Within the past decade or so, cryptocurrencies have evolved to enjoy greater acceptability as mainstream financial instruments. The country El Salvador for example, made Bitcoin a legal tender as far back as 2021.

Additionally, crypto have continued to make many investors millionaires and billionaires, according to a 2024 report by Henly & Partners. In 2025, the crypto industry is poised to continue offering a broad range of money-making opportunities for both newbies and experienced investors.

This guide explores how to make money from cryptocurrency in 2025, as well as some tips for successful crypto investments.

Overview of Cryptocurrencies

The word cryptocurrency tends to sound too technical and even confusing for those who are new to it. But this shouldn’t be the case. A cryptocurrency is nothing but a digital or virtual currency that serves pretty much the same purposes as fiat money.

The crypto concept was conceived in 2009 with the arrival of Bitcoin, based on blockchain technology. Since then, several other cryptocurrencies have emerged. Some examples include Ethereum, Binance, Tether, Cardano, USDT, Solana and Dogecoin.

Cryptos that are not Bitcoin are known as altcoins (alternative coins). Coins that tend to exhibit some stability are referred to as stablecoins. A good example is the above-mentioned USDT. A meme coin (such as Dogecoin) is a crypto that originated from an internet meme or is based on persons, animals, artwork, or any other thing that can evoke humour, light-heartedness, and fun.

Though cryptocurrencies have similarities with fiat money, some differences exist between both. For instance, they were originally meant to facilitate transactions without third-party intermediaries such as banks. They were also meant to work with little or no government regulatory oversight. Additionally, cryptocurrency price movements tend to be a lot more volatile than those of fiat currencies. 

Ways to Make Money From Cryptocurrency in 2025

If you are looking to explore opportunities in the crypto market in 2025, there are lots of investment strategies available. We explore how to make money in cryptocurrency in today’s fast paced digital world. 

Mining

Mining is the process of validating cryptocurrency transactions and adding them to the blockchain. By using powerful computers to solve complex mathematical puzzles, miners are rewarded with newly minted coins (like Bitcoin or Ethereum). Profitable mining can be resource-intensive and may require significant investment in hardware and energy.

HODling

You can make money from cryptocurrencies in 2025 by simply buying and holding your crypto asset for a long time, no matter what happens in the market in the short term. The technical jargon for this strategy is HODling. 

In a nutshell, HODLers condition themselves not to succumb to the urge to respond to temporary price gyrations but rather to continue believing in the future promise of their assets.

One good example is MicroStrategy’s Michael Saylor, who has been HODling vast amounts of Bitcoin for years. Saylor predicts Bitcoin will deliver a 29% annualized return over the next 21 years. He attributes Bitcoin’s potential growth to increased adoption by investors and lower volatility.

Staking

Staking involves participating in a cryptocurrency network by “staking” your coins to help secure the blockchain and validate transactions. In return for staking, you earn rewards, often in the form of additional coins. Popular coins for staking include Ethereum 2.0, Cardano (ADA), and Solana (SOL).

Yield Farming and Liquidity Mining

Yield farming and liquidity mining are more advanced ways to earn passive income by providing liquidity to decentralised finance (DeFi) platforms. By lending your crypto to decentralised exchanges or liquidity pools, you earn interest or rewards in the form of additional cryptocurrency.

Participating in Initial Coin Offerings (ICOs) and Token Sales

ICOs and token sales offer an opportunity to buy a cryptocurrency or token at an early stage, often at discounted rates before it becomes available on major exchanges. However, ICOs come with significant risks, as many projects fail or get scammed.

Day Trading

Day trading involves the purchasing and selling of cryptocurrencies on the same day to profit from small changes in their prices. This kind of trading demands fast decision-making, along with an eye for market signals and the changes such signals reflect. In the context of day trading, a position is held for minutes to hours, based mainly on market volatility.

Swing Trading

A swing trading strategy is based on taking advantage of price fluctuations or swings in the short-to-medium-terms. This strategy is preferred by traders looking to hold positions for days or weeks, buying when they expect the price to go up and selling when they expect it to go down.

Trend Trading

Similar to swing trading, trend trading involves identifying and following the direction of a market trend—whether it’s up, down, or sideways. Trend traders typically buy when the market is trending up and sell when it is trending down.

Range Trading

Range trading involves identifying price areas where a cryptocurrency trades within a certain range, for example, a support level (low end of the range) and a resistance level (high end of the range). Range traders profit by buying around the support level and below and then selling around the resistance level and above.

Scalping

The scalping strategy is based on earning a small amount of crypto from a very short-term minor price variation. Traders using this approach aim to buy low and sell high in quick intervals, often making dozens or even hundreds of trades in a single day.

High-Frequency Trading (HFT)

High-frequency trading exploits automated algorithms to buy and sell assets at ultra-fast speeds, making it possible to trade thousands of times per day in order to quickly make money from price changes. This approach often demands expert-level knowledge and the ability to work with computers and other sophisticated trading tools.

Arbitrage Trading

In arbitrage trading, the trader purchases a cryptocurrency on an exchange and simultaneously sells it on another exchange where the crypto’s price is higher than its purchase price, thus generating a profit from the price gap. This strategy aims to exploit market inefficiencies, notably varying prices for the same asset in different exchanges.

Spot Trading

Transactions in spot trading are settled “on the spot.” In other words, once a trade is executed, there is instant transfer of ownership. A typical spot trader aims to buy low and sell high so as to make a profit from the price variations. 

