Can unconventional DeFi strategies take crypto earnings to next level? The crypto space offers a lot of opportunities to earn.
You can follow both traditional as well as non-traditional ways to make money from crypto by leveraging the various new protocols based on blockchain.
These processes are good enough to open extra revenue streams or some of the best ways to put your idle money to work and yield.
However, it is quite an intimidating task to be well abreast of all the opportunities available in the crypto space without continual and thorough research, especially if you are a beginner.
If you too are not aware of these strategies, you will find this article to be very helpful to you.
Here are some DeFi strategies that you can follow to earn some passive income from crypto as well as a few other proven strategies that will help you a great deal to maximize your earning amount from crypto and take it to the next level.
However, it is required to make sure that the strategy is most suitable for you and is right based on the given conditions.
Can Unconventional DeFi Strategies Take Crypto Earnings to Next Level?
As you may know blockchain is an innovative technology which underpins cryptocurrencies.
This technology along with the crypto coins has proved to be super disruptive that has the potential to change the entire digital operating system when the world has entered into a digital age.
The good thing about these two things is that anyone can avail the opportunities offered by crypto and blockchain provided they have adequate knowledge about how to put them to work in their favor in the first place.
In this digital space and world where everyone is looking to make a lot of money and beat the others, it may not be quite profitable enough to simply hold your funds in a crypto savings account.
If you cannot maximize your profits to take it to the next level then perhaps crypto is just not right for you.
However, most of the people know the conventional ways such as crypto trading and the different ways to trade crypto but only a few know about the unconventional ways that are also quite productive.
The Proven Ways
Assuming that you know about the conventional ways to make money from crypto, here are some unconventional DeFi strategies that will help you to earn some additional, if not a steady, income and take it to the next level.
You will put your crypto to work when you stake them instead of simply holding the coins in your wallet for a long time hoping that the value of it would appreciate in the future.
Staking crypto coins is one of the most productive ways to earn a passive income on your digital assets, often on a daily basis.
It works just in the same way as any interest bearing savings account does.
However, the return in crypto staking is much, much higher in comparison to the savings accounts.
While the return for a typical savings account can range anywhere between 0.5% and 1.5% maximum for a high-yield savings account, in the case of crypto staking you can expect to make an earning ranging anywhere between 5% and 15% in a year.
The main reason that crypto staking offers such a high yield is that when you stake your coins these are typically used to validate transactions and prevent errors in the chain.
You will need to lock your coins for a particular period of time with a crypto exchange and in return you will receive a percentage as the yield on those particular coins for that specific period of time.
Though most people are not very fond of this approach, this is one of those DeFi strategies that experts believe will pick up its pace and continue to grow in popularity to become mainstream in the near future.
However, this process is nothing new and has been around since 2012. This income generating tool is not going anywhere because crypto itself is going to grow.
Well, crypto staking can seem a very technical process since it involves validating transactions but that is when you do it yourself.
You will find that it is one of the simplest ways to make money from crypto if you choose a more mainstream and reliable crypto exchange that offers user-friendly staking options.
With all that said, the downside of crypto staking is that you will have to lock your coins up for a specific period of time and cannot trade them during this locking period.
There is another thing that you should keep in mind, though it cannot be considered as a serious con for crypto staking.
It is that this option is available only with a few specific types of crypto coins that use Proof of Stake or PoS consensus mechanism to function rather than the traditional Proof of Work of PoW consensus algorithm.
This means that you cannot stake if you have Bitcoin, for instance, but you can stake Ethereum 2.0 or Solana.
You can also lend your crypto coins that you have amassed a lot over the years. The borrowers will pay you interest on the tokens you lend.
Crypto lending, though it may sound very similar, is not the same as loans that you will get from a traditional bank.
It is essentially a DeFi based lending process that is carried out between peers. This P2P lending process is typically made possible by a crypto lending platform.
There are some amounts of risks involved in this process and one of the most significant ones is the possibility of the borrower not paying you back the amount you lent out.
