The cryptocurrency markets provide several methods to profit. This includes purchasing and holding digital currencies in the traditional sense and staking, interest accounts, airdrops, etc.
In its beginnings cryptocurrency was a mysterious asset. A lot of trustees were probably ignorant of the concept. But now that cryptocurrency is becoming more popular and gaining recognition. Coinbase is a well-known cryptocurrency exchange platform, which went into public trading in the year 2021. Coinbase has a page aimed towards bankruptcy trustees, and it’s safe to assume that they’re aware. Coinbase can assist trustees in finding the cryptocurrency assets of particular debtors, and provide trustees with digital wallets that can hold and transfer cryptocurrency, and even freeze accounts, as well as other offerings.
Because cryptocurrency is exchanged to cash, it’s an asset that is easily liquidated once a trustee is in charge. This cash may be distributed to the benefit of creditors.
How Do I Value My Cryptocurrency in Bankruptcy?
It is often difficult to determine the value of cryptocurrency. The price of any cryptocurrency can be volatile. A valuable asset that has low value once the debtor files their petition may increase dramatically in value following the filing of the petition. And the reverse is true. This can cause issues with regard to the Chapter 7 and Chapter 13 filers.
In the case of a Chapter 7 bankruptcy, the bankruptcy trustee will search for assets that could be sold to pay back creditors. Crypto assets with small worth at time of filing could rise in value by time the meeting of creditors takes place. This implies exemptions which could have been used to safeguard the asset could be utilized elsewhere and left it vulnerable.
In the event of a Chapter 13 bankruptcy, the amount you pay in this Chapter 13 plan is based on the worth in your other assets. Cryptocurrency is typically considered to be a non-exempt asset. This means that holdings of high value can significantly increase the amount to be repaid under the program. Another concern is that when an existing Chapter 13 filing Chapter 13 filing is later transformed into Chapter 7, Chapter 7, then those assets could be liquidated in Wisconsin bankruptcy.
This beginner’s tutorial discusses ten proven ways to earn money using cryptocurrencies in 2022.
10 Cryptocurrency Income Ideas
Take a look at the ten ways to generate money using cryptocurrencies listed below.
Best Way to Make Money With Cryptocurrency: Investing in New Coins Early
The most excellent method to earn money with bitcoin is to buy early in the finest altcoins. After all, if you bought Bitcoin in 2009, you would have spent a fraction of a penny. Similarly, when Ethereum launched its token in 2015, it was trading at $0.75.
Both enterprises are now worth thousands of dollars and have provided substantial profits. Lucky Block, for example, is developing a decentralized program that will enable worldwide lottery games using immutable intelligent contracts. When BLOCK went on presale in January 2022, it was only worth $0.00015.
Lucky Block has now risen to $0.009 on CoinMarketCap. This indicates hundreds of percent profits in only a few months of trading. Because Lucky Block is a new cryptocurrency initiative, you may invest early. This will maximize your chances of getting a good deal.
- Invest in Cryptocurrency Tokens and Stake for Passive Income
Two main cryptocurrency market ideas allow you to make passive income from idle digital assets. Assuring that your tokens are secure is the first step in proof-of-stake blockchain staking.
- Staking networks like Cardano, Tron, and eventually, Ethereum are examples. Importantly, you will earn interest on your tokens while locked up. However, gambling on the eToro platform does not need a minimum lock-up time. Instead, you may withdraw your tickets at will.
A fascinating account is the second item to examine while learning how to produce passive income with cryptocurrencies. In essence, crypto interest accounts work like a typical bank. Because putting your bitcoin tokens earns you interest.
It’s like staking, except without the intelligent contract. Instead, your selected supplier will lend your tokens to individuals in need. So long as the permits are leased out, the borrower will pay you interest.
Aqru currently has the most excellent crypto savings account available. This renowned platform offers you to earn 7% on Bitcoin and Ethereum deposits and 12% on Tether deposits. Aqru offers flexible accounts with no lock-up requirements. The Aqru app also allows you to deposit fiat money and purchase cryptocurrencies.
3. Day Trading Cryptocurrency Pairs
Day trading is one of the most profitable methods to earn money using cryptocurrencies. However, you will need to know how to assess pricing to decide if the token in question will gain or decline in value. If you can accomplish this, you can trade crypto all day.
The idea behind crypto day trading is to profit from short-term volatility. Professional traders seldom, if ever, maintain positions for more than a day. With many situations throughout the day, the goal is to make tiny but consistent earnings.
Today, I trade digital currencies. You need a licensed crypto exchange with cheap costs and plenty of marketplaces. You would struggle to earn money day trading crypto on a trade that charges hefty fees for the former. After all, commissions will chip away at your profits.
