There is a strong opinion that the crypto market is too much of a roller-coaster with constant ups and downs, making it challenging for beginners. Although it can be true, there is much more to crypto besides trading and investing. Some earning methods do not require special skills, knowledge, or equipment. Stay tuned for top alternative ways one can make capital on cryptocurrencies.
Mining refers to the process of adding a new block to the chain by solving a complex mathematical problem to get a reward in the native cryptocurrency. To do that, one needs special hardware with high computational power. Bitcoin miners, for example, can cost several thousand dollars or more. However, there are many cryptocurrencies besides Bitcoin that you can mine: BitcoinZ (BTCZ), Ravencoin (RVN), ERGO (ERG), etc. If you want to try this method, there are free mining profitability calculators for most coins you can check out.
Staking is an energy-efficient alternative to mining. Participants stake their coins into the platform’s pool to add new blocks to the ledger and validate transactions. Although some cryptocurrencies have a high entry threshold, modern crypto companies offer automated staking with minimum investments. For example, setting up a node for Ethereum staking on your own would require more than $40,000, while third-party staking providers allow investments starting from $10.
Earn-to-play blockchain gaming
Although crypto old-timers can be skeptical about blockchain gaming, it has become an increasingly popular tool for earning extra income. The process is very similar to regular video games — you complete tasks and challenges to get a reward in a native cryptocurrency. It can be further swapped for another digital or fiat asset. The top blockchain gaming platforms to consider are Battle Infinity, Sandbox, and Decentraland.
If you are an artist, you can monetize your works by turning them into NFTs. The prices for rare or unique NFTs sometimes reach tens of millions of dollars: Beeple’s Everydays: The First 5,000 Days painting in the form of a nun-fungible token was sold for a record-high $69.3 million. Creating your own NFT does not necessarily require special programming or technical skills: today’s services offer simplified interfaces for creating non-fungible tokens in a few clicks.
Lending and yield farming
These methods can be compared to a regular bank deposit: you lend your money to the institution and receive interest in return. The same goes for crypto: users can give their tokens into the pool’s management to provide liquidity to the DeFi industry. As a reward, you will earn interest in crypto and get free LP tokens that can be further invested.
Airprdrops won’t probably make you rich, but why turn away free coins? As new projects launch or old ones get hard-forked, founders use airdrops to boost network activity. Ethereum POW is the perfect example — the project gave free ETHW tokens to Ethereum holders after the merger to gain a customer base.
Which option is the best?
That depends on your personal goals and needs. Airdrops and blockchain gaming are rarely used as primary tools but can generate pleasant additional income. As for mining and staking, the profitability depends on your initial investment. NFTs are limitless in profit, but the industry is highly competitive. We recommend DYOR and trying out multiple tools to distinguish the most effective ones for your case specifically.