How to earn free cryptocurrency?

Everyone wants to earn some cryptocurrency and getting some crypto can be an effective precaution against inflation and the banking system’s failure. Cryptocurrencies are one of the most popular digital assets. However, since they are risky, many investors want to get started by keeping their initial investments small. And for some, the idea of earning free crypto is especially appealing. Here are some easy and legal ways to earn free crypto.

1-   Play-to-Earn Crypto Games

Crypto play-to-earn games have been around for a while but they specifically took off when non-fungible tokens (NFT) sparks massive interest in the financial industry. In fact, there are reports that people in some countries are earning NFTs as a source of income during the pandemic. These obtained NFT can be bought and sold for a value. The concept is similar to any game, except the in-game rewards are real. In general, play-to-earn games encourage users to collect in-game items and answer quizzes in exchange for crypto rewards. On the other hand, some of these games require a decent amount of initial investment. However, in return, they may offer an opportunity to receive free crypto for completing in-game tasks.

2-   Learn and earn

Some websites give you the opportunity to learn about cryptocurrency and earn a little bit of it at the same time. You may need to watch a few videos, take part in a short quiz and pass to win a prize. Coinbase Earn is one site that offers rewards for learning about crypto, but others such as also offer a chance to earn free rewards. However, the thing about these “learn and earn” promos is that you may not always get the cryptocurrency you want.

3-   Crypto Interest Accounts

A crypto interest account is similar to your regular savings account in that you can earn interest — in this case, on the crypto you own. Hodlnaut offers some of the highest returns, at up to 7.25% APY, with its crypto interest account. KuCoin is another popular crypto trading platform that provides higher yields on its savings account through promotional offers.

4-     Day Trading

One of the most profitable ways to make money with cryptocurrency is to actively participate in day trading. However – there is a small caveat– you need to at least have a basic understanding of how to analyze prices to determine whether the token in question is likely to increase or decrease in value. If you can do this, you can make money trading crypto throughout the day. The general concept with crypto day trading is that you will look to take advantage of short-term volatility. Furthermore, seasoned traders in this market will rarely – if ever, stay in a position for more than a day. And so, the objective is to open multiple positions throughout the day making smaller, but frequent profits.

5-   Mining cryptocurrency

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 have already been created inside a protocol. They just need to be approved to become available on the market. As a reward, the first person that validates it receives a portion 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) and Litecoin (LTC).

6-   Earn Bitcoins from crypto faucets

One of the ways to earn cryptocurrency without investing money is through faucets. It may take some time and determination, but it will pay off in the long run. There are many cryptocurrency faucets that you can join, and most of them pay in Bitcoin or Ethereum. Those that pay out Bitcoin will reward their users with Satoshis for every micro-tasks, and those that pay out Ethereum will reward Wei. The system of a faucet is quite simple to understand. You have to watch ads, complete surveys, and play games to be rewarded a small portion of a cryptocurrency. After reaching the minimum withdrawal limit, you can cash out the digital currency. Although it seems rather slow, a crypto faucet can get you to earn your first Bitcoins if you’ve got the time and determination.

7-   Participate in DeFi Lending

Decentralized finance (DeFi) refers to the ecosystem of financial applications built using blockchain technology. Due to this decentralized nature, these applications do not rely on a centralized authority to facilitate transactions. This paves the way for a wide range of new and exciting processes– of which DeFi lending is one of the most popular. DeFi lending involves giving your cryptocurrency to a specific protocol, which will then lend it out to other parties. In return for providing you crypto, you will receive interest – with rates often much higher than the traditional banking system. This means that you can purchase the best cryptocurrency to invest in and then lend it out through a DeFi protocol, thereby benefiting from an increase in value while maintaining a fixed return.

Yields will vary depending on the asset and the protocol you use, although under certain conditions it can reach more than 10% per year. The great thing about DeFi lending is that most lending agreements are collateralized. This means that borrowers must post collateral in the form of cryptocurrency – with this collateral being valued higher than the loan itself. Since the whole process is facilitated through smart contracts, there is no way to cheat the system and no need to provide a credit check.

8-   Take Part in an Airdrop

One of the best ways to earn crypto effortlessly is to participate in crypto airdrops. Airdrops refer to the process of distributing crypto for free to people interested in a specific project. This process usually occurs when trying to generate even more hype around an upcoming token launch, as giving out free tokens to people tends to cause excitement on social media.

9-   Crypto Staking

Crypto staking is the process of locking up your coins to help validate new blocks on specific blockchain networks. This relates to the method used on Proof-of-Stake (PoS) blockchains rather than Proof-of-Work (Pow) blockchains like Bitcoin. In return for helping in the validation process, participants who stake their coins will earn free crypto as a reward. Much like when you earn interest on crypto, the process of crypto staking can offer much higher returns than traditional bank accounts.

10-   Earn Crypto with DeFi Yield Farming

Decentralized financial projects, known as yield farming or liquidity mining, have a reward system that is somewhat similar to the bond market. In the most straightforward understanding of this process, Yield Farming is a method of generating rewards from locking up cryptocurrencies. By locking your funds and giving liquidity to Defi Token, you will receive rewards and profits. Depending on the project, you can get additional tokens besides the yield. Compound is one of the most prominent DeFis that you can mine right now.

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