How to earn crypto with little effort


Below I will present a couple of methods to earn a couple of cents worth of crypto each day. The first four methods require no investment and can be done by anyone safely. The last two methods require you to invest crypto upfront in order to profit from it later on, of course this also means that your capital is at risk, the higher the potential gains, the higher the risk. This post is meant for beginners and is intended to serve as an introduction into crypto.

1. Publish0x

Publish0x is a blogging platform, users are rewarded with crypto for engaging with the content, either by reading articles or by writing them. Readers can tip authors and a part of it will be awarded to them. Under each post there is a window where you can input the % of the tip that goes to the author, the remaining value will go to you, you can choose values between 20 and 80%.

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The tips are sponsored by Publish0x, neither readers nor authors bear any costs. At this moment the rewards are paid out in Ethereum (26% chance), Ampleforth (37% chance) and iFARM (37% chance). Available cryptocurrencies change every couple of months. Accrued rewards can be paid out to your personal wallet after you acquire enough of them, for ETH and AMPL it's $5, for iFarm it's $2 woth of crypto. Any network fees (gas for the Ethereum network) are covered by Publish0x.

In order to give out tips you only have to make an account, you don't have to link any of your social media accounts, a simple email will do. If you want to start writing you need to send an application, available ater you click your username in the top right corner of the page. There are some limitations regarding the tips:

  • Usually there are ~8 tips available per day
  • You can give out a tip every 10 minutes
  • One author can be rewarded once per 24 hours
  • The crypto the tip is paid in is chosen at random 

Each tip is worth less than $0.02, if you give out 8 tips and set each of them so that 80% goes to you, you can earn around $0.1 per day. If we assume the prices stay the same and knowing the % chance for payout in a given crypto and how much we're expected to gain we can eyeball when a payout can be initiated. For ETH - around 192 days, AMPL - around 135 days, iFarm - around 54 days. As you can tell it's not a get rich quick scheme. (Note: those values may not be 100% correct).

In order to initiate a payout you also have to whitelist your public address. Each time you change the whitelisted address you are sent an email that requires you to accept the change. The rewards are paid out around every 2 weeks.

Additional info:

2. Brave browser

Another easy way to earn some crypto is to use the Brave Browser. It's a privacy centered internet browser built on Chromium (which means it's very similar to Google Chrome) with a built in Adblocker, it's selling point is that users can agree to be shown ads in exchange for Brave's own cryptocurrency, Basic Attention Token (BAT). Those ads don't track your activity on the internet allowing you to protect your privacy. In addition to that Brave has a built in TOR that allows you to hide your IP address. 

What Brave does is they split their advertising revenue, content creators get 70%, brave and users both get 15%. In order to earn BAT you just have to agree to be shown ads and create a wallet. Brave is available on desktop as well as on mobile, however iPhone users can no longer get rewards in BAT. How much you get paid depends on your location, in English speaking countries you earn way more as there are more advertisers. You might expect anything between 1-10Brave is still growing and acquiring new partnerships, the more advertisers there are, the bigger the rewards. In order to pay out your BAT, you need to have at least 25 tokens and you need to create an Uphold account. In the near future Brave is also planning an integration with Gemini, you will be able to link your Gemini account in order to withdraw BAT.

Dodatkowe informacje:

3. Crypto faucets

Faucets are websites that give out a small amount of crypto for free. The way it works is really simple, you put in the address of your wallet, you solve captcha (a countermeasure against people using scripts or bots to abuse the syste) and then you get a small amount of crypto straight into your wallet. So a question arises, why would anyone just give out crypto to strangers for free? The main idea behind faucets is popularizing a given coin. The more people get interested in your coin, the more popular it becomes and the greater the chance of its success. Around 2010 there was a bitcoin faucet that would give out 5 BTC to visitors (now worth almost $300k), archived site.

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Always be mindful that when something sounds too good it probably is. If a website asks for your passwords or the 12 word seed to your wallet it's a scam that will try to rob you of all of your crypto.

A couple of safe and working faucets:

  • Banano
  • Algorand (in order to get a payout you need at least 1 ALGO in your wallet)
  • Ciekawym projektem jest WeNano, aplikacja działa jak faucet, z tą różnicą, że bazuje na geocachingu. Znaczy to tyle, że fizycznie trzeba przejść do miejsca, gdzie wypłacić można 0.01-0.1 Nano. Spoty te ustawiane są przez innych członków społeczności i zasilane początkową kwotą, w Polsce niestety nie jest to zbyt popularne, kilka spotów jest w większych miastach.
  • There is an interesting faucet-like project called WeNano. It's based on geocaching, in order to get a payout in Nano you have to physically go to a spot. Spots are set up and loaded with Nano by members of community. One you get close enough, you can easily get between 0.01 to 0.1 Nano.
4. Contributing within the community

An interesting way to earn some crypto is to get involved with a project. This way you can try to use your skills to help people out or to provide some services in order to get tips. It's not a foolproof way to earn crypto and you shouldn't go around asking people for free crypto. A couple simple ways would be to answer new people's questions, providing translations or moderating channels. You should start by looking into subreddits and discord channels. It's not a guaranteed way to get some crypto so you should only to this for projects that you really believe in, otherwise it might be a waste of time.

 

The next two ways to passively earn crypto require you to already have some crypto and to actually invest it. You might think of it like putting fiat into a savings account or investing in the stock market. This should only serve as a simple and brief introduction, investing crypto is a very complex topic and you should not put your money into things you don't understand. Investing cryptocurrencies is very risky and you might lose all your capital.

