Farming, staking and mining
Farming, also known as yield farming or liquidity farming, is the process of earning rewards in cryptocurrency for participating in activities related to decentralized finance (DeFi). It is one of the key features of DeFi that allows users to earn passive income from their cryptocurrency assets.
In simple words: Jayden wants to experience farming. He opens any DEX, for example Uniswap. On Uniswap, Jayden sees a huge number of liquidity pools*. *As we mentioned, a liquidity pool is a smart contract that allows some participants to invest tokens so that other participants can exchange the token.
A liquidity pool includes 2 tokens that the user can exchange both ways. I.e. if Jayden had ETH on his wallet, he would have to search for any pools where one of the tokens is ETH and the other token in the pool is the one Jayden wants to exchange for. Sometimes, it happens that there is no direct exchange, i.e. to exchange some token you need to use several pools, exchanging token for token, etc. At the moment, DEX has already adapted to such cases, and special smart contracts have been added that connect multiple pools together. This way, even if a certain pool does not exist, for Jayden the exchange will look as if there was such a pool, although, in fact, the smart contract has independently exchanged Jayden's token several times.
Without getting off the topic of earning money, the question arises - where can Jayden earn money here? Jayden, as a rich bumpkin, can provide his funds to some pool. For example, Jayden chooses the USDT-ETH pool. This pool is quite popular and a huge number of users exchange their funds through it. Since the pool is popular, other Jaydens have already contributed their funds to it, increasing the volume of tokens.

Jayden enters this liquidity pool and adds tokens to it proportionally. For example, if 1 ETH is worth $2,000. If Jayden contributes 5 ETH, he will have to contribute $10,000 equivalent of the second token, in the case of USDT it will be $10,000 USDT. After that, Jayden will receive his share of all commissions. For example, if the $20,000 token equivalent contributed by Jayden is 10% of the entire pool, he will receive 10% of all commissions that DEX collected from users when exchanging USDT-ETH.

There are several key factors to consider when selecting a liquidity pool to maximize returns:
Annualized Yield Rates (APY/APR): One of the most important criteria is the annual percentage yield (APY) or annual percentage rate (APR). These rates reflect the expected return on investment in the pool. A high APY/APR can offer high returns, but can also be associated with high risk.
Risk of Impermanent Loss (IL): In farming, there is a risk of impermanent loss, especially in pools with high asset volatility. It is necessary to assess how likely it is that the asset prices in the pool will fluctuate significantly.
Volume and Depth of Liquidity: A greater volume of liquidity in a pool may indicate stability and reliability, but may also mean smaller rewards for individual investors because of the larger number of participants.
Deposit Timing and Withdrawal Terms: Some pools have deposit timing terms or early withdrawal fees. It is important to consider these terms as they can affect your overall returns.

Staking is the process of participating in blockchain network transactions by blocking (or "freezing") a certain amount of cryptocurrency for rewards. It is a key element in consensus mechanisms such as Proof of Stake (PoS) and its variations, which is an alternative to the Proof of Work (PoW) mechanism used in Bitcoin.
Steaking can be used in two cases:
  • you want to become a validator, and by using steaking you prove ownership of assets
  • you are an ordinary user who is ready to allocate a sum of money to receive passive income
In this article, we are talking specifically about the second case. Steakage is easiest to describe with the analogy of a deposit in the bank. That is, you freeze the amount of funds for a certain period of time and at the end of the term, you receive income. The income from steaking is not the highest, but nevertheless, steaking is quite a reliable tool, as it lacks most of the disadvantages of other earnings.

When engaging in cryptocurrency steaking, it is important to consider several key aspects to maximize potential profits and minimize risks:
Cryptocurrency Selection: It is important to choose a cryptocurrency with a good reputation and stable history. Research the project, its goals, development team and long-term potential.
Reward Rates and Terms: Evaluate the offered staking reward rates and related terms and conditions. Some cryptocurrencies may offer high staking rates but with significant risks.
Terms and Liquidity: Understand the terms and conditions and timeframe for "freezing" your funds. In some cases, you won't be able to withdraw your funds until after a certain period.
Minimum Deposit: Some networks require a minimum amount of tokens to participate in staking. Make sure you are willing to invest the required amount.
Inflation Risk: Staking rewards are often paid out by issuing new tokens, which can lead to inflation and a decrease in the value of your assets.

