What Does “Making Money with Cryptocurrency” Really Mean in 2019?
In 2019, the phrase “making money with cryptocurrency” covered a broad spectrum of activities — from passive holding to active trading, from mining to decentralized finance (DeFi) experiments. Unlike the 2017 ICO frenzy, 2019 was marked by a more cautious, infrastructure-focused market. Bitcoin hovered between $3,000 and $13,000, while altcoins experienced sharp but often short-lived rallies.
For most participants, making money meant generating positive returns in excess of the high volatility and counterparty risks inherent in the space. It was not about getting rich overnight, but about understanding the mechanics of each method and managing exposure carefully.
Beyond “Buy Low, Sell High”
While price speculation dominated public perception, sophisticated participants in 2019 also explored:
- Arbitrage — exploiting price differences across exchanges.
- Staking and masternodes — earning network rewards by locking up tokens.
- Lending and borrowing — generating interest on platforms like Compound or Celsius.
- Participating in testnets and bounties — earning tokens for contributing to projects.
The 2019 Market Context
Understanding the broader environment was crucial. In 2019, the crypto market was recovering from the 2018 bear market. Institutional interest was growing — with Bakkt launching Bitcoin futures and Fidelity entering the custody space. Regulatory clarity was still fragmented, but the U.S. SEC and other agencies were increasingly active. This meant that due diligence was more important than ever.
The Core Ways to Generate Returns with Crypto in 2019
In 2019, there were five primary categories of crypto-based income strategies. Each came with its own risk profile, time commitment, and capital requirements.
📈 Trading (Active)
Buying and selling assets over short timeframes — from minutes to weeks — to capture price movements. This included spot trading, margin trading, and derivatives. Required technical analysis, chart reading, and emotional discipline.
🛡 Investing (Passive / Hodling)
Acquiring assets with a long-term horizon, often using dollar-cost averaging (DCA). Investors in 2019 focused on Bitcoin, Ethereum, and a handful of large-cap altcoins with active development.
🚀 Staking & Masternodes
Locking up tokens to support network operations (e.g., proof-of-stake consensus) in exchange for inflationary rewards. Projects like Tezos, Cosmos, and Dash offered staking yields that ranged from 5% to 20% APY in 2019.
⚙ Mining
Using specialized hardware (ASICs or GPUs) to validate transactions and secure proof-of-work networks. Bitcoin and Litecoin mining dominated, but profitability was tightly tied to electricity costs and hardware efficiency.
💰 Earning Crypto (Work, Lending, Bounties)
Receiving crypto as payment for goods, services, or participation. This included freelance work paid in stablecoins, lending platforms, affiliate programs, and bug bounties. In 2019, platforms like Bitwage and CryptoJobs gained traction.
How to Evaluate a Cryptocurrency Opportunity in 2019
With thousands of tokens and projects in 2019, evaluation was non-negotiable. A structured framework helped separate credible opportunities from speculative noise.
Team and Development Activity
Examine the project's core team. Are they publicly identifiable? Do they have relevant experience? Check GitHub repositories for commit frequency, code quality, and number of active contributors. In 2019, many projects with high-profile teams still failed — but a transparent, active development team was a positive signal.
Tokenomics and Supply
Understand the token's utility, total supply, distribution schedule, and inflation rate. Questions to ask:
- Is the token required for network use, or is it purely speculative?
- How are new tokens minted? Is there a fixed cap or an inflationary model?
- What percentage of tokens are held by the team or early investors?
In 2019, projects with clear, sustainable tokenomics tended to outperform those with opaque or unfair distribution.
Market Liquidity and Volume
Liquidity determines how easily you can enter and exit positions. Check daily trading volume, order book depth, and the number of active exchanges. Low-liquidity assets can experience extreme price slippage, making them risky even if the fundamentals are strong.
Community and Ecosystem
Active communities on platforms like Reddit, Discord, and Telegram often indicate organic interest. But beware of artificially inflated numbers. Look for thoughtful discussion, developer engagement, and real-world use cases. In 2019, projects with strong developer ecosystems (e.g., Ethereum, EOS, Tezos) continued to attract talent and investment.
Comparison: Trading vs. Staking vs. Mining vs. Earning
This table summarizes the key differences across the main 2019 strategies. Use it to align your skills, capital, and risk tolerance with the right approach.
| Strategy | Time Commitment | Capital Required | Risk Level | Typical 2019 Return Profile |
|---|---|---|---|---|
| Trading | High (daily) | Medium–High | Very High | Variable; skilled traders aimed for 2–5% monthly |
| Investing / Hodling | Low (set and review) | Low–High | Medium–High | Dependent on market cycles; BTC returned ~90% in 2019 |
| Staking | Low (once set up) | Low–Medium | Medium (validator risk) | 5–20% APY (variable) |
| Mining | Medium (maintenance) | High (hardware + electricity) | Medium–High | Break-even to 30% ROI, depending on cost |
| Earning (Work / Lending) | Low–Medium | Low (skills) / Medium (lending) | Low–Medium | Stable, often paid in stablecoins or BTC |
Practical Evaluation Checklist for 2019 Crypto Opportunities
✅ Before committing any capital, run through this checklist:
- Team & advisors — Are they real, experienced, and publicly accountable?
- Whitepaper & roadmap — Is it realistic, detailed, and updated?
- Tokenomics — Is the supply model sustainable? What is the inflation rate?
- Development activity — Check GitHub or equivalent for recent commits.
- Community health — Are conversations substantive or just hype?
- Exchange availability — Is it listed on reputable exchanges with decent volume?
- Security audits — Has the project undergone independent smart contract or code audits?
