Top 6 Ways to Earn Crypto Rewards in 2024

Types of crypto rewards

Staking

Staking is a type of crypto reward that involves holding onto specific cryptocurrencies in a digital wallet to support the network’s operations. When you stake your coins, you essentially lock them up for a period, thereby helping to validate transactions and secure the network. In return, you earn additional tokens over time as rewards.

This is particularly common in systems that use a proof-of-stake (PoS) protocol. In this method, the chance of a participant being chosen to validate transactions is proportional to the number of coins they hold. This encourages people to stake more coins, supporting the network and earning more in the process.

The rewards can vary from coin to coin, and some of the more speculative or lesser-known cryptocurrencies may offer higher rewards to attract more stakers. It’s a continuous source of income and can be especially advantageous if you’re a long-term investor.

However, staking is not without its risks and complications. Regulatory bodies like the Securities and Exchange Commission (SEC) have sometimes challenged staking programs as unregistered securities offerings. For instance, Kraken had to end its staking program as part of a settlement with the SEC.

So, while staking offers a way to earn additional tokens and participate more fully in the crypto ecosystem, it’s essential to be aware of the associated risks and regulations.

DeFi rewards

Decentralized finance (DeFi) rewards are incentives earned through peer-to-peer financial activities facilitated by decentralized applications (DApps).

One common way to earn DeFi rewards is through lending. You can lend your cryptocurrency to borrowers and earn interest on the transaction. In essence, you’re acting as a mini-bank, lending out your crypto assets and receiving interest in return. This form of earning operates on decentralized lending platforms, allowing you to either fund individual loans or pool your assets with other lenders to reduce risk.

Another aspect of DeFi rewards comes in the form of yield farming or liquidity mining. That’s when you provide liquidity to a decentralized exchange (DEX) and earn fees or additional tokens in return. This is a more complicated strategy and typically involves providing both sides of a trading pair (e.g., ETH and USDC) to a liquidity pool.

DeFi rewards can be lucrative but come with their own set of risks. The platforms are often less regulated than traditional financial systems, making them more susceptible to fraud and security risks. Plus, the borrowers you lend your crypto to might default on their payments.

Crypto cashback

Crypto cashback is a rewards program that gives you a small amount of cryptocurrency as a bonus when you make purchases. Similar to how traditional cashback credit cards work, you use the best crypto credit cards or payment platforms to pay for goods and services. Then, instead of receiving points or traditional currency as a reward, you get a percentage of your spending back in the form of cryptocurrencies like bitcoin, ethereum, or other altcoins.

This crypto reward is typically deposited into your digital wallet, gradually helping you accumulate more cryptocurrency without needing to buy it directly. The rate of the cashback can vary by the platform and sometimes by the type of purchase you make, such as groceries, gas, or dining out.

While this is a convenient way to grow your crypto assets, it’s essential to be mindful of spending habits. The aim shouldn’t be to overspend just to get more rewards. Additionally, because you’re earning in cryptocurrency, your rewards are subject to the market’s volatility, meaning their value can go up or down over time.

Crypto airdrops

Crypto airdrops are a form of promotional distribution where developers give away a certain amount of free tokens or coins to the holders of a specific cryptocurrency. Typically done to engage potential users in their ecosystem, airdrops can serve as an effective way to raise awareness and stimulate trading activity for a new cryptocurrency.

Usually, to participate in an airdrop, you may need to hold a minimum amount of a particular cryptocurrency in your digital wallet. Or you may be required to perform certain tasks, such as signing up for an account on the project’s platform. Often, you need to follow a project’s official account on social media or share promotional messages. Once the airdrop occurs, the tokens are distributed and automatically appear in your wallet, provided you meet the set criteria.

While airdrops can offer a quick and easy way to accumulate more crypto assets, they come with their own set of risks and considerations. For instance, not all airdrops are legitimate, and some may even be scams designed to collect personal information. Even when tokens are successfully airdropped, their long-term value is not guaranteed.       

Crypto faucets

Crypto faucets are websites or apps that distribute small amounts of cryptocurrency for free, typically in exchange for completing simple tasks such as captcha tests. These faucets act as a promotional method to incentivize user engagement and education around a particular cryptocurrency.

Here’s how they generally work:

1. Visit the faucet. 
2. Complete a task: Once there, users might be asked to complete a simple activity, such as watching an advertisement, filling out a captcha, or even participating in a mini-game.
3. Get rewarded: After successfully completing the task, the user receives a small amount of cryptocurrency as a reward. This reward is usually dispensed into a linked wallet or an account created on the faucet website.
4. Withdraw: Once a certain minimum amount of cryptocurrency has been earned, users can withdraw it to their personal wallets. Some faucets have set intervals or limits on withdrawals to prevent abuse.

Crypto faucets are often funded by advertisements and sponsorships. Or they may be affiliated with larger crypto exchanges or platforms that use faucets as a marketing tool. While the rewards from a single faucet may seem insignificant, some users utilize multiple faucets. That’s how they accumulate a more substantial amount over time.

However, it’s essential to exercise caution when using crypto faucets, as not all are legitimate. Some may be scams designed to harvest personal information or distribute malware.

How do you get free crypto rewards?

You can get free crypto rewards in several ways, each with its own approach and benefits.

1. Sign up with exchanges. Open an account with crypto exchanges like Coinbase or Gemini. They often give you free crypto just for signing up.
2. Stake your crypto. If you already own some coins, you can stake them in a supported wallet or platform. This earns you more of the same coin over time.
3. Join DeFi platforms. With decentralized finance, you can lend your crypto to others and earn interest on it.
4. Cashback rewards. Some credit cards and online shopping platforms offer cashback in crypto instead of traditional currency.
5. Learn and earn programs. Platforms like Coinbase Earn let you take short quizzes or watch videos about crypto, rewarding you with small amounts of various cryptocurrencies.
6. Airdrops. Keep an eye on social media and forums for new coin launches. These often come with free tokens for early adopters or supporters.
7. Faucets. These are websites that give you small amounts of crypto for completing simple tasks like filling out a captcha.
8. NFT giveaways. These are digital assets, not exactly crypto, but you can often trade them for crypto. You can win them in giveaways or earn them as bonuses.
9. Surveys and web browsing. Some platforms offer crypto for taking surveys or even just for browsing the web, like with the Brave browser.

By combining these methods, you can build up a varied portfolio of free crypto rewards. Remember to always exercise caution and do your research, as scams are prevalent in the crypto world.