NFTs, or non-fungible tokens, involve anything from digital art to a video, from music to any interactive digital work piece.
However, all of them mostly live on the Ethereum blockchain.
Any individual can be an NFT creator or collector. As for the creators, NFTs can open the door to an audience spread all across the globe and any one of them can be a potential buyer.
This means that putting the digital artwork on blockchain enhances the chances of the digital assets to find a buyer.
In addition to that, it also means that the creators will not be deprived from their due and receive the royalties for their creation in full and quickly.
On the other hand, the collectors get a chance to buy NFTs or digital art at a much lower price.
If you hold that NFT and sell it when its value appreciates over time it will help you make profits.
You can rest assured that you will always find a buyer of NFTs because people now have started to show a lot of interest in this digital art form, even more than in traditional pieces of art.
This is primarily due to the fact that the price point of these arts is much, much lower in comparison to the prices of traditional pieces of art which is actually the result of an increased number of upcoming artists putting their work up on blockchain.
However, before you indulge in such a DeFi opportunity to make money do your own research and proceed with extreme caution to avoid falling victim to scams, counterfeits, and misinformation. Yes, there are lots of them out there.
Every day, new crypto projects are created and launched in the market and new technologies are coming up at the same pace.
These are the primary reasons for the world of crypto to be continuously evolving.
Therefore, you should look for an opportunity when these new projects or crypto coins are launched.
More often than not, there will be some DeFi platforms or crypto exchanges that will offer free coins to the users who sign up with these platforms. They may also offer free coins for playing a game or taking an educational course.
You should do your own research and then take the most advantage of such an opportunity to earn some additional crypto.
There are lots of such options out there to choose from.
Yes, it is true that such earnings will be typically small but then taking the rewards route is one of the best ways to own a few additional tokens if you are especially looking for an option that is not very time consuming.
Crypto mining is the process which involves verifying, validating and recording transactions made on a particular blockchain.
This is one of the most technically intensive processes among all those you will find in this list.
Also, it involves a lot of initial investment in the form of expensive mining hardware and the huge recurring electricity bills.
Therefore, this is not a suitable option for the beginners or the typical hobbyists.
It is ideally an option for those who are willing to devote a lot of time, dedication, money and effort. It also takes a lot of learning to understand the process thoroughly as well as its ecosystem.
If you have all these attributes in you then you can start mining crypto coins using a Graphics Processing Unit or a GPU miner.
Initially, you should start with the smaller crypto coins or those with a smaller market cap since a GPU miner will not be able to mine Bitcoin.
If you are looking for an option to earn some extra crypto coins other than rewards then airdrops can be a good option to go for.
However, you should keep in mind that airdrops also offer the highest level of risks of all the ways to get free crypto.
Typically, for most of the crypto investors it is more than they think worthwhile because these are usually performed for the new crypto coins that have no proven records of its potential or success.
Ideally, airdrop refers to a process where the developers of a crypto coin give them for free to crypto users hoping that they will adopt it.
However, if you are still a game, make sure that you check on the internet to find out whether or not any airdrop scheme is in the progress.
You will often find promotions about these projects on the website of the company and even on different crypto news channels and on social media.
Do research well because fake and scam airdrops projects are very common in the crypto space that are typically carried out by the hackers just as the Initial Coin Offerings or ICOs can be.
In reality, there may be several types of crypto coins that may be issued in the form of air bubbles. These are not valuable investments.
If you are new to this space, do not fall for any smaller or lesser known coins.
Instead, go for only those reliable and well-established crypto coins such as Bitcoin and Ethereum.
And, at this point, it is also worth noting that all coins received as airdrops are considered as taxable income by the Internal Revenue Service or the IRS. According to the IRS guidelines, you are liable to report such income based on the fair market value of the coins as on the date of registration on the blockchain ledger which is, in most cases, when you receive the airdrops from digital wallets.
As said earlier, the crypto market offers a lot of opportunities both for the users as well as the crypto itself.
