How to Earn Crypto: Your Guide

A few ways that the average person can add assets to their crypto wallet, some completely free.

Cryptocurrency has been one of the hottest topics of discussion over the past few years. Crypto enthusiasts have brought this new world of digital assets to non-specialists, leading to a growth in mainstream popularity. These days, even a regular person knows about crypto assets, but fewer people know how to earn crypto. Here, we cover a few ways that the average person can add assets to their crypto wallet, some of which are completely free.

1. Buying Crypto Assets

One of the easiest things in the world is to buy cryptocurrency. Several crypto exchanges allow you to purchase crypto for fiat currency. There's also no limit on how much you can buy. Once you can offer the fiat to the exchange, you can buy as many coins as you like. Transaction fees apply to each purchase, and depending on which chain the asset exists on, these fees can be pretty hefty.

On the positive side, buying crypto in this way could potentially support emerging projects, helping them bootstrap their startup costs and get tokens in return. If you already have coins, you can consider using a decentralized exchange to swap one set of digital currency for another.

2. Mining Crypto

Another method to earn crypto is by mining. When people decide to mine a cryptocurrency, they use computer hardware to solve complex mathematical equations to "solve" a block in the chain. When a computer submits a correct solution, the protocol mints a new coin and distributes it to the users that solved the transaction equation first.

Unfortunately, mining is an energy-intensive task, and many protocols are moving away from this method of disbursing coins to users. In the past, users would dedicate their CPU and GPU processing power to mining crypto.

Today, industrial-level mining technologies like ASIC (Application-Specific Integrated Circuit) installations have primarily taken over the bulk of mining. Users can still contribute to mining a specific chain, but the rate of return is unlikely to be profitable in most cases.

3. Staking Crypto

As chains move away from mining, they've turned to a different process for validating their transactions called staking. In a Proof-of-Work (PoW) system, a user will use their computer hardware to attempt to solve the transaction block, as mentioned above. Proof-of-Stake uses a more energy-efficient methodology that determines which user solves the next block based on their stake in the chain.

Staked assets are unavailable for the staker to use, but they can earn rewards based on the number of transaction blocks they've solved. New users that want to earn free crypto could consider locking up some of their assets into a staking pool and collecting rewards based on the pool's performance. It is important to note that if the staking node delivers bad results to the chain, it could face a penalty, losing some of its staked assets.

However, this seems to be one of the few downsides to staking. Another downside is the inaccessibility of assets. A staker may need to lock up a significant number of assets for some time.

4. Play Games

Play-to-Earn games have hit the scene in a big way. These games promise players the chance to earn crypto just for playing them. Through a randomized means, the application produces digital assets that are ownable, thanks to the magic of NFTs.

A player can earn these NFT items through regular play, crafting, or several different things that the app allows. The rewards rates for these NFTs vary, with some being extremely rare and some being unique. The rarer an NFT item, the more value it holds in-game. However, users can also port those NFTs for sale outside the game environment.

They can trade these in-game items for other crypto assets within the world's ecosystem or exchange them for real-world money.

5. Trading Crypto On a Platform

Crypto trading also offers a user a way to earn crypto, although this method has a lot of risk. Similar to stock or forex trading, a user can deposit their holdings into a platform and trade against the price of another asset. Based on whether that asset appreciates or depreciates, they can make or lose crypto as a result.

Over time, these trading platforms have started to offer more coins for traders to speculate on. This method of crypto investment does have the potential for massive gains in a short space of time. However, it can be a volatile market, and traders might lose their entire deposit before they have a chance to see significant gains.

Unless you know what you're doing, it may be best to invest your crypto elsewhere.

6. Earn Crypto with Crypto Lending

Another way to increase your crypto earnings is by putting them into a lending platform. These accounts offer better interest rates than traditional savings. It's pretty simple to lend crypto. A user could start earning within a week and transfer the earnings out whenever they feel like it. These savings accounts are available for Bitcoin, Ethereum, and several stablecoins.

The company must verify that the user can legally be a client (based on their location), and they can then register to use the company's services. These savings accounts typically have a minimum deposit amount that they require from clients. However, their interest rates are attractive enough, and many of them compound their interest weekly or even daily.

Users can withdraw their funds at any time, making it a lucrative prospect for many people who just want to set it and forget it. It's best to consider the safety of crypto lending, including the latest legality and regulation of crypto lending, before proceeding with this option.

7. DeFi Yield Farming

Yield farming, or liquidity mining as it's also known, is a method of generating income from a decentralized finance protocol by locking up tokens to provide liquidity between a pair. In simpler terms, a user could deposit tokens in equal amounts to a swap app and earn crypto based on each swap that happens between that pair on the app in question.

Once a user starts providing liquidity, they are eligible to earn interest. This method isn't a beginner-friendly procedure for earning cryptocurrency, but it does have the potential to generate massive returns.

Multiple Methods to Earn Crypto

Free crypto isn't a scam, although it may sound that way. Why would a protocol give you free cryptocurrency for doing something you're already doing? The value of a particular crypto asset is based on how much demand there is for it. Bitcoin, for example, has a massive market because so many people believe in it as a store of value.

As coins become more popular, their value rises. While cryptocurrency isn't as popular as cash, it is still a solid store of value. By offering a user free crypto, the project promotes the idea of its value in the market. Stockpiling crypto earnings early on will benefit holders as the fair value of those assets starts to rise over time.