Recently, I’ve been thinking about a question: how does cryptocurrency make money? A lot of people think it’s just buying and selling coins to profit from the price spread, but it’s actually far more than that. This market is still in a “blue ocean” phase, with plenty of opportunities—what matters is finding a way that fits you.

I went through all the ways I could think of to make money—roughly a dozen. Some are completely free, but they take time. Others require you to put in money, but their returns are also more stable. No matter which one it is, if you can make money and it suits you, it’s worth trying.

Let’s start with the simplest ones. Airdrops are basically tokens that project teams give away for free. There are two ways to play: one is to complete tasks actively—such as registering an account or interacting on-chain—in order to receive the tokens. The other is to simply wait passively: as long as you hold a certain coin, you can automatically receive an airdrop. For example, people who held Bitcoin in 2017 received BCH airdrops, and after Ethereum’s merge in 2022, holders also received ETHW. This method is especially suitable for beginners—since you don’t need to invest any money, just spend some time. Back when “farming” airdrops was mostly an individual effort, it’s not really like that anymore. Many teams are now doing it at scale. Following some KOLs on social media or joining Telegram groups can help you quickly spot high-quality projects.

X to Earn is also quite popular—it means earning coins by completing tasks. This includes Play to Earn, Move to Earn, Watch to Earn, and other formats, mainly in the GameFi space. Projects like Axie Infinity and STEPN are examples. The operation is simple: prepare a wallet, connect it to the project’s official website, and you’re good to go. This approach combines entertainment and earnings, making it especially appealing to gamers. But keep in mind that as participation increases, rewards tend to decrease, and the project itself can be manipulated by guilds.

SocialFi combines social networking with finance. You earn coins through social activities like creating content, interacting, and liking. If you’re a creator, you can publish content on certain platforms to receive fan tips. Regular users can also earn platform tokens by sharing and engaging. This is more friendly to KOLs and social influencers, and the barrier to entry is low—but token prices are often not very ideal, and it’s hard for lesser-known creators to get tips.

NFTs are another angle. Some well-known NFT projects really have made a lot of money. Individuals can also create NFTs and sell them on platforms. You just need to prepare original works and a wallet, then connect to platforms like OpenSea or Rarible to upload. But this method also comes with risks: there may be nobody buying, and in some countries there are legal restrictions involved.

If you want more stable returns, mining is an option. Mining with mining rigs means using professional equipment to mine coins like Bitcoin and Litecoin. You can buy your own mining rigs and place them where electricity is cheaper, or you can outsource/host them with a third party. This method produces relatively stable output and is a form of passive income, but the payback period is long, the upfront costs are high, and you also need to consider legal risks and electricity costs.

DeFi mining doesn’t require mining rigs—it’s about contributing to decentralized finance, such as providing liquidity, collateralized borrowing/lending, and earning rewards in the form of virtual currency. For people with professional financial knowledge, the rewards can be quite substantial, but the risks are also high. You need to deeply understand all kinds of risk factors, or you could easily be liquidated if prices crash.

“Saving coins to earn interest” is more conservative. It’s similar to bank deposits: you deposit your coins on a platform to earn interest. Some large exchanges offer products like this, with flexible withdrawals for “savings”/on-demand (you can withdraw anytime), and fixed-term products where you can only withdraw after maturity. This method is easy to operate, has lower risk, and is especially suitable for long-term investors—but the returns are indeed limited. Sometimes even the interest can’t fully offset losses from a drop in coin prices.

When it comes to how cryptocurrency makes money, the most direct approach is still buying low and selling high—spot trading. That means buying and selling coins on an exchange to profit from the price spread. If you can hold coins for the medium to long term, the risk is lower. But if you’re chasing short-term swings for trading, the risk is much higher—especially when the market is falling, where you can end up losing badly. This method has a low barrier to entry, but it requires a certain amount of trading knowledge and patience.

Futures contracts are much more “exciting.” You only need a small amount of margin to open leveraged trades, and you can go long or short. This is a high-risk, high-reward strategy: you may be able to profit quickly, but you could also get liquidated and lose your principal—so it requires very strong psychological resilience.

Finally, there’s arbitrage—making money by exploiting price differences between different exchanges. The same coin can have different prices on different platforms. When the price spread is big enough, buy where it’s cheaper, then immediately transfer it to where it’s more expensive to sell. But you need to calculate carefully: the price difference must be enough to cover trading fees and withdrawal fees; otherwise, you’ll end up losing money instead. This method has lower risk and relatively stable returns, but opportunities are fewer and you need to react fast.

Overall, there are many ways to make money with cryptocurrency. The key is to find the one that suits you. Some people have plenty of time and can go for airdrops. Some have enough capital to consider mining. Others with trading experience can focus on spot or contracts. Most important of all is to understand the risks and returns of each method and don’t blindly follow the crowd. BTC is currently around $76,050, ETH is $2,080, and DOGE is $0.10. Market conditions change all the time—choosing the approach that matches your risk tolerance is the real way to go.