During a bull market condition, major crypto coins as well as those lesser-known ones often see significant returns.
During these times, coins often offer some significant benefits to those who make an early investment.
This is when you invest in crypto projects before these are listed on the public exchanges.
There is also a high chance that you will receive a significant discount as well.
Perhaps the easiest way to make such investments is through the launch pads which typically refer to those particular platforms that standardize access to these projects that are potentially promising to the users as an early investment opportunity.
Ideally, you will find a launch pad now for practically every single type of blockchain project.
Therefore, make your choice wisely and choose one of the well-positioned and promising coins to gain an adequate exposure to the blockchain ecosystem.
Your data is sure to be harvested whenever you use or browse the internet.
This data can be of anything right from your online shopping history to your browsing habits, or your favorite videos to most visited websites.
All your data will be collected, sorted, and even sold wherever it is possible.
This common practice by the websites does not produce any real value to the end users but it surely is one of the main revenue streams for the websites.
With the use of specific hardware solutions and blockchain technology, you can flop this model and carefully monetize the data generated when you browse the internet.
If you use a reliable platform you will also be able to maximize the amount of data collected and sold to generate more income and receive the payment in the native token of the platform.
This additional income however involves no additional risks.
Play games and earn:
You can earn money when you play games.
There are lots of those ‘play to earn’ types of games available out there and if you want to earn some more coins and take your overall earnings to the next level, it is time to pay attention to this particular sector.
However, the amount you can earn will depend on your gaming skills and your luck as well as the amount of investment, effort and time you are willing to put into it.
Nevertheless, these types of games can prove to be a very lucrative source of income to you.
In case you happen to be an early adopter, you will be benefited the most while playing these games.
However, these games can prove to be a good source of income for the beginners and the less established gamers as well.
More often than not, the rewards offered by these games are in the form of the tokens of the particular project or non-fungible assets of the game.
You can trade or sell them later on for a yield.
There are lots of different types of these games apart from Axie Infinity, which is the best known and most popular title without any doubt but also comes with high barriers of entry and cost.
Choose wisely and stay on top of the new releases if you want to optimize your profit making possibility.
Sharing insurance risk:
You may not be aware of the fact that insurance is not offered by the conventional insurance providers but is also offered by a wide range of insurance platforms that are powered by blockchain technology for the decentralized services.
You can practically take out insurance for any potential risk on the blockchain such as insider thefts, smart contract exploits, stablecoin de-pegging, rug pulls and lots more.
And, the insurance amount can vary from extremely low to very high, depending on the anticipated odds of any of these events occurring.
Since these insurance platforms are decentralized, they typically use collective user funds to support the insurance coverage and pay out the claims if the conditions mentioned in the insurance policy of the taker are covered and met.
If you are ready to take on insurance risks you can make potential revenue by contributing funds to the pool in the form of a portion of the premiums paid by takers of a policy.
You may think at this point that this option is quite risky because there may not be enough claims paid out and you can lose all your money.
Though it is true, the risk aspect is somewhat mitigated since these platforms usually allow contributing liquidity only to a few specific plans or covers.
This means that if such a platform has potentially zero risk of suffering any type of breach or attack, you will be able to make profits almost risk-free.
With that said, the riskier the plan is the yield offered is higher but that is only for those who have a higher risk appetite.
Well, these are some of the most promising ways to earn more crypto and take your income to the next level.
However, nothing will be possible if you do not analyze the conditions of the market before jumping into it. In adverse situations you will start with losing on your investment and in that case there will be no one else but you to blame.
It is ideally your own responsibility to make a safe investment which is why you must conduct a thorough research before investing your money into anything.
Go to reliable sources to know about the latest news and updates of the crypto industry.
You must also know and analyze the ups and downs of the crypto market and the trends as well.
Also, create a strategy to follow and make sure that you do not rush while making a decision at any point of time.
Proper and adequate education often stands as a barrier in the way of making money from crypto space.
That is why articles like this one are good to follow to know about the different conventional and unconventional ways to go ahead.