Are you having trouble reaching your 2023 goal of learning how to earn in crypto? Looking into a new source of income this 2024? Or maybe you've been exploring Web3 for quite some time but haven't earned a single penny from it and now you feel like you've wasted enough time?

If any of these situations sound familiar, don't worry - this blog is here to guide you through five practical ways to earn in Web3.

Disclaimer: The information provided here is for educational purposes only and does not reflect the views of Bitskwela nor should not be construed as financial advice. Cryptocurrency markets are volatile, and investments should align with your risk tolerance. 

1. Investing

I know. You're probably thinking that this isn't something new to you. You heard this and read this advice multiple times already. But do you really know how to invest?

To start, let's refresh you with the basics. Investing is different from trading. Crypto investing involves the allocation of funds into digital assets or cryptocurrencies with the aim of generating returns over time. Unlike trading where it typically involves short-term activities, crypto investing means you hold your bags for a long period to potentially earn profits from their growth. For instance, investors buy and hold digital currencies such as Bitcoin (BTC), Ethereum (ETH), or other altcoins. You don't expect these coins to go 100x as soon as you wake up. Basically, you're in the game for the long term. 

Some people use the Dollar-Cost Averaging strategy. Dollar-cost averaging (DCA) entails consistently making smaller and equal investments over time, as opposed to engaging in infrequent or large cryptocurrency buys.

If you want to start your investing journey and learn how to DCA, read here: Dollar-Cost Averaging (DCA) - Should You Give It A Go?

2. Staking

Now you've invested in several crypto coins already - you're finally building your crypto investment portfolio. Now what?

Well, aside from waiting for the growth of the coins you're holding, there's actually another way you can earn on the side of it - through crypto staking. 

Crypto staking is a process in which individuals lock up a certain amount of their cryptocurrency holdings to participate in the operations of a blockchain network. In return for their contribution, stakers receive additional cryptocurrency tokens as rewards. 

So instead of just holding your coins and patiently waiting, you have the option of staking your coins. (Note: Not ALL cryptocurrencies have staking, so better do your research first!)

Staking provides a way for crypto holders to somehow earn passive income while actively supporting the blockchain network. To learn more about staking, read here: What is Staking?

3. Mining

The act of validating cryptocurrency transactions is referred to as mining. In the case of Bitcoin, "a Bitcoin miner is a computer running the Bitcoin client which helps verify and record the transactions happening in the blockchain. Think of miners as the ‘auditors' of the network — making sure each transaction is valid before it pushes through."

So…how can you possibly earn from this?

To make money from crypto mining, people or teams can join mining pools. In these pools, miners combine their resources to boost their chances of getting rewards. The reward depends on how much work each miner contributes to the pool. Miners can also earn transaction fees and a block reward for their hard work.

Is it profitable?

Well, it depends. It's important to know that crypto mining takes a lot of computer power and uses a ton of energy. For most people, it might not be a good idea because it's complicated and expensive. Even if Bitcoin miners do well, it's not clear if they'll make money because of the high upfront costs for equipment and ongoing electricity bills.

4. Blockchain-based Games

Blockchain games offer various ways for players to earn rewards in cryptocurrency. Players can earn cryptocurrency or digital assets by achieving in-game milestones or completing tasks. Some games even follow a "play-to-earn" model, where players directly earn cryptocurrency or rewards by playing, completing tasks, or contributing to the game's ecosystem. 

Additionally, the use of non-fungible tokens (NFTs) allows players to trade in-game assets on blockchain marketplaces, turning rare items into cryptocurrency through sales to other players. 

5. Web3 Community Management

Heads up - this one's a bit different from the rest. Did you know that there are also job opportunities in the Web3 space? 

Web3 is composed of different communities. These communities are crucial for shaping the future of blockchain by fostering collaboration and generating innovative solutions. To further grow and nurture these communities, a Community Manager is essential.

You can offer your services as a Web3 Community Manager. This role is responsible for building and maintaining relationships with members of decentralized online communities. 

Web3 Community Management can provide experience, connections in the industry, and the flexibility to choose the projects and clients you want to work with.

Web3 is an emerging industry presenting numerous opportunities to make substantial gains beyond what we've covered. Making educated decisions about any method is crucial because each has its own set of risks and considerations. 

Here's a friendly reminder: there's no such thing as easy money with no risks associated. If it's too good to be true, then it probably is. So always do your research before diving into any earning method. Stay smart and stay informed mga ka-Bit!