Jasmine Birtles
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9 Ways to Make Money (And Lose It!) With Crypto in 2025
Ruby Layram
6th Feb 2025
One of the biggest queries that people have when they are first introduced to cryptocurrency is, “how do investors make money with cryptocurrency?” This is largely due to the astonishing returns and trading results that some eager traders share online.
But of course, just as many people lose money on crypto, so what strategies should you consider in light of this?
There are many ways to “make money” with crypto in 2025, from staking your coins to playing play-to-earn cryptocurrency games. While none of these methods guarantee profits, it can be to your benefit to learn what they are.
In this post, I will share 9 different ways that some investors might make money with cryptocurrency. Before we take a look, it’s important to understand that investing in cryptocurrency comes with significant risk.
According to Lending Tree, 38% of crypto investors lose money. Therefore, you should only invest with money that you can afford to lose.
1. Crypto Staking
Staking is like earning interest on your savings but with cryptocurrency. You lock up a portion of your coins in a blockchain network, and in return, you’re rewarded with more coins.
Here’ how it works
- Choose a staking platform: You can stake coins such as Ethereum through a wallet, centralised exchange or through the Ethereum 2.0 network.
- Lock up your coins: Commit your tokens to the network. This involves buying proof-of-stake coins and locking them up in a staking pool.
- Earn rewards: Sit back and watch your crypto grow as the network uses your staked coins to validate transactions.
The main appeal of crypto staking is that the income you earn is passive (for the most part). It’s similar to locking up your cash in a high-yield savings account – but for crypto!
However, there is no guarantee that the value of your crypto will stay the same while it is locked up. If the price of a coin drops when you have it locked away in a staking pool you will not be able to sell it.
2. Crypto Lending
Crypto lending is like playing the banker. You lend your cryptocurrency to borrowers through platforms like Aave or Compound and earn interest in return.
Here’s how it works:
- Choose a platform: Decide on a decentralised (DeFi) or centralised (CeFi) platform that offers crypto lending. Prioritise choosing a platform that offers robust security and has a strong track record (remember, your money is at risk!).
- Lend your crypto: Deposit your coins into the platform and follow the instructions to start lending – the exact process will differ between platforms.
- Earn interest: Receive payments regularly, much like a savings account.
Crypto lending often comes with higher interest rates than regular savings accounts. However, much like staking, there is a risk that the value of your crypto could drop whilst it is locked up.
3. Investing
Investing in cryptocurrency is simply buying and holding coins with the hope that their value will increase over time.
This is similar to buying growth stocks and holding them for a long period until it makes sense to sell them.
Much like growth stocks, some cryptocurrencies have the potential to provide long-term returns – just look at how much Bitcoin has grown in the last 10 years!
Finding these opportunities requires comprehensive fundamental and technical analysis as well as a solid investing strategy.
4. Trading
Trading is an advanced technique that is all about buying low and selling high.
It’s fast-paced and often likened to gambling – although, this depends on the strategy that is used to place trades.
Traders make a profit (or loss) from the difference between the price that they buy and sell cryptos for. This involves conducting thorough analysis to spot cryptocurrencies that could go up in value and then buying them before they start to rise.
Most traders use advanced platforms and trading software to conduct their analysis and spot trading opportunities. It often requires round-the-clock monitoring and can be very time-consuming.
Trading often appeals to people who are looking for ‘quick’ profits. However, it is very high risk and more people lose money than make it!
5. Crypto Interest
This is similar to staking but involves earning interest by depositing your crypto into savings-like accounts on platforms like Uphold.
Much like staking and lending, crypto interest is a hands-off way to make money with crypto.
The crypto that you lock away is usually used to supply liquidity to the exchange. Be careful to choose an exchange with a solid reputation and robust security measures to minimize the risk here.
It is also a good idea to shop around for a platform that offers the best rates. And remember, only lock away money that you won’t be needing in the short term.
- Play-to-Earn Gaming
Imagine making money while gaming – sounds great, doesn’t it?
Play-to-earn games reward players with cryptocurrency or NFTs (non-fungible tokens) for participating in the game.
Play-to-earn gaming is relatively straightforward:
- Choose a crypto game: Shop around for a game that offers crypto rewards. Popular titles include Axie Infinity and The Sandbox.
- Play: Complete tasks, win battles, or trade assets within the game. Some games reward you for completing missions whereas others may reward you simply for taking part. You will usually have to spend a while playing before you earn anything substantial.
- Earn rewards: Exchange your winnings for real-world value. Many P2E games reward players with the native in-game token, which can be exchanged for BTC or stablecoins.
