This guide will teach you how to earn crypto in various ways. We’ll start with some basic methods such as earn-and-learn and earning while gaming and more advanced techniques such as earning interest and earning without investment.
How to Earn Crypto – A Beginners Guide
If you’re like most people, the word “cryptocurrency” probably conjures up images of Bitcoin, Ethereum, etc., that are bought and sold on exchanges with your own money. However, there’s more to the world of crypto than simply buying and selling. In fact, there are several ways to earn digital currencies without spending more of your cash.
Before you continue reading, you should always be on the lookout for any platform that offers you free currency; they are often a sure sign that something is not right. Unfortunately, while there are ways to earn “free” crypto, most of them have some strings attached.
Ensure that you are comfortable with the attached strings before proceeding. If you are thinking of putting money into DeFi (Decentralized Finance), check out our guide: How to invest in cryptocurrency.
Earn Cryptocurrency Through Interest
These days, there are lots of ways to earn crypto. You can mine it, trade it, or even earn interest payments on it.
That’s right – you can now earn on your cryptocurrency holdings just like you would with a bank account. And the best part is that you don’t have to put up with all the fees and nonsense that come with traditional banking.
Cryptocurrency interest is a financial product that allows investors to earn interest on their digital assets. Unlike traditional savings accounts or money market accounts, which require customers to use fiat currency, crypto interest accounts allow customers to deposit cryptocurrencies like Bitcoin, Ethereum, or Litecoin.
In exchange for the currency, the account provider will reward the customer with a fixed rate of interest, typically expressed as an annual percentage yield (APY or APR). While cryptocurrency interest can vary widely from one provider to another, they tend to be much higher than traditional bank-issued products.
For example, at the time of this writing, some accounts will provide over 10% APY. Whereas the APY on a typical savings account is less than 1%. Given these higher rates of return, it’s no wonder that cryptocurrency interest accounts have become increasingly popular in recent years.
APY Vs. APR
APY and APR are two critical measures to consider when comparing investment options.
- APY (Annual Percentage Yield). – The APY is the amount of interest you earn on your investment over a year. The APY is calculated by considering the interest rate, compounding frequency, and the length of the investment.
- APR (Annual Percentage Rate). – APR is the amount of interest you earn on your investment over a year. However, APR does not include the compounding interest rate that APY does.
For example, if you add 1,000 coins or tokens at an interest rate of 10% APY with a monthly compounding frequency, you earn 104.71 over 12 months.
However, if you invest the same amount at an interest rate of 10% APR, there is no compounding interest, and over 12 months, you earn 100 coins or tokens.
The challenge comes when looking at different rates for each type of interest, so, you do the math.
How to Earn Interest on Cryptocurrency
The process of earning cryptocurrency interest is relatively straightforward:
- Open an account with the provider or platform that you want to use. A common platform for this process is Coinbase earn. However, there are many more that you can choose from, such as Binance or Elrond.
- Compare the rates. Use the section above to calculate each protocol on offer.
- Add a currency to your portfolio. Remember that investing in different coins or tokens will provide other rewards.
- Earn your interest. Once you have added your currency to an interest-bearing account, such as Coinbase Earn or Maiar Exchange, sit back and wait.
Earn with Crypto Staking
Crypto staking involves allocating your funds to support the specific blockchain that the currency uses to confirm transactions through the proof of stake protocol. (Staking is not available on proof of work models).
Staking Providers (SPs) will give you a percentage of the currency that you stake as earnings, but there are a few things that you need to check before committing to one provider:
- The uptime of the provider
- Pool size
- Percentage provided to you
While there are some SPs that offers up to 16% in “free crypto,” that should not be your first thought. The uptime of that provider is more important, as you will not earn rewards while their servers are down.
Furthermore, you should consider the pool size, as small pools could fail, and large pools have more people to divide rewards between.
Yield farming is a complex system on the backend; professional yield farmers are often secretive about the best platform or strategy (they usually transfer from one farm to another). However, the process for regular users who wants to get into yield farming is pretty straightforward.
You can add your currency into a liquidity pool and lock them for a certain amount of time (restricting your access to them). That locking of your tokens or coins helps create stability for the ecosystem and allows other users to borrow, lend, or exchange tokens through smart contracts without creating market instability. In return for locking your crypto, you gain rewards to your account that you can either lock again, increasing your profit, or withdraw. Many platforms offer yield farming, so make sure to research before committing to one.
