Have you been closely monitoring the cryptocurrency market recently? If you have, then you already know that Bitcoin and many altcoins are steadily rising in value.
People are more interested in Bitcoin now more than ever, despite market fluctuations. Perhaps, you have monitored these fluctuations and are looking to devise a profit strategy for when you begin to invest.
Even if you already own other altcoins, perhaps, Ethereum has piqued your interest, and you’re looking to diversify your portfolio. Well, this article has figuratively been cooked up for your digest to show you how to earn an income from decentralized finance, i.e., Ethereum.
What is Ethereum?
Today, Ethereum is the number one altcoin in the cryptocurrency market. For those who missed out on joining the Bitcoin bandwagon in its early years, before it reached the dizzying financial heights it has attained today, Ethereum is the next best thing.
Today, Ethereum price on the cryptocurrency market equals $4527.86, which far outranks the value of its closest competitors. Ethereum is the foundation of decentralized finance, and here’s how it works:
How does Ethereum Work?
Ethereum is a blockchain software whose basis is the decentralized validation of special technology called smart contracts. A network of computers runs the code and computer programs that execute the smart contracts.
All of this is done without a single entity controlling the process, thus creating a fool-proof, self-sustaining, censorship-resistant DeFi system.
Much of Ethereum’s primary function is similar to the ideals of Bitcoin, which is to store, validate, and replicate the data from financial transactions simultaneously across the different nodes in the network.
However, unlike Bitcoin, the corresponding computer code can be run by different users around the world. Ethereum handles computations in addition to data storage in a special operating system known as the Ethereum Virtual Machine.
How to Make Money on Ethereum
The native token of the Ethereum blockchain is the Ether. Here’s how to make money on the network:
Participate in Airdrops
One of the easiest ways to earn money on the Ethereum blockchain is if you participate in airdrops.
Airdrops are free tokens that you get sent to your wallet after manually participating in an online community project. However, the most lucrative airdrops require that you actively seek them out online.
A good place to start is a platform such as Airdrop Alert.
The tasks are minor ones, microtasks in truth. Sometimes, you will be required to write an article, make a YouTube video, or craft a tweet. The best part is that anyone can participate. You should try them out.
Lending and Liquidity Pools
One reason for the popularity of Ethereum is its support for DeFi apps. These programmable applications make it possible for users to get loans through the functionality of smart contracts.
It works just like normal loans, only that it is much more secure this time. Smart contracts make everything possible, as the code is infallible.
Just as well, liquidity pools offer you a great opportunity to earn money on the Ethereum blockchain, earning Ether or other tokens supported in a trading pair. Platforms like Uniswap and Aave allow you to earn by contributing to a liquidity pool.
Whenever someone lends a corresponding trading pair from the pool, you earn a token. The more you contribute to the pool, the more you earn.
Ethereum’s underlying code is open-source, meaning that it can be learned and used by any blockchain developer to build decentralized apps.
The potentials of DApps are near-limitless. As a developer, you can come up with a great service idea and incorporate the core features into your app’s functionality. This way, you can earn all day without having to monitor or supervise anything.
As long as your app or app portfolio is great and in demand, you can easily earn monthly. An example of such an app is Etheroll.
You can always invest in cryptocurrency when you buy Ethereum. As the number one altcoin in the market, its growth potential is enormous. Presently, its dollar value is on the rise, with its market cap predicted to more than triple in the next decade.
You don’t have to buy and trade Ether immediately. To derive any real gains, it is best to hold on and wait. Hence, this is a long-term plan.
Ethereum has a lot of potentials. It is much more versatile than Bitcoin, as it offers added functionality. It is more than a mere digital ledger. It is an app development platform with near-limitless features.
The blockchain offers more than a financial solution. Soon enough, you will be able to do virtually everything on the blockchain, including gaming and all kinds of business dealings. And, with Ethereum, the potential is there to make money while at it.