How to make money in the cryptocurrency industry? How to make money by trading cryptocurrencies in 2025? What are the latest ways to earn in the crypto space? As a seasoned crypto player, I will now reveal them to you one by one:1. IntroductionIn recent years, cryptocurrency, as a new asset class, has attracted widespread attention from global investors. Its high volatility brings both significant risks and considerable profit opportunities. This report aims to explore the main methods of making money in the cryptocurrency market as of April 18, 2025, provide clear explanations for each method, and offer real-world case studies to help readers better understand and seize market opportunities. The report will cover various strategies such as spot and contract trading, long-term holding, staking, and lending.2. Cryptocurrency Trading (Spot and Contracts)Cryptocurrency trading is a common way for investors to profit from price fluctuations by buying and selling digital assets. Depending on the trading method, it can be divided into spot trading and contract trading.2.1 Spot Trading Strategies and TechniquesSpot trading refers to the direct buying and selling of cryptocurrencies at the current market price, with immediate delivery of assets upon completion of the transaction.1 Various strategies can be applied to spot trading to suit different risk preferences and time commitments.
Day Trading: This is a short-term trading strategy where traders buy and sell cryptocurrencies within the same day, aiming to profit from small price fluctuations.1 Since the cryptocurrency market operates 24/7, day trading requires traders to continuously monitor the market and make quick decisions.5 Technical analysis is a key tool for day trading, with indicators such as Bollinger Bands and the Relative Strength Index (RSI) commonly used to find suitable buying and selling opportunities.5 The non-stop nature of the cryptocurrency market provides abundant opportunities for day traders, but it also means a need for high self-discipline and emotional control to avoid fatigue and impulsive trading due to constant attention.
Swing Trading: This medium-term strategy aims to capture price fluctuations lasting from a few days to a few weeks.1 Swing traders analyze price charts and market momentum to determine buying and selling times, thereby making profits over a period.5 Compared to day trading, swing trading requires less time commitment, making it more suitable for investors who cannot continuously monitor the market.5 However, swing trading still requires a certain level of technical analysis knowledge, and holding positions overnight carries overnight risks.
High-Frequency Trading: This is a complex strategy that uses algorithms and automated trading robots to execute a large number of trades at extremely high speeds.1 High-frequency trading aims to profit from tiny price differences that exist in the market for very short periods.5 This strategy usually requires advanced technology and infrastructure, as well as a deep understanding of market microstructure.
Arbitrage Trading: Arbitrage refers to simultaneously buying and selling the same cryptocurrency on different exchanges to profit from price differences.5 This strategy is theoretically low-risk because the profit comes from price discrepancies in different markets at the same time.5 However, arbitrage opportunities are often fleeting and require traders to have rapid execution capabilities and efficient fund transfer mechanisms.
Dollar-Cost Averaging (DCA): This is a long-term investment strategy where investors regularly invest a fixed amount of money to buy cryptocurrency, regardless of its price.7 This method can effectively reduce the risk of buying at a high price point all at once, averaging out the investment cost.7 For the highly volatile cryptocurrency market, DCA is particularly suitable for investors who want to hold long-term but are worried about short-term price fluctuations. By investing regularly, investors can buy more when the price is low and less when the price is high, thus achieving a more advantageous average purchase price.
2.2 Contract Trading Strategies and TechniquesContract trading refers to buying and selling contracts of cryptocurrencies, rather than the actual digital assets. Contract trading usually involves leverage, allowing traders to control larger positions with a smaller principal, thereby amplifying both profits and risks.10
Trend Trading (Long and Short Positions): This strategy aims to profit from market trends by establishing positions based on the prediction of price increases (going long) or decreases (going short).11 The use of leverage can amplify profits, but it also increases the risk of losses, so strict risk management is necessary.12
Hedging: Hedging refers to using futures contracts to protect existing investments from price fluctuations.11 For example, investors holding a large amount of spot Bitcoin can hedge against the risk of price declines by selling Bitcoin futures contracts.
Spread Trading (Inter-commodity and Intra-commodity): Spread trading involves simultaneously establishing positions in two related futures contracts, aiming to profit from the price difference between them.11 Inter-commodity spreads involve contracts of the same asset but with different expiration dates, while intra-commodity spreads involve related but different assets. The risk of this strategy is usually lower than direct trend trading because it focuses on relative price movements.
