How to earn on cryptocurrency: types of earnings.

The world of cryptocurrencies is constantly growing, which is very convenient for all those who want to earn. However, many newcomers are trying to understand how to start earning on cryptocurrency. Doing this from scratch is more complicated, especially without investments. Another option is to earn on crypto, but with minimal investments. All of this can work. 

Also, the question of how to earn cryptocurrency from scratch depends on other factors. The chosen currency and investment method are important. Moreover, the question of how to earn on cryptocurrency without investments also depends on the chosen platform, exchange, and even the currency into which crypto is then converted. 

How to earn on cryptocurrency with minimal investments? 

The question of how to make money on cryptocurrency starts with the basics. First, it is worth understanding what cryptocurrency is and what it is based on. Only after that, one can decide how to learn to earn on cryptocurrency. 

Speaking broadly, cryptocurrencies have become an important part of the modern financial system, offering unique opportunities for earning. However, one will still have to understand various terminologies.

In 2024, interest in digital assets continues to grow, and with it, the number of ways to earn on them is increasing. However, before diving into this world, it is important to understand that cryptocurrencies remain a volatile asset, and their use is associated with certain risks. This is a situation where preparation is incredibly important. 

One of the most popular ways to earn on cryptocurrencies is trading. As with traditional markets, crypto trading involves buying and selling assets with the aim of making a profit from the difference in their prices. Cryptocurrency markets operate around the clock, allowing traders to take advantage of price volatility. This is exactly where one should start studying crypto. Furthermore, trading of this nature has its own successful strategies. For example: 

1. Short-term trades, closed within a day, to profit from small price fluctuations.

2. Long-term trades, which can last several days or weeks, based on trend analysis.

3. Long-term holding of cryptocurrency in anticipation of significant price growth.

These are the most popular and accessible options for beginners. What is needed for this trading: 

1. First, register on the exchange. In this case, you can choose the most popular and simplest option. 

2. Next, it is better to start studying the basics of trading and other operations.

3. It won't hurt to constantly keep an eye on news and trends in the crypto market.

If you want to earn on crypto, you should also understand what cryptocurrency mining is. Mining is the process of creating new blocks in the blockchain and confirming transactions, for which miners receive rewards in the form of cryptocurrency. In 2024, mining still remains one of the main ways to earn on cryptocurrency, although it requires significant investments in equipment and electricity.

What types of mining are currently the most accessible: 

1. Pool mining. Combining the computing power of several participants to increase the chances of receiving a reward. 

2. Solo mining. Independent extraction of cryptocurrency, which requires high-performance mining rigs.

3. Cloud mining. Renting the power of remote data centers to mine cryptocurrency without the need to purchase one's own equipment.

Mining may be a very effective tool, but it also needs to be studied. As it usually happens: first, you need to choose a currency, usually referring to popular cryptos like Bitcoin. Next, special equipment is needed. It is also called mining equipment. Afterward, you will need to set up this equipment and make a plan for what to do next. 

How else can you earn on crypto? 

There is also a concept in cryptocurrency known as staking. This is the process of holding a certain amount of cryptocurrency in a wallet to ensure the operation of the blockchain and confirm transactions. 

Mining and staking have their own characteristics and differences. For example, staking does not require the purchase of equipment, which is already a big advantage. At the same Time, stable incomes will arise, and they will be quite large. This method of earning is possible only with cryptocurrencies using the Proof of Stake (PoS) algorithm or its variations.

A whole range of cryptocurrencies is used for staking, but the most popular among them are Ether and Cardano (ADA). As an option, Polkadot (DOT) can also be taken.

Staking has many advantages. It is a passive and stable income where one does not need to actively carry out obligations. Moreover, in this case, there won't be a need to invest much to buy special equipment. 

There is also earning on so-called crypto farms. This is a process of earning by providing liquidity to decentralized finance (DeFi) platforms. Essentially, investors become liquidity providers. They give assets for various operations and receive a percentage for this. In other words, earnings come in. 

Popular platforms for yield farming:

• Uniswap;

• SushiSwap;

• Aave;

• Compound.

Farms may seem like a profitable investment at first glance. But they also have their own downsides and risks. There is a high percentage of income (returns can reach hundreds of percent per year), and there is also the risk of losses due to high volatility or mistakes in smart contracts. One will have to constantly keep an eye on projects. 

You can also consider earning through airdrops and bounty programs. Airdrops and bounty programs are ways to receive cryptocurrency for free by performing certain actions. Companies distribute their tokens in exchange for promoting their projects, participating in testing, or other activities.

Usually, airdrops involve promoting various projects, writing articles and blocks. The most diverse processes can then be monetized. The main advantage is the opportunity to earn without investments.