• Skip to primary navigation
  • Skip to main content
Good Financial Cents®
Content is based on in-depth research & analysis. Opinions are our own. We may earn a commission when you click or make a purchase from links on our site. Learn more.
  • Make Money
    • Get Money Now
      • Ultimate Guide to Making Money
      • Need Money Now
      • Get Free Money Fast
      • Make Money Fast
      • Make $1K Per Month
      • Make $100 Per Day
    • Control Your Destiny
      • Self Employed Jobs
      • Make Money from Home
      • Hobbies That Make Money
      • How to Become a Freelance Writer
      • Small Business Ideas to Start
      • How to Become an Independent Contractor
      • Best Online Jobs
    • Passive Income
      • Passive Income Ideas
      • Multiple Streams of Income
      • Extra Income
      • Residual Income Ideas
      • Learn to Sell e-Books
      • Make Money on Facebook
      • Make Money on Tiktok
      • Best Online Survey Sites to Make Money
    • Explore More
      • Best Side Hustle Ideas
      • Make Money for Teens
      • Best Online Colleges
      • Best Jobs No College Degree
      • Become a Millionaire
      • Careers for the Future
  • Manage Money
    • Best Of
      • Budgeting Tools
      • Personal Finance Software
      • Best Cashback Cards
    • Company Reviews
      • Personal Capital vs Mint
      • Personal Capital Review
      • SmartAsset Review
    • Guides
      • Buy or Lease a Car
      • What is Liquid Net Worth?
      • Setting Financial Goals
      • How to Budget
      • Ways to Save Money
    • Explore More
      • How Much Car Can I Afford?
      • Best Auto Refinance Companies
  • Invest
    • Best Of
      • Best Short and Long-Term Investments
      • Best Low Risk Investments
      • Best Online Stock Brokers
      • Best Crypto Exchanges
      • Best Short Term Investments
      • Best Long Term Investments
      • Best Trading Platforms
      • Best Investment Apps
    • Company Reviews
      • Lending Club
      • Robinhood
      • M1 Finance
      • Ally
      • TD Ameritrade
      • Fundrise
      • Betterment
      • Etrade
      • Wealthfront
    • Guides
      • Investing for Beginners
      • Investing Small Amounts of Money
      • Investing in Real Estate
      • No Money Down Real Estate
      • Bonds vs Stocks
      • Peer to Peer Lending
      • Best Hedges Against Inflation
      • Safe Bitcoin Investing in 2023
    • Explore More
      • Bitcoin vs. Real Estate
      • Betterment vs Wealthfront
      • Investing for College Students
      • Stock Market Alternatives
    • By Investment Amount
      • How to Invest $100
      • How to Invest $1K
      • How to Invest $2k-$3k
      • How to Invest $5K
      • How to Invest $10K
      • How to Invest $15k
      • How to Invest $20K
      • How to Invest $30k
      • How to Invest $50K
      • How to Invest $100K
      • How to Invest $200K
      • How to Invest $500K
      • How to Invest $1M
  • Taxes
    • Best Of
      • Best Tax Relief Companies
      • Best Tax Software
    • Guides
      • Federal Income Tax Guide 2023
      • Taxes and Cryptocurrency
      • How to Do Your Own Taxes
      • How to Invest Your Tax Refund
      • Hiring a Professional Tax Preparer
      • Tax Tips for Freelancers
    • Company Reviews
      • TurboTax Review
      • H&R Block Review
      • Taxslayer
      • Tax Act
  • Insurance
    • Best Of
      • Best Life Insurance
      • Best Home Insurance
      • Best Auto Insurance
      • Cheap Term Life Insurance