Mining is the process by which transactions for various forms of cryptocurrencies are verified and added to the blockchain. This is a key mechanism for many cryptocurrencies, especially Bitcoin. Mining is done by using computational machinery that solves complex mathematical problems.
In our case, when mining is not so much in demand anymore, users use specialized services. In such services, users simply run an application that spends the resources of your computer. It literally looks the same as in the case of farming. You simply choose a mining pool and provide it with your power. Depending on your power, you will receive a proportional reward from each block closed by your pool.

In 2023, mining is a fairly complex process that requires really high power. Unfortunately, you probably won't even have a couple of powerful computers to make a full-fledged income from mining. So, unless you're currently sitting on a farming farm with hundreds of powerful comps in front of you, mining is going to be the least prioritized option for making money.

Lending or lending
Cryptocurrency lending is a process where investors lend their cryptocurrency assets to other individuals or platforms, usually in exchange for interest income. It is one way to generate passive income in digital currencies.
Here's how it works and how you can make money from it:
Lending Cryptocurrency: You lend your cryptocurrency assets to a platform or another user. These assets are then used either by other traders for leveraged trading or by platforms to fund various transactions.
Receiving Interest: In exchange for providing your assets, you receive interest payments. The interest rate can be fixed or floating, depending on market conditions.
Terms and Conditions: Lending terms and conditions, including terms, minimum and maximum amounts, and interest rates, vary by platform and cryptocurrency type.
Risks: Lending involves a number of risks, including the risk of borrower default, the risk of the lending platform being hacked, and market risk associated with the volatility of cryptocurrencies. Some platforms offer deposit insurance, but this does not always guarantee complete safety of funds.
Liquidity: Some platforms allow you to withdraw your funds at any time, while others require a fixed lending period during which you cannot withdraw your funds.
Yes, there is money to be made from NFTs and at the time of the NFT hype (peaking in 2021-2022) users could literally make thousands of dollars for 15-20 minutes of work in Paint. What NFTs were at the peak of their popularity:
A collection of random characters generated at random
A collection themed, for example: pictures of trees, rocks, or generally something abstract
In a collection, each NFT was a unique set of characteristics. For example, a collection consisting of different sneakers could differ on each NFT in coloring, laces, or soles.
First, users bought a cat in the bag from the collection, and then, as in a lottery, it was calculated who had the rarest NFT from the collection
The NFT secondary market was a separate story, where it was almost impossible to sell NFTs for less than you bought them for.
It sounds like a joke now, but, yeah. A lot of people liked the NFT. Everyone wanted to be part of some community. For example, Nike and Adidas released their limited edition collections. Represented the faces of snickerheads (sneaker lovers), who can now not just buy rare sneakers in real life, but unique sneakers from Nike, which will never and no one else will have. Such NFT slowly, but gaining in value.
Nike x RTFKT Dunk Genesis
Adidas x Bored Ape Yacht Club
Options for earning money on NFT is really a lot, let's give some of them:
Creating your own collection for the purpose of selling it
This option is the least costly from a financial point of view, but the most time-consuming. It can take a very long time to go from creating a collection to selling the entire collection, plus no one guarantees that your collection will be in demand.

You can create a collection even if you can't sing, draw or make videos. Here's an example: during the NFT hype, the TON blockchain picked this up. TON - as everyone knows, for whatever reason - has its origins in the hands of Pavel Durov, the creator of Telegram. Against the backdrop of the NFT hype, the most resourceful users came up with various collections that brought a lot of money, for example: screenshots of Durov's very first tweets, jokes, viral memes, and sometimes just collections consisting of pictures of "letters", buying which users could collect any word on their blockchain address. Naturally, the letters "U," "K,",”C” and "F" were of particular interest.
Re-buying NFTs in order to sell them at a higher price
This method of making money is the most costly from a financial standpoint. Today, when NFTs have killed in price from their peak, the value of a popular NFT can run into the tens of thousands of dollars. If you take more down-to-earth collections, you can find worthwhile specimens running into the hundreds of dollars.

In both cases, this carries great risks, as there is much less demand. But, if the collection hightails it, and you own even the cheapest NFT, the value of the flor (the lowest selling price for an NFT in the collection) will skyrocket, and you can make money on it.
NFT price wind up
Let's move on to the advanced method of selling NFT. Here we can't do without Jayden.

