With the expansion of blockchain technologies and the significant increase in the crypto market, people are looking for the best ways to make a fortune in the crypto industry.
When people think of earning crypto coins or tokens there are only two things that come to their mind: mining and day-to-day trading. While both are eligible options, there are some other ways to earn crypto.
But there’s a catch
Each of these methods faces many complexities, and several factors affect their choice.
Awareness of how cryptocurrencies work: operating platforms and ecosystems, advantages and disadvantages of each, identifying the starting point determine the best ways to earn crypto in 2022.
What Are Ways To Earn Crypto In 2022?
In this article, we are sharing the best ways of earning crypto coins and tokens, carefully examining the pros and cons of each of the options.
Table of content:
- #1: Crypto Airdrops – Join Airdrops To Earn Crypto Coins
- #2: ICO (Initial Coin Offering)
- #3: IEO (Initial Exchange Offering)
- #4: IDO (Initial DEX offering)
- #5: Earn Crypto By Staking
- #6: Mining
- #7: Earn Interest By Lending Your Crypto
- #8: DeFi Yield Farming Or Liquidity Mining
- #9: Trade Cryptocurrencies On Crypto Exchanges
- #10: Promote Projects Through Ambassador Programs
- #11: Nodes And Testnets
- #12: Exchange Referral Bonuses/Bonus Hunting
- #13: Play To Earn Crypto Games
#1. Crypto Airdrops – Join Airdrops To Earn Crypto coins
What is Airdrop, and how it works?
Airdrops mean distributing or giving away free tokens to crypto holders (for example, Ether) as a bonus. Airdrop is an advertisement for a new blockchain or project to inform the community of such crypto.
Airdrop is also used as bonus for loyal users. In general, there are several reasons for Airdrops, including:
- New crypto project promotion
- Gifts for loyal users
- Wider distribution of the crypto project
- Hard forks
How do Airdrops platforms work?
Many websites and online platforms have been created for this purpose.
Another way is to follow information about Airdrops on social networks such as Twitter, Reddit and Telegram.
How to earn crypto with Airdrops?
A standard cryptocurrency airdrop transfers an amount of native coin or token into existing wallets in exchange for some promoting activity.
Usually, it’s asked to promote the crypto project and encourage more people to start using it, often during their initial coin offering.
Generally speaking, all you need to do is to sign up for a new crypto project, provide your wallet address during the distribution event and complete requirements for an airdrop.
What are the pros and cons of Airdrops?
|Boost your crypto portfolio without having to buy digital assets||Worthless Airdrops – airdropped assets could just as easily be worth nothing|
|Keeping up with new developments||Fraud – there’s the risk of giving money or sensitive information to a fraudulent platform|
#2. ICO (Initial Coin Offering)
An ICO, which stands for Initial Coin Offering, also known as a token sale, is a new way to fund cryptocurrency projects. If you know how an IPO works then you already understand the basic idea of an ICO.
Startups can use initial coin offerings in order to bypass the rigorous and regulated capital-raising process required by venture capitalists or banks.
Top 5 ICO Platforms You Can Trust
- Coin Factory
- ICO BOX
What is Coinlist and how it works?
The great advantage of Coinlist is that it makes coins available to users very quickly before they are listed on popular currency exchange platforms. There are now about 40 types of crypto on this website for exchange or purchase.
Coinlist platform. How does it work?
As a global leader in issuing new tokens, Coinlist has been very effective in establishing a global connection between investors and currency exchange platforms such as Filecoin, Solana, Mina, Dapper, and other platforms, and now in all matters related to the purchase, sales, lending, and staking support the investors.
How to start to work in Coinlist?
Getting started on the Coinlist is as follows:
- Authentication to use the Coinlist service
- Charge the wallet
- Buy a coin in the following steps after charging a Coinlist wallet
- Trading on the Coinlist
What are the pros and cons of Coinlist?
One of the main advantages of investing in ICO projects on Coinlist is that all projects are well-verified before being listed, thus scam projects would not pass.
|Get access to the best new tokens before they list on other exchanges||Restrictions on crypto sales|
|Ability to lend in Coinlist||The authentication process is time-consuming|
|Simplify the staking process in Coinlist|
|Collaborative projects in Coinlist|
#3. IEO (Initial Exchange Offering)
What is IEO, and how does it work?
