Cryptocurrency has been buzzing and on everyone’s lips. However only a handful quite understands the whole gist and ways to earn in crypto. Well if you are amongst the lot who aren’t particularly ignorant about the topic but want to learn about ways to maximize and make gains with crypto, then this article is for you.
The list can be very inexhaustible but below are some of the best and widely known ways to milk Crypto. Let’s dig right in!
Ways to earn in Crypto in 2022
- Yield Farming
- Trading: Trading crypto simply means buying coins or tokens at a price and sell at another price to book profit or loss. Of course trading is for profit making and that’s what this post seeks to shed light on. There are various places to trade crypto and these places are known as crypto exchanges. Examples are Binance, Coinbase, Kucoin etc. There are also derivatives and futures trading where you predict by using technical and fundamental analysis the direction of the market and take a long(buy) or short(sell) position to profit from.
2. Yield Farming: In farm yielding, staking and lending comes into play. You lend or stake your cryptocurrency in a bid to generate high rewards in tokens or coins.
3. Lending: this is similar to lending money to borrowers in traditional finance to gain interests or yield. There are a whole lot of crypto platform that offer lending services with crypto like the Anchor Protocol of the Defunct Terra Ecosystem. Where you supply UST the stablecoin of the Terra Ecosystem and earning staggering 20% interest.
4. Staking: as a staker, you supply your cryptocurrency holding on a blockchain to help secure the network, verify and confirm transactions and in return earn tokens or coins for doing so. This is done on Blockchains with the Proof of Stake mechanism, like Ethereum 2.0, Avalanche, Cardano, Solana etc.
5. Airdrops: an airdrop is the distribution of a token or coin by the developers or team behind it to the general public for free. However this process involves the receivers to perform certain tasks to be entitled to receive those free tokens or coins. These tasks may include helping the developers of the projects gain popularity on social media. By liking and tweeting about them. People make a lot of money doing this.
6. Mining: Liken this to mining gold, however here you are mining a cryptocurrency. This is how tokens or coins are minted into existence and circulation. Bitcoin and other cryptocurrencies use the process to generate new coins and this is done by miners who use super fast computers to perform complex mathematical computation to solve complex problems that helps secure the blockchain and verify transactions as new coins are minted as rewards for the work they do.
To mine cryptocurrencies come with high cost implications as one would have to procure expensive computers and use up large amount of electricity that these computers consume to be able to stand a chance to mine Bitcoin and other cryptocurrencies.
There are a whole lot of other ways to earn in crypto in 2022, however those above are the easiest and most common of them. In other posts some of them will be looked at.