1.6 k
views

A Beginner’s Guide to The Best Ways To Earn Cryptocurrency

The introduction of cryptocurrency has led to great strides in the financial world. Foremost, e-commerce became even easier, with digital currency being one of the best payment methods. Additionally, crypto-assets like BTC and ETH have been a source of great wealth for many investors because of the positives of crypto market volatility

As such, many people have been thinking about adopting crypto to make a living, but the crypto world’s complexities still hinder many. But how can anyone start earning cryptocurrency? What risks are there in the crypto world? Keep reading to find out more. 

Get a Crypto Wallet

The first step towards any success in the crypto world is owning a crypto wallet. If you earn rewards in crypto at any point, you need to have a wallet to ensure the assets are safe.

Which is the best wallet for a beginner crypto user? Commonly, there are hot wallets and cold wallets

According to crypto experts, cold wallets are way safer than hot wallets; therefore, you need to ensure you find the best cold wallet. Examples of cold wallets include the ledger and Trezor. The best hot wallets for beginners are Trust Wallet, Exodus wallet, Klever, or Atomic Wallet.  

Identify the Method for Earning Crypto

Due to the vastness of the crypto world, there are increasing opportunities for earning crypto assets. Here are some of the ways you can make cryptocurrencies;

Mining

Crypto mining involves completing super complex computations, with the result being the release of new coins. It was first introduced in 2009 with the launch of Bitcoin, leveraging proof of work algorithms. 

However, mining processes require supernormal investments, especially if you want to run your rig. Still, there is a cheaper option for mining, which does not require owning your rig, deemed us cloud mining

Cloud mining involves purchasing some amount of hash power to be able to participate in crypto mining. It’s one of the cheapest, most successful mining methods. Among the best cloud mining sites include;

  • Genesis
  • IQ mining
  • Shamining
  • ECOS
  • Crypto universe

Staking

Staking is the process of earning crypto rewards by collateralizing some amount of crypto assets and participating in block validation. Unlike mining, which uses proof of work mechanisms, staking leverages proof of stake algorithms in completing computations.  

In staking, validators don’t work on complex computations; rather, they stake some amount of assets and get the opportunity to validate transactions leading to block release. Staking processes are quite simple, and most platforms choose to make autonomous systems to make systems work easier. 

Since you have to hold assets to stake, you need to identify the right crypto exchange platform to get the assets. Binance and Coinbase have for long been thriving as exchange service providers. 

Secondly, you need to select the right coin. There are currently many assets used for staking, including Dash, Ethereum 2.0, QTUM, NEO, Tezos, Cosmos, etc. 

Moreover, it would be best if you made the right staking pool platform choice. Here are some of the best platforms; 

Liquidity Mining

Yield farming, commonly known as liquidity mining, is a process where a crypto enthusiast earns income for providing liquidity to some Defi tokens. The user gets returns in the form of coins after offering liquidity to the ERC 20 tokens.

Among the best liquidity mining platforms include;

Bounties and Affiliate Programs

Bounties are primarily campaigns set by crypto platforms rewarding users for completing small predetermined tasks. For instance, bug bounties are placed to identify bugs in the platform’s website or software and receive coins. 

On the other hand, affiliate programs are commissions given to platform users for inviting their friends using some referral codes. It’s an easy and cheap way of earning crypto.

Airdrops

Airdrops are just some amount of coins sent to individual wallets, and in return, the users advertise the platforms. Most crypto platforms choose to use this technique to promote, and sharp investors will earn an easy income. 

Risks Associated with Earning Crypto

Several risks surround the various modes of earning passive crypto incomes. Foremost is the risk associated with lock-up periods. Many staking platforms and wallets instill lock-up periods, which should be hit before the money is withdrawn. Locking your funds up for a fixed amount of time renders your money illiquid. 

Another common risk in crypto is the possibility of investing in unproductive assets. Currently, BTC, ETH, and few other assets are topping the lead. However, many others are cheap but have proven to be unreliable in the long run. 

The blockchain world is at its infancy and, as such full of complications. If users are not careful, they can make errors that may lead them to lose their funds when trading. User error is a risk that every rookie crypto user faces.

Bugs are also a huge risk in the crypto world. Most bugs are caused by criminals, while others arise because of system errors. The selection of a poor platform will also lead to issues of bugs. 

Final Word

The recent developments in the crypto world have led to a surge in users, with many interested in earning cryptocurrencies. Although it’s not easy to earn cryptocurrency, especially as a rookie, the guidelines above will help you start well and make great strides as you move. 

Bitcoin live price
Btc
Bitcoin
$16.809,8
price
0.09701%
price change
BUY NOW

The first step to owning any crypto assets is identifying the right crypto wallet, and to many, cold wallets have proven to be the best choice. Secondly, you need to identify your model of earning assets. The identification of a mining method will help you know what to do. Finally, it would help if you considered the risks associated with earning in crypto. Considering risks will help you make the right decisions and earn well both in the short and long run. 

