Skip to content
Home » Recent posts » 18 different ways to make money in defi, crypto, and the metaverse

18 different ways to make money in defi, crypto, and the metaverse

18 different ways to make money in defi, crypto, and the metaverse

Liquidity provider or taker

A crypto liquidity provider is an individual or entity that supplies liquidity to the market by placing buy and sell orders at different price levels. They typically have a large volume of assets and are willing to buy or sell at the prevailing market prices. By providing continuous liquidity, they help ensure that there are enough buyers and sellers in the market for smooth trading.

On the other hand, a crypto liquidity taker is someone who takes advantage of the liquidity provided by the liquidity provider. They execute market orders to buy or sell cryptocurrencies and rely on the available liquidity in the market to complete their trades. Liquidity takers do not usually provide liquidity themselves but instead rely on the liquidity providers to fulfill their trading needs.

Digital asset borrower or lender

A crypto digital asset borrower is an individual or entity that borrows digital assets from others for a specific purpose, such as short selling or leveraging their trading positions. Borrowers typically pay an interest fee to the lender for the duration of the loan, and they usually provide collateral to secure the borrowed assets.

On the other hand, a crypto digital asset lender is someone who lends their digital assets to borrowers in exchange for interest payments. Lenders provide their assets to borrowers with the expectation of receiving their assets back along with the agreed-upon interest. Lending digital assets can be a means for individuals to earn a return on their holdings without actively trading or investing them.

Leverage trading longer or shorter

Crypto leverage trading allows traders to amplify their exposure to price movements by using borrowed funds, commonly known as leverage. In this context, a leverage trading longer refers to a trader taking a long (buy) position on a cryptocurrency with borrowed funds. This means that the trader is expecting the price of the cryptocurrency to increase, and they aim to profit from that upward movement.

On the other hand, leverage trading shorter refers to a trader taking a short (sell) position on a cryptocurrency with borrowed funds. This means that the trader is expecting the price of the cryptocurrency to decrease, and they aim to profit from that downward movement. Selling short allows traders to potentially profit from the decline in value of an asset.

Leverage trading can be a high-risk strategy as it magnifies both gains and losses. Traders should exercise caution and have a good understanding of the risks involved before engaging in leverage trading.

Bond trading

Crypto bond trading refers to the buying and selling of bonds using cryptocurrencies as the underlying assets. Bonds are debt instruments that are issued by governments, municipalities, or corporations to raise capital. In traditional finance, bond trading involves using fiat currencies and taking ownership of physical or digital bond certificates.

With crypto bond trading, the ownership of bonds is recorded on a blockchain, typically using smart contracts. These digital bonds can be bought and sold using cryptocurrencies like Bitcoin or Ethereum. Blockchain technology enables more transparent and efficient bond trading by providing a decentralized and immutable ledger for tracking ownership and facilitating transactions.

Crypto bond trading can offer certain advantages, such as increased liquidity, faster settlement times, and potential global accessibility. However, it is worth noting that this market is still relatively nascent and may carry risks associated with digital assets and the overall volatility of the crypto market. Investors should conduct thorough research and exercise caution when engaging in crypto bond trading.

Option trading

Crypto option trading refers to trading options contracts based on cryptocurrencies as the underlying assets. Options are financial derivatives that give traders the right, but not the obligation, to buy or sell the underlying asset at a predetermined price within a specified time period.

In the context of crypto, option trading allows traders to speculate on the price movements of cryptocurrencies without owning the actual assets. Crypto options can be used for various strategies, including hedging existing crypto positions, generating income through premium selling, or speculating on the price direction of cryptocurrencies.

There are two primary types of crypto options: call options and put options. A call option gives the holder the right to buy the underlying cryptocurrency at a predetermined price (known as the strike price) before or on the expiration date. On the other hand, a put option gives the holder the right to sell the underlying cryptocurrency at the strike price before or on the expiration date.

Crypto option trading can be complex and carries inherent risks, including the potential loss of the premium paid for the option. Traders need to have a good understanding of options trading strategies and the underlying crypto market dynamics before engaging in crypto option trading. It is advisable to seek professional advice or conduct thorough research before entering into options trades.

