Blog Crypto Best Ways to Earn Cryptocurrency Online in 2021

Best Ways to Earn Cryptocurrency Online in 2021

date September 8, 2020 time 4 min read 763 views

Earning cryptocurrency online used to be a pursuit for only the most tech-savvy holders. Now, decentralized platforms have made it accessible to and safer for a broader range of people. Whether you want to be a trader or a passive investor, here are the best ways to earn cryptocurrency online.

If you’re into crypto, you probably already know about how to earn crypto through classic proof of work and Bitcoin mining.

However, if you don’t own a multi-million dollar mining farm, you’ll probably want to see some other options.

The future of investing may lie with decentralized cryptocurrency platforms
The future of investing may lie with decentralized cryptocurrency platforms
(source: pixabay.com)

Well, thanks to innovations in crypto, there’s never been a better time to start earning.Here’s a breakdown of a few of the best ways you can use to earn cryptocurrency fast.

How can you earn cryptocurrency?

Trading

Crypto trading works in a similar fashion to stock trading. You visit a cryptocurrency exchange (the biggest is Coinbase) and buy a coin you think is undervalued. When or if that coin’s value increases, you can sell it for a tidy profit. However,  unlike stocks, there are fewer ways of knowing which cryptocurrencies will increase in value.

Long-term traders believe in a cryptocurrency’s intrinsic value, so they’re happy to hold it over an extended period — even if they lose money.

Short-term crypto trading is almost a form of gambling. It’s very risky — a cryptocurrency’s value frequently rises and falls by large percentages in just a single day since the market is rife with speculation.

Staking

Although trading and mining are viable options, a great way to earn crypto passively is through staking.

Without making it too complicated, staking is a process on some blockchains where you use your node to help approve transactions. In return for staking, you receive a percentage of the number of coins you staked.  Financially, it works similarly to dividend stocks or a savings account that requires you to lock your money away for a fixed term.

Only certain cryptos run on Proof of Stake (PoS) protocols so you’ll need to research the best one for you.

You can earn crypto in legit ways
You can earn crypto in legit ways (source: pixabay.com)

DeFi: The best way to earn cryptocurrency online?

The world of crypto changes every day. One of the latest innovations for earning crypto through the blockchain is decentralized finance (DeFi).

DeFi is more than just a service or a product — it’s a movement. The goal? To make financial processes like lending and borrowing completely automated without supervision and fees from a governing body.

Benefits of DeFi

Some DeFi processes offer sophisticated solutions to common problems in the finance world. 

Staking pools let users club together to earn greater rewards than if they were staking alone. Meanwhile, crypto lending pools let anyone lend or borrow instantly instead of waiting through a complex matching process.

There are also the following standard advantages:

Low fees – Unlike traditional financial institutions or classic crypto exchanges, DeFi platforms try to automate their processes as much as possible. This means fewer middleman fees and lower overhead for customers.

Low risk – each platform handles its operations slightly differently, but there are almost always multiple layers of protection to safeguard money. Often, they’re safer than traditional investment platforms. Because most processes are automated, there is a low chance of platform fraud.

Accessibility – Finally, because DeFi processes take place on the blockchain. No need to wait multiple days to transfer it between accounts. Generally, they happen within moments.

How DeFi can help you earn crypto

Lending pools – An increasing number of DeFi platforms and exchanges let you lend your crypto to loan pools. Borrowers can transact loans from these pools and you get a cut of the interest when they are paid off.

Providing liquidity – New types of exchanges called “decentralized exchanges” or DEX’s allow traders to freely trade cryptocurrencies within the platform automatically and with minimal fees. However, to run autonomously, they need a supply of crypto on hand to provide liquidity to the exchange. You can provide liquidity to these exchanges with your crypto in exchange for a portion of transaction fees on the exchange.

DeFi lets you earn crypto passively
DeFi lets you earn crypto passively (source: pixabay.com)

Earn interest off your crypto and get the best exchange prices on MyConstant

If you want an easy and reliable platform where you can earn cryptocurrency look no further than MyConstant. We’re a P2P lending platform designed for both everyday investors and crypto holders helping you do more with your money.

Constant is one of the best sites to earn cryptocurrency
MyConstant is one of the best sites to earn cryptocurrency

Get 9% APY on your BTC, ETH, and BNB with Crypto Lend

Our Crypto Lend tool boasts an impressive 9% APY for providing liquidity to our trusted DEX partners. Interest is compounded and paid every second

Get 7% APR on stablecoins through P2P loans

We don’t just offer P2P loans to USD holders. On MyConstant, you can borrow and lend all the top stablecoins like DAI, BNB, and USDT. All loans are up to 200% backed by collateral and you can earn up to 7% APR on a 6-month investment.

Trade your crypto at the best rates on the market with Crypto Credit

Want to margin trade your crypto at the best prices on the market? When you borrow on MyConstant, you can use your loan to buy into any other partner crypto on our platform. We source the lowest prices for you from all the top exchanges.

Our signup process is quick and easy. Why not get started now?

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George Schooling

George Schooling

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