6 Ways to earn crypto for free — what you should know before you invest

Free money is nothing new to savvy consumers: credit cards have sign-up bonuses, bank accounts earn interest, and there are even tools to earn cash back when you shop online.

And now you can get many of those perks in cryptocurrency, too, instead of credit card points or U.S. dollars.

If you have already added cryptocurrencies to your investment portfolio, these options will offer you a few extra coins on top of your original investment — but you should know exactly how it works before you jump in. You should also be prepared for the added responsibility that free cryptocurrencies can bring, especially as tax season approaches.

But if you are already invested in cryptocurrencies and are willing to track your coins a bit, here are some ways to increase your holdings — and for free.

1. Credit cards
A cryptocurrency credit card works similarly to other rewards credit cards, but instead of getting cashback or points every time you withdraw, you get cryptocurrency.

Gemini and other exchanges have announced plans for cryptocurrency rewards credit cards, as have fintech companies like Blockfi and Upgrade. The rewards categories of these cards are similar to many traditional cashback credit cards. With the BlockFi Credit Card, for example, you get 1.5% back in bitcoin on every purchase after earning 3.5% back in the first 90 days after opening an account.

2. Earn money with Coinbase
To acquire the free change, you must view Coinbase’s films and complete quizzes, after which Coinbase will deposit a tiny amount of cryptocurrency into your wallet. Because the curriculum is usually centered on a single cryptocurrency (such as GRT or BOND), these are the coins you’ll receive for completing the lessons.

3. Sign-up and referral bonuses on exchanges.
Some cryptocurrency exchanges offer sign-up or referral bonuses for using their services. For example, a previous sign-up bonus from Coinbase offered $5 to new users who wanted to invest in cryptocurrencies, and the exchange currently offers a $10 bonus for you and your referral if they open an account and trade at least $100.

Pay attention to the terms and conditions for these bonuses. You may have to provide more personal information or take other steps to claim these bonuses. Most of these offers are not so lucrative that it is worth signing up for a brand new exchange if you already have an account. However, if you are a beginner, keep an eye on the exchanges you are considering to see if they offer a sign-up bonus or referral for other interested friends.

4. Shopping rewards
Lolli, a Google Chrome or Firefox browser extension, offers “Bitcoin Back” when you shop at its retail partners. It works similarly to browser extensions like Rakuten or Honey, which offer discounts and cashback when you use the portal or extension to shop online. Like those programs, Lolli rewards you for spending normal money, as you would when shopping online — not for shopping with cryptocurrencies.

Retailers on Lolli range from Nike to Sephora to Malaysia Airlines. Rewards range from 1% to 30% bitcoin back, depending on the retailer and product. Your rewards are credited to your Lolli account and you can then transfer them to your crypto wallet or exchange account.

5. Make Money With Your Crypto
You may earn interest on your digital assets on a few crypto exchanges. For example, Gemini Earn is a lending platform where you can earn up to 7.4 % APY by lending your cryptocurrency to institutional borrowers. Pokket has a comparable product called Pokket crypto saving account, which pays up to 11.50% interest. Lending your cryptocurrency to these organizations can add to the inherent danger of cryptocurrencies, so read the terms carefully before signing up and don’t lend more than you can afford to lose.

Staking on some crypto exchanges, such as Binance.US, can potentially earn you money. Staking refers to the practice of keeping cryptocurrency in your wallet in order to receive incentives or interest. You are assisting in the upkeep of the blockchain network by doing so. You can normally only bet particular coins on an exchange, thus reaping the rewards may need investing in more riskier altcoins.

6. Airdrops
Airdrops carry the biggest risk of any strategy for earning free crypto, and we believe the danger is greater than the gain for most investors. When developers seek to gain popularity for their new coin, they use airdrops. Simply put, they give away currencies in the hopes of gaining adoption.

You can find out when airdrop projects are taking place by looking online; they’re frequently advertised on the company’s website, as well as by users on social media platforms and on some cryptocurrency news sites. If you meet the requirements, the developers will frequently send the stated quantity of coins to your digital wallet address.

Any new cryptocurrency endeavor should be approached with caution. Hackers frequently utilize fake airdrops and ICOs (initial coin offerings). Even when they are genuine, many of the coins distributed in airdrops are not good investments. Experts advise newbies to stay with the most well-known cryptos, such as Bitcoin and Ethereum. If you follow such advice, you should avoid airdrops.

Conclusion
Even though there are ways to acquire extra bitcoin for free, don’t be swayed by the lure of freebies. Cryptocurrency is a risky, new investment, and you should only invest money you’re willing to lose.