Here are some different ways to make money by cryptocurrencies:

Yield farming

Yield farming is for earning rewards by investing in a liquidity pool. If you’re unfamiliar with liquidity pools, let me provide you with a simple explanation.

You deposit $1,000 worth of Ethereum (ETH) and $1,000 of a stablecoin like USDT into a liquidity pool.

Traders then use these assets to exchange between ETH and USDT. In return for providing liquidity, you receive a share of the trading fees generated on the platform.

Additionally, the platform may reward you with its native tokens. For example, if you use PancakeSwap, you could earn CAKE tokens as a reward.

Over time, you can withdraw your initial ETH and USDT deposits along with the rewards you’ve accumulated.

Airdrops

You can receive free airdrops from blockchain projects. If you’re unfamiliar with airdrops, here’s a simple explanation:

For example, CryptoBird, a new blockchain project, distributes free tokens to participants as a way to promote its platform or attract early users.

To earn these tokens, you typically complete simple tasks like signing up, following their social media accounts or trying out their app.

Once you finish the tasks, CryptoBird sends 50 BIRD tokens directly to your crypto wallet.

If the project gains popularity in the future, the value of your BIRD tokens might increase. You could then sell them for a profit or use them within the platform.

Affiliate and Referral Programs

You can earn money through affiliate and referral programs. Here’s a simple explanation:

Affiliate and referral programs work like a “refer-a-friend” system.

If someone signs up using your referral link and starts trading, platforms like Binance and Koinpark reward you with a percentage of the trading fees — often around 10%.

Crypto Lending

You can earn through crypto lending. Here’s a simple explanation:

Crypto lending allows you to lend your cryptocurrency on platforms like Aave.

For example, you deposit your Bitcoin (BTC) into Aave’s lending pool. Borrowers can access your BTC by providing collateral and paying interest.

Aave collects this interest and shares it with you as the lender.

Over time, you earn interest in BTC. When you withdraw, you receive your original BTC and the interest you’ve earned.

Token sniping

You can earn through token sniping.

Here’s a simple explanation:

When a new token, like “MoonCoin,” launches on a decentralized exchange (DEX) such as PancakeSwap, you use a sniping tool to monitor token launches.

This tool allows you to buy MoonCoin immediately when it becomes available, often faster than manual buyers.

You purchase the tokens at a low price, and as other traders start buying, the price increases. You then sell your MoonCoin tokens at a higher price, making a profit.

However, token sniping comes with risks. Some tokens may lose value quickly, or the project could become a scam (rug pull). Always research the project thoroughly and proceed with caution before investing.