Let's imagine that Jaydenbought some NFT that seemed interesting to him. After many attempts to sell it for a higher price, Jaydenwanted to give up, but a brilliant idea came to him. Jaydencreated two more blockchain addresses and funded these addresses with $1,000 from the exchange, for example. From his main address, which owns NFT, he put NFT up for auction. The starting price was $100, the step was $100. Having started the auction, of course, there were no buyers and Jayden started working according to plan. He placed a $200 bid from his other address on his own NFT. The auction got underway. Toward the end of the day, as the auction was winding down, he placed a $300 bid from a third address. Because he outbid his own bid, the $200 came back to the second address. He repeated like this several more times, continually overbidding his NFT. This was noticed by the users. Everyone saw that there was a fight going on for this NFT and started watching. Of course, at some point the herd mentality of the audience kicks in and someone outbids Jayden. That's just what he needed. Jaydendoesn't outbid the other user, gets all his bids back and is happy with the sale.

This was just an example of how such a sale could work. It's best when the hype around the NFT doesn't seem artificial. A good example of such marketing was a post by an unknown user who stated that he was pissed off that he couldn't sell NFT and that he would make sure everyone wanted his NFT. He owned a picture of the character. The collection was called "crypto-punks." His NFT was not rare and he couldn't claim the highest value. Then, he created a website with his punk's name on it, and designed it as a blog. The blog was run on the punk's behalf, and all sorts of stories and notes were written there. It was like, NFT was really living life. In the end, it really hit the big time and the guy was able to sell this punk for ten times what he was buying it for.

P2E (or Play to Earn) is a way of making money on the blockchain where you earn money by playing games. In most cases, games refer to meta-universes.

NFTs have also at some point become utilitarian in nature (i.e. you can use your NFT for specific purposes, e.g. to access a specific closed site, etc.). Such NFTs are what exemplified the P2E system. Have you heard of Stepn? If not, STEPN was a collection of NFT sneakers that had a utilitarian function. You downloaded a special app that worked as a pedometer, bought an NFT, and connected to the app. With your NFT and its features, you earned cryptocurrency from other users' commissions, given that you had to complete walking tasks. More NFT sneakers - more tasks and more payouts.

DNS can be interpreted as "Decentralized Name Service," analogous to the Internet technology DNS (Domain Name System), but applied to the world of blockchain and cryptocurrencies.

In the classic Internet, DNS translates human-friendly domain names (e.g., into IP addresses that computers use to find each other on the network. Similarly, in the world of blockchain and cryptocurrencies, decentralized name services allow cryptocurrency addresses (which are usually a long sequence of characters) to be replaced with more understandable and easy-to-use names.

Here is an example of Jayden's DNS. Jayden has an address on the Ethereum network:
(random address). Since Jayden often borrows money and his friends periodically pay him back, Jayden often has to send his friends his address to pay them back. Memorizing such an address is almost impossible, or at least inconvenient. In order to save himself the hassle, Jayden bought himself an ENS (Ethereum Name Service - the name of the DNS in Ethereum). Now, friends can send to Jayden at his ENS address:
Agree that this is easier to remember and less likely to make a mistake when copying the address. All funds that Jayden receives on the Jayden.eth domain will be redirected to the original address.
Has anyone figured out how to make money here yet? If not, we will tell you:

Probably everyone has heard of a way to earn money, in which users buy up packs of domains on the Internet. For example, users take little-known companies and monitor their domains. Once the company's domain payment expires, the user can buy it back. Once the company recalls the loss, it wants to re-purchase it. The user sells the company the domain for more money. Such schemes can be used with everything from domains in the form of a name to domains in the form of a popular word or meme.

A similar situation is happening in cryptocurrency. Users are borrowing ENS addresses in the hope that they will receive a redemption notice. In the case of blockchain, this is a less popular practice than with the internet. But it is much easier and cheaper to buy ENS than to buy a domain through GoDaddy (an Internet domain aggregator), for example.
Airdrop, Launchpad and participation in Testnet
Airdrop is a common marketing strategy in which tokens or coins are distributed for free to blockchain users. This is usually done to attract attention to a new crypto project or to reward holders of an existing coin.
In simple words: a new blockchain project or just a new service that creates its own token is launched. In order to attract users, the most profitable way is to give potential customers free tokens. This will be free for the project, as the token may have no value at the time of Airdrop. Once users get free tokens, they automatically become interested users and expect an increase in price. After gaining users, the project can apply for various grants or investments by claiming the growth of its popularity.

