{"id":2096,"date":"2019-11-14T09:41:18","date_gmt":"2019-11-14T09:41:18","guid":{"rendered":"https:\/\/paybis.com\/blog\/?p=2096"},"modified":"2024-04-23T11:45:02","modified_gmt":"2024-04-23T11:45:02","slug":"earn-free-cryptocurrency","status":"publish","type":"post","link":"https:\/\/paybis.com\/blog\/earn-free-cryptocurrency\/","title":{"rendered":"How to Earn Free Cryptocurrency – The 7 Most Realistic Ways"},"content":{"rendered":"

There are many reasons to be excited about the crypto industry, especially when looking into the \u201cmoney-making\u201d opportunities.<\/span><\/p>\n

Back in the day, the ability to earn free cryptocurrency was an accidental occurrence. It could have been a hard fork such as the one Bitcoin<\/a> and Ethereum<\/a> experienced, or a free airdrop to increase awareness (check <\/span>TRX airdrop to ETH holders<\/span><\/a>).<\/span><\/p>\n

These early-day crypto rewards became a very attractive reason to enter the crypto space and today, companies use them strategically to generate hype and increase mainstream adoption.\u00a0<\/span><\/p>\n

In this article, we will dig into the different ways that can help you generate a source of passive income, and how to go about each one of them.<\/span><\/p>\n

How to earn free cryptocurrency<\/span><\/h2>\n

Some of these methods are specifically directed to users that already hold a significant amount of certain crypto coins. Others will require a small sacrifice of your time. Let\u2019s look at the most popular options that are currently available.<\/span><\/p>\n

Cryptocurrency mining\u00a0<\/span><\/h3>\n

Mining is the process of confirming transactions on a blockchain using the power of your computer (node). This is only possible for coins that are built with a \u201cProof-of-Work\u201d consensus algorithm, the same model that Bitcoin uses to generate new coins.\u00a0<\/span><\/p>\n

In order to get started, you will need to do the following:<\/span><\/p>\n

    \n
  1. Invest in mining equipment.<\/b> We say invest because, in most cases, you will earn back the money you spent on your miner. A great practice, especially during the time of this writing, is to invest in a second-hand miner from eBay. Many people have found disappointment in their mining efforts due to the downturn of bitcoin’s price. In most cases, you will easily find a bargain.\u00a0<\/span><\/li>\n
  2. Set it up on your computer<\/b>. Connect your miner to the web and run the mining software.\u00a0<\/span><\/li>\n
  3. Start getting payouts<\/b> in the cryptocurrency of your choice.<\/span><\/li>\n<\/ol>\n

    In order to earn free crypto using mining, you will need to have enough funds to make your initial investment (buying the hardware) and enough patience to watch\/read a few tutorials on the web. You will also need to consider the electricity costs associated with mining, as this will have an impact on your profits.<\/span><\/p>\n

    If you plan on mining popular cryptocurrencies, such as Bitcoin, I suggest you learn more about <\/span>mining pools<\/span><\/a> as well, since the chances of getting Bitcoin rewards when mining on your own are slim to none.<\/span><\/p>\n

    All in all, mining Bitcoin (and other cryptocurrencies) is still a great way to earn passive income.<\/span><\/p>\n

    Staking your coins<\/span><\/h3>\n

    Staking is probably the closest you can go to effortless passive income from your crypto holdings.<\/span><\/p>\n

    The idea behind staking is pretty simple. Hold a certain amount of cryptocurrency in your wallet and you will be able to get rewards by validating transactions. Instead of having to buy expensive miners, all you need to do is not spend a certain part of your holdings.<\/span><\/p>\n

    The more coins you choose to stake in your wallet, the higher your rewards will be. Depending on the network (cryptocurrency), your rewards will vary.<\/span><\/p>\n

    When looking at the current situation of the crypto market, my top-3 picks when it comes to staking are the following:<\/span><\/p>\n

    Tron (TRX)<\/b><\/h4>\n

    Tron introduced staking rewards a while ago, and users are able to participate in the process by <\/span>voting for Super Representatives<\/span><\/a>.\u00a0<\/span><\/p>\n

