How to Make Money From Ethereum (ETH)

In the world of cryptocurrency, there are certain assets that have become instantly recognizable brands over time, one of which is Ethereum.

As the second-largest cryptocurrency by market capitalization, Ethereum (CRYPTO: ETH) has gained immense popularity over the years. Many people are aware of the token and are looking to use it for various reasons.

Due to its popularity, many people wonder if they can make money from Ethereum. In this article, we’ll break down the technicalities of making money from the token.

Before you begin looking at making money from Ethereum, it is worth examining its market performance so far and the Ethereum price prediction. Launched in 2015, Ethereum's first listed market price was $1.2222. So far, its all-time high was $4,878.26 in 2021 and its all-time low was $0.433 724534 in 2015.

The value of the Ether token has been impacted by several developments in the network. Notably, the price shifted after major upgrades and the switch from a proof-of-work to a proof-of-stake protocol.

Currently, Ethereum is trading at $3,240.53 and Beddow believes that it will cross the $4,800 mark at some point in the next month. Looking over a period of years, he expects that the token could rise to over $7,000 by the end of the decade and hover around that price point in 2034.

Overall, the outlook for Ether, much like Bitcoin (CRYPTO: BTC), is very positive and this has seen many people eagerly invest in the token looking to make a profit.

Now that it has been established that Ethereum is potentially profitable, it is worth looking at the ways that you can make money from it. The good news is that there is no shortage of methods, some of which are as follows:

Gambling: Believe it or not, it is possible to gamble with many tokens, including Ether. Once you’re signed up on one of the hundreds of crypto casinos that allow for crypto-based gambling, you can choose any game you want. Depending on the casino you’re using, this can include traditional games like poker or even betting on sports.

The concept is the same as with traditional gambling; if you’re lucky and you win your game, you get more money than what you initially wagered. And given the price prospects of various cryptos, winning more can be very profitable in the long run.

Speculative Trading: This is perhaps the most obvious way to make money from Ethereum, as well as other tokens. This essentially means buying the Ether token at a certain price and then selling it when it reaches a higher price.

While this sounds simple enough, there are certain factors you need to consider. First, you need to decide how long you are willing to wait for the price to increase. Some people hold on to their ether tokens for years waiting for the price to go up.

You also want to decide where you want to trade, be it a centralized exchange, a DEX, a peer-to-peer platform, and so on.

Staking: Another way to make money from Ethereum is to stake your tokens. Because the token is based on a proof-of-stake consensus, it is possible to commit your tokens for a certain amount of time to help validate transactions on the network. After this time has elapsed, you get a percentage of your initial amount back as interest.

You can stake using a centralized platform like an exchange or wallet provider or you can opt to run your own staking pool. The latter will involve more work and responsibility but it will fetch you more money. Staking tends to be an appealing option for the more risk-averse investors because you know from the start how much you are going to be paid for your efforts and how long it will take.

Lending: These days, there is no shortage of people who want to get their hands on Ether and many of them opt to borrow it from others. This presents an opportunity for you to make money by lending your tokens to them.

To do this, you’d need to sign up on a crypto lending platform and deposit your tokens. The platforms are governed by smart contracts which minimizes the chances of anyone being cheated.

From there, you can set the amount of interest you plan to charge and how long you are willing to lend your tokens. Once you find a borrower you are satisfied with, you can proceed to lend your tokens and get your funds back with interest. Just like staking, this is generally considered lower risk.