make sure you have a large enough following, and know-how to engage your audience.

Make Cryptocurrency A Payment Option

This gives you one big advantage: it lets you receive payments from people around the world without the hassles of currency conversion and traditional payment systems.

With those obstacles removed, you’re free to establish a truly global customer base and ramp up your revenues and profit margins.

Consider receiving your payment in one of the more widely recognized cryptos (e.g. Bitcoins). Customers are more likely to offer them than other digital money.

Final Words

The crypto ecosystem presents its participants with many ways to earn. It’s up to you to spot these opportunities and make the most of them. Learn as much as you can about them, and put the knowledge you gain to work. In time, you’ll be in a good place to expand your earning sources.

Featured Image Source: CFO


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Ikenna Nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

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