5 Best Ways to Earn Money with Cryptocurrencies 2026

Cryptocurrencies are currently in decline. The price of Bitcoin is currently around $24,000, but it fell below $18,000 in June, more than 70% below its all-time high. Despite this, it's worth noting that just over two years ago, one Bitcoin cost barely $5,000.

In addition to Bitcoin, other crypto assets have suffered similar market downturns, which has caused many investors to shy away from the cryptocurrency space. These price drops are particularly intense due to the current speculative nature of these assets, stemming, among other things, from the lack of a solid regulatory framework and understanding of the underlying blockchain technology.

However, even in these turbulent times, it's possible to achieve attractive returns with cryptocurrencies through some lesser-known methods, which we explain in this article.

How does the cryptocurrency business work?

The cryptocurrency business operates through various mechanisms and business models that leverage the unique characteristics of these digital assets. Here, I'll explain some key aspects of how this business works:

1. Cryptocurrency Creation and Issuance: Cryptocurrencies are created through processes such as mining (Proof of Work), where miners solve complex mathematical problems to validate transactions and create new cryptocurrency units as a reward. They can also be created through other methods like initial coin offerings (ICOs) or direct sales.
2. Exchange Platforms: Exchange platforms are fundamental to the cryptocurrency business, facilitating the buying, selling, and exchange of cryptocurrencies among users. These platforms charge transaction fees and can offer advanced functionalities like leveraged trading.
3. Wallets and Custody: Wallets are used to securely store, send, and receive cryptocurrencies. There are online, desktop, mobile, and hardware wallets, each with different levels of security and accessibility. Additionally, custody services offered by specialized companies help protect large amounts of cryptocurrencies.
4. Mining and Transaction Validation: In the case of cryptocurrencies that use Proof of Work (PoW), such as Bitcoin, mining is a competitive process where participants use computational power to validate transactions and secure the network. In return, they receive rewards in the form of new coins and transaction fees.
5. Blockchain Technology: The underlying blockchain technology is essential to the cryptocurrency business. It offers a public and decentralized ledger that securely and transparently records all transactions, without the need for intermediaries. This ensures the integrity of transactions and allows for complete traceability of funds.
6. Decentralized Applications (dApps): dApps are applications built on blockchains that offer a variety of decentralized services, such as smart contracts, decentralized finance (DeFi), games, and more. These applications allow users to interact directly with services and products without traditional intermediaries.
7. Investing and Trading: Many participants in the cryptocurrency business seek to profit through long-term investment in promising cryptocurrencies or through active trading on exchange platforms. Trading involves buying and selling cryptocurrencies based on price fluctuations to generate profits.

How to make money with cryptocurrencies?

Making money with cryptocurrencies can involve various strategies and methods, depending on the investor's risk profile and market knowledge. Here are some common ways to earn money with cryptocurrencies:

1. Buy and Hold (HODL): This strategy involves buying cryptocurrencies and holding them long-term with the expectation that their value will increase over time. Investors use fundamental and technical analysis to make buying decisions, hoping to sell when the price is higher.
2. Trading: Cryptocurrency trading involves buying and selling assets over short periods to capitalize on market fluctuations and make profits. It requires a good understanding of technical analysis and the ability to make quick decisions.
3. Staking: Some cryptocurrencies allow investors to participate in transaction validation and secure the network through staking. In return, stakers receive rewards in the form of additional cryptocurrencies.
4. Mining: Cryptocurrency mining involves using specialized hardware to validate and secure transactions on the blockchain network. Miners receive cryptocurrency rewards for their work, although this method can require a significant initial investment in equipment.
5. Interest and Lending: Decentralized finance (DeFi) platforms allow users to lend their cryptocurrencies in exchange for interest or borrow using their cryptocurrencies as collateral.
6. Participation in ICOs and IEOs: Investing in Initial Coin Offerings (ICOs) or Initial Exchange Offerings (IEOs) can be lucrative if a successful project is chosen. However, it involves significant risks due to the early and unregulated nature of the market.
7. Arbitrage: This involves taking advantage of price differences of an asset between different exchanges to make a profit. It requires speed and the ability to execute trades quickly.