5. Defi

Defi , decentralized finance, aims to make the world of finance more available and democratic. The financial sector is dominated by large, centralized institutions like banks, exchanges or investment funds. They are necessary as they make the rules and guarantee that the contracts are being executed as they were agreed upon. Instead, Defi is finance built on blockchain, all the contracts are executed as code, called smart contracts, which means that central organizations aren't necessary. Simplyfing a lot, two parties might enter into a smart contract, when a condition is met, the contract is executed automatically. At this point in time Ethereum is the most popular and the largest smart contract platform out there.

It might sound futuristic, however the total value of crypto lock in various defi applications is around $85 bln (source). Those projects are able to efficently replace many of the centralized institutions, below you can find a couple of examples of dapps (defi applications) along with their use cases:

  • Deposits and loans - Compund - to simplify, it works like a bank. It transforms many illiquid deposits into liquid loans. People who deposit their funds earn interest and their crypto is loaned to lenders. In order to take out a loan you also have to provide crypto which is locked as collateral. Compound matches borrowers with suppliers using smart contracts.
  • Decentralized crypto exchanges - Uniswap, Quickswap - they allow for exchanging one crypto into another. The price is determined through liquidity pools as there is no central authority that would act as a market maker. Users can exchange their crypto for a small fee (and, sadly, a large network fee when using Etherum at this point in time), they can also become liquidity providers by adding liquidity to the pools earning the fees in return but also exposing themselves to impermament loss.

At this point it's worth mentioning yield farming. It's the practice of maximizing the potential profits from the invested crypto through various investment strategies. There are many specialized platforms like Harvest Finance on Ethereum and BSC or Pancake Swap on BSC. Some strategies allow you to get APY in the hundreds (usually for a short time, before the market stabilizes).

Because the Ethereum network is badly congested at this moment, in order to be able to make profit in defi you need at least a couple of thousand of $ in order to cover the gas fees and remain ahead. There are various Layer 2 solutions that make the transaction cost pennies (e.g. Polygon) however it makes defi even more complicated for beginners. There are also other ecosystems with much lower network fees, they are not as developed as Ethereum though.

Even though it's not directly related to defi I will also mention tokens and coins that can be staked. There are two main models for validating transactions on the blockchacin, PoW (proof of work) which requires vast amounts of computing power to solve equations, examples include Bitcoin or Ethereum in its current form. The other model is PoS (proof of stake) where stakers can lock up their crypto (for most projects) to validate blocks, in return they earn interest on the staked coins. Some of the more prominent examples include Algorand, ATOM, Cardano and Ethereum is also planned to be moved to PoS.

6. Cefi

Cefi are centralized platforms operating on the crypto markets. They might be seen as an antithesis of the main idea of crypto which is decentralization and getting rid of intermediaries. Their role cannot be overlooked though. They offer an easy way to buy and sell crypto and offer security and simplicity. The main drawback is that your coins on an exchange are yours just in theory as you don't own the private key to the wallet. It's also worth noting that over the years many exchanges have been hacked into or defrauded by their creators.

In most cases creating an account with a Cefi platform requires you to go through KYC (know your customer, identity verification in order to prevent financial crime and money laundering). Keep in mind that it's very sensitive data and those platforms are a valuable target for hackers so I would advise to choose 2-3 platforms that look the best to you instead of giving out your data all around.

A couple of examples of Cefi are:

  • Centralized crypto exchanges - Coinbase, Binance, Gemini - they offer a fiat on- and off-ramp, an easy way to exchange your USD, EUR, GBP etc. into crypto and vice versa. Keep in mind that you own your crypto only when it's on a wallet you own private keys to, if it's on an exchange it's not just a number on your account. Those exchanges also offer a plethora of other services, for example: various 'earn' programs where you can earn interest on your crypto, crypto credit cards allowing you to buy with crypto and offering cashback or derivatives. Personally I can recommend Coinbase, it has a simple interface, an earn program where you can earn around $40 worth of crypto to try our for free, access to Coinbase Pro (lower fees, more complicated interface). If you are interested you can use my referral link, if you buy crypto worth at least $100 you will get $10 worth of Bitcoin back. The main drawback of Coinbase is that their fees could be lowe, however they are listed on the stock exchange which should add to their legitimacy (although this might be debatable).
  • Crypto 'banks' - Celsius, Nexo, BlockFi - those platforms work like traditional banks, they accept deposits and then lend out crypto to both institutions and private persons. The interest on deposits usually varies between 2 up to over 10% APY depending on the coin, interest on stablecoins is the highest. Taking into account that the interest rates on the market are extremely low due to (among other things) the pandemc and it's effects, earning 10% on your capital seems like a dream. You can also take loans which allows you to profit from your crypto in a tax effective manner (depending on your country). In order to get the lowest possible interest rate you need to offer crypto as collateral, up to around 25% LTV to get the lowest rate. More and more of those platforms are offering additional services like in-app swaps, credit cards and their own tokens that come with many benefits (lower rates on loans, higher on deposits). I can personally recommend Celsius Network, they offer high yields and are trying to be transparent (among other things they host weekly AMAs with the board). If you are interested you can use my referral link (or input my code during registration: 1083379578) which allows you to get $40 worth of Bitcoin if you put in $400 worth of crypto and leave it for at least a month. In addition you can use another code in the app: YESPLEASE which allows you to get $20 worth of Bitcoin when you deposit $200 worth of crypto. That's a 10% return on investment in 3 months if you use both codes, ignoring the interest on the deposited crypto that's paid out weekly.

 

This article is just a very general introduction. I will repeat that it's very important to stay vigilant as they crypto space is ripe with scams. Never give out your seed words or passwords. Always make your own research and don't let yourself be influenced by opinions of others as there are a lot of people aiming to use newcomers as cash cows.

 

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