Since the advent of cryptocurrency, we’ve heard plenty of stories about crypto millionaires — rags-to-riches stories are intriguing and inspiring at the same time. Check out these methods by which people have struck it rich with cryptocurrency and continue to earn in the crypto ecosystem.
Check Out: In 5 Years, These 2 Stocks Will Be More Valuable Than Apple
Read Next: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
Wealthy people know the best money secrets. Learn how to copy them.
1. Investing
Investing in one or more cryptocurrencies essentially means buying the asset and holding on to it until it appreciates. This is probably the most familiar path to building wealth in crypto since it largely mirrors what investors do in familiar markets like real estate or securities.
Learn More: 10 Things You Should Do When Your Child’s 529 Account Reaches $20,000
Steven Stack is a financial consultant and financial coach who’s made quite a bit via crypto investing. He’s reallocated some of the funds into the stock market and is currently sitting on unrealized gains to minimize his tax liabilities. His tip to crypto investors just starting? “Determine beforehand how much you’re willing to risk and target amounts to take gains or losses.”
2. Memecoins
Though this is not the most common route to crypto riches, it’s one way to earn money with crypto. Glauber Contessoto is a Brazilian immigrant who was struggling as a music producer when he became a crypto millionaire. In 2021, he went all in on a meme-based cryptocurrency, Dogecoin, and shortly thereafter became a millionaire.
3. Mining
Cryptocurrency mining is the process of validating transactions on a blockchain network and adding them to the distributed ledger or blockchain. Peter Saddington was one of the early adopters of Bitcoin and later became an Ethereum miner, allowing him to make millions in crypto.
4. Trading
Trading means that you’ll buy or exit positions in a short period of time. This can be accomplished through day trading or swing trading. Both activities require traders to engage and sell cryptocurrencies on a short-term basis to capitalize on price fluctuations.
Youssof Altoukhi is a young crypto trader who became a crypto millionaire before he turned 18. He’s also the CEO of the $YCO cryptocurrency and his own social media marketing agency.
5. Participate in the Crypto Economy
There are several ways to make money in the crypto world beyond investing, memecoins, mining, and trading. For example, many millionaires have been made by creating crypto-adjacent technologies and companies, like wallets, exchanges, or blockchain-based applications. Another option is creating your own cryptocurrencies or tokens, which could take off anytime.
Bottom Line
The allure of cryptocurrency has attracted many curious participants who’ve made money in various ways with the new financial technology. In addition to investing and trading, participating in the broader crypto economy by developing blockchain technologies like wallets, exchanges, or even creating new cryptocurrencies offers many ways to generate income in the crypto space.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: I Made $10K With Cryptocurrency: Here’s What I Did