One of the big buzzwords associated with cryptocurrency is ‘trading’, which many assume is the only way to benefit from this asset financially. However, we are here to tell you that there are a significant number of methods to generate funds with crypto, none of which involve trading. Instead, let’s look at some less time-consuming options and much more lifestyle-friendly to ensure you are not putting too much effort into the sport.
Play-to-Earn (P2E) Gaming & iGaming
Have you ever played a mobile game, won many in-game goods, and wished you could use them in real life? Well, that is entirely possible with P2E games alongside other iGaming platforms such as crypto casinos. As noted by crypto expert Carlos De Lanuza at Valuewalk.com, Bitcoin casinos offer players fast withdrawals, generous bonuses, and a massive game selection. This opens the door of opportunity for players to not only use this digital asset to experience the thrill of gambling but also win big.
With P2E games specifically, players can earn in-game cryptocurrencies that can be exchanged for traditional fiat currencies or used for real-world purchases. Even more, some platforms offer unique in-game items such as characters or rare skins that players own as NFTs (Non-Fungible Tokens). Simply put, NFTs have special identifying features to indicate that they belong to a specific person, which means these in-game items act as digital assets that can be resold.
Staking: Your Digital Savings Account
Staking is a rather passive way of earning money, with it being as simple as locking up your coins or tokens to support a blockchain network operation. Think of it as being the equivalent of putting some money into a high-yield savings account, except you are doing it with a digital currency. Usually, the blockchain’s ‘network operations’ could include anything from securing the chain to validating transactions.
In turn, users then earn more coins for their contribution in the same way they would gain more money as interest builds up in a high-yield savings account. Again, you are making minimum effort, and this is not the only benefit. Beyond earning passive income, this contribution helps to strengthen network security and ensure accurate transactions. Additionally, there is a much lower risk associated with this option than that of trading, as it is less volatile and is essentially a give-and-take situation.
Crypto Lending: Be Your Own Bank
If you want an option wherein you do not make as much effort as with gaming, but want more interaction than staking, then this is perfect for you. Crypto lending is self-explanatory – you loan borrowers your digital assets with the goal of gaining interest from the transaction. Although it may sound very sketchy, there are a multitude of legal, centralised and decentralised platforms that connect users to borrowers. Of course, there is a difference between the two, with the former often involving a third party, but it is easier to use. The latter option gives the user more control over their assets, but this also means there is added responsibility.
This is appealing for many reasons, with a big one being the appeal of a predictable income, as you can track your earnings more accurately. With trading, for one, it is impossible to know how much you will make in return, making it volatile beyond the market. In addition, there is an opportunity for you to offer higher interest rates in comparison to the standard rate offered by financial institutions. Since this is not a fiat currency, there is much more freedom in the way it can be used, especially when it comes to money lending.
However, remember to use safe and reputable platforms and research current crypto interest rates. Ensure you have a set repayment schedule for each borrower with specific terms and strict payment dates. Lastly, establish a collateral rule for borrowers so you do not lose assets if they cannot pay you back.
