How to earn cryptocurrency: all possible ways, from the cheapest to the most effective ones
Over the past few years, the cryptocurrency industry has been gaining more and more popularity. People more often opt to use the services of the new digital market, which offers better services than the traditional banking and financial industry. However, along with the growing popularity, there are an increasing number of people who do not fully understand how to make money from it. In this article, we will describe all existing ways of getting digital coins, starting from the simplest and free to the most expensive and effective methods.
One of the simplest ways to earn cryptocurrency is to participate in Bounty campaigns. Usually, they are held by emerging projects that have not run an ICO, an analog of an IPO but for cryptocurrencies. Although, some projects like Akash conduct such contests regularly (you can find announcements of this project on the founder's Twitter account.)
During such a campaign, you will need to register in the project, join its groups on social networks, and do other things that won't take up much of your time. The drawback of this method is that winners are often chosen randomly. Besides, the value of coins in emerging projects is unknown since they are not traded anywhere yet, and there is no way to know exactly how much you can earn.
The difference between this method and the Bounty campaign is that you will need to spend much more time participating in it. Some emerging well-financed projects hold entire events to promote their digital products. Therefore, the chance of earning your first cryptocurrency is much higher here.
The events are usually arranged as a series of training sessions, where you need to take a close look at the work of an emerging company, make promotional materials (posts, memes, posters, videos), and share them on your pages on social networks.
Independent Project Support
This method is the best of all the free ways to get cryptocurrency. It will guarantee you a certain amount of digital coins, but instead, it will also require your time and skills.
To start making money in this way, you should first find a proper project, i.e., it must be relatively new and ambitious. However, you should avoid getting caught out by scammers, because you risk wasting your time and losing your reputation. Once you have found the right project, contact its creators and offer your services. They often need translators who can localize technical documents. Other popular candidates are PR specialists, SMM specialists, video editors, and... comic writers. People able to create interesting and funny posts will definitely be in demand. Next, you agree on the scope of work and your remuneration.
We should also mention developers. There are many new crypto projects on GitHub requiring help in writing code. The authors often indicate the amount of digital coins that you will be paid for the job done next to the assigned task.
This way of making money has appeared quite recently. The point is that you play computer games and earn in-game currency that can then be later exchanged for cryptocurrency. In some countries, such as Indonesia, this method of earning has proven to be so profitable that it has generated a surge of new gamers earning more than the average wage in the country. However, even though some games are successful, such as Axe Infinity, with a market capitalization of over $4 billion, most projects remain unfinished. The economics of such games usually depend on just one factor, namely, whether the advertising campaign is successful or not. If it is successful and the game attracts many gamers who invested real money in it, then the rest of the gamers can earn. Otherwise, gamers who have invested money in developing the characters cannot get their money back. Moreover, the value of the in-game currency steadily decreases over time. This is because the inflow of real money is exhausting, and the outflow increases. As an example, let's remember the famous Mir4 game.
It is worth noting that large gaming corporations like Ubisoft and EA Games are interested in GameFi and are developing their games. So far, NFTs are usually used instead of in-game currency. These are digital signatures for unique outfits, colorings, and other means of distinguishing your character from all other players. They are successfully traded on semi-legal marketplaces, and some are worth $10,000 or more.
DeFi (decentralized finance) is a new and fast-growing sector in the cryptocurrency world. DeFi offers owners of cryptocurrencies to invest their assets in various projects, thus earning an interest income. Most of the projects mimic banking services such as loans, short-term and long-term deposits. DeFi makes it possible to generate a passive income, but you must be careful to choose the right project, which will provide profits over time and be highly protected from hackers. For more information about passive income opportunities in this field, read here.
Although staking is formally part of the DeFi sphere, it still has one key distinction. While DeFi usually supports the solvency of specific projects, exchanges, credit platforms, etc., staking supports the entire blockchain network. Staking means that your coins are frozen, and you cannot use them for a certain period of time. In return, every time new digital coins are issued on the blockchain network, you receive a reward that can be sold or reinvested somewhere else. Staking also requires you to decide whether you want to be a delegate or a validator. The first one gives money to the validator and gets a passive income. For more information, read here. The task of the second one is a bit more complicated.
Validators are those who assist in making a particular blockchain network work. They must have their own server with 24/7 access to the Internet or rent one from some company. The server hosts the software designed to keep the blockchain running. The validator only needs to set it up properly, launch it, and check it from time to time. As with staking, the validator is rewarded each time a new batch of digital coins is released on the network. Of course, his reward is higher than the delegate's.
The validator also gets voting rights, though. Voting is used to make major changes to the entire blockchain network. All cryptocurrency owners whose coins are not traded on an exchange at the time of voting are entitled to vote. In most cases, if a delegate gives his or her coins to a validator, the delegate's vote becomes the validator's vote.
However, keep in mind that some large projects impose strict requirements on their validators. In case a hacker attack occurs due to a validator, the validator will be penalized and may even be pulled out of the network.
Mining can also be treated as a passive income. Yet, in the beginning, you will need to solve a lot of issues and have start-up capital. The idea of this method is to use computing power to create new digital coins. In return, a miner is rewarded to quickly recoup all costs. However, it is necessary to have access to cheap electricity to maximize profits.
Today's mining methods are quite diversified. You can mine on your smartphone, on your computer, on a cloud service, or by creating a special farm of video cards. Read more about it in our article.
The most difficult way to earn cryptocurrencies is trading. Making predictions or calculating the trends of a particular coin, you can gamble on the rise or fall, thereby earning more money. Still, trading requires in-depth familiarity with crypto exchanges, cryptocurrencies, and the basics of fundamental analysis. In addition, trading requires constant monitoring of the situation, as high volatility can drastically change the rate of a particular cryptocurrency in just a few hours. If you still want to try out this way of earning money, we suggest you follow our Investment section, where we publish information for investors and traders.
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