Whether it's the U.S. dollar, British pound, Euro, or even the Philippine peso, fiat currencies have found their counterparts in the cryptocurrency market in the form of stablecoins. As a vital component of the cryptocurrency ecosystem, stablecoins offer users a reliable store of value, added stability, and a hedge against the volatility often associated with crypto. 

This article delves into the possible ways users can earn stablecoins by either offering their services or actively taking part in the crypto ecosystem. 

Cryptocurrency Trading

One of the most common ways to earn stablecoins is through cryptocurrency trading. You can trade crypto on various platforms and take advantage of price fluctuations to earn a profit. 

Stablecoins like USDT or USDC are often used as the "term currency" in trading pairs (e.g. BTC/USDT, ETH/USDC, SOL/USDT). In this context, the term currency establishes a stable benchmark for evaluating the value of assets. Only the "base currency" (such as BTC, ETH, or SOL in the previous example) has high price fluctuations, while the stablecoin maintains a relatively constant value. As a trader, you will have an easier time calculating profits and losses since you only consider one side's (the base currency's) price fluctuations. 

Traders who are profitable in trading cryptocurrencies will earn more stablecoins in the long run. But take note, that not everyone can be a profitable trader, and learning this skill takes time. 

Lending and Borrowing Platforms

Participating in decentralized finance (DeFi) platforms that facilitate lending and borrowing can be a lucrative way to earn stablecoins. You can earn interest by lending your stablecoins to others on platforms like Compound, Aave, or MakerDAO. However, there are also risks associated with this since the interest you earn is generally not fixed and changes over time. You also have to be cautious about using these DeFi platforms since you are exposed to the risk of losing your funds if the platform gets hacked or exploited. 

Staking

Staking involves participating in the proof-of-stake (PoS) consensus mechanism of certain cryptocurrencies. By staking your tokens, you contribute to network security and, in return, earn staking rewards in the form of stablecoins. This method provides a passive income stream for holders. 

Staking is a simple and straightforward way to earn stablecoins. It's similar to leaving your money in a bank account and earning interest. Only this time, the interest is usually high. But as with lending and borrowing platforms, the same caveat applies‚ you risk losing your funds if the staking platform gets hacked or exploited.

Dividend Tokens

Some projects issue dividend-paying tokens that distribute stablecoins as dividends to token holders. Investing in such tokens can provide a passive income stream, with payouts often tied to the project's revenue. To know more about dividend tokens, check out our short guide here!

Freelancing and Services

You can earn stablecoins by offering freelance services or products in the cryptocurrency space. Many Web3 projects and individuals prefer to pay in stablecoins in exchange for rendering your services to them. This is the preferred option for beginners who want to start getting into crypto. For example, if you're a freelancer in the Philippines who gets hired as a community manager by a crypto project, the project may agree to pay you in USDC every month. On payday, you can receive the USDC in your crypto wallet for a job well done. 

To make the process even easier, there are specialized wallets like stables.money, which is a stablecoin wallet designed with institutional-grade security and seamless off-ramp (how you convert stablecoins back to Philippine pesos) capabilities. You'll be able to transfer your USDC from your Stables wallet directly to GCash, GrabPay, PayMaya, ShopeePay, and over 100+ Philippine banks. You can also check out our short guide on how to use Stables here. 

Aside from additional income, you now have access to a transparent and quick way to transact internationally via stablecoins! 

Earning stablecoins gives you the opportunity to participate in the cryptocurrency market while mitigating the risks associated with price volatility. Whether through trading, staking, lending, or other methods, you can diversify your income streams and contribute to the growth of our growing cryptocurrency ecosystem. However as always, it's crucial to conduct due diligence, thorough research, and understand the associated risks before engaging in any earning strategy in the crypto space.