Hello, community! The elections in the United States have concluded. Currently, what many refer to as the most “pro-crypto government” in history is forming there. However, even those spreading such narratives are uncertain about its implications.  

Still, the crypto market is already reacting to the hype: Bitcoin is setting new ATHs almost daily, and the market is growing at such a rapid pace that exchanges barely keep up with updating token prices. It’s hard not to consider cryptocurrency affiliate marketing in this context.  

We’ve previously written about cryptocurrency in affiliate marketing in a dedicated review. Today, we’ll focus specifically on exchange-based strategies. So, stay tuned!  

What is Crypto Affiliate Marketing and How Does It Work?

When we talk about traffic affiliate marketing, it essentially involves transferring users from one source to another to earn profit from the difference between the cost of acquiring traffic and the rewards for completed target actions.  

Cryptocurrency affiliate marketing refers to an investment strategy that involves buying a token on one exchange and selling it on another where the token’s price differs. Essentially, the difference in the value of the same token is the profit in cryptocurrency affiliate marketing.

Example: Currently, the PEPE token on Binance is priced at $0.00021100 per unit. Meanwhile, on Bybit, it costs $0.00021120. This allows us to purchase the token on Binance, sell it on Bybit, and earn a profit.  

Obviously, the percentage profit may not be substantial. However, operating with a large budget still enables you to earn decent money with minimal risk. Even additional expenses, such as fees, still allow you to maintain a positive ROI.  

Types of Cryptocurrency Affiliate Marketing

Cryptocurrency affiliate marketing is as diverse as traffic affiliate marketing. The following types exist:

  1. Inter-exchange affiliate marketing. This is straightforward: buy a token on one exchange, sell it on another. All you need are accounts on multiple exchanges and tracking a large number of coins to maximize profits; 
  2. Triangular affiliate marketing. This requires just one exchange. The method involves exchanging three different tokens to exploit price discrepancies. For example: buy DOGE, exchange it for PEPE, convert PEPE to WIF, and then back to DOGE. Finding such price differences can be challenging, but nobody promised an easy walk; 
  3. Geographical affiliate marketing. The term “kimchi premium” describes the phenomenon where cryptocurrency prices in South Korea are significantly higher than in other countries;  
  4. Statistical affiliate marketing. This term refers to broader methods of identifying inefficiencies in the crypto market that can be exploited for profit. Complex mathematical models or even specialized software are often used to detect these opportunities. 

It’s also worth mentioning cryptocurrency affiliate marketing on decentralized exchanges. However, this requires affiliates to understand how smart contracts work. Price differences between decentralized and centralized exchanges also allow for effective cryptocurrency marketing.

What Are the Risks in Crypto Affiliate Marketing?

There are certain risks to be aware of before diving into cryptocurrency affiliate marketing. Like other fields, it has its own frauds and pitfalls, most of which are technical.  

The main risk is miscalculation. Incorrect calculations can turn a seemingly profitable deal into a loss due to overlooked or incorrectly calculated fees.  

Lack of liquidity. Cryptocurrency affiliate marketing often requires registering on obscure exchanges to find price differences. This can backfire if you buy a token on a major platform like Binance, but there are no takers for your order on BuyCryptoHereHomie. In such cases, losses are inevitable.  

Transaction processing time. Blockchain operations aren’t instantaneous, and during peak periods with high transaction volumes, delays can severely impact affiliate marketing: while waiting for transactions to process, prices might equalize across exchanges, resulting in losses from fees and no profit. 

Technical issues or regulatory changes can also directly affect crypto affiliate marketing. While regulatory changes are less likely to affect short-term strategies, minimizing technical risks requires working with trusted exchanges—or taking calculated risks. 

Engaging in traffic affiliate marketing doesn’t violate any rules. You’re merely leveraging price differences, not creating them, which is quite different from speculation—although speculation is commonplace in crypto. 

However, be cautious with geographical affiliate marketing, as cryptocurrency usage regulations can vary significantly between countries.  

Conclusion 

Can you make money through cryptocurrency affiliate marketing? Absolutely. It requires time to monitor exchanges, execute transactions, and more. But the results are worth it, especially with a large budget, where even small percentage differences can translate into significant profits. 

However, all risks must be considered. As we’ve said, it won’t be a walk in the park. But you can ease your journey by subscribing to our CryptoGeek channel, where we always share the latest cryptocurrency news!  

Best regards, Your Geek! 

What is Crypto Affiliate Marketing FAQs 

What is cryptocurrency affiliate marketing? 

Cryptocurrency affiliate marketing is an investment strategy that involves buying a token on one exchange and selling it on another where the token’s price differs. The difference in value of the same token represents the profit in crypto affiliate marketing. 

Why are exchanges important in trading? 

An exchange is a platform that allows storing, buying, and selling cryptocurrency assets. Occasionally, the prices of the same token differ between exchanges, creating opportunities for cryptocurrency affiliate marketing. 

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