In the current economy, earning a singular income does not feel like enough anymore, especially where traditional work is concerned. It has become stagnant, outdated, which is why many individuals have begun asking themselves what other ways they can make money. As crypto continues to undergo rapid adoption, more and more people are looking towards it as a genuine means of generating income. Gone are the days when it was just a niche thing for tech bros to watch the graphs; now, it has gained mainstream attention. Let’s take a closer look at why there has been a sudden pivot:
The New Front Lines of Income Generation
One main contributor to this shift is how many major industries are being completely tokenized and monetized, opening up an array of earning opportunities. Specifically, these make it possible for individuals to pocket some extra money in non-traditional ways. A good example of this is DeFi (Decentralized Finance) staking and lending, which operates very similarly to a high-yield savings account. Users will stake (lock up coins) as a means of putting their assets to work protecting a blockchain’s operations and security. In turn, users earn a passive income through generating interest on the percentage of the original tokens staked.
A second method opportunity lies in the iGaming scene, where users can earn more money than at traditional casinos. Simply put, income is generated through a risk-reward approach, taking advantage of bonuses that might reach up to 400% or $30,000. A standard bitcoin casino list will showcase fair wagering terms, provably fair games, and instant payouts, allowing users to stretch their bankroll. Lastly, gaming ecosystems have adopted P2E (Play-to-Earn) models where players can get their hands on tangible, tradable assets (NFTs, tokens). This can be done through simply playing video games, turning leisure sessions into a potential profit.
The Fundamental Shift: From User to Owner
Tokenization has also given way to a shift that has completely changed how individuals interact with finance. Instead of just being a standard user, they are now owners. The “old internet” capitalized on your data and used it as a means of making a profit, such as Facebook selling your information to Google (for instance). In comparison, the “new internet” uses Web3 to provide you with complete ownership through participation and give you a stake or share.
Naturally, more people are going to flock towards these models as they all want to own a piece of the ecosystem they helped build. Digital ownership presents a unique opportunity to earn income by procuring a valuable asset. Traditionally illiquid assets can be traded, recordkeeping is transparent, and users get a leg up in the digital hierarchy. It is the appeal of having more control that pulls individuals in, and the earning potential that keeps them in place.
DeFi: The Passive Income Machine
To better understand why this shift has occurred, it helps to take a closer look at how most accessible passive crypto earning methods work. As mentioned, staking is one of the more common (if not the most popular) ways crypto users make money. Although you (now) have a general understanding of how this process works, it extends beyond just helping the network run smoothly. PoS (Proof of Stakes) plays a huge role in locking up your coins, offering them as collateral with the help of required validators.
These validators are selected in proportion to your initial stake and act as a way to significantly cut down on energy usage. The reward is provided by the network itself, making it a protocol-backed dividend. Yield Farming (or liquidity pools) is another income-generating method. Simply put, currency pairs (liquidity) are introduced to decentralized exchanges, and you get a cut of those trading fees. While earning potential might be higher, so is the complexity and risk associated with this approach.
Active Earning: The Gig Economy on the Blockchain
P2E earning is not considered passive, but is rather an active way of generating money through blockchain technology and gaming. You play a popular game like Fortnite or CS: GO, and you end up with some rare weapon and character skins. To make money, you head over to a decentralized market and sell this NFT for real money, meaning your efforts equate to tradeable value. This can work similarly for artists, designers, or musicians who can mint NFTs so they receive money every time a digital asset (painting or album) is sold.
Although the income itself is not passive, it is still based on active creation and effort. Lastly, contributing skills to DAOs can also bring in an active income (in the form of native tokens). In essence, providing coding or security support to help better these DAOs offers back large earning potential. Of course, more users are going to flock toward an opportunity like this as it would pay much more than a traditional tech-based role.
The Future of Your Wallet
In conclusion, the consumer market has officially become an owner economy. These decentralized models offered a new way for users to grow their personal wealth and break away from traditional, stale methods. From here, there will only be more talk about earning crypto online.
