Last Updated on October 3, 2022 by
Just when you believe it’s time to jump on the crypto bandwagon, a series of warning signals flash in front of you.
Each with the same message: crypto investments are risky!
While it does hold true that blockchain assets are notoriously unpredictable, there are still ways you can earn Crypto with little to no risks at all.
In this article, we will show you how to earn cryptocurrency without exposing your hard-earned funds to the plague-like volatility of the crypto market.
How can you make money on cryptocurrency?
Trading and investing in digital assets are the two most common ways to make money with Crypto. However, both options require financial commitments.
That means you must put your money on the line, a decision that might put even the most strong-willed investor on edge.
That said, below are the different ways you can safely earn cryptocurrency online.
Airdrops
Participating in airdrop campaigns gives you a direct ticket to start earning cryptocurrencies for free.
At the start of a crypto company, the project owners might decide to hold airdrops events to gain a quick head start and create awareness around their coin.
Thus, participants of these programs would be asked to perform specific sets of tasks such as:
- Following the project social media channels
- Engaging the content on those platforms
- Downloading their app
- Referring to their networks to sign up with the project
In return for these efforts, each qualified participant will get rewarded with the project tokens, which can later be traded for other coins like Bitcoin, Ether, or the USDT.
However, be informed that not all airdrops are worth joining. A good majority these days are scams or rug-pull schemes.
Start Mining Crypto
Mining involves using a computer’s computation power to solve complex mathematical puzzles before a transaction is validated on a blockchain network.
Though the setup process is capital intensive, crypto mining is still a great way to earn tokens with minimal risks.
For every transaction block validated by your mining rigs, you are entitled to earn fractional shares of the tokens transferred.
It’s worth adding here that not all cryptocurrencies can be earned this way. At the moment, you can mine Bitcoin, Ethereum, Litecoin, Monero, and a few others.
However, recently, mining has been under heavy scrutiny as activists continue to decry the environmental risks posed by the alarming volume of electronic waste generated by crypto mining plants.
Another major downside to investing in a crypto mining venture is the recent transition from Proof of Work blockchain networks to Proof of Stake.
Thus, in the future, miners might become irrelevant.
Staking as a Validator in PoS
Like we stated above, Proof of Stake (PoS) is gradually becoming the most preferred method of block validation for cryptocurrencies.
To become a PoS node validator, you will usually be required to hold a certain amount of tokens which is also the basis for determining your earnings potential.
That is, the more tokens you have, the bigger your rewards will be.
Staking is more profitable to mining and is currently trending as one of the risk-free ways to earn Crypto.
However, one of the major cons of a proof of stake system is that a wallet with the largest percentage of the tokens can wield unrestricted influence on the network.
Network security experts are also skeptical about the safety mechanism available in most proof of stake networks.
Staking in Defi protocols
The emergence of Defi (Decentralized Finance) projects has introduced a new kind of staking, similar to becoming a lender in a financial institution.
It is also known as Yield Farming or Liquidity mining.
As a yield farmer, you will be required to lock your funds in the liquidity pool of a Defi token. In return, you will earn additional tokens as rewards and be entitled to specific interests known as the “yield.”
Faucets
Another way to earn cryptocurrency without making a financial pledge is through faucets.
Faucets are the online apps or websites that distribute fractional amounts of large-cap crypto tokens to their users as rewards for completing simple tasks. Like ads, 3-4 minutes surveys, or online casino games.
The crypto earnings are usually accumulated up to a certain limit before they can be withdrawn.
However, it might take a relatively long time to earn something tangible. Nevertheless, with sufficient determination, you can consistently pull in decent revenue from these platforms.
What is the safest way to earn Crypto?
On our list above, airdrops and faucets are the only two methods for earning Crypto that don’t require an initial investment. However, there are still considerable drawbacks to each approach.
While, on the one hand, participating in a faucet can be frustratingly too slow, airdrop hunting has become less beneficial due to an increase in the number of fraudulent crypto projects.
That said, there are some less-heralded ways you can safely earn crypto at absolutely no risk. Crypto deposits is one of them. Crypto savings accounts allow clients to earn interest with 8% in common. CoinRabbit offers to their users 10% on stablecoins such as USDC and USDT on Ethereum and Tron blockchains.
Crypto Deposits
After earning cryptocurrencies, you can decide to store them in two ways – in an online wallet or as-deposited funds with an online crypto savings services provider like CoinRabbit.
Most experts recommend keeping crypto funds in a personal controller wallet. Meaning a wallet to which you hold the private keys or seed phrase required to access the wallet.
However, keeping your crypto holdings in the custody of a third-party platform might be tempting as most of these sites will offer to pay interests.
However, there are still some noteworthy merits and demerits to this option. We have summarised them below.
Advantages and Disadvantages of Crypto Deposits
Cryptocurrency deposits attract higher interest rates than regular savings accounts.
Aside from savings, some online crypto deposit-taking platforms utilize users’ funds by lending them out. Thus, by making your funds available, you could be indirectly helping a worthy cause.
However, there are several potential pitfalls to consider. First, crypto deposits are not insured. If the company squanders away or gets hacked, there are no guarantees you will recover your funds except in good faith. Besides, the withdrawal rules on some of these platforms tend to be confusing. However, when it comes to CoinRabbit, we offer unlimited times of withdrawal and no fees for that.
Conclusion
There are several ways in which you can earn cryptos online. In this post, we discussed the options available and also highlighted the potential hurdles with each.
However, there are still some reliable and less nerve-racking avenues you can leverage to earn crypto. A crypto savings account is one of them.
Aside from the mouth-watering interests you receive, having a crypto savings account at CoinRabbit is a hands free investment that pays you passively and that too in a riskless manner.