Each of these strategies has its own advantages, risks, and technical requirements. It's important to thoroughly research and understand each method before deciding how to make money with cryptocurrencies, always considering the level of risk you are willing to take.

Next, we'll show you the 5 different ways to make money with cryptocurrencies

The most commonly used method: trading cryptocurrencies

Many investors aim to profit from cryptocurrencies by treating them as conventional financial assets. This means acquiring them and then selling them at a higher price.

This process is generally carried out through a centralized exchange (a currency exchange for converting fiat money to cryptocurrencies or vice versa) such as Binace, which custodies and allows you to exchange your cryptocurrencies for a fee.

But there are other ways to do it in a decentralized manner, such as the platform HodlHdl, where you can buy and sell cryptocurrencies using fiat money, with other users, without relying on any intermediary to custody the funds and without going through KYC/AML processes.

If you already own cryptocurrencies and simply want to exchange them for others in a 100% decentralized way, we recommend using a decentralized exchange like Uniswap. You can read more about how they work in this post.

The two main ways to earn returns through buying and selling cryptocurrencies are; holding (buying a cryptocurrency and keeping it for relatively long periods, with the expectation that its value will increase) and trading (buying and selling the cryptocurrency over short periods with the goal of generating partial returns).

It's worth noting that trading can generate profits even when a cryptocurrency's price falls (through traditional mechanisms like short selling). However, trading is a difficult and risky endeavor if you don't have the necessary knowledge and resources.

Ways to acquire cryptocurrencies without direct trading

Below, we'll outline some methods that can help you earn money without directly buying and selling cryptocurrencies.

Participating in the network's consensus protocol

First, we can directly participate in a blockchain's consensus protocol with the goal of receiving the next cryptocurrency halving as a reward for our contribution. To do this, we must contribute some type of resource to the network to help create blocks for the chain.

For Bitcoin (and all blockchains that use the Proof of Work protocol), we must first install client software (like Bitcoin Core) to run the network protocol.

Once the software is downloaded, you'll have a copy of the blockchain and thus the ability to participate in the network protocol by creating new blocks, becoming a mining node.

For each valid block we create, we'll be rewarded with the network's native token – for Bitcoin, that's bitcoin, and for Ethereum, it's ether.

However, it's important to note that this environment has become professionalized, and significant initial investments (in mining hardware) are now required to achieve enough processing power to compete with other nodes in creating blocks.

Given this scenario, there's also the option to combine computational efforts with other mining nodes through a mining pool. This pool distributes the earned rewards among all participants based on each individual's computational contribution, a common practice within the community.

For other protocols like Proof of Stake (networks such as Polygon already use it, and Ethereum 2.0 aims to), you also need to install initial software to become a validator node. However, unlike Proof of Work, the block creation process doesn't rely on computational power but on your financial contribution to the network – specifically, the amount of tokens you have locked in your wallet.

The greater the number of different types of tokens locked, the higher the probability of being chosen to create a block. Similar to Proof of Work, the block creator is rewarded with the network's native tokens.

Through DeFi

If we already hold cryptocurrencies, we can participate in various DeFi protocols with the goal of increasing our holdings through various financial instruments. DeFi (decentralized finance) protocols aim to replicate traditional financial protocols in a decentralized manner by utilizing blockchain, i.e., P2P (peer-to-peer).

There are different types of applications developed on DeFi protocols.

Some of the most well-known are Aave and Compound for decentralized lending. On these platforms, you can lend your crypto assets in a 100% decentralized way in exchange for a fee, just like a bank.

We can also participate in Uniswap or other similar decentralized exchanges (DEXs) through yield farming (providing liquidity to a DEX pool in exchange for a fee).

