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The Fixed Crypto Award Dilemma

By rah | rah | 7 Feb 2021


There are many platforms that offer fixed rewards payable in Crypto and these present the investor with both a problem and an opportunity.

However, before I go on to explain what I mean let me define what I am talking about and to do so I am going to start with what I don't mean. Publish0x is NOT what I mean. On Publish0x rewards are given in terms of Crypto and the monetary value is irrelevant. This means that the payout received is in fixed crypto and not dependent on its monetary value.

For example since starting on Publish0x I have earned (thank you followers and others) approximately 0.2 ETH which at today;s value is about £240.00, Had Ethereum been a tipping currency when I first started the same amount of ETH would have only been worth about £40.00.  I am playing the long game with my Ethereum and just dropping it into Celsius and letting it work for me. Who knows how much it will be worth in 10 years time.

On the other hand fixed awards are payable usually at a specific price in USD. Examples of this kind of payment are often found in faucets like Cointiply or in such systems as Coinbase Earn. Both present the investor with an opportunity to gain exponentially and I will explain each now in turn.

Cointiply

cointiply_logo

Cointiply, which I have blogged on quite a lot (see references below if you want to sign up) is a platform that awards users in Coins for viewing adverts, watching videos, rolling the faucet wheel and completing other tasks. 10,000 Coins are worth a fixed $1 and can be withdrawn as BitCoin or DogeCoin. What makes this particularly tricky in terms of knowing what to do with it, is that once the user holds 35,000 Coins it stakes at 5%. We must also remember that Cointiply Coins are not crypto.

Coinbase Earn

coinbase_logo

As part of their offer and probably to soften up members concerning attitudes towards their fees, Coinbase offers opportunities to gain free crypto at a fixed price. The main way of doing this is to watch some short videos and then answer one multiple choice question per video. There are between 3 and 5 questions per offered crypto with each correct answer being worth between $1 and $3. Offers are limited, for example I am too late to qualify for any of my beloved DAI :(

They only offer in a certain window and then it closes.

The problem with fixed dollar awards is that that is exactly what it is and when prices are significantly inflated you get very little crypto for your earnings.

I am currently holding more than 200,000 Cointiply Coins worth more than $20 and staking at 5%. In the current climate they are hardly worth anything with BitCoin hovering around its all time high. When I do cash out it is my plan to drop it straight into Celsius where it will stake at 4.67%, slightly less than Cointiply's Coin rate, but it will be in proper crypto.

The question is when do I cash it out?

Do I wait for the next correction, which may not be significant - back in early September BitCoin was valued at about $10,000. Had I had it my $20 wouldn't have bought me much BitCoin but it would still have been FOUR TIMES as much as it would buy now. On the other hand the overall momentum of BitCoin is always up so maybe I should take it out now and just ride out any short term correction. The difference in staking is negligible. However, whatever I do, it makes sense to always leave at least 35,000 Coins on Cointiply to take advantage of their 5% offer.

Coinbase Earn creates a similar issue, but in their case it is better to complete the earn tasks when the given currency value is relatively low. Let me illustrate. Earlier this week I completed the tasks to earn $3 in NuCypher which appeared in my UK based Coinbase account as £2.19 and with the NuCypher value quite low when I earned it I watched as over the next couple of days its value more than doubled until today falling back to £3.85 at the time of writing. If I had completed the tasks just TWO days later I would have got only HALF the crypto that I actually got.

I have looked into this Coin and seen that its long term potential is likely to be $5 (sorry I keep mixing my fiat currencies today) so I am just going to hdl what I have for the next few years and see what happens. Nothing ventured, nothing gained and it was free anyway so all I have lost is the three minutes it took me to complete the earn questions.

The point is that when it comes to free fixed price crypto, as with all harvests there is a better time to draw on it. This is more straightforward when it comes to faucets, but less than certain when it comes to offers like Coinbase Earn. Wait too long and you'll miss out, complete the tasks too soon and you won't leverage maximum benefit.

Did well with the NuCypher, but have yet to see what will be best with my Cointiply.

Incidentally if you are interested why not give Cointiply a go.

Whatever you are doing stay safe and stay well and as for me I am going nowhere today with outside temperatures touching -12C!

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rah
rah

I love reading and technology as well as history. I teach English and Business to professional clients as well as soft skills with a focus on communications. I am a big fan of both Sheffield Wednesday and Lincoln City Football clubs


rah
rah

Experienced Business Owner and Coach and Tutor who now trades in Crypto. It is proving to be an interesting journey with so much technical language involved. Follow me as I learn the trade (and how to trade). Made some howling mistakes to begin with, but still learning and will share what I learn as I learn it for the benefit of the community. - RAH

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