IEO is a similar to ICO fundraising for the token sale with the help of a crypto exchange.
The main difference between IEO and ICO fundraising is that it operates via cryptocurrency exchange instead of token-sale platforms.
Before IEO publicly determines the amount of token they intend to offer through an exchange, owners of crypto projects.
Many crypto exchanges have started accepting IEO. One of the first exchanges was Binance, which launched a new Binance Launchpad service.
How to start working in IEO?
Because IEOs are so popular in the community, finding the currencies intended for the initial offering is difficult. Once investors have seen their choice options, they need to find the exchanges that host the sale of that coin.
The next step is to create an account in that exchange and complete the authentication process.
What are the pros and cons of IEO?
|Trust and reduce the fraud risk. Crypto exchanges thoroughly check and precisely research the project’s documentation to ensure its feasibility and credibility||Listing costs|
|High security of IEO platforms||Limitations|
|Listing of tokens||Expropriation|
|Staying safe from legislators||Artificially increased demand|
#4. IDO (Initial DEX offering)
What is IDO, and how it works?
Initial DEX offering is a fundraising method in which tokens are issued through the exchange of liquidity in a decentralized exchange.
Decentralized liquidity exchange is a type of cryptocurrency exchange based on a liquidity pool where traders can exchange tokens.
What platforms work with IDO?
In IDO, the token is issued through decentralized exchanges such as Bancor, Binance, or Uniswap.
How to start to work in IDO?
Most liquidity pools have a currency pair, including a crypto asset and a Stablecoin.
Because Stablecoins fluctuates so little, this feature allows traders to manage their capital by converting to each other due to the high volatility of crypto.
What are the pros and cons of IDO?
|Freely and fairly fundraising||Lack of supervision over projects|
|Fast trade in IDO||Raise less capital for projects that intend to sell their token|
|Quick access to liquidity||The possibility of manipulating the price of tokens|
|Loss of privacy despite authentication|
#5. Earn Crypto By Staking
What is Staking, and how it works?
Staking is a way of earning passive income by locking a certain amount of cryptocurrency into an electronic account. In a sense, steaking is a bank deposit that uses cryptocurrency instead of regular (fiat) money.
The mechanism of staking
All cryptocurrencies that work on the PoS (Proof-of-Stake) algorithm are suitable for staking.
In this algorithm, when a certain number of cryptocurrency coins are frozen, its owner becomes a validator.
He receives the right to verify and confirm transactions and form blockchain blocks.
For this, a certain amount of new coins is given as a reward. The important condition in this situation is to have a computer permanently connected to the Internet.
It is possible to freeze money in the account and do the staking without taking part in checking transactions and forming new blocks. In this case, the reward will be less.
What are the platforms where investors can earn crypto by staking?
The following cryptocurrencies are suitable for staking: Cardano, EOS, Dash, Tezos, Solana, Algorand, Cosmos, Tron, and some others. Etherium, which plans to switch to PoS, will also be available for staking in the near future.
How to start to earn crypto with locked staking?
With this type of staking, tokens are frozen for a certain period of time: 7; 30; 60, or 90 days.
Interest is accrued every day but is only paid out after the freezing period is over.
Interest is not charged for early withdrawal or sale of coins. If you do not withdraw tokens in a certain period, a new lock period might begin.
What are the pros and cons of staking?
|You do not need to have special knowledge of computer technology.||A sharp drop in the price of altcoins can lead to losses|
|No expensive equipment required||The threat of fraud. This can be either the acquisition of tokens issued by scammers, or the transfer of the purchased coins into the hands of scammers|
|Energy consumption compared to mining is reduced significantly||The coins frozen in the account do not lie idle, but generate income|
What is mining, and how it works?
Mining is the process by which a device obtains a small amount of crypto by performing specific tasks (PoW).
How can investors earn crypto by mining?
There are several different ways to mining, including:
- Cloud mining
- Mining method through CPU
- Mining with the help of GPU
- Mining with ASIC
How to start to earn crypto by mining?
