In 2021, Reddit was a central hub for cryptocurrency enthusiasts looking to share strategies, debate trends, and document their profit and loss journeys. The question "how to make money with cryptocurrency" spanned numerous subreddits, each offering a unique perspective based on individual experiences. This article summarizes the most prominent methods discussed during that dynamic year.
Cryptocurrency Mining
Mining was perhaps the most discussed hardware-based method on Reddit in 2021. Subreddits like r/gpumining and r/EtherMining were flooded with users showcasing their rigs. The profitability of mining Ethereum, coupled with the global GPU shortage, made it a hot topic. Users extensively debated the best graphics cards for mining, optimal mining software, and how to calculate electricity costs against daily earnings. For those who preferred not to build a physical rig, cloud mining contracts and mobile mining apps were also frequently reviewed, although with much more skepticism regarding their legitimacy. If you were curious about the potential returns during that period, tools like the Crypto Money Calculator were essential for running the numbers.
Staking, Lending, and Yield Farming
The transition of Ethereum to Proof-of-Stake sparked massive interest in staking. Redditors shared guides on how to stake their coins on exchanges like Coinbase, Kraken, and Binance, or through dedicated wallets. Beyond simple staking, the DeFi summer of 2020 bled into 2021, with yield farming becoming a highly active strategy. Platforms like Aave, Compound, and Uniswap were common topics. Redditors discussed yield farming strategies, the risks of impermanent loss, and the high annual percentage yields available. The general consensus on Reddit strongly emphasized "DYOR" (Do Your Own Research) to avoid risky, unaudited smart contracts.
Trading and Arbitrage
Active trading was a core theme on subreddits like r/CryptoMarkets and r/AltStreetBets. Strategies ranged from swing trading based on technical analysis to day trading volatile altcoins. Spot trading on major exchanges was the standard, but margin trading and futures were also heavily discussed, often with warnings about the severe risks involved. A specific tactic discussed was crypto arbitrage, taking advantage of price differences across different exchanges. Reddit threads provided real-time tips on market sentiment, often serving as a contrary indicator.
Airdrops and Forks
Getting free tokens through airdrops was a favorite topic for Redditors looking for zero-cost entry points. Major airdrops like Uniswap (UNI), 1inch, and dYdX created significant wealth for early users. Communities focused on tracking upcoming airdrops, discussing the best ways to qualify (e.g., interacting with testnets or specific dApps), and sharing referral links. Similarly, hard forks of major blockchains were events where holders could claim free coins, often leading to quick profits.
Play-to-Earn Gaming
The Axie Infinity phenomenon took Reddit by storm in 2021. The concept of "playing to earn" captured the imagination of millions, particularly in regions with lower average wages. Subreddits dedicated to Axie Infinity and other P2E games like Splinterlands discussed team compositions, scholarship programs (where managers lent assets to players), and the economics of token rewards. It was a revolutionary concept that merged gaming with decentralized finance.
Affiliate Marketing and Referrals
Referral marketing was a straightforward method shared widely. Redditors encouraged using referral codes for exchanges (Binance, Coinbase), wallets (Ledger, Trezor), and VPNs. Creating content, such as starting a crypto-focused YouTube channel, newsletter, or blog, was also advocated as a way to build an audience and monetize through affiliate links and donations. The broader aspects of generating revenue are well covered in the Make Profit With Crypto article.
Safety and Scams
A persistent theme across all Reddit discussions was the prevalence of scams. "Not your keys, not your coins" was repeated constantly. Users were warned against pump-and-dump schemes, fake mining pools, and phishing attempts. The most successful Redditors stressed the importance of security, using hardware wallets, and never investing more than one could afford to lose. The shared knowledge on Reddit was a valuable educational tool, but it required careful filtering and personal responsibility.