Can You Make $100 a Day with Crypto: 5 Easy Ways

Published: 11th July, 2024 | Last Updated: 1st July, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

In this comprehensive guide, I will walk you through five different ways you can make $100 a day with crypto. 

1. Day Trading Cryptocurrency

Trading Cryptocurrency

As a day trader, you spend your time looking for patterns, doing technical analysis, and staying up to date with crypto news to take advantage of price swings of crypto assets.

Crypto swing trading involves making frequent trades whereby you exit unprofitable positions quickly and ride the wave on larger spikes in price. 

If you are new to trading, you are guaranteed to lose money in the beginning.

There is a learning curve.

Before becoming a successful trader, you need to educate yourself on cryptocurrency trading and risk management.

The other thing to consider is that the more frequently you trade, the more transaction fees you will need to pay. This eats away at your profits.

Here is a short primer on crypto trading

1. Remove emotions from the equation

Normal human psychology is to see something spiking in price and to want to ape in.

However, this is precisely the point that previous investors who bought at a lower price are going to sell to make a profit.

You are the sucker they sell to, and as everyone exits their positions, the price starts to drop.

You wait in case the price turns around.

But the price continues to drop. At this point, you panic and sell.

But then it turns out that the price at which you sold was the bottom as your sell price starts picking up again.

how to lose money in crypto trading

So, how do you take advantage of market fluctuations?

2. Buy low, sell high. 

In order to know when the price is low and when it is high, you need to look at technical indicators. Here are a few

a. Moving averages

A good way to decide whether prices are heading upward or down is to compare the price trend against its 50-day moving average.

If the price is trending above the 50-day average, we are on an upward trajectory.

However, when the price dips below the 50-day moving average, alarm bells should turn on in your head.

Wait for the trend to establish itself, and if it does not move back in the next few days, you know it’s time to sell. 

btc price vs 50 day Moving average
BRC price vs 50 day Moving average

b. Moving averages cross

Another way to confirm the downward trend is to look at the 200-day and 50-day moving averages.

If the 50-day moving average drops below the 200-day moving average, you can be pretty sure that we are in a downward direction. 

BTC 50 MA vs 200MA: note how when 50MA drops below 200 MA price continues to drop and vice versa

c. RSI

The relative strength indicator is a momentum oscillator.

If it’s above 70, you know that the asset is being overbought and that the cryptocurrency market is overheated.

If the RSI is below 30, then you can assume that the asset is oversold and that people are being too pessimistic. 

3. Read Chart patterns

By looking at historical candle charts, you can get a sense of where prices might be heading.

There are some common patterns that reoccur all the time.

While some think this is mumbo jumbo, there has been research that shows that this kind of pattern recognition can be useful.

After all, if most traders believe in reading charts, they will act accordingly and fulfill their own prophecy. 

A common pattern you want to look for is a right-angled triangle.

If you see such a pattern forming and then the price breaks out of that pattern, you can place a conservative bet, expecting the price to appreciate. 

4. Diversify

Do not put all your capital in one trade.

If you decide to take up day trading, you want to be trading with less than 1% of your capital at any point in time.

This way, you can afford frequent losses that can be counterbalanced by higher wins. 

5. Learn how to use limit orders

Limit orders are cheaper to execute as they add liquidity to trading platforms.

Stop-loss orders protect your investment if the price moves in the opposite direction to what you expected.

Similarly, take-profit orders can move in tandem with price as long as the price is moving in your desired direction, and then the position can be exited once the price starts to move in the opposite direction.

Good traders are very comfortable with placing such orders. 

6. Understand market conditions

Trading cryptocurrencies means you need to be on top of news and current events and have a deep understanding of the market.

Crypto-day trading is by no means a passive form of earning income.

Most crypto traders are engaged with trading 24/7 and find it very exciting and stressful at the same time. 

If you don’t want to spend time developing your trading skills, there are other alternatives. Let’s take a closer look.

2. Staking

Crypto Staking

You can earn 3-20% by staking a cryptocurrency.

Staking refers to the process of locking up your digital assets so as to participate in the consensus mechanism of a Proof of Stake blockchain.

In Proof of Stake blockchains, validators are chosen to create new blocks and validate transactions based on the number of coins they hold and are willing to “stake” as collateral.

This process replaces the energy-intensive Proof of Work mechanism used by blockchains like Bitcoin, making Proof of Stake more environmentally friendly.

As an investor, you can delegate your digital currencies to a validator for stakes.

For example, the staking yield on ETH these days is 3.2%.

This implies that if you invest $1.2 million, you can earn $100 per day.

Most of us do not have $1.2 million lying around.

However, an asset such as ETH tends to grow at about 100% per year on average. If this holds true, then you only need $36,000 to start staking. 

Here are the staking yields on various crypto coins at the time of writing. You can find updated values on stakingrewards.com.

