Strategies To Earn Cryptocurrency Without Initial Investment

There are several ways to make money from cryptocurrency without investing. These include yield farming through lending or providing liquidity on decentralised finance (DeFi) platforms, staking, day trading, and play-to-earn games. Yield farming and lending involve depositing and lending crypto coins to earn interest. Staking involves depositing tokens into a blockchain protocol to keep the network safe and operational, and then earning interest on them. Day trading involves actively buying and selling crypto to take advantage of market volatility. Play-to-earn games are usually built on blockchain technology, and players can earn rewards, usually paid in the native token. Other ways to make money from cryptocurrency without investing include crypto savings accounts, crypto credit cards, and completing surveys and offers.

Yield farming and lending

Yield farming is a means of earning interest on your cryptocurrency, similar to how you'd earn interest on money in a savings account. Yield farming involves locking up your cryptocurrency, called "staking", for a period of time in exchange for interest or other rewards, such as more cryptocurrency.

Yield farming is the process of using decentralized finance (DeFi) to maximize returns. Users lend or borrow crypto on a DeFi platform and earn cryptocurrency in return for their services. Yield farmers provide liquidity to various token pairs and earn rewards in cryptocurrencies.

There are several types of yield farming:

• Liquidity provider: Users deposit two coins to a decentralized exchange (DEX) to provide trading liquidity. Exchanges charge a small fee to swap the two tokens which is paid to liquidity providers.
• Lending: Coin or token holders can lend crypto to borrowers through a smart contract and earn yield from interest paid on the loan.
• Borrowing: Farmers can use one token as collateral and receive a loan of another. Users can then farm yield with the borrowed coins.
• Staking: There are two forms of staking. The main form is on proof-of-stake blockchains, where a user is paid interest to pledge their tokens to the network to provide security. The second is to stake LP tokens earned from supplying a DEX with liquidity.

Yield farming can be a risky practice due to price volatility, rug pulls, smart contract hacks, and more. It's important to do your research and understand the risks before engaging in yield farming.

Crypto credit cards

It is important to note that crypto credit cards have similar caveats to traditional credit cards. Users should be cautious about accumulating large credit card bills to earn relatively modest rewards. Additionally, crypto-specific risks, such as price volatility, should be considered.

Crypto savings accounts

Another difference is that in a crypto savings account, you lend out your crypto to other people who can use it for a certain period of time in exchange for interest payments. This is different from a traditional savings account, where the money is yours, and the bank lends out your money to other people.

There are a few things to keep in mind if you're considering opening a crypto savings account. First, these accounts are not FDIC-insured, so you could lose money. Second, there may be restrictions on withdrawals, and interest may not compound. Finally, the value of your cryptocurrency can fluctuate, so there is a risk of losing money if the value of your holdings decreases.

• LEDN: A conservative crypto savings account offering up to 1.5% APY on Bitcoin and 9.5% APY on USDC. LEDN adjusts its yields monthly to stay in line with market conditions.
• Paybis: A beginner-friendly crypto trading platform with an in-house crypto wallet.
• YouHodler: A crypto exchange and high-interest crypto savings account offering up to 7% APY on Bitcoin savings. YouHodler has a minimum deposit amount of $100.
• NEXO: A high-interest crypto savings platform with minimal lockup periods and third-party crypto asset guarantees. NEXO offers up to 5% APY on Bitcoin savings and 10% APY on stablecoin savings.
• Uphold: A crypto exchange and staking platform that doesn't lend out your money. Uphold offers staking APY of up to 13%.
• KuCoin: A crypto exchange with a wide range of assets available for earning yield. KuCoin offers Bitcoin APY of up to 0.36% and USDT APY of up to 4%.
• Coinbase: A well-known crypto exchange offering a special USDC savings account that doesn't involve lending. Coinbase offers USDC APY of up to 1.5% and ETH APY of up to 3.83%.
• Crypto.com: An exchange offering high yields for well-capitalized investors. Crypto.com offers Bitcoin APY of up to 2.4% and USDC APY of up to 6.5%.
• Outlet Finance: A platform that allows users to earn interest on fiat deposits, with yield generated by trading cryptocurrencies. Outlet Finance offers USD APY of up to 5%.
• Binance: The world's largest crypto exchange, offering a range of crypto-based financial products, including a savings account. Binance offers USDT APY of up to 4.4%.
• Finblox: A high-interest crypto savings account offering up to 90% APY on certain crypto assets, without any minimum balance requirements. Finblox offers ETH APY of up to 4% and USDT APY of up to 5%.

Airdrops

To find legitimate airdrops, you can follow crypto projects on social media, join dedicated crypto airdrop websites, or explore cryptocurrency-related forums and news portals. It's also important to have a cryptocurrency wallet to receive and claim airdrop tokens.

• OpenDao's SOS token airdrop rewarded NFT creators, collections, and enthusiasts who had previously made transactions on the OpenSea NFT marketplace.
• Gas DAO issued the GAS token to anyone who had paid a certain amount in Ethereum gas fees.
• LooksRare team's LOOKS token airdrop was given to users with a certain transaction volume on OpenSea.

Play-to-earn games

Axie Infinity

This game is often regarded as the pioneer of play-to-earn games. It is a Pokemon-inspired game where players can collect, breed, and battle with unique creatures called Axies. Axie Infinity has a market value of $9 billion, making it the most valuable metaverse game. Players can earn by achieving a high degree of expertise and owning their virtual assets as NFTs.

Decentraland

Decentraland is a decentralised metaverse game where players can create their virtual world. Players can purchase, sell, or rent parcels of virtual land using cryptocurrency. It is one of the most dynamic games to play and explore the metaverse.

Illuvium

Illuvium is a blockchain-based, open-world role-playing game. Players can explore the 3D environment, catch deity-like monsters called Illuvials, and compete with other players. The Illuvials are represented as NFTs on the Ethereum blockchain and have real-world value.

Chain of Alliance

Chain of Alliance is a role-playing fantasy game with customisable monsters that have NFT value. Players field a team of characters and arm them with the best weapons to increase their chances of winning.

Star Atlas

Star Atlas is a space research strategy game where players can choose between three sides and explore the galaxy with their friends. It is the first Metaverse application built primarily on Solana blockchain technology.

Other Notable Games

• The Sandbox: A community-driven system that allows users to play, develop, own, and manage virtual land.
• Vulcan Forged: A collection of games, including Vulcan Verse, Berserk, Forge Arena, and Blockbabies.
• STEPN: A web3 lifestyle app with social and game elements that encourage users to walk, jog, or run.
• Etherscape: A game where players can control their gaming destiny and explore the virtual world.
• Echoes of Empire: A sci-fi strategy game set within a galaxy at war.
• Meow Match: A blockchain game where players can match and collect adorable cats.

These games offer a fun and interactive way to earn cryptocurrency and NFTs. Remember to do your research, understand the mechanics, and choose the games that interest you the most.

Frequently asked questions