      • Car Insurance For Young Adults
    • Guides
      • Term vs Whole Life
      • Different Types of Car Insurance
      • Average Cost of Car Insurance
    • Explore More
      • Life Insurance Over 50
      • Life Insurance Over 80
      • $1 Million Life Insurance
      • $2 Million Life Insurance
      • $3 Million Life Insurance
    • Company Reviews
      • Banner Life Insurance
      • Ladder Life Insurance
      • Health IQ
      • Haven Life
      • Policygenius
      • State Farm Auto Insurance Review
  • Retirement
    • Roth IRA
      • Best Places to Open a Roth IRA
      • Best Investments for Roth IRA
      • 7 Roth IRA Secrets
      • Roth IRA Conversion Guide
      • Roth IRA Rules
      • Roth IRA vs Roth 401k
      • Are Roth IRA Contributions Tax Deductible?
    • 401(k)
      • 401(k) Limits
      • 401(k) to Roth Rollover
      • Is 401(k) Enough for Retirement?
      • Maxed Out 401(k): What's next?
    • Traditional IRA
      • Traditional IRA Rules and Limits
      • Traditional IRA vs. 401(k)
      • Simple IRA Rules
      • SEP IRA Rules
      • How Much Do You Need to Start an IRA?
    • Explore More
      • SEP IRA vs. Roth IRA
      • 457 Plan for Successful Retirement
      • 401a Rollover Rules
      • How to Retire at 50
      • How to Retire at 55
  • Banking
    • Best Of
      • Best National Banks
      • Best High-Yield Savings Accounts
      • Best Checking Accounts
      • Best Savings Accounts
      • Best CD Rates
      • Best Money Market Accounts
    • Company Reviews
      • BBVA
      • Synchrony
      • Wells Fargo
    • Explore More
      • 9 Banking Alternatives for 2023
      • What is a Credit Union?
  • Home
    • Best Of
      • Best Mortgage Lenders
      • Best Mortgage Refinance Companies
      • Best Home Warranties
      • Best Homeowners Insurance
      • Best VA Loans
      • Best Mortgage Rates
      • Best Moving Companies
      • Best Home Security
    • Guides
      • Home Buying Checklist
      • Online Home Appraisal
      • How Much House Can I Afford?
      • First-time Homebuyer Programs
      • How to Get Approved for a Home Loan
      • Save Money When Building a House
      • How to Save for a Downpayment
      • When to Refinance Your Mortgage
    • Explore More
      • 15 vs. 30-year Mortgage
      • Home Warranty vs. Home Insurance
      • Veterans United Home Loan Review
      • Quicken Loans Review
      • HELOC vs Second Mortgage
      • DCU Mortgage Review
      • Costco Mortgage Program Review
      • USAA Mortgage Loan Review
  • Credit
    • Best Of
      • Best Credit Repair Companies
      • Best ID Theft Protection Services
      • Best Credit Report Options
      • Best Bad Credit Loans
    • Guides
      • How to Build Your Credit Score
      • How to Raise Your Credit Score in 5 Months
      • How to Dispute Your Credit Report
      • Hot to Remove Collections from Your Credit Reports
      • How Identity Theft Destroys Your Credit Score
    • Explore More
      • What is a Good Credit Score?
      • What is a Bad Credit Score?
  • Debt
    • Best Of
      • Best Debt Consolidation Loans
      • Best Personal Loans
      • Best Student Loans
      • Best Student Loan Refinance
    • Guides
      • What is Debt Consolidation?
      • How to Get Out of Debt
      • How to Get a Personal Loan Approved
      • How to Pay Off Student Loans Faster
      • Should I Consolidate My Debts?
      • Should I File for Bankruptcy?
    • Company Reviews
      • Credible
      • Sofi

