4 Ways I’m Making Money With Cryptocurrency

4 Ways I’m Making Money With Cryptocurrency

There’s no doubt it’s an exciting time to be alive. It’s also an exciting time to be investing into cryptocurrency. 

I was fortunate to start investing into crypto just over three years ago.

And there have been a few bumps along the way.  You know… like NOT selling Dogecoin when it soared above $.70 before Elon Musk’s Saturday Night Live performance

Despite that I’ve made some good profits. And, most importantly, I’ve had a lot fun learning more about digital currency.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Build a portfolio through a unique investing experience.
Public.com lets you invest in stocks, ETFs, and crypto with any amount of money. Share insights in a community and access a wealth of educational content.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas

Join Today

Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures.

Some of you are completely new to the crypto space. If that’s you – welcome!

In this post I’m sharing the 4 ways I’m currently making money with crypto. The fourth is the newest way and the one I’m most excited about. Why? Because it’s the most passive! More on that in a sec..

If you want to learn more about investing into cryptocurrency, and the four ways I am learning and earning, keep reading.

If you want even more details and a peek behind the scenes, check out the video on my Wealth Hacker YouTube channel:

By nature, I am typically a skeptic, especially when somebody shares something that ‘has worked for them’. Maybe it was a diet, maybe it was some sort of new investment strategy, a new app, or a new software program. I don’t care what it is.

I Was Such A Skeptic!

When I hear those words my brain goes through a certain B.S. filtering process which typically asks this question:

Okay, so maybe they had success with it…. BUT… what is it about their story or situation that made it work for them? 

Anyone relate to this?

With cryptocurrency, I was a huge skeptic. 

I had so many people commenting on my YouTube videos back in 2017 ‘saying such things as “You need to get into crypto!”, “You’re missing out!”, “Crypto is the future!”,  blah, blah, blah.

From what I could tell, most of these people had no idea what crypto even was. They just saw it as an opportunity to get rich.

This was more of the tame comments I received:

Bitcoin back then hit a high of around $19,000 and then it dropped down to under $3,000. That is when I finally decided I was going to stop being a skeptic or a critic.

I decided to educate myself, to become a student of crypto. That’s when I made my initial purchase of Bitcoin and joined the HODL Army.  The rest, as they say, is history.

Here’s how that initial Bitcoin grew into the other ways I’ve making money with crypto. You can also listen to the 4 ways on the Good Financial Cents podcast here:

1. Buy and Hold

The first way is the traditional way that you make money with all types of investments – buying and holding. If I’m going to buy Bitcoin or any cryptocurrency, the belief was, and still is, I’m buying this because I believe in the technology.

I believe this has the potential to be something big. And if that’s the case, then I’m in it for the long haul.

Okay, maybe I wasn’t there immediately. I first had to test it out. I did this by opening an account with Coinbase. This is where I made my initial purchase of Bitcoin which was made in March of 2018.  I was so excited about the purchase I even took a screenshot:

Bitcoin to the Moon!

Now from there you’re probably guessing I dove in “full send” style and began buying crypto like crazy. It was actually just the opposite.

It wasn’t until November of 2019, almost two years later, I made my second purchase of Bitcoin.an $8,000-$9.000 purchase, another $10,000 at the end of November and then a $20,000 purchase in January of 2021. I also purchased Etherium with my BlockFi account. I was using some of my BlockFi  interest payments to purchase small, incremental purchases of Etherium. Finally, in the later part of last year, I made a substantial purchase with $50,000 of Etherium. 

2. Cryptocurrency, Plus Interest

The second way that I’ve made money with crypto, which I’m still excited about, I’m totally pumped about is by earning interest through stable coins, or what are referred to as cryptocurrency savings accounts. 

BlockFii is the one that I started with and how all this came to be.  I kept hearing about cryptocurrency savings accounts and decided it was time to give it a try.  My savings account at my bank was paying me pennies on the dollar where BlockFi is paying  5-8% interest, depending on the cryptocurrency you hold. 

It’s going to take me 37 years to get even close to what I’m currently making in my crypto savings accounts, with my savings account at my bank. 

BllockFi is not the only cryptocurrency exchange that does this, that pays an interest on either the stable coins and or holding certain cryptocurrencies with them. A buddy of mine that I had on the podcasts – Episode 102, spoke very highly of Celsius. I did my research and ended up opening a Celsius account. Right now at Celsius, stable coins are paying over 10%, I think a little bit higher on Bitcoin and also Etherium. 

The big difference with Celsius versus BlockFi, is that instead of paying you monthly, they pay you weekly. So at the time of this post, I have about $100,000 Celsius and for the very first week I received an interest payment of $103.41 

In my bank savings account with $330,000, I made $2.88 for the entire month Now, that being said, with a savings account at the bank you have FDIC protection. With an exchange like Celsius or BlockFi there is no guarantee. You could put $25,000 in there and it could be gone tomorrow, that is the risk. 

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Diversify your portfolio with Cryptocurrency Investments
Online trading platforms offer a wide variety of cryptocurrencies for trading. Click below to start investing today!

Start Investing

3. Trading

Obviously I can rally behind buying and holding and I can rally behind the cryptocurrency savings account. If you are new to crypto, this is one way that I would not suggest and really something I shouldn’t even be messing with. And that is trading cryptocurrency. Now I’m not talking about day trading. I have no interest in sitting behind my computer and checking charts and candle sticking and whatever day traders do, I mean, I don’t even have the terminology down like that. That’s how much I know about day trading. 

