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Astute customers are completely aware of the concept of free money: bonuses available at the time of signup of credit cards, interest income through bank accounts, and various other tools that are available providing cash backs on online shopping.
Nowadays, almost all these perks are available in cryptocurrency rather than credit card points, etc.
How to earn crypto rewards?
Before you directly dive into it, you should be well aware of the functioning of the various options that are available to earn some extra cash above your investments. You need to make sure that you are prepared for the additional responsibilities that come along with the free cryptocurrency, especially with the approaching tax seasons.
Various forms of free cryptocurrencies, including the rewards on the crypto credit cards, become taxable only at the time of cashing them out, i.e., Only capital gains become available (similar to other cryptocurrencies that you buy with your funds), whereas there might be other forms of cryptocurrencies that might be taxable at the time when you purchase them in the market, and it becomes your responsibility to make sure that you are complying with the tax requirements. One must make sure that they research their tax obligations before entering into a transaction on their own.
In case you are already dealing in cryptocurrency, and you are here to ensure some extra tracking relating to your coins, you should understand the following ways that will help you strengthen your holdings and that too- for free! To invest in bitcoins online you can visit an online trading platform by clicking this link
Rewards on shopping
There are various browser extensions, including those of google chrome and firefox, that offer their users the “bitcoin bank” if they shop bitcoins through the retail partners of these browser extensions. There are various other discounts as well as cash backs that are being offered by these browser extensions if the user uses their portal, as well as extensions when the user is shopping online. Other than these programs, browser extensions also provide their users with rewards on spending money regularly like those available while shopping through other online websites.
The amount of bitcoin back rewards may vary in a range of 1% to 30%, which depends upon the type of retailers and the type of products that are purchased online. The retailers that range their products on these browser extensions are huge such as Nike, Sephora, etc. These rewards are directly transferred to your browser account, which you can further claim into your exchange account or the crypto wallet.
Exchange sign-ups and referral bonus
Sign-up offers, as well as referral bonuses, are being offered by the cryptocurrency exchanges to their users at the time of availing their services, usually for the first time. For example, just in case you are providing a referral code of exchange to some other account, both you and the other account will get some referral bonus at the time when the new user makes a transaction, including a minimum amount, say $100.
Before sending such referral codes to the new users, make sure that you pay proper attention to the terms and conditions relating to such a bonus. Check whether they are asking you to provide them with your personal information or require you to take any other action in order to claim the reward. Most of such offerings don’t accept the new sign-up bonus in case you had an already existing account. In case you are a fresher, make sure that you are thorough with the conditions that are considered by the exchange in order to ensure that both you and the other account that is referring to you are benefited from the sign-up and the referral bonuses.
The cryptocurrency credit cards are similar in the functionality of rewards like the other credit cards, but they will give you cryptocurrencies in rewards rather than the cash backs and points. While the users might prefer to get cashback as their rewards and then purchase their own cryptocurrency by using these cash backs, these cards can be of greater help in order to cushion one crypto portfolio in a seamless manner.
Along with the variable rate of rewards, there exists a different redemption value that is specific to each such card. Some cards might allow you to select the crypto in which you want your rewards to be redeemed in a while; there might be some other cards that might restrict the redemption of the rewards into certain specific coins.
Interest on bitcoin
There are a number of cryptocurrency exchanges existing in the market that allow their users to earn interest income on the holdings of their cryptocurrencies. There are some other forms of lending programs that assist the users in lending their cryptocurrencies to other institutional borrowers allowing them to earn specified amounts of interest incomes of their funds that are being lent in the outside market. It will be an additional risk to the user while lending out their crypto to the outside institutions, along with the in-built risk that comes with the cryptocurrency. Therefore, the user should make sure that the terms are carefully read before he actually signs up, and also, one should try that they never lend more than what is their appetite to lose. It is important to always risk your money that won’t affect your daily life.
Out of all the methods that are available for earning free cryptocurrency, airdrops is the most riskier of all. It is even riskier than the number of benefits that the investor can reap out of it. The developers perform airdrops in order to gain attraction over their new cryptocurrencies. The idea behind giving airdrops is to give away the coins to the users and gather its adoption by them and the market as a whole.
You can do your research online and search for the upcoming airdrops; these are usually available on the websites of their companies, on crypto sites in the news, as well as on the social media platforms by their users.
Thank you for reading!