7. Affiliate Programs
If you have a significant social media following, blog readership or even newsletter subscribers, you could earn crypto by referring people to crypto platforms or services.
Every time someone signs up through your link, you get a reward.
There are several different types of cryptocurrency affiliate programs available, including exchanges, wallets, new crypto projects and decentralized applications.
This way of making money with crypto can turn into passive income, which is appealing to people who are looking for a hands-off solution.
However, it can take a very long time to build up a large audience. Plus, you need pretty good marketing skills to be able to share your links effectively.
It is also worth pointing out that affiliates based in the UK will need to comply with FCA rules. This will put restrictions on the type of content that you can create.
8. Crypto Mining
Mining could be considered the “OG” of making money with crypto. Think of crypto mining as digital gold digging – but instead of a pickaxe, you’re using high-powered computers to solve complex mathematical puzzles.
Once solved, you’re rewarded with cryptocurrency tokens.
For people who can afford to buy mining equipment, it can be a viable way to earn cryptocurrency in the background of their day-to-day. However, crypto mining equipment is expensive and very energy-consuming – it is in no way a beginner-friendly option!
Here’s how it works:
- Set up equipment: You’ll need a computer with a powerful graphics card or a specialised mining rig (not exactly a cheap endeavour).
- Join a mining pool: This is a group of miners pooling their resources to solve puzzles faster and share the rewards.
- Start mining: Install mining software, connect to a network, and let your rig crunch numbers while you enjoy a cup of tea (or coffee if that’s your thing!).
Mining is a direct way to earn cryptocurrency on your own terms. However, it is tricky to set up, is very energy-intensive and comes with high upfront costs.
9. Crypto Presales and ICOs
I’ve saved the most risky way of making money with crypto till last.
Presales and ICOs (initial coin offerings) provide investors with an opportunity to buy new crypto coins early, at a low price, before they are listed on exchanges.
If the value of the token increases once it is listed on an exchange, early investors can see significant rewards. However, it’s important to highlight the “if” here.
While there have been some successful cryptocurrency presales (such as the Ethereum presale), there are just as many unsuccessful presales that cause investors to lose the money that they invest.
Before you put your cash into a new crypto project, it is important to conduct due diligence and research. Make sure that the project is backed by a string team of industry experts and does not use any ‘click-bait’ techniques to try and lure investors in. This is a major red flag!
Investing in presales works like this:
- Research projects: Find credible ICOs through platforms like CoinMarketCap.
- Invest early: Swap established coins (such as Ethereum or Solana) for presale coins through the official presale website.
- Claim the presale coins: Once the presale has finished, you will be able to claim your coins and swap them on exchanges (if the project has managed to secure any listings!)
Unfortunately, cryptocurrency ICOs and presales attract scammers. So, it is important to only invest money that you can afford to lose.
What Is the Most Beginner-Friendly Way to Make Money With Crypto?
By now, it is clear that not all ways of making money with crypto are suitable for beginners. However, this is not to say that new investors cannot make money in the space.
If you’re new to crypto investing or have a low-risk tolerance, long-term investing in established cryptocurrencies like Bitcoin or Ethereum is a suitable option to consider. Although, the price of all cryptos have the potential to go down as well as up.
Investors can take steps to minimise the risk involved by spreading their investment across different projects and investing small amounts over time.
Another beginner-friendly option, ideal for investors who are looking for passive returns, is staking.
As long as you go through a reputable platform and only stake established cryptos that have long-term potential, staking is one of the more beginner-friendly options on this list.
Risks to Consider When Investing in Cryptocurrency
As always, it is important to be aware of the risks that are involved with making money from crypto before embarking on any of the above options.
The main risks to be aware of include:
- Volatility: Prices can skyrocket or plummet without warning. This can be a problem if your crypto is locked up in a staking pool or interest account.
- Scams: If it seems too good to be true, it probably is! Stick to reputable platforms and established projects that take their security seriously.
- Regulations: Keep an eye on the UK’s evolving crypto laws. These can affect the ability for platforms and projects to operate in the country.
Final Thoughts
Making money with crypto in 2025 is all about choosing the right strategy for your skills, risk tolerance, and goals.
Whether you’re mining, staking, or gaming, there’s something for everyone. But remember, crypto is not a guaranteed path to riches – it can be a very bumpy journey!
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. Don’t invest in cryptocurrency unless you’re prepared to lose all the money you invest. Cryptocurrency is a high-risk investment, and you should not expect to be protected if something goes wrong.
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