Yield farming

Crypto yield farming, also known as liquidity mining, is a practice in decentralized finance (DeFi) where individuals or investors actively participate in providing liquidity to decentralized platforms. By doing so, they can earn additional cryptocurrency rewards, commonly referred to as yield or farming rewards.

Yield farming involves depositing your cryptocurrencies into smart contract-based platforms, like decentralized exchanges or lending protocols. These platforms use these deposits to provide liquidity for various operations, such as trading or lending. In return for providing liquidity, users receive additional tokens as rewards.

These additional tokens can be native tokens of the platform, governance tokens, or other tokens that represent a share of the platform’s earnings. The amount of rewards earned depends on various factors like the amount of liquidity provided and the duration of the participation.

Airdrops

Crypto airdrops are a marketing or distribution strategy used by blockchain projects or companies to distribute free tokens or cryptocurrencies to a specific set of users or the wider crypto community. Airdrops are typically utilized to promote a new cryptocurrency, gain widespread adoption, attract users to a platform, or reward existing users.

During an airdrop, participants usually need to meet certain criteria or complete specific tasks to qualify for the free tokens. These tasks can include activities like signing up for a platform, following social media accounts, referring new users, or holding a specific cryptocurrency in their wallets.

The airdrop process often involves registering with a project or company, providing a public wallet address for the token distribution, or fulfilling any other requirements specified by the airdrop organizers. Once the criteria are met, participants receive the allocated amount of free tokens directly into their wallets.

Airdrops can be an opportunity for users to obtain new tokens without having to purchase them, and it also allows projects to reach a wider audience or incentivize certain behaviors. However, it’s important for participants to exercise caution as airdrops can also be used as a tool for scams or to gain access to users’ personal information. It is advisable to carefully research the project or company behind the airdrop before providing any personal details or private keys.

Day trading digital assets

If you consider yourself a lucky individual or happen to be good at timing the market then day trading could be a good option for you. More advanced options can be used to maximize returns such as leverage trading. Leverage trading is very risky so please be sure to look into it and understand it fully before attempting it.

NFT investing and day trading

NFT (Non-Fungible Token) investing refers to the practice of purchasing, owning, and trading non-fungible tokens for potential investment returns. NFTs are unique digital assets that can represent ownership of various items, such as artwork, collectibles, virtual real estate, or even domain names.

NFT investing involves evaluating the potential value and demand for these digital assets. Investors might consider factors such as the reputation and popularity of the creators, the scarcity or uniqueness of the NFTs, and the overall market trends. NFTs can be bought and sold on specialized marketplaces, often using cryptocurrencies.

Investing in NFTs can be speculative and subject to volatility, as the value of NFTs depends heavily on market demand and subjective perceptions of their worth. Some notable examples of high-priced NFT sales have garnered significant attention in recent years. However, it is essential to conduct thorough research, understand the risks involved, and evaluate the long-term potential before making investment decisions.

As the NFT market is still evolving, investors should also stay informed about legal and regulatory developments in the space, as well as any technological advancements or industry trends that could impact the value and utility of NFTs.

RWA investing and day trading

This could include things such as fractional real estate investing. RealT for example is a blockchain based fractional real estate investment firm that allows people to invest in and own shares in real estate properties. Holders are sent their share of rent for any properties that are being rented out.

Another growing niche in RWA’s is the investments in real world stocks. There is a large demand for digital asset holders who are looking to diversify their crypto holdings into

Play to earn apps and games

Crypto play-to-earn apps and games are blockchain-based platforms that allow users to earn cryptocurrency or tokens by playing and engaging in the game or application. These platforms often incorporate NFTs as in-game assets with unique properties, which players can acquire, trade, or sell.

In play-to-earn games, users can earn rewards or tokens by completing tasks, achieving certain milestones, participating in multiplayer battles, or contributing to the game ecosystem in other ways. These rewards can then be converted into real-world value by exchanging them for cryptocurrencies or other digital assets.

The concept of play-to-earn has gained popularity as it provides an opportunity for users to monetize their time and effort spent in gaming or interacting with various applications. It can also enable individuals in regions with limited economic opportunities to earn income by participating in these platforms.

However, it’s important to note that the value of the earned tokens or rewards can be subject to volatility, and the success of play-to-earn platforms is influenced by factors like user adoption, longevity, and the overall demand for the associated tokens or NFTs. As with any investment opportunity, users should exercise caution, research thoroughly, and be aware of the associated risks before engaging in play-to-earn apps and games.

