How To Earn Interest On Cryptocurrency

How To Earn Interest On Cryptocurrency

Currently, the Crypto market is on strong growth momentum, which is a great opportunity for potential investors to generate income online if they have the right approach. In the following article, Entrepreneurship Life will share ways you can earn interest in crypto even with 0 (or very small) capital.

Understanding Centralized vs. Decentralized Finance

What Is DeFi?

DeFi (or open finance) in which institutions, markets, or financial instruments are managed decentralized. DeFi always comes with “Non-Custodial”, that is, no trust. Thanks to this feature of DeFi, we often call it Open Finance or open finance.DeFi also includes activities similar to CeFi. 

What Is CeFi?

CeFi is centralized finance, in which components such as institutions, trading markets or instruments are centrally managed. Contrary to DeFi, CeFi always comes with the phrase “custodial” or trust, that is, financial assets, products, and services will be entrusted to an organization.

Advantages of CeFi:

  • Familiar, accessible.
  • Protected by laws & institutions.

Drawbacks of CeFi:

  • Must go through a 3rd party intermediary.
  • High cost.
  • Transparency issue.
  • Not for everyone.

Best Ways to Earn Interest in Cryptocurrency

Buy and Hold Coins

This is the most popular way of making money from cryptocurrencies. Most investors will buy coins like Bitcoin, Litecoin, Ethereum, Ripple, etc. And wait until their value increases they will sell to take profit.

This investment strategy requires identifying highly liquid assets that can easily increase in price leading to profits. Assets like Bitcoin and Ethereum have been known to appreciate in the long term hence it can be considered a safe investment in this respect. However, you can hold any asset that you feel will increase in value, all it takes is a thorough analysis of each asset you intend to invest in.

Also, you don’t need to buy the most expensive coins to make a profit. There are thousands of small Altcoins that promise price swings, you can also create a portfolio with multiple token combinations.

Earn Crypto Dividends

You can buy cryptocurrencies and hold them for dividends. There are several currencies you will get paid for when you buy and hold them. The best thing about this for holders is that you don’t even have to stake them, just hold it in the wallet.

Just like common stocks, not all of these currencies are right for your portfolio; You will need to analyze and choose a good fit for your investment goals. Some examples of coins that pay dividends include COSS, CEFF, NEO, KUCOIN, etc.

Trade Crypto

More than 80% of investors believe that the highly effective way to make money in the crypto space is through trading.

But to become a trader with a high win rate requires a lot of skills, but the most important is fundamental analysis and technical analysis. Along with that, capital management and emotional management are essential for a trader, it will reduce the pressure when trading and limit making wrong decisions.

There are many different types of traders, in addition to day traders, you can still be swing traders, this is a school of using large time frames like weeks to do technical analysis and make trading decisions. Trading in crypto is another job to earn extra income.

Working for Crypto companies

Any person can work for a cryptocurrency company in multiple positions. You can be a digital marketer, content creator, web designer, and much more. All you do is identify the hiring need and show them how your skills fit the job.

The best thing about working on crypto projects is that you can work remotely, giving you the flexibility to work with your current lifestyle. Also, most of the companies operating in the crypto space offer very competitive salary schemes and if you happen to see a job opportunity in front of you, don’t hesitate to take it.

Participate in Trading Contests

The cryptocurrency market often takes place in a lot of trading-related competitions with extremely attractive rewards. Popularity contests will involve trading, the person with the highest win rate will be the winner.

To register for the contest in the first place, you must have a live account for the organizing platform. The account will also require minimum capital. From that capital, you will invest and trade in such a way that the profit rate is the highest. There are some contests, the capital used will be by you using personal money, but there are also times when the Organizer will grant a free amount of money to use.

To win the competition you need a lot of skills and knowledge for crypto so learning is never superfluous. In addition to the attractive prizes, through the competition, you will also learn a lot of valuable experience.

Cryptocurrency Faucet

Bitcoin faucet is a reward system in the form of websites and apps. These Bitcoin faucets will distribute rewards in the form of a satoshi, a unit of Bitcoin’s currency, to visitors who have completed the captcha or task requested by the website. There are also faucets that also distribute tokens or other coins such as Dogecoin, Ethereum, etc.

This activity is that you will perform the captcha or task of the website and will have a pre-specified time period. When completing the task assigned by the system, you will receive a reward, possibly in the form of Bitcoin’s Satoshi, but the amount is not fixed because of the volatile exchange rate of Bitcoin.


Above is the difference between DeFi and CeFi, as well as 5 ways to make money from Crypto that Entrepreneurship Life suggests to help newcomers gain access, increase knowledge as well as have the opportunity to earn income. The more the blockchain market develops, the more online money-making segment always comes, and opportunities always come to those who are really serious about what they do.

It seems that making money from cryptocurrency is not too difficult. As long as you choose the way that suits your desires and circumstances, focus on research, and make a small investment of time or money, you will get results.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.