Are People Still Making Money in Crypto?

Crypto investing once felt like a modern-day gold rush. Early Bitcoin adopters turned small investments into life-changing wealth, altcoins delivered massive returns in short bursts, and entire markets like NFTs and DeFi seemed to create money out of thin air. For a while, it looked like “easy money” was everywhere.

That perception wasn’t entirely wrong, but it was heavily tied to timing. Much of the explosive growth occurred during the early adoption phases of crypto, when markets were inefficient, and participation was limited.

Today, the landscape looks very different. Crypto is more mature, more competitive, and far less forgiving. That doesn’t mean the opportunity to make money is gone, but it does require a different approach than it did just a few years ago.

How People Used to Make Money in Crypto

To understand what works today, it helps to look at how people made money during earlier crypto cycles. First, let’s look at Bitcoin. Early investors who bought BTC benefited from massive price appreciation as adoption grew. Returns were driven by novelty, scarcity, and market hype.

Altcoins followed a similar pattern. During past bull markets, smaller tokens and coins could increase 10x, 50x, or even 100x in a matter of months. Speculation and hype drove most of these gains rather than long-term fundamentals. This became evident during every “crypto winter,” when most altcoins lost 90% or more of their previous value.

NFTs created another wave of rapid wealth. Digital collectibles and art projects surged in popularity, with some selling for millions. For a brief period, flipping NFTs became a common way to generate quick profits. DeFi introduced yield farming, where users could earn high returns by providing liquidity to protocols. At its peak, yields were extremely high and often unsustainably so.

The common thread across all of these strategies was timing. Early participation was often the difference between profit and loss. So was timing. Many people who failed to sell before the cycles went south lost money. 

As more people entered the market and institutional investors and governments got involved in cryptocurrency, these opportunities became harder to replicate. For example, while Bitcoin hit all-time highs during this previous bull cycle, many cryptocurrencies failed to reach past their previous highs.

Ways People Still Make Money in Crypto

While the environment has changed, there are still several ways people make money in crypto today. Here are the ways that people still make money in crypto.

1. Bitcoin Investing (Long-Term Holding)

How It Works

This is the simplest way people still make money with crypto. Investors buy Bitcoin and hold it while waiting for the price to appreciate. They then sell for a profit.

Current Reality

Most people who make money in Bitcoin investing do so by taking advantage of cycle peaks and lows. During the cycle known as “crypto winter,” smart investors buy Bitcoin when its price drops significantly. They do the same during volatile periods when the currency drops by 5% or more. 

The bulk of profits is generally right around Bitcoin’s “halving,” which reduces miner rewards. This generally leads to a spike in price, which generally peaks during the bull market portion of the cycle.

However, the days of insane returns on Bitcoin are gone. Bitcoin is the most established crypto asset and is considered digital gold. It has attracted significant institutional investment, including the creation of Bitcoin ETFs and IRAs.

Nowadays, the expected profit on most investments is in the 20% to 50% range. If you’re lucky, you might hit a 100% return if you buy during the peak of the crypto winter. 

However, if you are a long-term investor planning to hold through multiple cycles, it is still possible to achieve a significant return, assuming Bitcoin's price continues to rise.

Verdict

Still viable, but slower and less dramatic than before.

2. Altcoin Investing

How It Works

In the past, investors put money into newer cryptocurrencies, or those attracting significant media and social media attention, in hopes of higher returns. It was possible to see investments of $500 to $1,000 turn into millions if the right coins took off.

Current Reality

This last cycle saw the greatest acceleration in crypto coins and token creation in history. There are now an estimated 47 million altcoins in existence, creating a severe liquidity drain.

This liquidity drain has severely impacted the altcoin market, with over 40% of all altcoins now trading at or beneath all-time lows. Furthermore, there are no constraints on the creation of altcoins, which will further impact the market.

Investing in established altcoins, such as Dogecoin, Solana, and XRP, may still yield returns as public perception of these coins remains strong, but investors will not realize any potential profits until the next bull market.

For new altcoin investing, the market is becoming more of a crapshoot than ever. While life-changing gains are still possible, they will be harder to come by in the future, and it will be harder to pick winners in advance. 

Also, keep an eye on crypto regulation. If governments decide to ban altcoin trading in the future, it will destroy the market, except for those coins that can negotiate government deals.

Verdict

Higher risk and becoming more of a lottery play than ever.

3. Stock and ETF Investing

How It Works

Those interested in investing in the cryptocurrency market can do so by buying stocks in crypto mining companies or crypto exchange-traded funds (ETFs). This form of investing has been more popular in the last couple of cycles among those seeking exposure to crypto markets without experiencing the market's massive volatility. The traditional buy–low, sell-high strategy applies, with savvy investors reaping the greatest benefits.