Stay up to date with our latest articles

More posts

3 Ways DeFi Can Recover After Alameda and FTX Bankruptcy Shock

In early November, Alameda Research became insolvent. FTX tried to bail it out but faced a liquidity crisis that shortly led to its bankruptcy and marked the start of a cataclysmic meltdown in the cryptocurrency market. Here’s a brief aftermath of it in numbers: $223 billion was lost in the market cap for the entire crypto market in less than 5 hours. $15 billion was lost in total value locked (TVL) in DeFi protocols. $4,700 drop in value for Bitcoin in a…

SuperBots – A Case for Imminent Decentralization amid Recent CEX Failures

Crypto trading has taken the back seat in the digital economy in 2022, with the market remaining under the bears' control for most of the year. Furthermore, traders have seen their faith rocked by the consecutive failures of centralized exchanges. These intermediary marketplaces have been the powerhouse of the industry since its humble beginnings. Now, they seem to crumble under mounting allegations of scams, lawsuits, and solvency concerns. Meanwhile, they make a convincing case for the imminent decentralization of crypto…

Smart Contract Security – Pitfalls and Solutions

Smart contracts are becoming increasingly prevalent as the world moves towards a more digital and automated future. Still, they are far from being the panacea of all technological ills. Smart contracts are self-executing contracts with a predetermined set of rules. They are stored on the blockchain and run by computers, which makes them tamper-proof and reliable. However, as with any new technology, smart contracts have associated risks. This article will explore some of the most common pitfalls and how to…

Looking for Crypto Marketing? Here are The Best Crypto Advertising Agencies in 2023

It is vital to have a strong marketing strategy if you wish to succeed in cryptocurrency. This is where crypto marketing agencies come in. You may successfully promote your project and reach your target audience through a crypto marketing agency.  This article will explore the top crypto marketing agencies in 2023. Moreover, we will look at their services and how to choose the right one for your project.  We will also discuss the benefits of using a crypto marketing agency.…

The Risks of Investing in Crypto Projects without Smart Contract Audit

Smart contracts are self-executing contracts that run on blockchain technology. They are stored and verified on the blockchain, which means they are transparent and cannot be tampered with. This makes them a secure way to conduct transactions without needing a third party.  Despite their many advantages, some risks exist with using smart contracts. One such risk is investing in crypto projects that have yet to have their smart contracts audited by a qualified auditor.  Without an audit, it cannot be…

SuperBots Trading in DEX – The Future of DeFi Trading is Here

Trading in decentralized finance is evolving rapidly and empowering people worldwide to access new forms of income. Spearheading this revolution are platforms like SuperBots, a BSC-based protocol enabling users to deposit their capital in vaults for secure and efficient trades on decentralized markets. SuperBots accelerates the mainstream adoption of DeFi trading through high-performance bots that automatically trade for their owners. This way, users can achieve profitable trades, regardless of their experience or skill. Furthermore, the platform does not charge any…

Top Smart Contract Audit and KYC Companies in 2023

It's no secret that business is undergoing fast change. Companies must adapt when new technologies, like smart contracts, emerge to remain competitive. A crucial part of this adaptation process is ensuring compliance with regulations and safety. This is where a company's KYC (Know Your Customer) process or smart contract audit come into play.  To ensure that your company is compliant, working with a reputable smart contract auditor or KYC provider is essential. This blog article discusses the benefits of using…

Automated Trading with No Subscription Fees – How UpBots is Revolutionizing the Trading Industry

Cryptocurrency trading has enhanced the universe of assets available to traders worldwide. However, this practice is challenging for inexperienced or unskilled traders. Furthermore, the ongoing bear market makes trading costly and inconvenient when most platforms charge upfront or subscription fees. As a result, many people avoid entering the market. UpBots aims to change that and take the trading industry to a new level through innovative and affordable solutions. For one, its automated trading service allows users to trade in CEX…

Top 5 KYC Solutions for Crypto or NFT Projects

As the importance of blockchain technology grows, many people look for ways to get involved in the crypto world. One of the most important aspects of any cryptocurrency or blockchain project is KYC/AML.  Without proper KYC/AML procedures, your project could be at risk for fraud and illegal activities. This article will discuss the types of KYC solutions available and how to choose the right one for your project.  We will also provide tips on how to implement these solutions properly.…

DeFi Scams – Most Common Scams in the DeFi Space

In the world of Defi, scams are unfortunately all too common. This article looks at popular Defi scams, how they operate, and how to protect yourself. We'll also provide tips on what to do if somebody scammed you and how to report a scammer. Finally, we'll discuss the implications of DeFi scamming and present examples of successful prosecutions. What Are DeFi Scams, and How Do They Work? Decentralized Finance (DeFi) is a term that has gained enormous popularity over the…