Move to earn and apps and games

“Move-to-earn” apps and games, also known as “play-to-earn” or “earn-to-play” apps and games, are blockchain-based platforms that allow users to earn cryptocurrency or tokens by engaging in physical activities or completing real-world tasks.

These platforms typically incentivize users to be physically active or perform certain activities by rewarding them with tokens or cryptocurrencies. By monitoring and verifying user activity or completion of tasks through various means (e.g., fitness trackers, GPS, or other tracking mechanisms), these apps and games can provide users with rewards based on their efforts and achievements.

Examples of move-to-earn apps and games can include fitness or health-related applications that reward users for meeting exercise goals, completing challenges, or participating in competitions. They can also encompass location-based games that require users to visit specific places or carry out specific actions to earn rewards.

These platforms leverage blockchain technology to ensure transparency, traceability, and immutability in tracking users’ activities and distributing rewards. Participants can then use the earned tokens or cryptocurrencies within the platform’s ecosystem, trade them on exchanges, or convert them into other digital or traditional assets.

As with any investment or engagement with cryptocurrency-related platforms, it is essential to exercise caution, research thoroughly, understand the associated risks, and evaluate the credibility and security of the app or game before participating.

Watch to earn apps and games

Crypto watch-to-earn apps and games are blockchain-based platforms that allow users to earn cryptocurrency or tokens by watching videos, ads, or engaging with content within the app or game. These platforms incentivize users to spend time watching or interacting with specific content by rewarding them with cryptocurrency.

Users typically earn rewards by completing specific actions such as watching a certain number of videos, interacting with advertisements, or engaging with sponsored content. The rewards can be in the form of tokens or cryptocurrencies that users can accumulate and potentially convert into other digital or traditional assets.

The use of blockchain technology ensures transparency and traceability in verifying user actions and distributing rewards. It also provides a decentralized and secure mechanism for users to interact with the app or game and receive their earnings.

Crypto watch-to-earn apps and games aim to monetize viewing or engagement behaviors and provide users with an opportunity to earn income or rewards by allocating their time and attention. However, as with any cryptocurrency-related platform, users should exercise caution, research thoroughly, and evaluate the credibility and security of the app or game before participating.

Crypto Mining

Crypto mining, also known as cryptocurrency mining, is the process of validating and adding new transactions to a blockchain ledger. Miners use specialized hardware and software to solve complex mathematical problems that validate the authenticity of transactions in a decentralized network.

In the context of cryptocurrencies like Bitcoin, mining involves creating new blocks on the blockchain by solving a computational puzzle. Miners compete against each other to solve these puzzles, and the first miner to solve it verifies the transactions and adds the new block to the blockchain. As a reward for their work, miners receive newly minted cryptocurrency coins or transaction fees.

Web 3 referral programs

You can earn digital assets through participating in referral programs. Just like regular businesses that offer commissions for converted leads, web 3 projects offer the same. In web 3 however referral programs earn the user digital assets, often the native token of the affiliate program one is participating in.

An example of a web 3 referral program that is free to join and earns users either Ethereum, Bitcoin, or Stable coin is UPM Network. UPM has one of the highest paying affiliate programs in the web 3 space. Partners of the UPM affiliate network earn from any leads they send to UPM Agency that place an order with them. Because some coverage orders can cost anywhere from $50-$100,000. The commissions earned can be quite lucrative.

Web 3 Developer

Web 3 is a rapidly growing industry with 1000’s of new projects entering the space each month. Each of these web 3 projects needs blockchain savvy developers to help create smart contracts and web 3 compatible dapps.

Founder/Creator

The web 3 niche is a new frontier. There are endless opportunities to create something and attract a community of enthusiasts around it. You can allocate a percentage of tokens to the team and conduct a free airdrop. If the token attracts value, you will have a share of the tokens that you acquired through your participation and creation of the project. Another option is to conduct a token sale and raise funds through an initial token offering. If you are going to do a token sale you may want to look into the Howey Test and how it relates to classifying digital assets as either a security or a utility.

HODL

One proven way to earn in the crypto space is to dollar cost average in and wait. At least this would work well for the most dominant crypto currency Bitcoin.