Current Reality

Stock and ETF investing is a lower-risk strategy than straight crypto investing, but crypto market factors heavily influence share prices. During bear markets, long-term investors in crypto-mining companies will experience significant swings in portfolio value. For established crypto mining companies, this may present buying opportunities, with decent profit potential if they can ride the next bull market. 

Long-term ETF investors can experience modest returns, provided they can emotionally withstand occasional fluctuations in share prices. 

Verdict

Lower risk than crypto investing with modest returns for ETF. Crypto-mining investors could achieve solid returns under the right conditions.

4. Bitcoin Mining

How It Works

Mining involves using specialized hardware to validate transactions and earn Bitcoin rewards.

Current Reality

Mining has become highly competitive and capital-intensive. Large operations dominate the space, but some of those companies still struggle to remain profitable, especially during bear markets.

For most individuals, the equipment and energy costs outweigh the potential returns. And that isn’t considering upcoming halving events.

Every 4 years, the number of Bitcoin produced when a block is successfully unlocked is halved. Before April 20, 2024, each block produced 6.25 Bitcoin. Now, only 3.125 BTC are produced.

The next halving will occur in April 2028, at which point the reward per block will drop to 1.5625 BTC. Unless Bitcoin doubles in price in the next cycle, and continues to do so in future cycles, the cost to mine Bitcoin will eventually become unprofitable for most everyone.

Verdict

Not viable for most people, and may become unprofitable across the board in the future.

5. Airdrops and Early Token Participation

How It Works

Users who interact with new crypto projects early can receive tokens as rewards. Some developers may also distribute airdrops to build interest in their coins. Exchanges may also distribute tokens through promotions to build community interest.

Current Reality

Airdrops still happen with new coins, but their profitability is limited. There are more airdrops than ever, and the reality is that selling many of these tokens is challenging, and the rewards received by many are low.

Furthermore, there are more airdrop scams than ever, resulting in many people losing their crypto wallets and accounts to hackers in exchange for the promise of free crypto.

One minor exception is tokens airdropped by exchanges, such as Coinbase. Some token developers partner with exchanges to offer promotional token drops. The amounts of these tokens are small, but in most cases, you can sell them immediately. However, don’t expect to make more than a few bucks from this.

The success of modern-day airdrops is low, and it takes a lot of luck to make anything at all.

Verdict

Highly unreliable and potentially risky.

Why It’s Harder to Make Money Now

There are several reasons why it is harder to make money in crypto now than it has been in the past. The market is more mature, with many more players than before. 

Where retail FOMO and speculative investors once largely drove crypto, the market now includes many institutional investors. Institutional involvement has also changed the dynamics. Large players bring stability, but they also reduce volatility. Extreme volatility is what led to many of the outrageous returns in earlier cycles.

Next, the sheer volume of cryptocurrencies has gotten out of control. There are too many cryptocurrencies and not enough money to fund them. The most recent bull cycle lacked a true “altcoin season” we’ve seen in the past due to liquidity drains caused by oversaturation of new coins.

Crypto investors are now more selective about the coins and tokens they invest in, similar to what we’ve seen in the stock market. While there are profits to be made, the insane profits of the past are likely gone now, replaced by moderate returns that are largely situational.

What Crypto Is Now (vs What It Was)

Crypto investing has shifted from a chaotic, high-growth environment to a more structured one. In the past, cryptocurrencies were driven by speculation and hype. In today's market, crypto behaves more like a traditional investment market.

While crypto markets can still be influenced by speculation and real-world events, traditional investment markets now have greater influence. This makes some markets easier to predict, but also reduces the potential return on investment.

Crypto investors have become smarter and now seek moderate, long-term returns. The focus has shifted from chasing quick, monster wins to managing risk and building positions.

That doesn’t mean money-making opportunities are gone. Rather, it means expectations need to change.

Are People Still Getting Rich?

Yes, people are still making significant money in crypto, but it’s much more difficult than it used to be. The biggest gains tend to be more situational and can even involve a bit of luck. This includes getting in early to new projects and taking on significant levels of risk. Those who have significant capital to invest can also benefit from smaller percentage gains.

For the average retail investor, these outcomes are rare. A smarter approach for retail investors is to capitalize on bear-market conditions. Dollar-cost averaging into Bitcoin, or investing during major corrections, can produce consistent returns. For altcoins, investing in popular legacy coins during bear markets can lead to gains once cycles turn bullish, typically around Bitcoin’s halving.

Most people investing in Bitcoin will not get rich overnight. Instead, they’re aiming for steady growth, diversification, and long-term positioning.

Crypto Investing No Longer a Shortcut to Success

Money can still be made in crypto, but it looks very different from how it has in past cycles. The era of easy, explosive gains has largely passed, giving way to a more competitive and mature market. Most strategies that worked in the past will not yield the same results, and success now requires more patience, discipline, and realistic expectations. Crypto investing is still an opportunity, but it’s no longer a shortcut to success.