Aside from trivial cryptocurrency purchases, there are several ways to obtain digital assets. These methods require different skills, time, and resources, but can be more profitable in the long run. Here are the main ways:
1. Mining
Mining is the process of creating new blocks in the blockchain and confirming transactions by solving complex mathematical problems. For each block created, the miner is rewarded in the form of cryptocurrency.
Types of mining:
- GPU/ASIC Mining : Using graphics cards (GPUs) or specialised chips (ASICs) to mine cryptocurrencies such as Bitcoin, Ethereum or Litecoin.
- Cloud Mining : Renting computing power from mining companies. This allows you to start mining without having to purchase equipment.
Advantages:
- The ability to obtain cryptocurrency without direct cash outlay.
- Long-term profit prospect if energy and equipment costs are correctly calculated.
Disadvantages:
- High initial investment in equipment and electricity.
- The difficulty of mining some cryptocurrencies (e.g. Bitcoin) is constantly increasing.
2. Staking
Staking is the process of freezing a certain amount of cryptocurrency to keep Proof-of-Stake (PoS) blockchains running. In return, you are rewarded for participating in transaction validation.
How it works:
- The more cryptocurrency you ‘freeze’, the more likely you are to receive rewards.
- Examples of cryptocurrencies with steaming capabilities include Cardano (ADA), Polkadot (DOT), and Tezos (XTZ).
Advantages:
- Does not require specialised equipment.
- Low energy costs compared to mining.
- Suitable for those who already own cryptocurrency.
Disadvantages:
- Requires the availability of cryptocurrency to start the process.
- Rewards are subject to currency exchange rates and network policies.
3. Farming
Farming is the process of obtaining cryptocurrency through participation in decentralised financial projects (DeFi). It can be liquidity farming (providing liquidity) or yield farming (finding high yield strategies).
How it works:
- You lend your crypto assets to liquidity pools or loans.
- For this, you get platform tokens or a percentage of transactions.
Examples:
- Uniswap (UNI): A token exchange platform where liquidity can be provided.
- Aave (AAVE): A project for decentralised loans.
Advantages:
- High profitability with the right choice of projects.
- Ability to receive multiple types of rewards at the same time.
Disadvantages:
- Risks of impermanent loss (impermanent loss).
- The need for a deep understanding of DeFi projects.
4. Referral programmes
Many exchanges, brokers and crypto projects offer referral programmes where you can receive cryptocurrency for referring new users.
How it works:
- You register on the platform and receive a unique referral link.
- Every new user who signs up through your link will bring you a portion of the commission from their trades or deposits.
Examples:
- Binance: Up to 40% of new users' commissions.
- Coinbase: Free tokens for successfully recruiting friends.
Advantages:
- Simplicity of implementation.
- Lack of initial investment.
Disadvantages:
- Depends on the number of users attracted.
- Competition among referrals.
5. Выполнение заданий
There are sites that give away small amounts of cryptocurrency (usually micro fractions of coins) for free for completing simple tasks such as solving captchas or viewing adverts.
How it works:
- You regularly visit websites and collect ‘drops’ of cryptocurrency.
- Once the minimum threshold is reached, withdraw funds to your wallet.
Examples:
- FreeBitcoin.
- Moon Bitcoin.
Advantages:
- Requires no initial investment.
- A good introduction for beginners.
Disadvantages:
- Small income.
- You have to spend a lot of time to get tangible benefits.
6. Participation in ICO/IDO/Airdrop
ICO (Initial Coin Offering), IDO (Initial DEX Offering) and Airdrop are ways to get new cryptocurrencies before they are officially launched.
ICO/IDO:
- You invest in a new project in the early stages and receive tokens in exchange for BTC, ETH or other currencies.
- Examples: Ripple, EOS.
Airdrop:
- Giving away free tokens by existing projects to attract attention.
- Examples: Bitcoin Cash (BCH), Dogecoin.
Advantages:
- The opportunity to get cryptocurrency before it rises in value.
- Sometimes available completely free of charge.
Disadvantages:
- Risks of fraud and failed projects.
- Not all projects live up to expectations.
7. Work in the crypto
You can get cryptocurrency directly for your work. For example, many companies and freelance platforms offer payment in BTC, ETH or other tokens.
Examples:
- Freelancer.com: Cryptocurrency Payment.
- Cryptostartups: Project Token Rewards.
Advantages:
- A stable source of income.
- Opportunity to develop your skills in the cryptosphere.
Disadvantages:
- Requires professional skills.
- Cryptocurrency exchange rate volatility.
8. Gamification (NFT and Play-to-Earn)
Some games in the cryptosphere allow players to earn cryptocurrency or NFTs (non-fungible tokens) for completing levels, completing tasks, or selling in-game items.
Examples:
- Axie Infinity: Players receive AXS and SLP tokens for wins.
- The Sandbox: Creating and selling virtual land.
Advantages:
- A combination of entertainment and earning.
- The ability to create unique digital assets.
Disadvantages:
- Requires time and sometimes an initial investment.
- The NFT market can be volatile.
9. Participation in Hard Forks
When a cryptocurrency splits into two branches (hard fork), owners of the original currency get the new tokens for free.
Examples:
- Bitcoin → Bitcoin Cash.
- Ethereum → Ethereum Classic.
Advantages:
- Getting additional tokens is effortless.
- Ability to mine new currencies.
Disadvantages:
- Not all forks become successful.
- The need to keep the original currency.
Conclusion
There are many ways to get cryptocurrency besides buying it. However, each of them has its own benefits and risks. To choose the right method, it is important to consider your skills, time, and available resources. For example, mining requires a significant initial investment, while staking is suitable for those who already own cryptocurrency.
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