The Most Practical Ways Of Making Money With Blockchain – You can achieve your financial goals with Blockchain!

Josiah Nang-Bayi, MD
11 Min Read

Blockchain technology is transforming industries across finance, business, government and society. As adoption accelerates, opportunities to leverage blockchain to generate income are also expanding. While the blockchain space is complex and constantly evolving, some applications provide more accessible and proven methods for individuals to realistically make money.

This guide explores the most practical current opportunities to leverage blockchain and cryptocurrency to supplement or replace traditional income sources. The options range from low-barrier jobs or side hustles to investing and building blockchain applications for enterprises. With an open mindset and strategic approach, blockchain can provide viable income potential.

Get a Job or Gig Working With Blockchain

One of the most straightforward ways to earn money from blockchain is to get a job or freelance gig working for a company in the industry. Here are some of the hottest roles and skills in demand right now:

Blockchain Developer

Blockchain developers design, build, and manage blockchain-based software solutions for organizations. Familiarity with networks like Ethereum and Hyperledger, Solidity and other programming languages, and Web3 experience are highly sought after. Average salaries range from $125,000 to $175,000 annually.

Smart Contract Developer

Similar to blockchain developers, smart contract developers code complex logic and functions into self-executing contracts on networks like Ethereum, Solana, and Cardano. This niche skill is in high demand, with salaries averaging $150,000 to $250,000 per year

Cryptocurrency Analyst 

These analysts research and analyze trends in the cryptocurrency markets to inform investment decisions and strategies for hedge funds and firms. Average salaries range from $60,000 to $150,000 annually.

Blockchain Product Manager

Product managers oversee blockchain solutions across the full product lifecycle. Strong project management, technical literacy, and industry knowledge are key. Salaries average between $150,000-$180,000.

Blockchain Quality Engineer

Quality engineers test blockchain protocols, interfaces, security, and functionality prior to product launch. Experience across the full blockchain stack is required, with average salaries around $130,000.

In addition to full-time positions, freelance and contract-based blockchain gigs are abundant. Services like [Cryptocurrency Jobs], [Crypto Jobs List], and [Crypto Job Board] offer opportunities.

Roles like bloggers, community managers, support specialists, designers, and more, all utilize blockchain skills.

For those new to the space, investing time into building technical knowledge, networking, and getting certified can open new career potential. Hands-on experience via personal projects, hackathons, or internships is also highly valued.

Earn By Direct  Investing In Blockchain Applications

Mine Cryptocurrencies

Cryptocurrency mining presents another avenue to generate revenue from blockchain networks. Mining is the process where high-powered computers compete to validate transactions on networks like Bitcoin and Ethereum and get rewarded with crypto.

However, direct mining is very resource-intensive and requires robust specialty hardware rigs, low energy costs, and pools or farms with many miners for sufficient hashpower. Individual or small-scale mining rarely offers adequate returns today to cover significant equipment and energy costs. 

Cloud mining services like [NiceHash] allow purchasing contracted hashpower to mine selected cryptocurrencies without managing physical hardware. Profit potential needs to be carefully evaluated versus upfront costs.

Stake Cryptocurrencies

An alternative to resource-heavy mining is staking cryptocurrencies through an energy-efficient validation process. Staking involves holding funds to support blockchain network security and operations in return for rewards.

Networks like [Ethereum] with ~400,000 validators] and [Solana] with ~1,100 validators] allow staking. [Polkadot] and [Cosmos] also have popular staking ecosystems. There are also liquidity staking services like [Lido] and [StakeWise] for generating yield.

Yield Farming

Yield farming maximizes returns by using cryptocurrency holdings to provide liquidity for platforms like decentralized exchanges and lending markets. Providing liquidity earns fees, interest, and governance tokens as yield.

Yield farming uses strategies like moving holdings between protocols to chase the highest available returns. Average yields range from 5-20% APY but can surpass 100% for risky options.

Popular yield farming platforms include [PancakeSwap], [Aave], [Curve], and [Yearn Finance].

Lend and Borrow Cryptocurrencies

Decentralized lending and borrowing platforms like [Aave] and [Compound] allow earning interest on supplied crypto assets as liquidity. Borrowers provide collateral and pay interest for loans. As a lender, annual returns range from 1-10% based on asset demand.

DeFi lending presents fairly simple passive income potential. However, smart contract risks need to be understood. Borrowers can get liquidated if collateral value drops so stablecoins are lower risk. Default insurance like [Nexus Mutual] can help mitigate risk exposure.

