Did Inflation Get You Down? 5 ways to accumulate crypto with little or no cost

by · July 22, 2022

Did Inflation Get You Down? 5 ways to accumulate crypto with little or no cost

Seasoned crypto traders know that bull markets are for selling and bear markets are for accumulating, but the latter can be difficult against a backdrop of rising inflation that is eroding the purchasing power of fiat currencies.

As the crypto market moves deeper into crypto winter, with prices in the gutter and developers focused on creating the next popular protocol or breakout token, some crypto fans have begun exploring new ways to grow their stack in preparation for the next bull market.

Here’s a look at the top five ways hodlers can increase the size of their crypto portfolio without breaking the bank, so the money they earn can go towards fighting the rising cost of living.

Staking

Staking is perhaps the most tried and tested way to increase the number of tokens held, as the vast majority of proof-of-stake (PoS) networks offer a steady return for unlocking coins.

In addition to helping with transaction validation and network security, staking tokens in a smart contract reduces the available circulating supply, which in turn can help increase the price of the underlying crypto-asset.

However, one should be careful about which token is bet, as crypto winters are known to lead to the demise of most protocols that lack solid fundamentals or significant support.

Projects with an established track record, healthy trading volume and an active and growing community of users are some of the keys to look at when choosing a good PoS network. Some of the best options in the current market include Ethereum, Cosmos, Fantom, Solana, Avalanche, Polygon and Polkadot.

See also  FTX is back in Japan, where users can withdraw fiat and crypto • The Register

GameFi and play to earn

2021 saw the rise of GameFi and play-to-earn (P2E) protocols, giving gamers the opportunity to do what they’ve always loved – and earn a living in the process.

While token prices for the most popular games such as Axie Infinity have plunged, again hurting players’ earning power, the sector remains one of the most active in the cryptocurrency ecosystem and is likely to continue to thrive in the future.

Some games require an upfront investment, which can price out many looking for free ways to earn crypto. However, protocols such as Yield Guild Games and Merit Circle offer these users the opportunity to rent or borrow the required assets in exchange for a small commission that is taken out of any rewards earned.

Crypto side gigs

The past decade saw the growth of the gig economy as ride-sharing apps and food delivery services exploded in popularity and workers rejected the traditional 9-5 workday routine.

As telecommuting and the nomadic lifestyle have become more prominent, the decentralized nature of cryptocurrencies has opened the door to a number of opportunities for people to help contribute to the ecosystem while earning crypto in the process.

Despite the onset of the crypto winter, which has seen some of the biggest companies in the industry lay off large percentages of their workforce, new jobs in the sector are being posted daily as projects launch and established companies transition from the old system .

See also  Analysis: Clients of cryptocurrency lender Celsius face a long wait due to the fate of their funds

From part-time and contract jobs to bounty missions and community outreach, there are a variety of sideline opportunities for hodlers to earn crypto while their day job pays the bills.

Related: Don’t wait for recovery, keep building, says Web3 exec

Hunt for air droplets

Cryptocurrency airdrops have become a mainstay in the crypto community as they offer one of the best ways to maximize marketing efforts and bring new users into the community.

As flash-in-the-pan projects that quickly rose and fell during the bull market begin to fold and fade into the rearview mirror, new projects that represent the next generation of blockchain protocols are starting to launch and need to attract users to their ecosystems.

While tokens for these projects usually start with little or no value, individuals with patience can sometimes be rewarded with a nice payoff down the road when bullish momentum returns to the market.

Another option is for crypto developers to explore airdrops that have already taken place with the goal of finding those that they qualified for but have yet to claim. Some recent examples include the Optimism (OP) and Evmos (EVMOS) airdrops, which came at the end of the bull market and may have gotten lost in the chaos of the past few months.

Once claimed, users have the option to sell these tokens for a stablecoin or other preferred crypto, or they can hold these tokens with the hope that they will see good gains as the crypto rolls around.

See also  Elizabeth Warren cultivates anti-crypto coalition

Spread the crypto gospel (for referral bonuses)

One of the oldest ways for crypto enthusiasts to earn some Satoshis on the side is by earning referral bonuses when they refer users to cryptocurrency exchanges or recently launched decentralized finance protocols that are looking to attract users and liquidity.

While the crypto contagion sparked by the collapses of Terra and Three Arrows Capital has forced firms like Coinbase to tighten their belts and stop offering referral bonuses, there are still plenty of opportunities for evangelists to spread the word and earn a reward.

This can also help in the process of attracting no-coiners to the crypto community as those with extra motivation search outside the available pool of traders in search of higher bonuses.

It is important to note that those interested in earning extra crypto through referrals should do proper due diligence in checking a platform before directing others there, as people are likely to look unkindly at someone who refers them to a scam or rye draft.

Want more information on trading and investing in crypto markets?