4 Ways I’m Making Money With Cryptocurrency

https://www.goodfinancialcents.com/wp-content/uploads/2019/07/MG_5503-150x150.jpg
  • Written By:
    Jeff Rose, CFP®

    Jeff Rose, CFP®

    Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance...

    Read More
  • Updated: November 21, 2022
  • 8 Min Read
  • Advertising Disclosure

    Advertising Disclosure

    GoodFinancialCents® has an advertising relationship with the companies included on this page. All of our content is based on objective analysis, and the opinions are our own. For more information, please check out our full disclaimer and complete list of partners.

Quality Verified THE GFC® PROMISE
shield check icon
Quality Verified

GoodFinancialCents® partners with outside experts to ensure we are providing accurate financial content.

These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.

Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.

Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.

shield check icon
Why You Can Trust GoodFinancialCents®

GoodFinancialCents® partners with outside experts to ensure we are providing accurate financial content.

These reviewers are industry leaders and professional writers who regularly contribute to reputable publications such as the Wall Street Journal and The New York Times.

Our expert reviewers review our articles and recommend changes to ensure we are upholding our high standards for accuracy and professionalism.

Our expert reviewers hold advanced degrees and certifications and have years of experience with personal finances, retirement planning and investments.

There’s no doubt it’s an exciting time to be alive. It’s also an exciting time to be investing into cryptocurrency. 

I was fortunate to start investing into crypto just over three years ago.

And there have been a few bumps along the way.  You know… like NOT selling Dogecoin when it soared above $.70 before Elon Musk’s Saturday Night Live performance. 

Despite that I’ve made some good profits. And, most importantly, I’ve had a lot fun learning more about digital currency.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Build a portfolio through a unique investing experience.
Public.com lets you invest in stocks, ETFs, and crypto with any amount of money. Share insights in a community and access a wealth of educational content.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
Join Today
Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures.

Some of you are completely new to the crypto space. If that’s you – welcome!

In this post I’m sharing the 4 ways I’m currently making money with crypto. The fourth is the newest way and the one I’m most excited about. Why? Because it’s the most passive! More on that in a sec..

If you want to learn more about investing into cryptocurrency, and the four ways I am learning and earning, keep reading.

If you want even more details and a peek behind the scenes, check out the video on my Wealth Hacker YouTube channel:

By nature, I am typically a skeptic, especially when somebody shares something that ‘has worked for them’. Maybe it was a diet, maybe it was some sort of new investment strategy, a new app, or a new software program. I don’t care what it is.

I Was Such A Skeptic!

When I hear those words my brain goes through a certain B.S. filtering process which typically asks this question:

Okay, so maybe they had success with it…. BUT… what is it about their story or situation that made it work for them? 

Anyone relate to this?

With cryptocurrency, I was a huge skeptic. 

I had so many people commenting on my YouTube videos back in 2017 ‘saying such things as “You need to get into crypto!”, “You’re missing out!”, “Crypto is the future!”,  blah, blah, blah.

From what I could tell, most of these people had no idea what crypto even was. They just saw it as an opportunity to get rich.

This was more of the tame comments I received:

Bitcoin back then hit a high of around $19,000 and then it dropped down to under $3,000. That is when I finally decided I was going to stop being a skeptic or a critic.

I decided to educate myself, to become a student of crypto. That’s when I made my initial purchase of Bitcoin and joined the HODL Army.  The rest, as they say, is history.

Here’s how that initial Bitcoin grew into the other ways I’ve making money with crypto. You can also listen to the 4 ways on the Good Financial Cents podcast here:

1. Buy and Hold

The first way is the traditional way that you make money with all types of investments – buying and holding. If I’m going to buy Bitcoin or any cryptocurrency, the belief was, and still is, I’m buying this because I believe in the technology.

I believe this has the potential to be something big. And if that’s the case, then I’m in it for the long haul.

Okay, maybe I wasn’t there immediately. I first had to test it out. I did this by opening an account with Coinbase. This is where I made my initial purchase of Bitcoin which was made in March of 2018.  I was so excited about the purchase I even took a screenshot:

Bitcoin to the Moon!

Now from there you’re probably guessing I dove in “full send” style and began buying crypto like crazy. It was actually just the opposite.

It wasn’t until November of 2019, almost two years later, I made my second purchase of Bitcoin. That was an $8,000 purchase. Then another $10,000 at the end of November and another $20,000 purchase in January of 2021.

I also purchased Ethereum in another crypto account. Initially, I was using some of my interest payments to purchase small, incremental shares of Ethereum. Finally, in the later part of last year, I made a substantial purchase with $50,000 of Ethereum. 

Both Bitcoin and Ethereum are the two coins I’m most bullish on.

2. Cryptocurrency Savings Accounts

The second way I’ve made money with crypto is by earning interest through stablecoins, or what is referred to as cryptocurrency savings accounts. 

I kept hearing about cryptocurrency savings accounts and decided it was time to give them a try.  My savings account at my bank was paying me pennies on the dollar, where crypto savings accounts can pay well above 5%.

I did my research and opened a Celsius account. Right now at Celsius, stablecoins are paying over 10% and a bit higher on Bitcoin and Ethereum. 

With Celcius, instead of paying you monthly, they pay you weekly. At the time of this post, I have just over $220,000 with Celsius.

