If you’re a newcomer to cryptocurrencies, figuring out a way to earn them can be challenging. Sure, you can use “traditional” currency to buy it, but that’s not the only option out there. If you’re looking for a way to earn cryptocurrency without making a purchase, you’re in the right place. This guide will help you understand the different ways in which you can earn them.

Mining

Mining is not possible for any cryptocurrencies, but if your currency of choice can be mined, it’s a good option. Some cryptocurrencies that can be mined include Bitcoin, Litecoin, Dash, and Monero. While Ethereum can currently be mined, there are plans to stop this capability before the end of 2022.

Mining essentially requires you to use your computer to solve complex mathematical equations. The first person to find the solution is rewarded with a predetermined amount of currency. 

Some popular currencies, such as Bitcoin, are highly competitive to mine and require you to have high-end equipment to be able to do it profitably. However, you can also join a mining network instead of buying this equipment – you will be required to pay a joining fee, and profits will be split with other members of your network, but it allows you to pool the power of your respective computers so that you don’t have to invest in high-tech gear upfront.

Cryptocurrency Staking

There are some currencies that work using “proof-of-stake” validation. This means they approve transactions that take place in that currency, ensuring that each transaction is legitimate. For doing this, they are rewarded with a predetermined amount of the same currency.

However, staking does have an element of risk. If you validate a crypto transaction that doesn’t follow the rules or is fraudulent, you could lose some of your own currency. This is because staking works on the idea of validation, where you’re using your own coins to act as a guarantor for the other person.

Some coins that offer this type of service include Ethereum and Polkadot. However, Bitcoin does not offer this functionality.

Sign Up With an Exchange

Many cryptocurrency exchanges will give you a small amount of free cryptocurrency as a reward for signing up with them. One of these exchanges is Coinbase, though there are other options out there. You can limit yourself to signing up for a single exchange or try your hand at all of them to earn greater rewards.

Some exchanges may also offer free cryptocurrency as a result of promotions and time-limited bonuses, so make sure to keep an eye out for offers.

Cryptocurrency Lending

Just as you can earn interest by lending out traditional currency, you can also earn interest by lending out your existing cryptocurrency coins. The process is relatively similar to that of a regular loan – you lend money to a borrower, and they pay it back to you in an agreed-upon period, plus an agreed-upon interest.

Ideally, you should use a lending platform when lending cryptocurrency. This provides you with some security and a paper trail, which you may otherwise lack if you directly lend to individuals. However, even still, make sure you’re careful with how much you lend, and never lend more than you can comfortably afford to lose. Lending money, whether traditional or cryptocurrency, is always risky, and you don’t want to jeopardize your own finances by lending too much money.

Look for Free NFTs

Non-fungible tokens, or NFTs, are the latest craze when it comes to digital assets. You can make your own and buy and sell existing NFTs. However, some artists may also do free giveaways as a special offer, as do many new cryptocurrency projects (the NFTs are the invite bonus). 

Once you’ve earned a free NFT, all you need to do is exchange it in exchange for cryptocurrency. If you think the NFT has the potential to hit it big, you can sit upon your asset until you feel the market is right to sell it.

Airdrops

When we say airdrops, we don’t mean transferring files from one Apple product to another – rather, in cryptocurrency lingo, “airdrop” is the term for free giveaways from the makers of new cryptocurrencies. 

Airdrops essentially serve as a way to create buzz around a new currency and get potential investors excited over it. While they won’t be worth nearly as much as existing options like Bitcoin and Ethereum, you may get lucky if you hold on to your free coins and the currency hits it big. Alternatively, you could try selling them in exchange for a stable currency – while you won’t earn much, it will be better than nothing.

One other option is to ask for payment for freelancing tasks you do in cryptocurrency – clients will pay you according to the current value of the coin, and if it appreciates, you could end up earning exponentially more than the original price you set. The only drawback of this, of course, is that coins may depreciate as well.

It is possible to earn cryptocurrency for free – however, be aware that you will likely find it challenging to earn enough to really help you become wealthy unless you already have existing coins you can use as “investment” for cryptocurrency lending and other options.