  • ETH: 3.3%
  • SOL: 7.1%
  • ADA: 2.86%
  • DOT: 11.4%
  • ATOM: 16.86%

3. Lending

There are two ways to lend in crypto. 

1. Lending and borrowing protocols

The first involves sending your crypto to a lending app such as AAVE or Compound.

These platforms automatically lend your assets to borrowers using smart contracts.

Borrowers, in return, are required to put up collateral in the form of crypto assets. If the borrower cannot repay, then their collateral is liquidated, so it is a relatively safe way to lend. 

2. Liquidity pools 

Liquidity providers offer their crypto assets to an exchange and get a cut of the trading fees.

For example, you could lend $500 worth of ETH and $500 worth of USDT to a liquidity pool on Uniswap.

Traders would come along and swap ETH for USDT and USDT for ETH.

At the end of the day, you will end up with a pool of ETH and USDT plus 0.3% in trading fees. 

Stablecoin for those with lower risk tolerance

If you don’t want to be exposed to the price fluctuations of cryptocurrencies, you can just lend your stablecoins.

A stablecoin is a token that pegs its value to that of fiat currency such as the US dollar.

Lending your stablecoins is a great way to earn a return without being exposed to market volatility.

Here are some sample interest rates that you could earn from stablecoins that I have taken from yearn finance, a yield optimization protocol. 

4. Crypto Mining

Crypto Mining Facility

If you have the technical expertise, then you could consider mining new coins.

Miners help validate transactions and are rewarded with new coins plus transaction fees for their efforts.

To receive the reward, you need to add the next block of transactions to a blockchain.

To become eligible for that, you need to solve a difficult cryptographic puzzle.

Solving these complex mathematical problems requires specialized hardware that guzzles electricity.

Most people don’t have access to cheap electricity. We’re talking about being able to procure electricity at 0.05 $ / kWh. In the United States, most residential rates hover around 20 cents per kWh, with the cheapest being 12 cents.

The solution here is to host you miner at a hosting facility that can procure cheap electricity. I have a review with the best bitcoin mining hosting facilities.

However keep in mind that the upfront capital investment for a mining rig can be north of $15,000. 

Using tools such as Whattomine, you can calculate how much you can make in profit a day mining different coins. 

5. Price Appreciation Over the Long Term

One of the more laid-back ways to earn $100 in passive income is to invest in Bitcoin and Ethereum for the long term.

At the time of writing, we are in the middle of a bull run.

Investing in new and risky coins will likely result in you losing your money as you chase one narrative after another. 

However, both Bitcoin and Ethereum have a historical upward trend over the past years. Bitcoin ETFs launched in January 2024, and ETH ETFs were approved by the SEC in May and are expected to be publicly available in the coming weeks. 

How to earn $100 daily from Bitcoin

The compound annual growth rate of Bitcoin has hovered at 150% for most of its life, and the lowest it reached is 25%.

If you were to invest $25,000 in Bitcoin and achieve a 150% annual return on average, that would translate into $37,500 in profit, which works out to $100 daily.

At a 25% CAGR, the initial capital investment would have to be $150,000.

This is a large sum for most of us. However, there are no other financial assets that deliver such high returns.

Nada.

Zilch. 

How to earn $100 daily from Ethereum

Ethereum’s 4-year CAGR hovers around  100% and has been as low as 16%.

An initial capital investment of $37,000 with a cagr of 100% would deliver 100 bucks daily on average.

Conversely, a 16% CAGR would require an upfront investment of $230,000 to earn $100 daily. 

However, Ethereum is starting from a lower market cap, which leaves room for more upside. 

Crypto investors who keep it simple by investing 70% in Bitcoin and 30% in Ethereum are likely to see the best performance with the least stress.

If you have a higher risk appetite,  you can add SOL to the mix.

If you want to mess around with altcoins and meme coins, then set aside 5-10% and be prepared to lose this. 

Also see difference between crypto and bitcoin.

Alternative Ways to Earn Money in Crypto

  • Crypto faucets are platforms that reward you in cryptocurrency for performing easy tasks such as liking a Facebook post or commenting on a YouTube video. The tasks are mind-numbingly boring, and they pay a pittance. However, if you want to check them out, here are the best crypto faucets
  • Gaming: many crypto games reward players for participating and winning in their games. The most famous example is Axie Infinity.
  • You could always find a job in the crypto industry. New coins are always on the lookout for people who can help them with their marketing and community-building efforts.
  • Become an influencer. It takes time to ramp up and build content on a website or social media platform, but once you have an audience, you can monetize it. 
  • Move to earn: there are a bunch of apps that reward you for having a more active life. Stepn and Genopets are some examples. 

Please keep in mind that none of the above is financial advice, and make sure you do your own research.

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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