For example, Coinbase charges 1.49 percent for every slide, implying you must pay this cost before closing the deal profitably. However, eToro is much more competitive. It also provides you access to dozens of popular digital currencies, ensuring you never run out of day trading options.
Cryptocurrency Investment and Long-Term HODLing
This strategy is likely the best for novices. Because HODLing — a pun on the phrase ‘Hold’ – simply refers to purchasing a cryptocurrency and keeping onto it for a long time. It’s like buying stocks and holding them for years.
Investing in well-established cryptocurrencies like Bitcoin and Ethereum eliminates the need to worry about short-term price volatility. In May 2021, Ethereum was worth $4,300 per coin. One month later, Ethereum hit a low of $2,100.
If you panicked and sold your ETH tokens, you would have lost around 50%. If you had been HODLing, Ethereum would have been approximately $4,900 per token by November of that year. This is one of several. The most successful approach to investing in cryptocurrencies is via a long-term plan.
Again, you need to select an excellent exchange to HOLD your money effectively. eToro also fits the criteria, offering low-cost crypto investments starting at $10. Moreover, this exchange is licensed in the US, allowing you to HOLD safely and securely.
5. Earn Cryptocurrency by Playing Crypto Games
You may be astonished to find that you can earn bitcoin simply by playing games. The play-to-earn crypto gaming business is currently worth billions of dollars. Decentraland is one of the top crypto games to consider playing.
Decentraland is a metaverse where individuals from all over the globe may create virtual avatars, interact, and, most importantly, acquire property. A unique NFT is made if you buy a parcel of land and build your real estate project.
Then you may sell it on the open market. While this may seem far-fetched, some Decentraland property parcels have sold for millions of dollars. Investing early gives you the most excellent chance of getting a good deal on an NFT.
6. How to Earn a High APY on Your Cryptos
Now is an excellent time to start yield farming and lending using cryptocurrencies. These investment ideas enable you to generate interest passively, but they use different approaches. The technique of lending idle tokens to a liquidity pool is known as crypto yield farming.
In most situations, you will be helping decentralized exchanges by providing liquidity. Uniswap and Pancakeswap, both Binance and Ethereum blockchains, are market leaders. When you put money into a liquidity pool, it’s usually locked away for a while.
You will also be paid interest while the tokens remain in the liquidity pool. The greater the APY is given by the pool, the newer and less liquid the coin. Crypto lending relates to the same notion – depositing your digital tokens into a savings account.
Your tokens will be loaned to individuals in need of money. When it comes to crypto loans, it’s vital to choose the right platform. Because defaulting debtors is always a possibility. Again, Aqru distinguishes itself since it exclusively lends bitcoin to pre-vetted high-quality clients.
Simple Tasks Earn Free Cryptocurrency using Faucets.
You may earn free digital tokens by doing activities on cryptocurrency faucet websites. There are several platforms in this field, and the responsibilities needed differ from one to another. Some crypto faucet systems, for example, demand captchas.
Anyone can do this — no previous expertise is required. Then there are bitcoin faucets that are smartphone apps. These typically demand you play new games and win free bitcoin when you reach specific goals.
However, it is worth noting that the benefits offered by crypto faucets are minimal. In reality, most tasks only earn a few cents of bitcoin. Crypto faucets enable you to receive rewards without having to invest any money.
8. Airdrops – Free Crypto Tokens Into Your Wallet
Airdrops, like faucets, enable you to earn free cryptocurrency tokens without depositing or spending any money. The fundamental idea is that certain new companies would release native tickets straight into wallets to help circulate bitcoin.
Unlike a traditional presale and fair launch on a bitcoin exchange. As a result, an airdrop will not collect revenue for the initiative. There are countless instances of airdrops that have grown into multi-billion dollar undertakings.
Bitcoin Cash is a great example. When this cryptocurrency started in 2017, it airdropped BCH tokens to all Bitcoin wallet addresses. This was done 1:1, meaning that for every Bitcoin you had, you got 1 Bitcoin Cash.
Other projects like Stellar have given out millions of dollars in Lumens tokens since their introduction in 2014. However, getting an airdropped pass requires prudence. Because criminals often produce and send worthless tokens to random wallet addresses.
9. Invest in a Decentralized Autonomous Organization
The metaverse and NFTs are likely to play a significant role in the future of cryptocurrencies and blockchain technologies. DAOs are initiatives owned by the community collectively. To become a part-owner of a DAO, you only need to possess the token.
