How do developers and users make money with Ethereum in 2023?

Considering the high gas fees, making money with Ethereum can be a real challenge. Considering the increasing number of people on the network leading to congestion, Ethereum is looking for ways to make it easier for users to mine and get incentivized. This is why the blockchain’s means of transactions varied, so now you can buy Ethereum with debit card, credit card or bank transfer. At the same time, with the Shanghai update, people can now withdraw their staked ether at any time they want. 

The options for making money are also varied, and that’s due to the value the blockchain offers for developers, regular users, and investors. Each type of “customer” can benefit from unique features so that productivity increases. 

Here’s how to make considerable money as a user or developer if you want to access Ethereum. 

First-time investor? Here’s how to gain ether

Investing in Ethereum poses risks but also has benefits. Like all cryptocurrencies, it’s volatile and will never be 100% stable. However, considering its popularity and the multitude of features it provides, such as smart contracts, Ethereum is worth the hype. Here are some simple ways of making money off of it.

Hodling is the simplest method of getting incentivized

Hodling ether is a classic strategy investors use. It contains two simple steps: buying coins, holding them and waiting for the value to increase. That’s one benefit of volatility, when the price of ether goes up, your current cryptocurrencies will become more valuable, and you can withdraw them anytime.

Hodling is among the long-term strategies some investors use. Although it takes time to build a stable portfolio and increase its value, this is the safest way to make money and protect your assets simultaneously.

Staking is Ethereum’s special feature for making money

Staking is something Bitcoin lacks and makes Ethereum unique. Instead of miners, the network uses validators who are rewarded for their service of confirming transactions. Validators play an essential role in a blockchain system.

To become one, you need 32 ETH in your account to start staking. That’s because the scheme requires the validator to provide tokens as collateral to be selected for confirming transactions, depending on the number of coins owned.

Interest accounts are a popular option to get more coins

Some investors choose to store their coins on a software solution that helps gain interest. Many similar options operate on deposit funds and earning yield that accept cryptocurrencies, and they’re beneficial since there’s no conversion.

However, there’s some controversy around getting interest accounts for crypto because it makes rates fluctuate, which hinders stakers from getting their rewards. The legal frame is also questionable, so if you’re a beginner in earning crypto, you may give this option a pass.

DeFi projects gain popularity in increased earnings

Decentralized finance projects on the blockchain can help increase coin holdings in numerous ways. However, this method requires knowledge of how DeFi applications work and how their value is expected to increase or decrease.

First-time developer? Here’s how you can make lots of money.

Ethereum has numerous features and elements that make it unique, allowing developers to get resources for creative projects. From the PoS consensus mechanism, programmable infrastructure and the ability to create other cryptocurrencies, here’s how Ethereum developers make use of these opportunities to make money.

Premium DApps are on the rise

There are many decentralized applications on the Ethereum blockchain, but while most offer free options, leveraging premium options is the best way to get incentivized. Developers can design crypto exchange services, games and IoT-based services, but that’s not all.

Developers can now take advantage of SaaS products to create solutions for a broad range of sectors. Payment options can include direct transactions or subscriptions.

Transaction fees are already the main reward for validators

With the complete shift from the PoW consensus mechanism, Ethereum now incentivizes validators by getting a gas fee for each transaction. Considering developers must stake ether on the blockchain to buy into Ethereum, they can earn passive income if connected to a validation node.

Developers can also use this feature for transactions made on their application, but they must learn the difference between their costs and charging fees.

Cryptocurrency IPOs generate significant funds if done right

Initial Coin Offerings are popular in the crypto sector, especially when it comes to a newly released cryptocurrency. These projects usually need investors’ interest to succeed, and otherwise, they simply flop.

When using an IPO to generate funds, you need to provide value within your application, make it accessible and be transparent on how the profit will be distributed.

Creating digital goods is the way to future income

Considering its multifunctionality, you can do almost anything on Ethereum, like creating non-fungible tokens. Their hype on the web increases day by day, and artists are looking for new ways to develop innovative NFTs. For example, a digital artist experimented with an NFT with the help of ChatGPT, and its success brought the creator $50M.

Creating NFTs has plenty of benefits because they can be used in different settings, and holders can trade them online or get them as in-game rewards within games on the blockchain.

Advertising or funding projects are also to be considered for profit

DApps don’t have in-app advertising, but considering most of them are based on web or mobile interfaces, they have built-in ad support. Knowing this, developers can make additional revenue streams for an app made on Ethereum.

Funding a project is also common, but it usually requires more work for scaling. This option is great for developers who want to launch a project but need the help of talented people to support their path. 

Bottom line

Making money with Ethereum is still possible, despite the blockchain’s and its network’s complexity. Developers and regular users can leverage the features of the ecosystem to create income and withdraw their money, which is essential for the blockchain to continue developing. Still, it’s advisable to consider the risks involved in using some of these strategies and decide on the safest and most profitable option.   

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