I have experimented with this before, I made some money and I also lost a lot of money. It all happened really, really quick. So if you’re not able to sit behind a computer or just have access on your phone, you know, basically being tied to your phone, monitoring all this like this is not something that I would ever suggest.

That’s not what I did. 

And I don’t think I really initially meant to do this per se. But what happens when you take a look at cryptocurrency, any cryptocurrencies, you see how volatile it can be. Why wouldn’t I buy at the dip and then sell at the high?  It is so easy to get this confidence whenever you look at any sort of chart, stocks, ETFs, crypto, and you can just see this pattern. 

So I thought, I can do this. I considered it and decided against it. 

But what ended up happening was I bought Doge in my Robinhood account at 14 cents per coin, I put in $20,000. Fast forward, it wasn’t that much longer. Doge shot up to 75 cents a coin. I had a profit on paper and I realized again, on paper a $75,000 profit on a $20,000 investment in about 90 days, if I recall the time frame. 

At that time, I believed I would have had to pay short-term capital gains if I sold. I was not familiar with the tax rules that have to do with crypto. I’m almost embarrassed to even admit this out loud. With cryptocurrency, as of right now, this is most likely going to change, the SEC or the IRS or any governing body does not recognize crypto as a security. The wash sale rule does not apply!

You can’t do that with stocks, you can’t do that with mutual funds or ETFs because of the wash sale rule.  It basically says if you sell something and you want to realize that gain, you have to wait at least 30 plus days to get back in. 

I’ve since sold some of those positions and bought Bitcoin and Etherium when the price dropped. I took advantage of this with my RobinHood account, BlockFi, and I think also in Coinbase.

But as I keep saying, like this is not the strategy that I want to suggest and one that I just don’t feel comfortable, even recommending. Unless you’re an active trader and you want to monitor this day in and day out, then it is all based on a hunch. That’s pretty much what I was doing. I know that long term that is a surefire recipe for disaster. So yes, I’ve had some nice wins. But eventually I’m going to get burned.

4. Grid Trading with Bots

Then lo and behold, I get a text from a friend of mine that starts sharing with me this strategy that somebody else turned him on to and that he’s been testing himself. Which is number four, utilizing bots, and setting up bots for grid trading.

I never thought of myself as a guy who was interested in setting up bots. If you have no understanding of how it works, that sounds like a lot of work, it sounds hard.

My buddy, who is not nearly as much into investing as I am, figured it out. He was seeing some really nice success with it. He shared this training program so I signed up.  I devoured every second of this hour and a half long program. 

After that, I am interested. I’m not saying I’m sold, but to say I’m interested means that I’ll play, I will set up a bot and through this process.  Grid trading is a trading method that consists of placing a bunch of buy and sell orders at predefined intervals around a fixed price, which I’m just reading the definition. 

If you could think of it like this, let’s say that Bitcoin is trading at $55,000 and you can see that that price goes from 55,000, up to 57, and back down to 53. When you set up this bot within this grid trading platform, you’re putting in basically all these different limit orders. When the price goes up, you buy a small percentage, depending on how much you have invested, but it could be like making a $25 to $50 purchase, as it goes up you would sell and as it goes down you would buy. When it goes back up, if there’s a profit then you would sell and then lock in that profit. 

Basically what the key here is, the more that the coin fluctuates the more transactions are taking place, hence, more profit generating. 

So in this case, when you’re setting up these, these trading bots doesn’t have to be Bitcoin, you can choose almost any single coin that you want. So at the time of this recording, so I keep saying this grid trading software, so 

I am utilizing a software program called Bitsgap, to set up an account. I’ve set up two different exchanges. I put $5,000 in one bot and then $5,000 in another. I have about $40,000 invested into eight different bots. Another cool feature with this Bitsgap software is that you can set up demo bots how it would perform. 

I’ve tested several. I set one demo up and nine days later I was up 7.12% on $5,000. So basically taking advantage of the volatility, the highs and lows, and just going up and down. I’ve made 11.09%. So $556, just on the bot trading, like that is huge. Now unfortunately, that’s not real money. But now I feel comfortable putting some real money in it. 

n, I do want to put more money into this, especially right now. I just think there’s like so many uncertainties with the stock market and with low interest rates and no sign of that ever changing anytime soon. It’s like man, how do I maximize what I have currently sitting that isn’t making anything. And that’s where I’m looking at this, these grid bots. And once again, 

I can’t  take credit for this, there is no way I would have been able to do this without watching  Dan Hollings webinar. Now as I watched this webinar, I just got really, really excited. And if you are interested, excited, maybe interested to learn how it works. Not saying that you’re ready to dive in, you’ve got to check out this training that Dan does.

Once again that link is going to be wealthhackerlabs.com/theplan. 

As I continue to dive more into this, I’ll share more on the podcast, the YouTube channel (where you can see some tutorials), and possibly more here on the blog.

This is much easier to do in a video format where I can share my screen (check out the video above) so you can see what I’m doing, how I’m doing it and to help you make sense to help myself also make sense of what is going on. But it is really, really cool. 

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Create your cryptocurrency portfolio today
Coinbase has a variety of features that make it the best place to start trading. Start investing today!

Get Started

The post 4 Ways I’m Making Money With Cryptocurrency appeared first on Good Financial Cents®.


Leave a Reply

Your email address will not be published. Required fields are marked *