Different Ways To Earn Money At Crypto Space And Their Risk

Different Ways To Earn Money At Crypto Space And Their Risk

By Eybyoung | Crypto learnings | 6 Jun 2021


Crypto is a wide space where 24hrs of learning all the things around it is not enough. There are a lot of ways how to earn money while you explore the crypto space.

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Image from Unsplash

If you are a newbie in the crypto space there are a lot of things you are about to learn and explore if you want to, but I suggest you must learn it because crypto offers a lot of opportunities, we just have to learn how to do it and be cautious as well because everything has risk, especially if you engage on the investment part.

Ways To Earn Money In Crypto Space

In this article, I will tell you some of the ways that you can earn money. Some of it was from my experience, I love learning and exploring so I am doing my best to learn, so I can earn more later on.

➡️ Catching Airdrop

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Catching Airdrop is one of the ways you can earn free crypto, by only following the coin guidelines on how to get the drop.

How to catch Airdrop?

  • Join some Telegram groups that share airdrop opportunity

  • You can open an account at CMC (CoinMarketCap) and subscribe to them via the email address they will send you news, updates, and airdrop opportunities.

  • Once you finally joined an airdrop opportunity, just follow all their guidelines to avail the drops. Like joining their Telegram channel, follow their Twitter account, retweet the airdrop tweets, and provide all your details for you to receive the drops.

  • You need Twitter, Telegram, email address, Wallet address, or Medium account so you can participate in Airdrop.

Risk of joining Airdrops?

Catching airdrop has also risks, it's time-consuming and mostly airdrop is fake. Few are real so it's also associated with luck if you catch the real drop and not the fake ones.

Caution: When the drop facilitator asks you to send some tokens for gas fees or transaction fees NEVER send any it's a SCAM!

I wrote an article about how I catch a real drop of $IDEA token, you can read it if you want, here.

➡️ Blogging or Writing Articles

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Image From Unsplash

If you love writing, and blog anything you want you can also monetize it.. join a crypto blogging platform like read.cash, noise.cash, Publish0x, Leofinance, Hive, etc.

Blogging or writing can give you real money, but you should not rely on it or replace your job not unless if you plan to be a freelance writer.

How to be a successful crypto blogger?

  • You need to write daily

  • Build your name on the platform, engage with other users for you to gain followers, your followers can help to uplift your standing in the platform.

  • Be patient, you cannot be well known after you write your first article/blog, it takes time to build your brand.

  • Be optimistic and keep going when things are getting tough you will get through with that.

  • Don't stop writing, if you only write once a month you will be forgotten, so be consistent.

There's no risk in blogging, it only needs your time and attention as well.

➡️ Yield Farming, Staking and Lending

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Farming and staking will give you a passive income, if you plan to hold your coin for the long term you can find suitable DeFi platforms or lending platforms where you can let your coins work for you while you sleep.

You will earn interest if you put your coin in a lending platform such as NEXO, Celcius network or Blockfi.

While you earn other tokens/coins if you put your coins in a DeFi platform, for example, Pancakeswap.

How to farm and stake coin?

  • You just buy coins that you want to use for farming or staking

  • You need to have a trusted wallet or Metamask wallet, for you to access all the dApps (decentralized applications).

  • You need to have extra coins like ETH or BNB for the fees, Eth for the Ethereum dApps, and BNB for BSC dApps.

  • You also need to learn how to do it manually, you can follow other bloggers that write about some guides on how to do it.

  • For lending you just deposit your coin on a certain lending platform like Nexo, then wait for daily interest.

  • If you want to learn more about farming and staking please follow @PVMihalache it's his legacy, a crypto farmer.

Risk of farming and staking?

Farming is riskier than staking because of impermanent losses (when the value of both token you chose to pair will rise or drop, you will suffer this impermanent losses), in farming it offers higher APY but also comes with higher risk. Higher risk has also high rewards. While staking is less risky, it's like you only deposit it then wait for interest but you earn other tokens or coins instead of interest.

Both have risks in general like when the vault you used got hacked or when a certain DEX (Decentralized Exchange) was attacked by flash loans and your vault got affected or the token you stake will drop in value big time. Just make sure you farm and stake on trusted dapps to avoid “rug pull” as well,this is a malicious act of crypto developer abandoning the project and runaway with investors funds. This usually happens on DEX because, DEX can list token without audits unlike CEX. It's easy for some developer to make a token then pair it with popular coin, like BNB then offers high APY to lure investors, once they had enough funds to steal they will abandon the project with the investor's funds. Beware of rug pulls, it usually happens on shitcoins!

While in lending the risk is that “not your keys, not your coin” if in case the lending platform got bankrupt and runs away with your money, then you'll lose all your investment.

Closing Thoughts

There are still different methods of earning money in the crypto space, I will tackle it in the next article since I don't want to make this long and bore you. It's very boring reading long articles, I know that lol.

If you want to learn more then stay tuned on the next, so you will know all the ways of earning money in crypto especially if you are a newbie.

Thank you for reading!

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Eybyoung
Eybyoung

#Club1BCH - BCH little enthusiasts!


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