To get the most out of this section you’ll need a basic understanding of Bitcoin and how it works. Read this chapter first if you need to get up to speed.
Economic incentives are central to how cryptocurrencies can function without a central point of control. The novel use of incentives also extends to how crypto projects attract new users, how those who own cryptocurrency are rewarded for retaining them, and the ways with which you can speculate with, and about the value of, crypto.
These three categories can be summarised as:
- Earning by Learning
- Earning by Stacking
- Earning by Speculating
These themes cover the full spectrum of ways to earn cryptocurrency. What distinguishes them is risk, reward and effort, which have incorporated into a helpful infographic.
We’ll use these three measures as yardsticks for you to evaluate the kinds of opportunities out there to earn cryptocurrency, but with the greatest emphasis on measuring risk.
As a newcomer, understanding the risks involved, both explicit and implicit, is crucial. You cannot get something for nothing, and any opportunity that seems too good to be true, almost certainly is.
That being said, incentives – where you are compensated in crypto – are one of the main methods crypto projects use to attract new users. This is often simply in exchange for your attention, your time learning about a product or project, as well as promoting to others, the benefits of a new cryptocurrency.
These things don’t require any up-front cost but understanding the implied cost of providing personal details, your time and effort – no matter how little – is crucial to realising that there really is no such thing as free cryptocurrency.
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