As a result of Airdrop, everything remains in the plus: users literally get tokens for free, and the project gets an audience along with the possibility of attracting additional funding.
In order to earn money from Airdrop, Jayden will have to constantly follow the updates. Airdrop themselves can take place daily, from a wide variety of projects. Airdrop has three problems:
Airdrop is fickle, and you can't guarantee that you'll be able to collect your share of tokens every day.
Airdrop is usually an allocation of a large amount of tokens to a large number of users. It is not profitable for the project to give out a lot of tokens to a large number of users, as the primary goal of an Airdrop is to recruit an audience. It is profitable for the project to give some tokens, but to a larger number of users. Thus, it is practically impossible to earn a lot of money on one token distribution.
Airdrop needs to be carefully monitored, as many of them can pass very quickly and before receiving them, the project requires you to perform small tasks, such as subscribing to the project's social networks.

Launchpad is a platform or service that helps cryptocurrency projects raise funds by pre-selling their tokens. It's similar to crowdfunding, where investors can purchase tokens of new projects before they are launched to the wider market.
If Launchpad seems very similar to Airdrop to you, then don't jump to such conclusions. The main differences are.

Purpose: Airdrop is more often used as a marketing tool, while Launchpad serves to raise capital for new projects.

Participation and Risk: It is easier and safer to participate in airdrop as it requires no financial investment. Launchpad, on the other hand, involves investment risk.

Benefit: Airdrop participants can get a small number of tokens for free, while Launchpad participants invest in the hope of future economic growth of new tokens.

So, in the case of airdrop - we can participate in any giveaway, while when buying tokens on Launchpad, we have to do a thorough analysis of the project before buying tokens.

As we said before, to analyze the project, first pay attention to:
The history of the project, the idea behind the project and its philosophy
The personalities behind the project, the project team
The Tokenomics and Road Map of the project
The network on which the project is created (in case the project is a new blockchain, we are interested in Layer and consensus).

Participation in Testnet
The term "Testnet" refers to a blockchain test network. It is an alternative blockchain network used for testing. Testnet allows developers to experiment and test new features without risking disruption to the main network, known as the "Mainnet".
Let's break down why Testnet is so important:
Secure Development Environment: Testnet gives developers a secure and isolated environment to test new ideas and updates. Mistakes in the blockchain can be very costly, so testing outside of the mainnet reduces risks.
No use of real funds: Testnet uses test tokens that have no real value. This allows developers to conduct transactions and test functionality without the risk of losing real funds.
Mimicking real-world conditions: Although Testnet uses test tokens, it simulates a real blockchain environment. This includes mining, transactions, creating smart contracts, and other operations that can be performed on Mainnet.
Community and feedback: Testnet also serves as a learning and knowledge sharing platform for developers. They can communicate, give each other feedback and solve problems together.
Scalability and Reliability Testing: Testnet helps to test how new features affect the performance and scalability of the blockchain, as well as its stability and security.
In terms of earnings, Testnet offers the user to use network tools, make transactions and perform various tasks. After the end of Testnet, the network enters the next stage - Mainnet. Often, when the stage changes, projects allocate tokens to active users. A good example is the Solana blockchain, which at the Testnet stage allocated hundreds of tokens to all its Testnet users. It is worth specifying that in the future, each token has reached a price of more than $100.
Bounty programs, hackathons and grants
Now we move on to the most complex ways of making money in the digital world. This section is especially suitable for those who have been sailing on the waves of Web 3.0 for a long time. Participation in various bounty programs and hackathons requires a significant amount of knowledge and experience.

All the methods described below will be especially useful for users who are deeply immersed in the world of cryptocurrencies, who are not only able to learn, but can also share their knowledge with others.
Bounty programs
Bounty is not Airdrop, putting a couple of likes to get cryptocurrency will not be enough. The tasks will be aimed at marketing promotion of the project or its modernization. Specialists in the field of blockchain technologies can get Bounty cryptocurrency if they find and fix vulnerabilities in the system while studying the program code. Rewards for finding bugs in program code can only be awarded to qualified programmers. Many small startups are very limited in developer resources. A good bug report will clearly and concisely identify any problems with the software or platform.

