Ways to earn cryptocurrency
With so many crypto exchanges and trading platforms around, it’s easy to buy crypto coins. However, do you know how to earn them? This topic is becoming more relevant today since the inflation rates continue growing. Cryptocurrencies are considered good investments in such unstable periods because they are decentralized and independent of events in traditional financial markets.
Plus, cryptocurrencies are very user-friendly payment methods. Many companies start accepting this money when their clients want to pay for products and services. This is a great contribution to the development of the market.
Despite the growing popularity of cryptocurrencies over traditional financial assets, including stocks, it might be unprofitable to buy them during periods of volatility in the cryptocurrency markets. However, it’s always good to have some crypto coins in your wallet. But how to gain cryptocurrency without spending fiat money? Let’s earn it! Here are the simplest ways for beginners.
Staking your cryptocurrency is the most common recommendation provided to those who want to earn digital money. Besides, this is a good way to make passive income. Staking isn’t as complicated as it may seem but to start doing this, you need to have some cryptocurrency. Then, you lock your crypto holdings up on any blockchain that works on the Proof-of-Stake consensus mechanism.
How will earn passive money if you lock up your current holdings? This is simple, you will be rewarded with new coins on the blockchain because your tokens will be used to validate transactions within the network. The more you stake, the higher the reward will be. Nevertheless, keep in mind that cryptocurrencies are highly volatile instruments.
Airdrops have become quite common with the introduction of new blockchain-based startups. If you stay tuned to all the events and announcements of new releases, you can earn cryptocurrency from a free airdrop.
In a nutshell, an airdrop is a free distribution of crypto tokens. These tokens are provided to those who join the community of the startup at its early stages. Airdrops are used by founders of blockchain-based projects as marketing tools. Indeed, the free distribution of crypto products attracts a lot of new users
Actually, this is how the majority of mainstream DeFi coins acquired their huge popularity. Their founders used airdrops and provided their community members with new cryptocurrencies before official releases.
You should understand that you cannot benefit from the airdrop just because you are aware of it. Every platform has its own requirements for candidates. Usually, platforms ask their potential community members to spread the word about their projects. If you are an active user and have a crypto wallet, you can easily become eligible for the upcoming airdrop of an ambitious project.
It’s curious to understand that most mainstream airdrops don’t meet the expectations of communities – the tokens quickly lose their value. That’s why you should study the project well if you want to benefit from its airdrop.
Crypto Credit Card Rewards
This method doesn’t require starting investments and some specific knowledge about the crypto market. You can just make passive income with your crypto credit cards by buying some products and services and receiving cash-back rewards in digital coins.
How can you open a crypto credit card? This service has become quite popular among the most popular cryptocurrency trading platforms. They allow their clients to use such instruments and take benefits from them when paying for particular goods.
The huge benefit of such credit cards is that it’s not obligatory to buy products from those providers that accept payments in cryptocurrency. Very often, such networks are able to process transit from crypto to fiat money. This means that the merchant will get his dollars and you will receive your BTC cash-back rewards. Everything is very simple.
The Decentralized Finance ecosystems are gaining popularity very quickly these days. Such ecosystems include different applications that run on blockchain networks. These applications are completely decentralized that’s why they don’t need approval by authorities to process transactions within the blockchain networks on which they run.
You can use such decentralized solutions to lend your cryptocurrency assets to other users of these platforms through the peer-to-peer system. You will earn interest. What’s curious is that interest rates on cryptocurrency are often higher than on traditional financial products. That’s why more and more people switch to DeFi lending instead of earning from traditional banking interest rates.
To maximize your earnings with cryptocurrency lending through a DeFi protocol, it’s recommended to lend coins that are expected to increase in value. Over the course of time, you will receive money even though the interest might seem not as significant.
Today, lending services are offered by many top crypto exchanges and trading platforms. You can study their conditions and choose the one that offers the highest interest. Usually, the interest rate while crypto lending doesn’t exceed 10% but this depends on the provider of services.