5 Methods to Safely Earn Cryptocurrency
Let’s face it – everyone wants to earn some cryptocurrency. We don’t want to miss out on another spike in the price of crypto coins. And as the 2022 context shows us, getting some crypto can be an efficient precaution against inflation and the banking system’s failure.
Still, the cryptocurrency market is uncertain, and most of us don’t want to risk losing our hard-earned money.
So, here are some of the best ways to get your hands on some crypto coins at a minimum risk (and sometimes effort).
1. Earn cryptocurrency by buying
The most straightforward way to earn crypto coins is just like with most things in life – buy them.
Buying cryptocurrency is now easier than ever before.
As the industry gained a lot of popularity in the past few years, its demand increased. Many companies started offering services that enable anyone to easily and safely enter the market.
But how can you buy cryptocurrency?
Buying Bitcoin, for example, can be as simple as going to a Bitcoin ATM and getting it with cash or credit. Though other crypto coins aren’t so accessible, so you can only buy them via crypto exchanges.
But there’s one thing you should consider – transaction fees.
On most online exchanges, the transaction fees are updated in real-time, based on the fluctuations of the market. And the fees themselves are pretty low.
ATMs, on the other hand, tend to have high transaction fees. So it’s usually advised to buy Bitcoin (or other cryptocurrencies) through exchanges such as Coinbase, Binance, or Kraken. And most of the time, the process is straightforward.
All you have to do is sign up for an account, verify it, and you’re good to go.
However, some exchanges require verification from your bank, and this process can take up to several weeks.
If you’re in a hurry, you may want to check the sign-up and verification process or buy with cash directly.
Also, you can consider trying a decentralized exchange (DEX) such as Uniswap or PancakeSwap. The compliance requirements are usually lower and may approve your account faster. Furthermore, you’ll get access to tokens that haven’t made it on centralized exchanges or are just recently launched.
However, bear in mind that trading tokens on a DEX is even riskier than on a centralized exchange.
2. Start mining crypto
Mining is a great way to get some crypto coins. But it doesn’t work for all currencies.
Most people believe that mining is about obtaining as many coins as possible for yourself. But the whole process is a bit more complicated.
Through mining, a person uses his computer to solve complex mathematical equations that validate blocks of transactions. All the cryptocurrencies are already created inside a protocol. They just need to be validated to become available on the market.
As a reward, the first person that validates it receives a fragment of the virtual token he validated.
But what do you need to start mining?
First off, it depends on what you want to mine. While Bitcoin mining requires high-end equipment such as ASIC (Application-Specific Integrated Circuit), others can be mined with just a regular computer.
But if you want to try your luck with Bitcoin mining, you don’t have to invest thousands of dollars to get started. You can always join a mining network. All you have to do is pay the joining fee, and then you can work together with other members to mine. The only downside is that you’ll also have to split the rewards.
Some of the best cryptocurrencies (besides Bitcoin) that you can mine right now are:
Ethereum (ETH)
Monero (XMR)
Dash (DASH)
Litecoin (LTC)
3. Earn crypto by staking
If you’ve got your eye on some coins that you can’t mine, don’t worry. There’s still a way to get them.
There are 2 main methods of validating blocks – Proof of Work and Proof of Stake.
While PoW requires users to mine the blocks and confirm the transactions through pure computational power, PoS is totally different.
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.
The more recent staking-based cryptocurrency came up with more complex PoS systems, tough. They also include delegation systems, reputation systems, and mechanisms that prevent in-a-row validation so that more participants can earn some fees.
If you’re interested in staking read our article about the Best Coins to Stake.
4. Earn Crypto with Defi Yield Farming
Known as Yield Farming or Liquidity Mining, Decentralized Finance projects come with a reward system that resembles the bonds market in a way.
In the most straightforward understanding of this process, Yield Farming is a method of generating rewards from locking up cryptocurrencies. As you lock in your funds and grant liquidity to a Defi token, you will get rewards and interest. Depending on the project, you can get additional tokens besides the yield.
Some of the most prominent DeFis that you can mine right now are:
Compound (COMP)
Kyber Network (KNC)
0x (ZRX)
Ren (REN)
If you’re interested to earn cryptocurrency through Yield Farming and Liquidity Mining read our article about the Best Defi Crypto Projects.
5. Join a few airdrops to earn crypto-coins
Airdrops are a great way of taking advantage of emerging projects.
Most projects use airdrop campaigns to gain an initial level of notoriety and create a community around their project. This is an excellent tactic because it helps crypto enthusiasts find out about upcoming projects while also providing them with something of value – tokens.
In exchange for performing a specific set of tasks, users receive some of the project’s tokens.
Once the project hits the market, those tokens can be traded for other coins or sold for cash. Some of the most common tasks include:
Following their social media channels;
Sharing posts;
Signing up on their platform;
completing a form about the project;
Downloading their app.
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