The miner device must first be connected to the stable internet and electricity to mining. Special mining software is pre-installed on dedicated mining hardware such as ISIC devices.
In Bitcoin mining using ISIC devices, the person must receive the settings related to how to mine through the bitcoin mining pool and enter their wallet address to deposit the mined Bitcoin in the wallet.
After that, the machine mines.
What are the pros and cons of mining?
|Earning crypto as a reward for mining||Bitcoin mining is a very complex task|
|Earning crypto at a lower price||Electricity costs will increase sharply|
|Help to increase network security||The cost of mining hardware is very high|
#7. Earn Interest By Lending Your Crypto
What is crypto lending, and how it works?
Crypto lending is a process that helps you to lend your crypto assets to someone in return for interest. If a user lends his crypto assets, he gets interests on those assets depending on who and how long borrows those assets.
In the crypto lending process, the lender gives his assets to other users for collateral (Bitcoin, Ethereum, Tether, and other cryptocurrencies).
What are the platforms where investors can lend crypto?
There are several platforms in crypto lending, the most important of which are:
- MakerDAO lending platform
- Compound lending platform
- Aave lending platform
- dYdX lending platform
How to start earning interest by crypto lending?
Crypto lending is easily possible on various platforms, including Binance, and many users today use this process.
What are the pros and cons of crypto lending?
|Applicability of crypto loans||Smart contracts errors|
|The universality of blockchains||High collaterals|
|Lack of influence on tax||Numerous fluctuations in the cryptocurrency market|
|No limit on the amount requested|
#8. DeFi Yield Farming Or Liquidity Mining
What is yield farming, and how it works?
Liquidity mining is a way to generate bonuses through holding crypto. Yield farming means cryptocurrencies are locked into a protocol, and then a bonus is obtained. In most cases, yield farming means liquidity providing by adding funds to the liquidity pool.
How can investors earn crypto by yield farming?
A liquidity pool is a smart contract with some fiat money. LPs receive a bonus in exchange for providing liquidity in the pool. This bonus can be generated from the commission generated on the related DeFi platform.
How to start earning crypto by yield farming?
The list below is merely a set of core protocols for yield farming strategies:
- Compound Finance
What are the pros and cons of yield farming?
|Ease of use for all traders||The complexity of bonus earnings mechanism|
|Significant efficiency and yield of farming strategies||High risk for traders with low capital|
|Risk of bug and smart contract disruption|
#9. Trade Cryptocurrencies On Crypto Exchanges
What is trading, and how it works?
The spot trades market is where buyers and sellers exchange their cryptocurrencies. One of the most critical features of spot trades is that orders are placed instantaneously and as soon as a buy or sell order match the request will be completed.
Trading with leverage
In trading with leverages (futures and margins trades), buying or selling is recorded based on future price forecasts. Traders use leverage and open short and long positions.
How can investors earn crypto by trading?
Trading with leverages (futures and margins trades)
Trading with leverages (futures and margins trades) allow traders to use leverage offered by exchange platform.
This increases the likelihood of traders making much more profit. Traders in margin trades and futures using leverage can multiply the profit of trades.
At the time of order, each buyer announces their bid price and the amount of Crypto they intend to buy. On the other side of the market, some traders want to sell their crypto coins.
The exchange shows all traders’ buy and sale orders in a list. As soon as the buyer and seller agree on a price, the transaction is done by Binance, and crypto coins are transferred from seller to buyer.
How to start to earn crypto by trading?
- Limit Order, Market Order, Stop Limit Order, and OCO Order are types of trades that set orders in spot markets.
- To make futures trades in Binance, the traders must complete three steps. The trader must first select the desired leverage. After selecting it, the initial margin required for this trade will be determined by Binance, and at the end, the trader will select the buy or sell order. Based on the selected leverage, the maximum order size will be determined.
What are the pros and cons of trading?
Spot trading is safer (because even if the market crashes, the trader doesn’t lose the coins but just their value, and when the market goes up again, the value of coins goes up as well).
However, the trader needs a longer time to profit from the margins.
Trading with leverages
Trading with leverages (futures/margin trading) is riskier but could get higher and quicker results for traders.
At the same time, the traders should be more skilled (spend much time on technical analysis) and psychologically willing to incur losses from time to time.
