Since high inflation destroys the purchasing power of fiat, these options offer hodlers a way to expand their portfolio without breaking the bank.
Seasoned crypto traders know that a bull market is for selling and a bear market is for hoarding, but the latter can be made difficult by rising inflation that is eroding the purchasing power of fiat currencies.
As the crypto market plunges deeper into cryptowinter as prices drop and developers focus on creating the next popular protocol or breakthrough token, some cryptocurrency fans have begun to explore new ways to grow their stack in preparation for the next bull market.
Here are five main ways hodlers can increase the size of their crypto portfolio without breaking the bank so that the money they earn can be used to combat the rising cost of living.
Staking is arguably the most tried and true way to increase your token holdings, as the vast majority of Proof-of-Stake (PoS) networks provide stable coin lock income.
In addition to helping with transaction verification and network security, placing tokens in a smart contract reduces the available circulating supply, which in turn can help boost the price of the underlying crypto asset.
However, caution should be exercised as to which token is being staked, as cryptozymes are known to cause the demise of most protocols that lack a solid foundation or significant support.
Projects with a well-established reputation, good trading volume, and an active and growing user community are some of the key factors to look out for when choosing a good PoS network. Some of the best options in the current market are Ethereum, Cosmos, Fantom, Solana, Avalanche, Polygon, and Polkadot.
GameFi and play to earn
In 2021, GameFi and Play-to-Earn (P2E) protocols emerged, offering gamers the opportunity to do what they have always loved and make a living from it.
While token prices for the most popular games such as Axie Infinity (AXS) have fallen, which in turn has hurt players’ earning opportunities, this sector remains one of the most active in the cryptocurrency ecosystem and is likely to continue to thrive. in future.
Some games require an initial investment, which can be expensive for many who are looking for free ways to earn cryptocurrency. However, protocols such as Yield Guild Games and Merit Circle offer these users the ability to rent or borrow the required assets for a small fee that is deducted from any rewards earned.
The past decade has seen the growth of the gig economy as ridesharing and food delivery become more popular and workers move away from the traditional 9-to-5 workday.
As telecommuting and nomadic lifestyles have become increasingly important, the decentralized nature of cryptocurrencies has opened the door to many opportunities for people to contribute to the ecosystem while earning cryptocurrencies.
Despite the onset of the crypto winter, which saw some of the biggest companies in the industry lay off a significant portion of their workforce, new industry jobs are advertised daily as projects are launched and incumbents transition from the legacy system.
From part-time and contract work to rewards and public relations, hodlers have many side jobs to earn crypto while their jobs pay the bills.
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Air Drop Chase
Cryptocurrency airdrops have become a mainstay in the crypto community as they offer one of the best ways to maximize marketing efforts and bring new users into the community.
As the sparkling projects that boomed during the bull market begin to fold and disappear in the rearview mirror, new projects begin to emerge representing the next generation of blockchain protocols that need to lure users into their ecosystems.
While the tokens for these projects usually start out with little to no value, patient people can sometimes be rewarded with good salaries once the bullish momentum returns to the market.
Another option for Crypto Degens is to study the airdrops that have already taken place in order to find the ones that are of interest to them.