Best Currency to Earn Interest
First, you’ll want to make sure that the cryptocurrency you choose is stable and has a good chance of remaining valuable. Additionally, you’ll want to research the rates offered by different exchanges and decide which one offers the best return for your investment. Finally, you’ll need to consider the risks associated with each option before making your decision. With that said, here are a few of the best cryptocurrencies to earn interest on:
- Bitcoin. – Bitcoin is one of the most popular and well-known cryptocurrencies, and it also happens to be one of the most stable. As a result, it’s an excellent option for investment.
- Ethereum. – Ethereum is another popular cryptocurrency that is known for its stability. Additionally, it offers a high degree of liquidity, making it a good choice for those who want to cash out their earnings quickly.
- Elrond. – Elrond is a cryptocurrency that has already gained popularity due to its low fees and fast transaction times. Additionally, it offers a very competitive interest rate, making it a great option.
A cryptocurrency lending program is exactly how it sounds. Many platforms allow users to deposit their assets into a pool from which borrowers can obtain a loan. In return for lending your currency, you will receive your funds back, plus additional interest. There are two primary types of lending depending on which platform you choose and their protocol.
- Automated. – As soon as you have currency in your wallet, you gain dividends.
- Manual. – Requires you to lock your currency for lending.
Remember to always look out for hidden fees, though, as some crypto exchanges will only show them in the small print.
Pros and Cons of Gaining Interest on Crypto
In traditional banking, savings accounts typically earn very little interest, making it difficult to save up for long-term goals. However, cryptocurrency platforms often offer much higher interest rates, making them an attractive option for savers.
There are a few things to keep in mind before investing, though. First, crypto interest rates can be volatile, so there’s no guarantee that you’ll earn the same rate every month. Second, crypto interest is often paid in the form of the underlying cryptocurrency, so you’ll need to be comfortable with price fluctuations. However, earning interest on your cryptocurrencies can be a great way to boost your savings.
Crypto Trading to Earn
Cryptocurrency trading is exchanging one type of digital asset for another and is still one of the most popular ways to earn crypto. While it can be a great way to earn a profit, it’s crucial to approach it carefully. There are risks involved like any form of investment, and it’s essential to understand what you’re getting into before you start.
If you’re prepared to do your research and take the time to learn about the market, crypto trading can be a very lucrative endeavor. There are several different strategies that you can use to trade cryptocurrencies, and it’s well worth taking the time to learn about as many of them as possible.
By diversifying your approach and spreading your risk, you’ll be better positioned to make a profit in the long run. So if you’re looking to earn some extra money through cryptocurrency trading, do your homework first. It could well pay off in a big way.
Buying Digital Currencies Early in Development
For those who buy crypto assets early in their development, there is the potential to earn a significant return on investment. However, because they are still in the early stages of development, they are subject to high volatility. As a result, their value can experience wild price swings with significant price increases and drops, and investors could lose their money if they make the wrong decision.
However, the basic idea is simple, and it makes sense: Buy the currency early in its development so that the price is low, and wait for the price to rise. (Imagine buying Bitcoin back in 2010 when 1 BTC was around 10 cents, or in 2009 when it was close to free.)
Initial Coin Offerings
Initial coin offerings or ICOs are a common way to add new crypto holdings to your portfolio. However, they can come with risks.
In the very early stages of a project, the owners will try to raise funds to build the product they are offering in return for the currency they will mint in the future. At this point, you are likely to get the best value for your money. While you will not get tokens for free (see the Airdrops section below), you are buying them at a significantly discounted price. Depending on the protocol of the ICO you join, they will use one of three methods:
- Static price, static supply
- Dynamic price, static supply
- Static price, dynamic supply
There is more to check when looking at participating in an ICO, though. You should always look at things like; what the project will do? How will they complete the task? Is it a worthwhile project in the long term? How many tokens will you hold? Etc.
Always look for a regulated launchpad that completes a rigorous vetting process on every project to maximize your earnings and reduce risks.
How to Earn Free Crypto
There are several ways that you can earn free crypto without investing. This section will take you a brief look at some of the ways to earn free crypto through rewards, mining, learning, and more. Some of the techniques we will look at will provide you with well-known cryptos, while others will allow you to get new cryptocurrency into your account for free. However, remember that you will have to put some effort into them (well, most) to get the rewards, and they are not all free from risk.
