Blockchain Blog

Review of types of income


In the previous article, we introduced the blockchain network, hash functions, and blocks in blockchain, and briefly mentioned the importance of using blockchain in today’s world, as well as a few examples of how to make money through cryptocurrencies. There are many ways to make money through cryptocurrencies; this subject has always been one of the most searched topics on social media. This article was prepared in May 2022 by TOBTC’s content producer team under the supervision of Sina Osivand. This article elaborates and examines various methods of earning money through blockchain and cryptocurrencies.

Monetizing through blockchain and cryptocurrencies

Today there are many finance, technology, medical and engineering companies which are worth billions of dollars. These companies operate in the field of blockchain and cryptocurrencies. As an example Grayscale is a Leader in Digital Currency Investing and is known as one of the long-term holders of bitcoin and other cryptocurrencies; The company’s capital is currently estimated at $ 3.5 billion.

Or in another example, MicroStrategy, managed by Michael J. Saylor, with a value of $ 2 billion, is listed on the US stock market. over and above the  active companies in this field, the total market value of cryptocurrencies at the time of writing this article  is more than $ 1.2 trillion. According to an official NBC report, more than 21 percent of the American adult population have invested in the cryptocurrency market in 2022. Moreover many artists, gamers, engineers and others work in various fields such as NFT Marketplace, GameFi or Metaverse and earn money. According to the above mentioned reasons, the keyword for ”ways to earn money by cryptocurrencies and blockchain” has always been one of the most popular topics on social media.

Different methods of earning money through cryptocurrencies

1. Investment

The cryptocurrency market was worth $ 7 billion in 2015, and in 2022(at the time of writing this article) is worth about $ 1.2 trillion. Meaning that it has grown more than 170 times in just 7 years. The dramatic growth of the blockchain industry and, consequently, cryptocurrencies has attracted the attention of everyone around the world. The market is expected to reach $ 10 trillion by 2030.

It is important to point out that investors should be well informed before making any decision to invest in a particular project. Distinguishing future and popular projects from ponzi schemes and scam projects can be very helpful in these cases. Ethereum, for example, has always proven to be one of the safest and best projects for investors. According to information published through the Glassnode website, the number of unique addresses that stored at least 0.1 Ethereum in December 2018 was only 50 million, while the same index now has more than 200 million addresses. Meaning that in less than three years, the price of Ethereum has risen from $ 100 to more than $ 2,000.

LQR, the Laqira Protocol native token, is another successful project in the field of cryptocurrency. The introduction of the world’s first Drive2earn game on the blockchain platform, as well as the launch of the NFT Marketplace made this Metaverse project so popular and successful. consequently, on the first day of listing LQR tokens at BKEX International Exchange, its price increased 46 times.

2. Trading

Another method of earning money through cryptocurrencies is trading, which requires a high level of knowledge and skills. Centralized and decentralized exchanges are the platform for buying and selling cryptocurrencies. Transaction through exchanges is in two modes of spot or leveraged futures trading.

As for centralized exchanges, we can name Binance, Kucoin, Bybit or Coinbase which have a high daily trading volume. As for decentralized exchanges, PancakeSwap, Uniswap, DYDX are some of the best and most famous ones. The Laqira Protocol decentralized exchange will also be launched in the near future.

3. PlayToEarn

Until three years ago, playing games was just a way to spend your spare time, but with the help of blockchain, today, thousands of gamers make a good living by playing games. The spread of blockchain games around the world has given rise to the terms GameFi or Play2Earn. By using decentralized financial platforms, players can play and cash in the game prize. For example, Laqirace, the world’s first Drive2earn game, has made it possible for its users to earn money. Players can earn a good amount of money by winning various tournaments while they enjoy the game.

4. Non-fungible token or NFT

Non-fungible tokens are a new generation of digital assets. According to reports from the Finbold website, the amount of money spent on buying and selling NFTs from its foundation to the beginning of 2022 was more than $ 50 billion. The following example is a good example to understand the use of Non-fungible tokens: imagine a photographer takes a valuable picture of a particular moment, he can convert this artwork into an NFT, and register it under his name on a blockchain network. So, by taking advantage of the NFT Marketplace, not only can he display his artwork to the world at the lowest cost but he can sell it at any price. Converting artwork to NFT is not limited to photos, but anything like a painting, a music album, or even a signature can be converted to NFT and displayed on a blockchain network. Laqira NFT Marketplace is one of the most popular NFT Marketplace for buying and selling Non-fungible tokens in the blockchain world, providing a secure and attractive interface platform for users.

5. Staking

By this method, crypto holders monetize their crypto assets without actually selling them. In this method, the user locks some amount of cryptocurrencies in the network for a certain period. In blockchain networks that use the Proof of stake algorithm, the staked amount is used to ensure secure and authentic transactions. This method consumes much less energy and is more economical than the Proof of work algorithm. Users receive a benefit in the form of APY or APR in exchange for locking their tokens for a certain time.

6. MovetoEarn

Move and earn money is another emerging way to monetize in the field of blockchain which is based on new technologies and user movement tracking. Users can earn money just by exercising, running, or doing regular fitness exercises. To increase their income Users can buy different items such as sneakers with special specifications in the form of non-fungible tokens or NFT. One of the most popular MovetoEarn projects is the STEPN project; users receive GMT and GST tokens as a reward for their daily movements.

7. Watching online ads

In this method, unlike the traditional advertising system, the audience receives money for watching the ads. For example, if you use the Brave browser, you can get BAT tokens by watching ads.

8. Metaverse

According to many researchers, today, Metavars is known as a virtual version of the real world beyond the one we live in. Many well-known businesses around the world, such as Meta (Facebook), are trying to somehow adapt to this new science. There are several ways to make money through the virtual world or Metaverse:

1. Buying and selling land in Metaverse

2. Selling Tickets Through holding conferences, celebrations, and events

3. Play blockchain games

4. Signing contracts with sponsors and holding different events

5. Lease of Metaverse lands

6. Purchase and sale of NFT tokens

The most famous and successful Metaverse projects are Decentraland, Sandbox.

9. Mining

Blockchain networks that operate based on the Proof of work algorithm, need nodes to construct new blocks. To construct new blocks, nodes solve complex mathematical problems to verify transactions and build a new block (check out the article” What is blockchain”). miners assist in the process of approving transactions or building new blocks on the network In exchange for receiving tokens as a reward. Ethereum and Bitcoin are the most popular networks based on the proof of work consensus algorithm.

10. Defi lending, platforms

Undoubtedly, one of the most considerable developments on the blockchain platform is the emergence of Decentralized Finance or Defi in short. On this platform, you can get a loan from the platform by pledging a part of your crypto assets. Or, financiers can lend their capital to applicants and make money out of profits.

The best Lending Borrowing platforms:

1. AAve

2. Compound

3. MakerDao

11. AirDrops

Many emerging projects, at the beginning of their activity, send free tokens en masse to their communities for free to encourage adoption. This action is called airdrop. This will make the project more recognizable and popular among the crypto audience and enthusiasts.

Sometimes, in order to receive tokens in the form of airdrop, users are required to perform activities such as following the project on social networks or introducing it to friends, and receive tokens in return as a reward.

Last Word

Undoubtedly, blockchain and cryptocurrencies are one of the most important human innovations of the new century. it has affected many lives so far and has brought with it many opportunities. TOBTC’s content producer team, led by Sina Osivand , is proud to introduce all the untapped opportunities in this field.