Play Blockchain Games

A more unorthodox way to potentially earn from blockchain is playing crypto games built on platforms like [Enjin], [The Sandbox], [Decentraland], and more. These games let users own in-game assets as NFTs with real monetary value.

Games like [Axie Infinity] have allowed players to earn income through trading, breeding, and battling rare NFT creatures. Newer games like [Guild of Guardians] have emerging play-to-earn models. Income potential changes frequently based on factors like player base, incentives, and asset appreciation.

While not completely reliable or risk-free, blockchain gaming provides an alternative way to monetize time spent gaming.

Launch a Blockchain Project or Startup

For those with an entrepreneurial mindset, building your own blockchain company or platform can become a lucrative income source. The accelerating pace of innovation provides many possibilities.

Ideas like creating [NFT collections], blockchain-based [social networks], [Metaverse worlds], Health-based platforms like [Nurika] or [DeFi products] all have potential. Thoroughly analyze target users, existing solutions, go-to-market strategy, tokenomics, legal compliance, and fundraising approaches.

Hiring technical teams or outsourcing development through services like [Web3 Labs] can help bring concepts to reality faster as a non-technical founder. Partnering with co-founders with complementary skills is recommended over going solo.

Invest in Cryptocurrencies and Tokens

Basically refers to buying and selling cryptocurrencies. Realizing gains by investing in cryptocurrencies and blockchain-based tokens is likely the most common method for profiting from the industry. The total cryptocurrency market cap now exceeds $1 trillion.

Trading cryptocurrency profitably, however, requires extensive research, prudent strategy, and risk management. Volatility is high, scams prevalent, and mistakes can be costly. Tools like dollar cost averaging, diversification, portfolio tracking, and technical analysis should be utilized.

Potential investments include:

Bitcoin and Blue Chips – High market cap cryptos like ETH, BNB, and SOL. Lower risk, more stable returns.

Smaller Coins and Tokens- Higher risk, higher reward. Newer assets like APT, ROSE, and LPT can surge in value but also crash.

Platform Governance Tokens – Protocol tokens like UNI, CAKE, and FXS allow participating in protocol governance. Usage and development can drive price. 

IDO and ICO Tokens – Getting whitelisted for new token launches provides early investor access but requires extensive vetting.

Liquidity Pool Tokens – Yield farm rewards tokens like SLPI and BAL may appreciate well.

Returns in crypto investing can be highly variable. Only invest money you can afford to lose and use dollar cost averaging rather than all-in bets.

Create, Market, Buy and Sell, Non-Fungible Tokens

NFTs or non-fungible tokens represent unique blockchain-based assets like digital art, music, videos, avatars, skins, and more. These tokens allow proving ownership of scarce digital content. NFT markets are booming.

While buying and reselling NFTs can produce profit, minting and marketing your own NFTs has greater income potential but also higher time investment.

Learn technical skills for tokenizing creative work and listing NFTs on marketplaces like [OpenSea], [Rarible] or [NFT Traders]. Promote collections through crypto art communities and social media. Leverage influencer partnerships for reach.

Metaverse worlds like [The Sandbox] also offer income potential by selling virtual land and assets. Top projects sell for millions. However, building a user base and understanding virtual worlds is key.

Launch a Blockchain Consulting Business

Another entrepreneurial path is bootstrapping a consulting firm specializing in blockchain solutions. Provide services helping legacy companies adopt the technology.

Expertise in technology selection, proof of concept development, roadmap building, training, and compliance can be monetized. Target industries with high readiness levels like finance, supply chain, media, healthcare, and government.

Partnerships with blockchain developers and project teams allow you to resell development services. Focus on advising clients holistically across strategy, business transformation, economics, and change management.

Building a personal brand as a blockchain thought leader can help attract clients. Content marketing, speaking gigs, and networking establish credibility. Make sure to thoroughly understand the tech, use cases, and industry landscape before advising others.

Blockchain consulting allows leveraging knowledge into a profitable and scalable services business. Recurring income without heavy product development. But strong expertise and reputation must be built first.

Conclusion

The blockchain industry provides exciting new ways to make money that were not possible just a few years ago. There is no shortage of opportunities. Simple options like staking and yield farming crypto present low barriers for earning supplemental income. More intensive avenues like mining, developing games, or consulting require extensive skills development but scale better.

The most practical paths forward focus on building high-demand expertise, strategically investing, and executing blockchain projects with diligent planning. Maintain reasonable expectations, and manage risks wisely, and this new decentralized economy can offer viable income generation and entrepreneurship potential.

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Josiah Nang-Bayi, MD is a medical doctor by profession, an author, a financial literacy and digital assets enthusiast, an entrepreneur and a growing philanthropist.
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