While not the most common way to earn money, if you are a webmaster (the owner of a website), you may be able to gain ad revenue from placing adverts on your site for Binance or other exchanges.
Of course, as with all ad networks, you need to provide traffic or referrals, but it is something to look at if you think your audience would be interested.
Crypto mining is one of the most common ways to earn crypto. Mining is verifying and adding transaction records to a blockchain (the decentralized ledger that powers most cryptocurrencies). In return for their work, miners are rewarded with a small amount of the currency they’re helping to secure.
If you do the research, get the right equipment, and put in the effort, you can stand to earn a decent amount of cryptocurrency through mining. However, it’s important to remember that mining is a very competitive industry, and the rewards are not guaranteed.
In fact, if you have the wrong setup, you may not gain any free crypto and actually lose money on electricity bills and rig costs.
Airdrops are excellent if you want to earn free cryptocurrency. In addition, an airdrop is a way for projects to send their new coins to the crypto wallet of many people to increase adoption and holder numbers.
Finding them usually involves searching for new crypto projects and joining their telegram channel (look out for scams). After, they may ask you to complete a task like sign up for their newsletter, share their social media page, or other tasks. We will talk about tasks a little later.
dApps to Earn crypto
dApps (decentralized Applications) come in many different forms on the blockchain, and there are a few different ways in which you can use them to make yourself some digital cash for free.
We will look through some of the different types of dApps that you can find.
Earning Crypto While Learning
Taking lessons to earn free crypto on a specific platform can provide you with more than one reward. First of all, of course, is the free cryptocurrency that you gain without investing cash. The other benefit is that you get to learn something along the way – hopefully.
Learning and getting paid to do so is fascinating, especially for new users on a platform or new to the crypto world in general. So while looking around at courses that you can take for free cryptocurrency, you need to consider the platform you use to do so.
If you have a Binance, Coin Market Cap, or Coinbase account, they have great, straightforward ways to earn different currencies. Most of the courses focus on learning about their platforms or the fundamentals of blockchain, and they are beneficial.
However, if you find sites that you have never heard of offing the same things, that could be a sign of a scam. So make sure you research them before entering any details!
Earn Cryptocurrency Rewards for Gaming
P2E, or Play to Earn games, allow participants of the same to earn free crypto as rewards. Those rewards are either as currency or as NFTs.
The idea of P2E games is becoming more popular, and with many blockchain projects having their own P2E games, they are a common way to advertise their product and increase the number of token holders.
Playing to earn crypto is a process where you can use your skills by playing games to earn digital currencies. It is a great way to get paid for your time and efforts while playing your favorite games.
Many websites and platforms offer this type of opportunity, and it is a growing trend in the gaming industry. To play to earn crypto, you will need to create an account on a platform that offers this service.
Once you have registered, you will be able to choose from a variety of available games. You can then start playing and earning digital currency for your efforts. Payment will usually be made in tokens or coins, which can be traded for other cryptocurrencies or used to purchase items in-game.
Crypto Credit Card Rewards
Crypto credit cards are gaining popularity, too. Specific platforms such as Crypto.com offer their own credit cards that you use, like regular FIAT cards. However, instead of providing you rewards in FIAT, they provide you with a way to earn crypto rewards.
If you use credit cards as part of your everyday life, these may be a great way to start earning free crypto at the same time.
Become a Cryptocurrency Freelancer
One of the best ways that you can do to earn free crypto (even if it is not really free, you are transferring your time and knowledge for crypto rewards) is by becoming a freelancer and completing specific tasks that people want or need.
The freelancer space is not that large in blockchain yet. However, as you may know, the BH Network freelancing platform is coming soon.
When that is available, you will be able to put your abilities and time to use, and it will surely provide you with the best way to make money in cryptocurrency. Whether you are a hobbyist or professional, there are sure to be jobs you can complete.
So, there you have it! A comprehensive list of ways to start earning free tokens and coins. Don’t be afraid to get started – the sooner, the better. However, always do your research and only ever invest as much as you can afford to lose!
If you’re looking for more ways to get involved in the world of cryptocurrency, check out our blog. And if you have any questions, don’t hesitate to reach out to us on Telegram.