The latest bull cycle from 2020 gave the whole world a good context of what the crypto market is capable of. Even though, the cryptocurrency market is deemed volatile and a lot of retail as well as institutional investors are looking to invest in crypto. The crypto market is fully decentralized and most crypto users need to be aware of different ways they can earn crypto. This is actually beneficial for different investors because they have more options to choose from. Let’s take, a look at some ways that you can earn crypto.
The easiest way of obtaining cryptocurrencies is by registering on an online trading site. As we mentioned earlier, the market it is distributed which means that there isn’t one verified marketplace where you can buy, sell, or invest in crypto.
Actually, there are multiple trading platforms where you can do just that. This is why it’s really important to do your research and find a platform which is reliable and offers options that are attractive for your investment portfolio. If you’re completely new to the world of crypto, check out Learncrypto.com where you will find more information about cryptocurrencies and how to invest in crypto.
That said there are many reliable crypto trading sites where you can open your account and start trading. However, you would need to find a safe crypto wallet first. Actually, there are many crypto trading platforms which have integrated crypto wallet service for their users.
The transaction fees as well as options that are offered are equally important when you’re making your decision since there are additional transaction fees for trading on certain crypto exchange platforms. Otherwise, you can instantly download mobile trading app on your smartphone or tablet have access to your account on the go.
Crypto mining was actually original way of earning cryptocurrencies. Bitcoin was the first cryptocurrency which uses this mechanism on the blockchain network in order to ensure the network remains safe and decentralized.
More specifically, the blockchain network is a peer-to-peer based decentralised database where every participant has equal right to access the data regarding the transactions and actions in the network. The crypto transactions are added to a so-called chain which is immutable and cannot be tampered with by anyone.
The miners are users which work on high-end powerful computers and they verify the incoming blocks of transactions and add them to the blockchain network. Also, they ensure that the transactions are unique. For their time and effort, the miners receive a block reward which is in reality crypto tokens.
Actually, in this case that would be cryptocurrencies. The work is very time consuming especially when it comes to more complex and bigger blockchain network. It requires also good problem-solving skills as the miners need to solve complex math problems in order to complete the verification process and gain a reward.
Lastly, the users should be aware that it’s as we said the mining process it might take a longer period of time for the user to see any results which is why a lot of miners collaborate together in mining pools and farms and work as a group. Working as a group helps them to share the resources and to achieve better results faster.
With crypto staking you will be able to earn crypto rewards to put it simply for holding certain cryptocurrencies. It is a new way of also maintaining the security of certain blockchain networks while for cryptocurrencies that are deemed more volatile will yield higher rewards for the crypto users.
Moreover, the users similarly like mining add and validate blocks off transactions in the blockchain network. The block reward goes to users that have been staking for a longer period of time but there are differences from one project from another. For more details about the bockchain network visit The Guardian.
The main advantage beyond receiving your crypto tokens and supporting crypto projects that you find hold a lot of potential is opportunity to or receive rewards regularly for your efforts. It is not as competitive as mining when we compare the two. And, although it comes with risks based on the crypto project you support it is more accessible way of earning cryptocurrencies.
In Person Exchange
For people that don’t want to register on an online trading site, or they don’t want to be virtually involved in the crypto community but they still want to obtain cryptocurrencies there is an option to exchange for example your fiat currencies for cryptocurrencies locally. LocalBitcoins is one example where you will be matched with a crypto owner and for a certain price you can gain that cryptocurrency but you will likely need to meet in person.
Another options which work in a similar is to use a Crypto ATM that supports both cryptocurrencies and fiat currencies in order to exchange them for crypto and vice versa. You should keep in mind that ATMs which support crypto exchange usually come with higher fees including transaction and conversion fees. Furthermore, you should be aware that you will probably need to verify your identity in order to use some ATMs with your driver license or ID.
Airdrops is another good way to obtain certain crypto tokens in many cases for free. It is usually a marketing strategy of new crypto projects to reward crypto users with free crypto tokens in exchange for their support online or promotional activities.
The other main goal is to increase the ownership of the cryptocurrency and this is why many new crypto projects even offer crypto tokens for free. But again, because it is a new cryptocurrency and it’s not a still established on the market it’s important to do you own research and get a better idea of their project, technology, and white paper. You can find out more about white papers on Investopedia.com.
In conclusion whether you’re looking to obtain cryptocurrencies through mining or through investing on online trading sites is really important to do your due diligence and learn as much as you can about the crypto assets that you want to add to your portfolio.