5 Ways People Make (or Lose) Money with Crypto
May 22, 2025
Make Money with Crypto: If you’ve scrolled through Twitter or Reddit lately, you’ve probably seen crypto success stories that sound almost too good to be true. That’s because… often, they are.
Sure, you can make money with crypto—but not without understanding the risks and the reality behind the hype. Let’s walk through five common strategies, what they involve, and why most people end up losing instead of winning.
1. Buy and Hold (a.k.a. “HODLing”)
What it is:
You buy a well-known cryptocurrency like Bitcoin or Ethereum and hang onto it long-term, riding out the ups and downs in hopes of a future price boom.
Why people try it:
It’s simple, passive, and doesn’t require constant attention or technical skills.
What to watch for:
Volatility. Long-term holding only works if the project survives—and thrives. Many altcoins never recover from crashes.
2. Make Money with Crypto: Trading (Day or Swing Trading)
What it is:
Buying crypto at low prices and selling when it goes up. Some traders hold for minutes, others for days or weeks.
Why people try it:
High potential for fast profits—especially in a volatile market.
What to watch for:
You need time, tools, discipline, and knowledge. Emotional trading and bad timing wipe out many portfolios.
3. Staking and Yield Farming
What it is:
Locking up crypto (staking) or providing liquidity (farming) in return for rewards or interest, usually on DeFi platforms.
Why people try it:
Passive income sounds attractive, especially when rates outpace traditional banks.
What to watch for:
Smart contract bugs, project failures, and scams like rug pulls. High returns = high risk.
4. NFTs and New Project Speculation
What it is:
Buying digital art, collectibles, or new altcoins in hopes they skyrocket in value.
Why people try it:
Some NFT flippers and early altcoin buyers have made huge profits—fast.
What to watch for:
This market is unpredictable and often hype-driven. Most projects flop. It’s a gamble, not a plan.
5. “Set and Forget” + Diversification
What it is:
Buying a balanced mix of cryptos, including stablecoins, and doing… nothing. Just letting time do the work.
Why people try it:
It reduces stress and avoids the trap of over-trading. Works well for long-term believers.
What to watch for:
Patience is key. This strategy can feel boring or frustrating in the short-term, especially during market downturns.
Final Thoughts: Should You Try to Make Money with Crypto?
Here’s the honest answer: Yes, it’s possible to profit from crypto. But most don’t. The strategies above can work—if you’re cautious, informed, and ready to ride out turbulence.
If you’re going to try it, start small, get educated, and remember: this is a high-risk game, not a guaranteed payday.
So yeah, you can make money with crypto. But whether you will? That depends on how well you play the game—and how prepared you are when it all goes sideways.
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