    These elected Super Representatives receive the majority of the block rewards which they are able to share with their voters. <\/span><\/p>\n

    When the process first started, there were a few issues related to the honest distribution of rewards due to Binance\u2019s enormous voting power (more than 12 billion votes\/TRX), but the exchange has since <\/span>announced<\/span><\/a> support for TRX staking, distributing their rewards among users.<\/span><\/p>\n

    Icon (ICX)<\/b><\/p>\n

    Both Tron and Icon are Chinese cryptocurrencies. The reason I chose them as my top staking options is not just because of their popularity in the space but also because of the country\u2019s <\/span>recent developments<\/span><\/a> related to cryptocurrency.<\/span><\/p>\n

    ICX is extremely low priced at the moment, (-98% since its ATH) and offers a staggering <\/span>13-20% annual staking reward<\/span><\/a>.<\/span><\/p>\n

    I expect this, and other Chinese cryptocurrencies, to see an enormous price increase during the next bull market cycle. This is, of course, an assumption, but I am willing to take a calculated risk.<\/span><\/p>\n

    Ethereum (ETH)\u00a0<\/b><\/p>\n

    Starting from <\/span>January 2020<\/span><\/a>, Ethereum will finally fulfill its long-awaited promise to become a PoS token. ETH’s popularity, paired with the high-end entry barrier (32 Ethers), will make Ethereum Staking a very interesting way to earn free cryptocurrency.\u00a0<\/span><\/p>\n

    To this day, there is no exact information regarding the expected rewards, but the range we are looking at is between <\/span>4,45% and 10,4%<\/span><\/a> in annual interest.<\/span><\/p>\n

    Lending platforms<\/span><\/h3>\n

    How much interest are you earning on an annual basis for your savings account? The banking system has been working with interest-bearing accounts since forever and the process of earning interest looks as follows:<\/span><\/p>\n

    1 – Deposit money in your savings account<\/span>
    \n<\/span>2 – Allow the bank to use your money in order to earn more money<\/span>
    \n<\/span>3 – The bank keeps a large number of their earnings while paying you a small, pre-determined amount on an annual basis.<\/span><\/p>\n

    The same model is now being used by cryptocurrency lending platforms. Investors are now able to deposit Bitcoin and other cryptocurrencies into an interest-bearing account, making up to 14% interest on an annual basis.\u00a0<\/span><\/p>\n

    And before you think that 14% per year is a small amount (hello Bitconnect investor!), remember that banks pay about 0,01%-0,02% per year. And that is the best-case scenario.<\/span><\/p>\n

    Companies like NUO<\/strong> and BlockFi<\/strong> are paying investors up to 14% annual interest and fully insure their deposited funds.<\/span><\/p>\n

    \"earn<\/path><\/svg><\/a><\/picture><\/a><\/span><\/p>\n

    Check the graph above and specifically, the \u201cInterest offered<\/strong>\u201d tab. As you can see, the % of potential returns varies and it is best to assume you will receive the low-end of your rewards (remember, in the crypto world, what is too good to be true, usually is not true). <\/span><\/p>\n

    This may quickly offer some overview when it comes to the platform you choose to work with.<\/span><\/p>\n

    Aside from that, as with all methods, this one is very risky and you should do extensive research before you make a decision. After all, you will be sending all your coins to an unknown service, hoping that they deliver on their promise.<\/span><\/p>\n

    Lending for Margin Trading<\/span><\/h3>\n

    A relatively new model that started back in the day with Bitfinex is the concept of lending your Bitcoin to a trusted exchange platform to fund the activities of margin traders.<\/span><\/p>\n

    Since then, many exchanges, including <\/span>Binance<\/span><\/a>, have introduced this lending option to allow Bitcoin holders to earn passive income simply by \u201clocking\u201d their funds for a given amount of time.<\/span><\/p>\n

    If you want to learn more about this lending option, you can read our article on Bitcoin Lending<\/a>, where I explain the process in further detail.\u00a0<\/span><\/p>\n

    Before we move on, here are the rewards you can expect on an annual basis when lending your crypto to popular exchanges:<\/span><\/p>\n