Futures Trading

Futures trading allows participants to bet on the future price of cryptos without any need to own such cryptos. Traders purchase contracts (go long) if they expect the asset’s price to appreciate within a certain date and sell contracts (go short) if they expect it to depreciate. The trader whose price expectation materialises wins the bet and is rewarded accordingly.

One key advantage of futures trading is leveraging, which allows traders to have positions larger than the actual amount they can afford. For instance, a 10x leverage allows a trader who has only $100 to trade crypto valued at $1,000. However, leveraging should be used with caution because it not only increases the potential for profits but can also increase your losses.

Index Investing

Index investing is a strategy that involves buying a portfolio of various cryptos that are designed to reflect the movement of the entire market. This can offer diversification and, in turn, reduce the risk of investing in only one crypto.

As the value of the overall market or the included cryptos grows, so will the value of the index, implying potential profits. An example is the Crypto20 index of the top 20 cryptocurrencies by market capitalisation.

Dollar-Cost Averaging (DCA)

Dollar-cost averaging (DCA) is a less risky approach that involves investing a fixed amount of money or crypto assets at regular intervals, even when the cryptocurrency’s price increases or otherwise. This helps to smoothen out the price volatility over time while guarding against decisions based on emotion. By consistently investing, you accumulate more cryptocurrency during market downturns, which can lead to greater potential profits if the market rebounds.

Tips for Successful Crypto Investments

While crypto investments can offer you considerable rewards in 2025, they are also associated with volatility, scams and other risks which you have to bear in mind. The following are some tips to help you have a fruitful crypto investment experience:

Educate Yourself

Because the cryptocurrency market is constantly evolving, continuously researching and educating yourself can be the difference between success and failure. Thankfully, there are several ways you can achieve this.

For instance, you can take advantage of crypto investment courses offered by reputable online institutions such as Coursera and Udemy. You can also read books, visit blogs and websites, watch videos and join social media communities all dedicated to sharing knowledge about making money from crypto investments.

Decide on a Strategy

As can be seen above, there are several strategies open to anyone wishing to make money from cryptocurrencies. The strategy you settle for will depend on your level of expertise, risk tolerance and time horizon.

For example, if you wish to capitalise on short-term price movements, then options such as day trading or swing trading will be ideal for you. In contrast, you should consider HODling if you have a long-term focus.

You can also combine both short-term and long-term investments to enhance your chances of profitability.

Choose Ideal Cryptocurrencies

Your choice of cryptocurrencies should align with your investment strategy. If you prefer long-term investments, established coins like Bitcoin, Ethereum, or other projects with strong fundamentals should be your choice. For short-term trading, look for volatile coins with a higher possibility for significant price swings (for example, smaller altcoins or meme coins).

Pick the Right Platform

Scams and theft are a constant menace in the crypto industry. Therefore, you have to choose a safe and secure crypto platform for all your transactions. If you are based in Nigeria, you can enjoy access to several globally recognised exchanges.

But not all crypto platforms allow Nigerians to buy crypto with the country’s local currency, the naira. Here are some exchanges where you can buy crypto with naira:

Quidax

Founded by a Nigerian and was among the first crypto exchanges to be granted a provisional digital assets exchange license by Nigeria’s Securities and Exchange Commission (SEC). Investors can buy crypto on Quidax with less than ₦500.

Busha

Busha is the only other exchange that got the SEC’s first provisional licensing approval for a crypto exchange in Nigeria alongside Quidax. Its minimum purchase price for cryptos is as low as ₦250.

ChangeNOW

ChangeNow facilitates naira crypto purchases, including with a debit or credit card. According to their website, you can buy 0.0005647 BTC with ₦100,000 as of January 22 2025.

NairaEX

NairaEx is a Nigerian Bitcoin exchange that makes it possible for people to buy and sell Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Perfect Money with the naira. You can start trading once you sign in to your account and deposit naira into your wallet directly from your bank account.

Prioritise Security

While choosing a reputable exchange is a necessary condition for enhanced security, it is not sufficient. You also need to take other measures such as using strong passwords and enabling two-factor authentication (2FA) on your accounts. Use secure crypto wallets and do not share your wallets’ private keys with anybody (or with anybody you don’t trust).

Avoid transacting on public computers and over public WIFI networks. Always ensure that the computers or mobile devices you use to do crypto transactions have strong security protection.

Diversify Your Portfolio

Diversifying your crypto portfolio will help to minimise the risks in your cryptocurrency investments. Rather than invest all your funds in a single crypto, consider spreading your investments across multiple cryptocurrencies with different use cases. This expands your profitability scope while helping you mitigate losses if one or more cryptos in your portfolio underperform.

Evaluate and Adjust Your Portfolio and Strategy

The crypto market is volatile, and investment conditions can change quickly. Conduct regular assessments of your portfolio’s performance metrics. Adjust your strategy and set new goals if necessary. Track your progress constantly, and don’t hesitate to rebalance your investments based on prevailing market conditions.

Always Stay Informed and On Top of Trends

The crypto market is fast-paced, with new trends, technologies, and regulations constantly emerging. Hence it is essential to always follow crypto news from authoritative crypto sources.  

Also keep an eye on crypto stories on social media platforms (like Reddit, Twitter, and Telegram) and participate in online crypto forums and communities. All these will help you stay informed about important developments that may impact the market and your investments.

Conclusion

Despite risks such as volatility, regulatory uncertainty and fraud, cryptocurrencies continue to make people rich all over the world. As has been shown in this guide, those wishing to make money from cryptos in 2025 have a lot of strategies to use. As you invest, be sure to educate yourself and follow all the other tips above.

NB: Nothing in this article constitutes financial advice and Nairabrains is not liable for any information published in the above article. Always do your research and due diligence.