There are several DAOs active in this field, each with its project. Uniswap is one example. This project hosts a decentralized exchange that allows users to purchase, sell, and trade digital currencies without a mediator. Since Uniswap established its DAO cryptocurrency, token holders have controlled the project.
Thus, any gains made by the Uniswap exchange are proportionally allocated to holders of the DAO token. Holders of DAO tokens also have input on the project’s management. So, before a DAO project can decide on its future development, it must be voted on.
10. Mining – Mine Cryptocurrency with Desktop Hardware
Mining is the last option on our list of the top methods to generate money using cryptocurrencies. Mining involves attaching specialized gear to a computer, which then connects to the cryptocurrency’s blockchain. The concept is that miners allow decentralized network operation.
Because mining equipment validates transactions by solving complex mathematical calculations, each block is validated, and miners are rewarded with freshly created bitcoin tokens. For example, every 10 minutes, a new alliance is formed in Bitcoin, earning another 6.25 BTC.
This 6.25 BTC – worth over $660,000 at the time of writing – is awarded to the miner who solves the equation for the block. While this may seem like a lot of money, the complexity of each mathematical calculation means that Bitcoin mining uses an unprecedented amount of power.
Moreover, the cost of specialized gear necessary to mine a new Bitcoin block is high. However, many other cryptocurrency projects need miners, and competition is often scarce. Ultimately, you must guarantee that the mining profits exceed your investment.
Best Crypto Trading & Investing Platforms
Having examined the ten most excellent methods to generate money using cryptocurrencies, we now need to explore good platforms.
The finest crypto-making sites are evaluated in the areas below to save you time.
BEST BITCOIN TRADING PLATFORM
It’s worth repeating eToro. The most refined platform to invest in and trade bitcoins is eToro. eToro has you covered whether you want to HOLD bitcoin for years or participate in short-term day trading.
First, this site is carefully regulated so that you may trade cryptocurrencies with confidence. This includes US, UK, Cyprus, and Australian regulators. eToro’s 25 million+ registered users may choose from approximately 60 popular cryptocurrencies.
Bitcoin, XRP, Ethereum, Dogecoin, BNB, Shiba Inu, and Cardano are all traded on eToro. We also enjoy the $10 minimum transaction size, which means you may try to profit from bitcoin without risking significant quantities of money.
The minimum deposit for US consumers is similarly $10, so those on a budget will be pleased. eToro also offers crypto staking. Unlike other staking sites, eToro does not force you to store your tokens for days or weeks. Instead, you may withdraw your tickets at will.
eToro also enables you to earn money from cryptocurrencies using two main products passively. First, you may invest in eToro’s innovative portfolio. Many portfolios concentrate on bitcoin, and your digital asset basket will be rebalanced and managed for you.
Second, if you enjoy the concept of crypto day trading but lack the time or understanding, eToro lets you duplicate an experienced investor’s position. eToro is available online or through its popular crypto app. In any case, eToro accepts fee-free deposits through debit/credit card, e-wallet, or bank transfer.
Trading or holding crypto for profit
A $10 minimum deposit
USD deposits are fee-free.
Licensed in the US, Europe, and Australia
Support for almost 60 cryptos
Stake for interest – no lock-up
Aqru – Staking, Interest, and Lending
If you want to generate passive income using cryptocurrencies, Aqru is the most refined platform. As previously said, Aqru is a reliable crypto lending platform with some of the best apps available.
For Bitcoin and Ethereum, the APY is 7%. Aqru also provides a 12% APY on stable coins. This contains DAI, Tether, and USD Coin. Aqru is unique in the market since all of its savings accounts are flexible.
You may request to withdraw your bitcoin tokens at any time. We also enjoy that your Aqru account is credited with your interest payments every day. You may then reinvest these payments to earn compound interest.
To start using Aqru, you may deposit digital tokens straight into the platform. You may also fund your account with USD, EUR, or GBP if you don’t have any cryptocurrencies. Bank transfers and debit/credit cards are accepted.
7% annual return on Bitcoin and Ethereum deposits
Stablecoins return 12% annually.
Accepts crypto and fiat deposits
No lock-up – withdraw at any moment.
The most excellent locations to earn Ethereum interest
This article covered ten proven ways to generate money using cryptocurrencies in 2022. A long-term HODLing investment plan, cryptocurrency savings accounts, and play-to-earn games are some of the finest approaches we found.
The most effective approach to profit from cryptocurrencies is to invest in potential digital assets that are just getting started.
This allows you to invest in the project’s token at a discount. Lucky Block, which is transforming the worldwide lottery sector, is the most acceptable initiative for this goal.