#10. Help Promote Projects Through Microtasks (Ambassador Programs)
Microtasks are small services that traders do for someone and receive crypto instead of pay. This type of task could be filling out an online survey form, testing an app, finding bugs on a website, or the like. Apps and websites that give traders crypto as a bonus to complete a task are called microtasks.
How to earn crypto with microtasks?
The amount of bitcoins paid as a bonus for these tasks is minimal.
These are a few examples of websites where earn some crypto by doing microtasks:
How to start earning crypto by microtasks promoting?
Microtasks involve a wide range of activities. Activities in social networks such as Like, Follow, Comment and Membership, installing applications, and other microtasks each have their bonus amount.
What are the pros and cons of microtasks promoting?
|Lack of income withdrawal quorum||Small amount received|
|Multiple options in performing tasks||Risk of fraud|
|Significant revenue potential|
#11. Nodes And Testnet
What is testnet, and how it works?
Testnet is a blockchain used for testing. Testnet coins are different from real coins and have no monetary value. This network allows testers to test themselves without using real coins.
How can to earn crypto with testnet platforms?
A testnet is a parallel network that is intended for testing purposes. The concept of testnet is a separate blockchain test network where developers can test new features without worrying about compromising the mainnet.
Ethereum has five experimental networks with unique programming goals and Kovan, Rinkeby, Sokol, Görli, and Ropsten.
Experimental blockchain networks act as exact copies of the original protocol, using the same technology and software to deliver similar functions. Traders can use these functions to get crypto for free.
What are the pros and cons of testnets?
|Developers’ interest in using Testnet||Security risks of Testnet platforms|
|Small amount received|
#12. Exchange Referral Bonuses / Hunting Bonus
What is bonus hunting, and how it works?
Bonus hunting is a simple way for ordinary and average traders to earn money. To attract more users to buy products or register on their platform, companies and brands of different industries give various bonuses to their users.
How to earn crypto using bonus hunting?
Traders make money by sharing with family and friends.
Traders can make money simply by offering exchanges to their networks and members.
For example, after a trader refers a user to a Binance exchange, the trader will receive a 20% commission at the same time.
What are the pros and cons of bonus hunting?
|Make a substantial income||Spend much time to receive the bonus|
|Low chance of success to receive the bonus|
#13. Play To Earn Crypto Games
What is earn crypto gaming, and how it works?
Earn crypto gaming is one of the growing trends in earning free crypto. Nowadays, earn crypto gaming and NFT games have been widely developed, and the Play to Earn or Gamefi model has been expanded.
How can to earn crypto by playing P2E games?
Earn crypto gaming use NFTs in rules, mechanisms, and player interactions. Players in games that earn crypto can sell these coins to other gamers and earn money. Game developers create smart contracts that set rules for the NFTs used. These contracts then execute the coin stored on the blockchain automatically.
How to start games to earn crypto?
Anything can be NFT; lands, avatars, clothes, weapons, etc. When players find and collect an item during the games to earn crypto, they can trade it with others in digital marketplaces such as:
- SuperRare, etc., in exchange for other NFTs.
Making a wallet and buying the necessary items are the first two steps in games to earn crypto.
What are the pros and cons of games that earn crypto?
|Significant revenue potential||Spend time to upgrade game characters|
|Variety in crypto received in games that earn crypto||A small amount of money for gamers|
|Convenient proof of ownership of in-game items||Low chance of success in games to earn crypto|
|Low risk of losing players’ assets|
|Impossibility of forging in-game items|
|Easy sending and receiving of these tokens without intermediaries|
The increasing number of opportunities advocating for the legalization of cryptocurrencies make it possible for many people to earn crypto in 2022.
It is a matter of time when cryptocurrency will be used as an alternative form of payment that can be utilized to buy products or services from real-life stores.
Overall, our suggestions on best ways to earn crypto is by choosing less risky methods, such as trading crypto, especially with leverage.
As we’ve discussed in the article, it’s possible to earn interest by such tools as crypto lending.
P2E games are also mentioned as a way of earning free crypto. With the advent of these NFT games, players throughout the world can play to earn crypto tokens.