Perspicacious people are used to getting free money: Sign-up bonuses are available on credit cards, interest is paid on bank accounts, and there are even ways to get cash back when shopping online.
Many of the same benefits are now available in cryptocurrencies rather than credit card points or US cash.
Fortunately, snagging a significant price jump is far from the only method for crypto investors to earn a profit. The recent growth of decentralized financing (DeFi), non-fungible tokens (NFTs), and the steady march of mainstream crypto acceptance presents a seemingly unending supply of investment options.
Problems of Earning Money in Cryptocurrency by Trading
Trading cryptocurrencies has several hazards, the most significant of which is the volatility of the currency. They’re high-risk and speculative, so you should be aware of the issues with bitcoin trading as a means of making money. Cryptocurrencies, being a decentralised currency, are currently uncontrolled by both governments and central banks.
They were created to be independent of government control or influence and are instead monitored through peer-to-peer internet protocol. They can also be impacted by forks or discontinuity. This doesn’t mean that you cannot earn money in cryptocurrency. There are several ways to make money in cryptocurrency without trading and losing. We collected these ways from various trusted, authentic news sites like TheTopCoins, Cointelegraph, Coindesk, and experts’ opinions.
9 Ways to Earn Money in Cryptocurrency Without Trading and Losing
If you’re already invested in cryptocurrency and are willing to put in a little more effort to keep track of your holdings, here are several free methods to increase your holdings.
Lending Cryptocurrency at Low-Risk Returns
The establishment of a comprehensive crypto lending ecosystem has emerged from the growth of the DeFi sector. Users can deposit their cryptocurrencies into several lending protocols in exchange for incentives in the underlying token or other assets like Bitcoin (BTC), Ether, and various altcoins. On tokens that don’t provide user-controlled incentives like staking, lending provides another low-risk opportunity to make a reasonable income in both bull and downturn markets.
Cryptocurrency Investments – All You Need to Know
Earn Fees and Tokens From Providing Liquidity
As one of the primary features of a DeFi network, investors who choose to provide funds to new platforms are typically rewarded with significant percentage gains on the amount staked, as well as a piece of the fees generated by transactions inside the pool.
Long-term investors should examine the existing pools on the market, and if a liquidity pair made of credible projects, or even a stablecoin pair like USDC/Tether (USDT), seems intriguing, It has the potential to be the blockchain equivalent of a savings account, with rates far higher than any bank or other financial institution now offers.
Maximise Returns by Yield Farming
Yield farming refers to the practice of putting crypto assets to work in order to maximise yield while avoiding risk.
As new marketplaces and mechanisms arise, they provide substantial benefits to investors in order to mine for liquidity and increase the total value locked (TVL) on the system.
Long-term investors with a broad token portfolio can use yield farming to gain exposure to new projects while earning more tokens without spending extra funds.
Gaming and Earning are Now True Due to NFT and Blockchain Gaming
Blockchain games and NFT collection are another way to generate a return on a crypto portfolio without investing any additional funds.
The most famous example at present is Axie Infinity, where the in-game play includes dealing, combating, acquiring, and reproducing NFT-based animals known as Axies.
Traditional banks give substantially lower savings and checking accounts returns than crypto investing, lending, staking, and play-to-earn blockchain games. However, as the blockchain industry matures, investors are expected to flock to platforms that provide significant returns in exchange for participating in the protocol.
Cryptocurrency Reward in Shopping
To advertise their platform and meet the expectations of bitcoin enthusiasts, many online sellers are employing disruptive tactics to gain customers. ‘Bitcoin Back‘ is one such concept. Some online vendors are already offering this type of cryptocurrency in exchange for every transaction made on their site.
Lolli, a browser plugin for Google Chrome or Firefox, provides “Bitcoin Back” when you purchase with its retail partners. It works the same way as browser extensions like Rakuten or Honey-do, giving you discounts and cashback when you shop online through the portal or extension. Lolli, like previous programs, rewards you for spending regular money, in the same manner, you would when shopping online – not for transacting in cryptocurrency.
Nike, Sephora, and Malaysia Airlines are among the retailers on Lolli. Depending on the shop and goods, rewards might range from 1% to 30% Bitcoin back.
Airdrops Are a Good Way to Get Cryptocurrency
Even though earning cryptocurrencies through Airdrop is not a dangerous endeavor, the suppliers are caught between life and death. Yes, when creators want their new digital currency to acquire popularity, they offer it as a bonus to regular crypto investors. Many cryptocurrency trading platforms use Airdrops to popularise new coins. They choose crypto investors with a particular quantity of existing investments. The platform or developer will transfer Airdrops directly into your wallet if you meet the requirements.
Dividends on Cryptocurrency
One of the simplest methods to acquire additional cryptocurrencies is to earn cryptocurrency dividends. All you have to do is buy some cryptos and keep them for a time. Then, for storing their digital assets, developers pay you. Besides, you don’t even have to put them in your wallet; simply holding them for a time will be enough. The mechanism underlying this is that the value of a digital currency rises in proportion to the number of purchasers it receives. As a result, developers aim to entice more purchasers by demonstrating that they already have many investors. Some well-known dividend suppliers are COSS, CEFF, KUCOIN, and NEO.
Sign-up and Referral Bonus
Some cryptocurrency exchanges provide sign-up or referral bonuses to customers who utilize their services. For example, a former Coinbase sign-up incentive paid $5 to new customers interested in investing in cryptocurrency. The exchange now gives a $10 bonus to both you and your referrer when they open an account and trade at least $100.
Pay close attention to the terms of these bonuses. To receive these benefits, you may be needed to give additional personal information or do other actions. If you already have an account, most of these offers aren’t lucrative enough to justify signing up for a new exchange, but if you’re a beginner, they may be., keep an eye on exchanges you’re interested in to see if they provide a sign-up bonus or referral for other friends who might be interested.
Earning from Coinbase
A well-known cryptocurrency exchange Coinbase rewards users that use the platform’s Learn center. To receive the free change, you must first view Coinbase’s films and perform quizzes, after which Coinbase will transfer a tiny amount of cryptocurrency into your wallet. Because the curriculum is often centered on a certain cryptocurrency (such as GRT and BOND), these are the coins you’ll receive for completing the lessons.
Final Words
Even while there are ways to earn more cryptocurrency for free, don’t allow the lure of freebies to sway your decision. Cryptocurrency is a risky, new investment, and you should only invest what you’re willing to lose.
When it comes to tax season, free crypto may not be so free. Any cryptocurrency that may be deemed income, as well as crypto-to-crypto conversions or holdings cashed out for US dollars, is taxed. Therefore, you’ll need to know the market price of any cryptocurrency you get when you acquire it and again when you sell it to report to the IRS come tax season.