- Regulatory status — Is there any legal action or regulatory guidance affecting the project?
- Your own risk tolerance — Can you afford to lose 100% of this capital?
If you cannot confidently answer most of these, step back and research further.
Real-World Scenario: A 2019 Investor's Decision Process
📜 Scenario: Evaluating a new staking token
Background: In mid-2019, a proof-of-stake project (call it “Project Nova”) launched with a 12% staking reward. The token price was $2.50, and the project had a GitHub repository with 6 active contributors.
Step 1 — Team: The team members had LinkedIn profiles and prior experience in blockchain development. One had contributed to a well-known DeFi project.
Step 2 — Tokenomics: Total supply was 100 million tokens, with 20% allocated to the team (vested over 3 years). Inflation was 8% annually, but staking rewards were designed to offset inflation.
Step 3 — Liquidity: The token was listed on two mid-tier exchanges with $500,000 daily volume — moderate but not deep.
Step 4 — Community: The Telegram group had 8,000 members, with active discussions about development milestones and validator setup.
Decision: The investor allocated 5% of their portfolio to Project Nova, staked the tokens, and set a price alert to review performance quarterly. They also kept a portion liquid to trade if volatility spiked.
Outcome: By Q4 2019, the token had appreciated to $3.80, and the staking rewards compounded to a 14% APY net of fees. The investor exited a portion at $3.50, securing a profit while keeping a smaller stake for long-term potential.
⚠ This is a hypothetical illustration, not a recommendation. Actual results vary widely.
Common Mistakes to Avoid in 2019
⚠ Pitfalls that tripped up many crypto participants in 2019:
- FOMO-driven entries: Buying after a massive rally without proper research. Many bought Bitcoin at $13,000 only to see it retrace to $9,000 within weeks.
- Ignoring fees: Trading fees, withdrawal fees, and network gas costs ate into profits — especially for small trades.
- Leverage without a plan: Margin trading amplified losses quickly. In 2019, several major exchanges saw massive liquidations during flash crashes.
- Poor security: Keeping funds on exchanges, using weak passwords, or skipping two-factor authentication (2FA) led to avoidable losses.
- Chasing “guaranteed” returns: Ponzi schemes and high-yield investment programs (HYIPs) proliferated in 2019. If it sounds too good to be true, it is.
- Over-diversification: Holding dozens of small-cap tokens made it impossible to track each one properly, increasing overall risk.
- Ignoring tax obligations: Many participants were caught off guard by tax liabilities on trades, staking rewards, and mining income.
Risk Warning and Responsible Participation
🚨 Important Risk Considerations
Cryptocurrency is a high-risk, high-volatility asset class. Prices can fluctuate dramatically within hours, and you may lose all of your invested capital. This guide is for educational and informational purposes only. It does not constitute financial, legal, or tax advice.
Before engaging in any crypto activity in 2019 (or any year):
- Do your own research (DYOR). Verify all claims, data, and platform terms independently.
- Never invest more than you can afford to lose. Crypto should not be your primary or only investment.
- Understand your local regulations. Crypto laws vary by country and can change without notice.
- Secure your assets. Use hardware wallets, strong passwords, and 2FA. Never share your private keys.
- Be skeptical of "guaranteed" returns. No legitimate platform can guarantee profits in crypto markets.
If you are unsure about any strategy, consult a qualified financial advisor who understands digital assets.
Frequently Asked Questions
❓ Can you really make money with cryptocurrency in 2019?
Yes, but it requires research, discipline, and risk management. Many people generated returns through trading, staking, mining, or earning crypto. However, the market is volatile, and profits are never guaranteed. Always treat crypto as a high-risk asset class.
❓ What is the safest way to make money with crypto?
There is no truly “safe” method, but strategies like dollar-cost averaging into established coins or earning interest through regulated lending platforms are considered relatively lower-risk compared to day trading or ICO speculation. Even so, you must evaluate each platform's security and reputation.
❓ How much money do I need to start investing in cryptocurrency?
In 2019, many exchanges allowed you to start with as little as $10–$50. The amount depends on the strategy: trading often requires more capital to cover fees and withstand volatility, while staking or earning may have lower entry barriers. Never invest more than you can afford to lose.
❓ Is cryptocurrency mining still profitable in 2019?
Mining profitability in 2019 depends heavily on your electricity cost, hardware efficiency, and the coin's market price. For Bitcoin, large-scale operations dominate; for altcoins, some miners found opportunities, but you must calculate your break-even point carefully using current hashrate and difficulty data.
❓ What is the difference between trading and investing in crypto?
Trading involves short-term buying and selling to profit from price movements, often using technical analysis and leverage. Investing is a long-term approach where you buy and hold assets based on fundamental value and future potential. Both have different risk profiles and time commitments.
❓ How do I evaluate a cryptocurrency project before investing?
Start by examining the team's background, development activity on platforms like GitHub, tokenomics (supply, distribution, inflation), market liquidity, trading volume, and community engagement. Also read the project's whitepaper and check for independent audits or third-party reviews.
❓ What are the most common mistakes beginners make in crypto?
Common pitfalls include investing without research, falling for hype or FOMO, using leverage recklessly, neglecting security (weak passwords, no 2FA), keeping funds on exchanges, and chasing “get rich quick” schemes. A disciplined, informed approach is essential.
❓ Are there any tax implications for crypto earnings in 2019?
Yes. In many jurisdictions, cryptocurrency is treated as property or an asset, so capital gains tax may apply when you sell or trade. Some countries also tax mining income and staking rewards. Consult a local tax professional to understand your obligations, as rules vary and can change.