The labor of translators is not badly valued. In addition to translating technical documents, moderators are often needed to moderate discussions in foreign language forum groups. Translators can benefit from this type of remuneration.

Once a registered bounty campaign participant has faithfully performed the work and reported on its completion, he will receive digital tokens on his wallet. But they can be used not immediately, but only after the full completion of the ICO, which usually lasts from one to five months. The cryptocurrency received during the bounty may become more expensive over time, so it is better not to hurry with the exchange.

A cryptocurrency hackathon is an event (can be both offline and online) where programmers, blockchain developers, crypto-enthusiasts and other experts gather to create new blockchain and cryptocurrency solutions. Such hackathons can focus on developing new cryptocurrencies, improving existing blockchain platforms, creating decentralized applications (dApps), smart contracts and other innovative projects in this field.

You can earn money at a hackathon in the field of cryptocurrencies in the following ways:
Prize money and cryptocurrency awards: Many crypto hackathons offer prizes for the best projects. These prizes can be denominated in both traditional currency and cryptocurrency.
Investment and funding: Successful projects developed during the hackathon can attract the attention of investors and get funding for further development.
Networking contacts and reputation: Participation in the hackathon helps to establish professional contacts and build reputation in the crypto community, which can open new opportunities for career development and cooperation.
Commercialization of projects: Some projects developed at hackathons may become the basis for commercial products or startups in the field of cryptocurrencies.
Improving skills and knowledge: Participating in a hackathon allows you to deepen your knowledge in blockchain and cryptocurrencies, which increases your value as an expert.
To succeed at a crypto hackathon, it is important to have technical knowledge of blockchain technologies, to be able to work in a team and quickly develop innovative solutions.

The grant itself is not about making money. A grant is about stimulating, sustaining a business. Grants are allocated to realize an idea or to achieve goals. The very concept of a grant is difficult to tie to "earning", but still, it is worth mentioning grant programs.

Cryptocurrency grants are a form of funding provided by companies, foundations, or communities working in the blockchain and cryptocurrency field. They aim to support developers, researchers, entrepreneurs and other professionals working on projects that promote growth and innovation in the cryptocurrency ecosystem.

How to get a grant:
Research opportunities: First, you need to find organizations offering grants and get to know their requirements and interests. These can be large blockchain platforms, cryptocurrency foundations, and non-profit organizations.
Proposal Preparation: Submitting a proposal usually requires a detailed description of the project, including goals, development plan, budget, and potential impact on the crypto community. It is important to clearly and convincingly outline how your project contributes to the development of blockchain technology or cryptocurrencies.
Demonstration of Competencies: You need to demonstrate your skills and experience, as well as your potential to successfully implement the project.
What you can get a grant for:
Development: without any restrictions. The scope of projects ranges from creating a tiny smart contract to a full-fledged blockchain.
Research: Studying various aspects of cryptocurrencies and blockchain, including security, scalability, etc.
Education projects: Developing courses, seminars, webinars on blockchain and cryptocurrencies.
Grants are usually in the form of cash funding, often in cryptocurrency. These funds can be used to pay for development, research, team, and other project-related expenses. In some cases, successful projects can lead to the creation of commercial products or services, which opens up additional earning opportunities. In most cases, the grant is the first step to earning money, not the earning itself.
So, we have looked at the main ways to make money from cryptocurrencies. As you can see, there are quite a few of them, and everyone can find something for themselves. But before you start earning, you should keep in mind a few important things.

First, blockchain and cryptocurrencies are still high-risk assets. So don't invest all your savings in cryptocurrencies, and be prepared that you may lose them. Try to protect yourself with at least average aml crypto check.
  • *reminder: that aml crypto check- check your address for possession of illegal assets. AML in blockchain plays an important role, as the presence of risks on your address can have serious consequences, up to and including prosecution.
Secondly, be careful and cautious. There are a lot of scammers in this field who promise golden mountains, but in fact they only want to steal your money. Study, analyze, make crypto address aml check and be gullible.

And to minimize the risks you need to know how to check the high risk in cryptocurrency. For this purpose there are special aml-services where you can check for "risks" any cryptocurrency address. In our solution Btrace you can check any address for free!
  • *To all the enthusiasts who risked to make money this way, I wish you good luck! And remember that even if you didn't make a mountain of money, you still gained invaluable experience in a promising field. And this, you must agree, is worth a lot.
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