While the most well-known method of obtaining Ethereum is by simply buying it (either with fiat or another cryptoasset), you can also earn it through doing various online activities. The biggest difference here is that you would not be trading anything to get ETH, but rather doing some type of work that leads to a financial reward.
With this in mind, there are several ways to earn Ethereum. Each requiring something different of you. Let’s take a look at some of the most lucrative options on the market in 2024, and assess why people turn to them.
What is Earning Ethereum?
To earn Ethereum is to partake in some activity that leads to you receiving ETH as an incentive, reward, or remuneration for your work.
Why Earn Ethereum?
People typically think of the crypto industry as primarily trading-focused, rather than as something that leads to consistent or regular earnings. However, in reality, this space is multi-faceted, with a huge range of avenues for earning income passively. This is especially the case with Ethereum, as it is the industry’s largest blockchain ecosystem.
There are several reasons why people choose to earn with Ethereum:
Passive Income Streams
Many Ethereum earning models double up as a source of passive income. This is where you receive ETH for doing minimal work (requiring little more action than your initial setup). Having a passive income is a great way to reach financial stability without having to exert too much of your own time and energy.
Contribute to the Ecosystem
Some methods of earning help contribute to Ethereum’s overall ecosystem, keeping it functional and thriving. Staking, bug bounties, and some forms of yield farming come under this category.
Portfolio Diversification
If you are somebody who primarily trades ETH, then engaging in an earning model can help to diversify your portfolio, and add variety to your financial strategy. In an industry so volatile and unpredictable, it can be extremely useful to spread out your income streams, to help insulate yourself against disaster.
Three Best Ways to Earn Ethereum in 2024
Let’s now look at three of the best methods out there for earning Ethereum in 2024. Each of these have their own merits, so you should consider them one-by-one, and see which ones suit you.
Crypto Savings Accounts
You can place your ETH into a crypto savings account, and earn interest on it over a prolonged time. This is an extremely straightforward process, requiring you to send your Ethereum to a savings account, with you receiving additional ETH in the process. A popular option for this is Ledn’s Growth Accounts– these currently allow you to earn up to 4% APY on your savings, which is extremely impressive for a passive income stream.
Staking
Staking is where you lock away your ETH onto the Ethereum network, so that you can help validate blocks and transactions on the chain. This keeps the Ethereum ecosystem functional and operational. However, it is not as simple as setting up a savings account. In fact, it requires you to have both some quantity of ETH, and some rudimentary technical knowledge. This can be offputting to many, although the benefits can be somewhat lucrative– plus it helps to keep the network alive.
Bug Bounties
This is by far the hardest ways of earning Ethereum, but it is also one of the very few methods that allows you to both earn a decent amount of ETH, and does not require any initial ETH to set up. Essentially, a bug bounty is where a project or service agrees to pay users a sum of money in return for highlighting an error in their code. These could be security-related errors, issues that seem to malfunction the system, or some type of irregularity that the programmers may not have noticed. Typically, bug bounties only pertain to the back-end of a project, rather than the front-end; so highlighting a design error is not likely to lead to a reward. Sometimes, the amount you can earn from a bug bounty will be scaled to the size of the error you uncovered, so the more damaging of a problem you find, the higher the payout. Many projects in the Etheruem ecosystem support this model, with the Etheruem network itself also running a bounty program.
The Risks Associated with Earning Ethereum
Like all actions in the crypto world, there are some risks you should keep in mind when trying to earn Ethereum. These can include:
Bankruptcy risk:
Some earning models involve sending your money to a third party. If these projects end up declaring bankruptcy, then the money you sent them could become hard to get hold of again, leaving you with fewer assets than when you started. This is why it is strongly advised to only work with companies that have a strong track record for transparency and risk management, such as Ledn.
Volatility Risk:
Ethereum is no stranger to volatility. Much like Bitcoin and various other cryptocurrencies, it is prone to intense rises and falls, happening through the week (and sometimes throughout the day). This can either be good or bad for you, as it could mean that your earnings are higher when converted to fiat, or it could mean they are significantly lower. There is no way of avoiding this. Rather, you simply need to understand that it can happen and brace yourself for the possibility.
Dishonesty:
The process of earning Ethereum usually requires working with somebody else, or at least relying on other individuals to release funds to you or set up systems you can engage in. If these other people decide to be disingenuous and withhold your principal and/or earnings, then you could find yourself in a frustrating and disheartening scenario. For instance, if you are working on a bug bounty, and you believe you found something serious, the company could deny it as a bug, or claim somebody else found it first, therefore preventing any reward. The best way to avoid this type of issue is to research the project and its founders, and see what their reputation is like.
What is The Safest Way To Earn From Ethereum?
Like with all financial endeavors, there are risks. However, some strategies carry fewer than others. When it comes to the safest way to make money with Ethereum, many people consider a crypto savings account to be the ideal option. If you pick a trusted and well-regarded service with a good track record for transparency and risk management, such as Ledn, then you should not need to worry about complications with your ETH. Ledn’s Growth Accounts are a great way to make a steady earning of up to 4% APY on your Ethereum, which is both straightforward, and passive.
Conclusion
There are many of ways you can earn with Ethereum, with this discussion only scratching the surface. Take a look at the Etheruem ecosystem and see what other opportunities exist out there, as they might resonate with you more than the three methods outlined here. Of course, if you do this, then be sure to keep Ledn’s Growth Accounts in mind, as they are well-regarded in this industry, and trusted by many.
Disclaimer
This article is sponsored by 21 Technologies Inc. and/or its subsidiaries (“Ledn”) and is for general information, discussion, or educational purposes only and is not to be construed or relied upon as constituting legal, financial, investment, accounting, tax, estate-planning, or other professional advice or recommendation. Please read Ledn’s full Risk Disclosure Statement and Disclaimers.
