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How to make a profit from crypto without trading?

How to make a profit from crypto without trading?

13 Jan, 2020
3 min read

Cryptocurrencies world becomes larger from day to day. There are different kinds of services and methods that can let you earn on cryptocurrencies, except the ones for trading. Learn how you can make money on the crypto world if you’re not familiar with trading

P2P Lending

Say you own a large amount of cryptocurrency. You store it in your wallet and are looking for a relatively safe way of investing your capital for stable, near-certain returns. Well then, P2P lending could be just what you need. Instead of leaving your hard-earned digital assets at the whims of the highly volatile crypto market, you can lend out your coins and receive a guaranteed return of 10-20% APR. Not bad, yes?

The peer-to-peer crypto lending market is dominated by Ethereum. It makes sense really given the nature of its smart contract architecture, which enables the creation and automatic enforcement of a vast array of lending products. One of the biggest ecosystems in which ETH lending takes place is Maker, where businesses and individuals are able to obtain a stable form of working capital without needing to sell their crypto assets.

Despite Ethereum’s domination, Bitcoin hasn’t been excluded from the P2P lending party. With platforms such as Nexo and Coinloan, borrowers are able to put up BTC and BCH as collateral for a fiat or stablecoin-denominated loan. With the latter platform, lenders can supply fiat or stablecoins and earn interest on their stake too. Coinloan matches lenders and borrowers and takes complete care of custody.

Cryptocurrency arbitrage

One of the biggest draws of the cryptocurrency market is its total freedom from external controls and regulations. It is precisely this fact that allows for such massive price swings and spreads from one exchange to another.

Well, now there’s a way that you can take advantage of this price variation and it’s possibly one of the easiest money-making strategies around. The name cryptocurrency arbitrage might make it sound highly complex, but it really couldn’t be simpler.

First, you need to pick a coin you like. Next, check the different prices on offer across the various exchanges. When you find one selling it at knock-down prices, snap it up. Then all you have to do is find another exchange where the same coin is trading at a price above its market value. 

The typical spread between the discount price and premium price should be between 5-40%. Once you’re happy with the price offered, sell the same coins you just bought to the more expensive exchange. Beware that you will likely have to pay some commission to both exchanges and this will, therefore, need to be factored into your profit calculation.

Digital dividends

That’s right, it’s not just corporate stocks that pay dividends these days. Nowadays, you can also earn a tidy passive income just for holding cryptocurrencies too. Some of the major coins that pay their holders no-strings-attached dividends include NEO, BTMX, and KuCoin, but there are loads more besides.

You could also decide to boost your earnings even further by staking your coins (buying now and agreeing to sell at a later date). This way, not only will you make money from the act of staking, but you’ll also keep receiving dividends right up until the date of the eventual sale.


As the market expands, some trading platforms such as StormGain are setting themselves apart from the competition by paying you interest on any crypto you store with them. Now, we’ve seen some nice money-making strategies above, but it’s hard to beat free money for doing nothing. And with StormGain’s Interest on Deposits scheme, you are able to avoid some of the risk associated with dividend-paying altcoins, while also receiving a much higher RoR to boot. When you entrust your crypto to StormGain, we give you annualised interest of 10% on your entire account balance up to 50,000 USDT. That dwarfs the interest your bank can offer and even beats the returns generated by most private equity firms.

So now you know the three main ways ordinary investors can make passive income from their crypto holdings. There are varying levels of risk and reward between the different methods discussed. P2P lending might offer the best return on your investment, but there’s always a chance the debtor might default leaving you seriously out of pocket. On the other hand, arbitrage represents a fairly safe method of earning money – but once you’ve subtracted the broker’s commission – you’re not left with much to show for your efforts. For the perfect balance of risk, effort and reward, you can’t beat a good interest rate such as that offered by StormGain. And for a limited time only (until 11 January), StormGain offers our clients even bigger potential profits with a massive x150 multiplier (usual maximum x100).


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