Intraday and Swing Contract Trading: Similar to spot trading, contract trading can also employ intraday and swing strategies, but due to the existence of leverage, the risk is higher, requiring more cautious risk control.13
2.3 Case Study: Successful Cryptocurrency Trading Case (Before April 18, 2025)Assume a trader on March 15, 2025, through technical analysis, found that Bitcoin (BTC/USDT) formed a breakout pattern on the 4-hour chart, and the volume indicator also showed an upward trend.6 The trader entered a long position after the Bitcoin price broke through the key resistance level of $65,000. They set a profit target of 5% and a stop-loss of 2%. By March 20, 2025, the Bitcoin price had risen to $68,250, and the trader successfully made a profit of approximately 5%. This case illustrates that successful trading requires a clear strategy, strict execution, and effective risk management.63. Long-Term Holding (Value Investing)Long-term holding, also known as value investing, refers to investors buying and holding cryptocurrencies for months or even years based on their confidence in the long-term potential of the cryptocurrency project.1 The core of this strategy lies in conducting in-depth analysis of the project’s fundamentals, including its technology, team, application scenarios, and market prospects.1 Long-term holders usually ignore short-term market fluctuations, believing that their invested assets will achieve significant value growth in the future.15 This strategy is also figuratively called “HODLing” by the cryptocurrency community.5The long-term holding strategy requires investors to have great patience and firm belief in the assets they invest in, as they need to withstand potential long-term market declines.1 In addition, long-term holding also faces the risk of technological disruption, i.e., new, more innovative cryptocurrencies may emerge, making early-invested projects obsolete. Changes in regulatory policies may also negatively impact the long-term value of certain cryptocurrencies.Case Study: Successful Long-Term Holding Case (Before April 18, 2025)Assume an investor bought Ethereum (ETH) at the beginning of 2020 for about $200, being optimistic about Ethereum’s huge potential as a decentralized application (DeFi, NFT) platform. As of April 18, 2025, assuming the price of Ethereum reaches $3500 (this is a relatively conservative estimate based on its past development and future potential).1 Then, the investor’s return on investment would be (($3500 – 200) / 200) * 100% = 1650%. This case shows that choosing projects with strong fundamentals and huge growth potential for long-term holding can bring very considerable returns.4. Cryptocurrency StakingCryptocurrency staking refers to locking up the held cryptocurrency in a wallet to support the operation of the blockchain network (usually a proof-of-stake or delegated proof-of-stake mechanism).1 As a reward for participating in network maintenance, stakers can receive additional cryptocurrency rewards.1 The amount of rewards depends on various factors, including the staked coin, the quantity, and the network’s reward mechanism.1 Different blockchain networks have different staking mechanisms and revenue models. Some common cryptocurrencies that support staking include Solana (SOL), Cosmos (ATOM) 2.0, and Tron (TRX).1 Investors can directly stake through their wallets or participate through staking services provided by cryptocurrency exchanges.Staking provides cryptocurrency holders with a source of passive income, as they can earn returns by locking up their assets, while also helping to improve the security of the blockchain network.1Case Study: Successful Cryptocurrency Staking Case (Before April 18, 2025)Assume a user started staking 1000 Solana (SOL) on a platform offering an annual yield of about 8% from January 1, 2024, until April 1, 2025 (one year and three months). Then, the expected return would be (1000 SOL * 8% * 1.25 years) = 100 SOL.1 Even if the price of SOL remains relatively stable, the user would have earned an additional 100 SOL tokens as passive income through staking.5. Cryptocurrency LendingCryptocurrency lending platforms allow users to lend their held cryptocurrencies to other borrowers and collect interest as a return.9 These platforms act as intermediaries between borrowers and lenders. However, cryptocurrency lending also carries certain risks, including the risk of borrowers defaulting, the risk of security vulnerabilities or bankruptcy of the platform itself, and the risk of the value of the cryptocurrency used as collateral falling. Nevertheless, the interest rates offered by some platforms can be quite attractive. Users usually need to deposit their cryptocurrencies on the lending platform and can set their own lending terms (interest rate, lending period) or use the platform’s automatic lending options. Interest is usually paid to the lenders periodically.Case Study: Successful Cryptocurrency Lending Case (Before April 18, 2025)Assume a user lent 1 Bitcoin (BTC) on a reputable lending platform from October 1, 2024, for a period of 6 months at an annual interest rate of 5%. Then, after 6 months, the interest earned would be (1 BTC * 5% * 0.5 years) = 0.025 BTC. If the price of Bitcoin remains at a high level, this would be equivalent to a considerable passive income.6. ConclusionThis report explored the main methods of making money in the cryptocurrency market as of April 18, 2025, including spot and contract trading, long-term holding, staking, and lending. Each method has its own characteristics, advantages, and risks. Cryptocurrency trading offers the potential for short-term rapid profits but requires higher skills and risk tolerance. Long-term holding relies on judging the long-term value of projects and patience. Staking and lending provide holders with opportunities to earn passive income but also require attention to related risks.Before choosing any method, investors should conduct sufficient research, understand its operating mechanism and potential risks, and make informed decisions based on their own risk tolerance and financial goals. The cryptocurrency market is dynamic, and continuous learning and adapting to market changes are key to success.Valuable TablesTable 1: Comparison of Cryptocurrency Trading StrategiesStrategyTime CommitmentRisk LevelPotential ReturnKey Tools/SkillsDay TradingHighHighMediumTechnical Analysis IndicatorsSwing TradingMediumMediumMediumTechnical and Fundamental AnalysisHigh-Frequency TradingHighHighHighAlgorithms and Automated Trading SystemsArbitrage TradingMediumLowLowFast Execution and Fund TransferDCA StrategyLowLow to MediumMedium to HighLong-Term PerspectiveTable 2: Examples of Cryptocurrency Staking Rewards (Assumed as of April 18, 2025)CryptocurrencyEstimated Annual YieldExample PlatformSolana8%Exchange ACosmos10%Wallet BTron5%Exchange C