Have you been looking for a passive way to earn through cryptocurrency? This guide will show you how to earn cryptocurrency.
Cryptocurrency is everywhere these days. Open your favorite tech or finance website, and it’s there. Watch the news, and it’s there. Speak to your co-workers, friends, and family, and it’s there too. However, while much attention is great for the cryptocurrency industry, it inevitably means that obtaining bitcoin and other digital currencies are becoming increasingly expensive.
But as high as the price of bitcoin is becoming, there are still ways to earn free cryptocurrency in 2021. Most of these may require you to sign up to a service (so arguably they aren’t completely ‘free’), but they do offer various means of incrementally racking up your cryptocurrency holdings at a minimal cost.
Many people would like to invest some money into crypto, but it can be scary to put money in a project if you don’t really understand it and don’t know how to use the cryptocurrency. So, here are a few ways to earn a little bit of crypto to get some experience without risking your own money.
Mind you that none of these methods will make you rich. They will, however, earn you a few dollars worth of cryptocurrencies that you can play with.
1. Coinbase Earn
Coinbase is one of the world’s most used cryptocurrency exchanges, and for many newbie investors, it is the starting point in their crypto journey. The platform is not only easy to use, but it also offers free learning material to help you understand crypto better. Sometimes, they even pay you a few dollars in cryptocurrency to watch a video and solve a short quiz about a crypto project.
To participate, you only have to create an account at Coinbase and get verified. After a few hours—or sometimes a few days—you will get access to Coinbase Earn. There you a dollar worth of crypto per right answer, and most of the quizzes have about three to five questions.
In my case, right after signing up, I was able to make about $30 dollars in various cryptocurrencies just by solving a few easy quizzes. They also infrequently add new quizzes to Coinbase Earn so you can keep earning a few bucks when you check on your Coinbase portfolio.
Bitcoin and many other cryptocurrencies use a proof-of-work protocol to process transactions. This means that all the computers that run the network are competing against each other to “mine” the next block in the blockchain. Whoever succeeds in creating the block gets some new coins as a reward.
In the early days of Bitcoin, you could mine with a normal computer, but since mining has become more and more competitive, it is nearly impossible to make money by mining without special equipment. However, you can join a mining pool, where users pool their mining power and share the reward with one other. The easiest way to do that is with NiceHash, which is easy to set up and pays you in Bitcoin for your mining power.
There are some cryptocurrencies that have tried to remain lucrative mining options for normal people without having to use mining pools, but most of them have also become too competitive. One currency that you can mine directly and very easily is called Vertcoin. On their homepage, you can find a one-click-miner that is very easy to set up.
Keep in mind that how much money you can make depends on your hardware and internet connection. The more power your computer has, the more you can get.
Staking cryptocurrency is one of the most innovative ways to earn free cryptocurrency in the form of interest. While staking crypto can get complicated on platforms like Aave, Compound, and Uniswap, there are options to stake cryptocurrency on exchanges like Coinbase and Gemini. These platforms let you stake Ethereum on the ETH2 network; ETH2 is the proof-of-stake upgrade to Ethereum. This allows users to earn around 7% interest paid in Ethereum on users’ cryptocurrency positions.
If you want to stake your crypto on Coinbase, you’ll need to join the Ethereum staking waitlist. Once approved, you can start staking your Ether tokens to earn interest on your crypto. Not looking to wait to stake? Gemini allows investors to begin staking their cryptocurrency for interest right away, so you can start growing your crypto positions today.
In a Proof of Stake system, the person to confirm the creation of a new block is chosen in a deterministic way, based on the number of coins he already holds.
Staking looks a lot like a lottery game. The more coins you hold and put into staking, the more chances you have to be chosen to validate the transaction.
But to the stake, you need to hold several crypto coins, so this method works great only if you want to increase your stocks.
4. Air Drops
Airdrops are a great way of taking early advantage of emerging projects.
While airdrops aren’t as common now as they were a few years ago, they offer a great way to receive new cryptocurrencies for free. Basically, an airdrop is when the developers of a new blockchain platform give away that platform’s native crypto, in order to boost adoption and create a community of users.
It’s hardly guaranteed that a new cryptocurrency you receive will end up becoming valuable, but with such relatively large cryptos as Stellar, NEM, and Decred having undergone their own airdrops, a small minority of participants will get lucky.
There are various websites that maintain a database of upcoming airdrops, such as airdrops.io and airdropalert.com. These provide details of each platform planning its own airdrop, so you can find out for yourself whether there’s a good chance of their cryptocurrencies ever becoming valuable.
Cryptocurrency airdrops come with no strings attached. Platforms that want to expand their users base sometimes offer crypto airdrops, sending free cryptocurrency tokens to users for simply using their platform. The 1st major example of a crypto airdrop was Uniswap; the platform gave 400 UNI tokens to each wallet connected to the platform, worth over $9,000 today.
Missed the Uniswap airdrop but want some free crypto for doing nothing? Benzinga is in the works of creating Zing Token, a loyalty token based on decentralized content creation. To get 10,000 free Zing tokens, check out the sign-up page on our website.
The point of a faucet is to spread awareness about cryptocurrency. It is a website where new users can get small crypto donations to try out a cryptocurrency. These donations are funded by ads and crypto veterans who want to support newcomers.
You can only make a few cents per day, but that can be enough to see how the currency works. With most faucets, you only have to enter a crypto address and solve a captcha to prove that you aren’t a bot. Some faucets also let you earn crypto by watching ads.
Almost every cryptocurrency has its own faucet online, and some faucets also support multiple coins. However, beware of which faucets you use; some demand that you earn a certain amount of crypto first before you can cash out. This minimum payout amount can be ridiculously high, and it could take you forever to reach it.
One good example is called FacuetCrypto;l it lets you earn daily rewards by watching ads that are relevant to cryptocurrencies. The minimum payout can be reached very easily, and there many different coins you can withdraw, including Bitcoin, Litecoin, Doge, and many more.
One way to earn cryptocurrency without investing money is through faucets. It may take some time and determination, but in the long-term, it will generate decent revenue.
There are many cryptocurrency faucets that you can join, and most of them pay in Bitcoin or Ethereum. Those that pay out Bitcoin will reward their users with Satoshis for every micro-tasks, and those that payout Ethereum will reward Wei.
The system of a faucet is quite simple to understand. You have to watch ads, complete surveys, and play games to be rewarded a small portion of a cryptocurrency. Then you can cash out your cryptocurrency once you reach the minimum withdrawal limit.
Although it can feel relatively slow, a crypto faucet can get you to earn your first Bitcoins if you’ve got the time and determination.
The crypto industry is enormous.
Through this post, I tried covering some of the safest methods of earning, so that’s why I didn’t include activities such as trading.
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