Another very interesting way to monetize our crypto assets is through Augur, a decentralized prediction market that allows us to make predictions (“bets”) on various events related to sports, politics, the crypto market, and many more.

Finally, we can use the MakerDAO protocol, which allows us to take out loans in a 100% decentralized manner, using our crypto assets as collateral in exchange for a stablecoin with a 1:1 parity with the Dollar. This way, we could leverage a cryptocurrency and operate through some of the strategies or protocols mentioned above.

Other ways to earn money with cryptocurrencies

We can get different cryptocurrencies and use them for free!

By investing in real estate-backed tokens

If you're looking to diversify your investment portfolio with tokens backed by real assets like real estate, and achieve returns exceeding 14% annually, Domoblock has the solution for you.

Domoblock thanks to real estate tokenization offers a new form of investment through real estate crowdfunding, making real estate investment easier and more affordable, accessible to anyone regardless of their capital or location.

Investors like you can benefit from recurring income, increased liquidity and capital efficiency, constant cash flows from rents and capital gains on revalued properties, all 100% digitally and with just a few clicks.

Thanks to blockchain technology, Domoblock digitizes the investment value of a real estate project and represents it in token form, democratizing access to real estate investment. You no longer need large capital to invest in the real estate sector; thanks to Domoblock, you can do so with a minimum capital of just €200.

Crypto investors can invest in tokenized real estate as a strategy to protect their portfolio during market downturns or diversify into more stable assets with a better risk/return ratio, while retaining all the properties offered by blockchain technology.

How do you cash out cryptocurrencies?

To withdraw money from cryptocurrencies and convert it into fiat currency (cash), you can follow these general steps:

1. Registering on an exchange platform: You need to have an account on a cryptocurrency exchange platform that allows withdrawals in fiat currency. Some popular platforms include Coinbase, Binance, Kraken, among others.
2. Account verification: Complete the account verification process on the exchange platform. This generally includes identity verification and other procedures necessary to comply with the platform's regulations and security standards.
3. Depositing cryptocurrencies: Transfer your cryptocurrencies from your personal wallet or any other platform to your account on the exchange platform.
4. Selling cryptocurrencies: Once your cryptocurrencies are on the exchange platform, proceed to sell them for the fiat currency of your choice (such as USD, EUR, etc.). This is done through the platform's trading or selling function.
5. Withdrawing funds: After selling your cryptocurrencies for fiat currency, you can withdraw the funds to your linked bank account. The exchange platform generally allows you to set up a bank account for these withdrawals.
6. Withdrawal process: Initiate the withdrawal process on the exchange platform, following the provided instructions. You will need to specify the amount you wish to withdraw and confirm the transaction.
7. Processing time and fees: Please note that the time it takes to process the withdrawal and the associated fees may vary depending on the platform and the chosen withdrawal method (bank transfer, debit card, etc.).

It is essential to use a reliable and secure exchange platform to ensure your funds are protected throughout all stages of the process. Additionally, consider local tax implications and make sure to comply with any tax reporting requirements that may apply to profits earned from cryptocurrencies.

Conclusion

It is clear that there are numerous ways to earn money through cryptocurrencies today. However, it is important to mention that the key to success in our investments will largely depend on the decisions we make.

Therefore, it's important to have a solid investment strategy that suits our financial situation and risk tolerance, to invest with a long-term perspective (anyone who tells you they'll make you rich overnight is deceiving you), and to diversify your investment portfolio into financial products based on sound projects.

In this regard, what is mentioned in this article is not investment advice, but rather different ways to achieve a return that go beyond mere commercialization.

Personally, I think it's interesting to learn about all these and other ways to get an extra return on our savings in a continuously growing and expanding market, to try those that we find most interesting and that suit our investor profile, and of course always invest in financial products we understand, using capital we don't need for our daily lives.

Written by Jorge Infante Specialized blockchain writer