Now check out the latest interest payment that I received. Remember, this gets paid weekly! 🙂

Note: On July 13, 2022, Celsius Network and certain of its affiliates filed for voluntary Chapter 11 bankruptcy.

Earn up to $50 in Bitcoin by using my link to try out Celsius here.

In my bank savings account with $330,000, I made $2.88 for the entire month Now, that being said, with a savings account at the bank you have FDIC protection.

With an exchange like Celsius there is no guarantee or FDIC insurance like your bank offers. You could put $25,000 in there and it could be gone tomorrow.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Diversify your portfolio with Cryptocurrency Investments
Online trading platforms offer a wide variety of cryptocurrencies for trading. Click below to start investing today!
Start Investing in Crypto
Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures.

3. Trading

If you are new to cryptocurrency this is one way that I would not suggest and really something I shouldn’t even be messing with. Hahah… but it’s so tempting!

Now I’m not talking about day trading. I have no interest in sitting behind my computer and checking charts and candle sticking and whatever day traders do. I mean, I don’t even have the lingo down so I definitely have no business day trading.

I have experimented with this before and I’ve made some money but I’ve also lost a lot of money. In both situations It all happened really, really quick.

If you’re not able to sit behind a computer or have access to your phone this is not something I would ever suggest.

This isn’t exactly what I did. Here’s what I mean….

What happens when you start researching cryptocurrency you’ll see how volatile it can be. When I saw Bitcoin take huge swings I started to ask myself, “Why wouldn’t I buy at the dip and then sell at the high?” 

Crypto Volatility Trading

It is so easy to get this confidence whenever you look at any sort of chart, stocks, ETFs, crypto, and you can just see this pattern. 

I didn’t start with Bitcoin, funny enough. I actually started trading Dogecoin.

I bought Dogecoin in my Robinhood account at 14 cents per coin, I put in $20,000. Fast forward, it wasn’t that much longer. Doge shot up to 75 cents a coin. I had a profit on paper and I realized again, on paper a $75,000 profit on a $20,000 investment in about 90 days, if I recall the time frame. 

At that time, I would have had to pay short-term capital gains if I sold. I was not familiar with the cryptocurrency tax rules. I’m almost embarrassed to even admit this out loud but, needless to say, I am very much familiar with the tax rules now. So much, in fact, I recorded this video about it:

With cryptocurrency, as of right now, the SEC or the IRS or any governing body does not recognize crypto as a security. And because of this, the wash sale rule does not apply!

The wash sale rule basically says if you sell something and you want to realize a loss, you have to wait at least 30 days to get back in to that security. If you do, then the capital loss is literally “lost”.

But with cryptocurrency, that is not the case so you can sell and buy in the same day.

I’ve since sold some of those positions and bought Bitcoin and Ethereum when the price dropped. I took advantage of this with my RobinHood account and also in Coinbase.

But I want to reiterate this is not the strategy I would ever suggest to anyone. Unless you’re an active trader and you want to monitor this day in and day out, then it is all based on a hunch.

That’s pretty much what I was doing. I know that long term that is a surefire recipe for disaster. So yes, I’ve had some nice wins. But eventually I’m going to get burned. 🔥

4. Crypto Bots

The following is something I would never have guessed in a million years I would hear myself saying:

I’m trading cryptocurrency using bots.

That was until I received a text from a friend of mine sharing with me a crypto bot strategy that somebody else turned him on to he’s been testing himself. If you know my friend then you would also know this is completely out of his comfort zone. So for him to be willing to test this out and also be making a profit, I knew I had to take a closer look.

I signed up for the training and after an hour of devouring all the info I was more than interested. I wasn’t 100% sold but interested enough to begin testing out my own crypto bots.

Now, I’m not a coder and definitely not a day trader, so the only way I could possibly do this was if there was a software program that made this easy. Thank goodness there is but more on that in a second. First, let me explain what this is exactly.

Grid Trading with Crypto

Grid trading is a trading method that consists of placing a bunch of buy and sell orders at predefined intervals around a fixed price.

If you could think of it like this, let’s say that Bitcoin is trading at $55,000 and you can see that that price goes from 55,000, up to 57, and back down to 53. When you set up this bot within this grid trading platform, you’re placing several different limit orders.

When the price goes up, you buy a small percentage, depending on how much you have invested, but it could be like making a $25 to $50 purchase, as it goes up you would sell and as it goes down you would buy. When it goes back up, if there’s a profit then you would sell and then lock in that profit. Here’s what it looks like in the software program:

Basically what the key here is, the more that the coin fluctuates the more transactions are taking place, hence, more profit generating. 

So in this case, when you’re setting up these, these trading bots doesn’t have to be Bitcoin, you can choose almost any coin that you want.  

The software program I’m using is called Bitsgap. With Bitsgap you connect your cryptocurrency exchanges (think investing brokerages) and then set up the grid bots through their program. I know it sounds uber complicated. If it wasn’t for the training I went through, I’m not sure I could have figured it out on my own.

I created two new crypto accounts, Binance.US and KuCoin, for the sole purpose of setting up these grid bots.

I initially invested $5,000 in one bot and shortly after created another one with $5,000. The training program I went through suggested at least $3,000 per bot strategy but I decided to use $5,000. I’m approaching $100,000 invested into several altcoin bots. And I can see myself adding more as.

Always Be Testing

Another cool feature with the Bitsgap software is that you can set up demo bots and test how they would have performed. Here’s an example of a bot I tested before I actually invested real money:

I’ve tested several and continue to test new pairings. I set one demo up and nine days later I was up 7.12% on $5,000. Now unfortunately, that’s not real money. But now I feel comfortable putting some real money in it. 

I wish I could take credit for all of this, but this was completely over my head until I went through an amazing training program created by Dan Hollings which he calls The Plan.

There is a significant investment into his training program but you can sign up for his webinar and learn more about his grid bot trading success. I learned a ton just watching this and highly suggest anyone interested in crypto to check it out.  

As I continue to dive more into this, I’ll share more on the podcast, the YouTube channel (where you can see some tutorials), and possibly more here on the blog.

More updates come!

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Create your cryptocurrency portfolio today
Public has a variety of features that make it the best place to start trading. Start investing today!
Start Investing in Crypto
Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures.
Facebook LinkedIn Twitter

About the Author

Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. He was a financial planner for 16+ years having founded, Alliance Wealth Management, a SEC Registered Investment Advisory firm, before selling it to focus on his passion - educating the masses on the importance of financial freedom through this blog, his podcast, and YouTube channel.


Jeff holds a Bachelors in Science in Finance and minor in Accounting from Southern Illinois University - Carbondale. In addition to his CFP® designation, he also earned the marks of AAMS® - Accredited Asset Management Specialist - and CRPC® - Chartered Retirement Planning Counselor.

While a practicing financial advisor, Jeff was named to Investopedia's distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC's Digital Advisory Council.

Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.

Facebook Twitter LinkedIn


You Might Also Enjoy

Dogecoin Price Prediction: Will DOGE Hit 10 Cents?

Dogecoin Price Prediction: Will DOGE Hit 10 Cents?

How to Buy Ethereum (ETH) in 2023

How to Buy Ethereum (ETH) in 2023

6 Best Crypto Wallets of February 2023 - Hot & Cold Options

6 Best Crypto Wallets of February 2023 - Hot & Cold Options

Bitcoin Historical Annual Returns (10 Years, 5 Years, 3 Years, 1 Year)

Bitcoin Historical Annual Returns (10 Years, 5 Years, 3 Years, 1 Year)

What Might Happen if You Invest $100 in Bitcoin Today?

What Might Happen if You Invest $100 in Bitcoin Today?

What is an NFT and Should You Invest in One?

What is an NFT and Should You Invest in One?

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Make Money
  • Manage Money
  • Invest
  • Taxes
  • Insurance
  • Retirement
  • Banking
  • Home
  • Credit
  • Debt
  • About
  • Contact
  • Facebook LinkedIn Twitter

© 2023 Good Financial Cents®. All Rights Reserved. | Privacy Policy | Disclaimer

All written content on this site is for information purposes only. Opinions expressed herein are solely those of AWM, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.

All third party trademarks, including logos and icons, referenced in this website, are the property of their respective owners. Unless otherwise indicated, the use of third party trademarks herein does not imply or indicate any relationship, sponsorship, or endorsement between Good Financial Cents® and the owners of those trademarks. Any reference in this website to third party trademarks is to identify the corresponding third party goods and/or services.