How to Make Money With Ethereum (ETH)

Ethereum is often referred to as the second most popular cryptocurrency, after Bitcoin. So how to earn Ethereum? In this guide, I’m going to introduce 14 kinds of ways to earn Ethereum, including paid and free ways. If you are interested in it, keep reading!

What is Ethereum?

Ethereum is one of literally thousands of cryptocurrencies that have sprung up over the last few years. As the brainchild of 8 co-founders, Ethereum made its debut in 2015. The cryptocurrency or platform is called Ethereum, while the individual unit is called an ether (2 ether, 17 ether, etc.)

Ethereum operates on a decentralized computer network, or distributed ledger called a blockchain, which manages and tracks the currency. It can be useful to think of a blockchain like a running receipt of every transaction that’s ever taken place in the cryptocurrency. Computers in the network verify the transactions and ensure the integrity of the data.

This decentralized network is part of the appeal of Ethereum and other cryptocurrencies. Users can exchange money without the need for a central intermediary such as a bank, and the lack of a central bank means the currency is nearly autonomous. Ethereum also allows users to make transactions nearly anonymously, even if the transaction is publicly available on the blockchain.

While the whole field is referred to in terms of currency, it may be more useful to think of crypto as a token that can be spent for a specific purpose enabled by the Ethereum platform. For example, sending money or buying and selling goods are functions enabled by the coin. But Ethereum can do a lot more, and it can also form the basis for smart contracts and other apps.

How to Get Ethereum for Paid?

1. Investing In Ether

Although this option may seem obvious to earn ethereum, I thought it is a good idea to include it in this post along with some interesting facts. In 2016 alone, Ether increased in value by nearly 1.200%, and it is showing no signs of slowing down.

The creation of the Enterprise Ethereum Alliance in February has added a lot of credibility to the project and resulted in the price skyrocketing to new record highs. At the time I am writing this post the Ether price is around $3,715. Many members of the ETHtrader community on Reddit, expect Ethereum to hit 5,000 USD by the end of 2022. So there are still some profits to be made there.

While in most cases it’s not a good idea to do long-term price predictions, I do think that Ethereum might hit a market capitalization of 2 Trillion USD in the next 10 – 15 years. The current market cap is 442.32 Billion USD. That would mean that every 1.000 USD you invest in Ether today, would be worth 40.000 USD in a decade.

2. Trade To Earn Ethereum

The most popular strategy for earning Ether is trading. By buying ETH cheaper and selling more expensive, you can increase your deposit. Honee has convenient tools for exchanging any tokens, which makes trading fast and easy.

Having entered the interface, you need to select the available tokens for sale (all popular stablecoins are available in Honee) and specify the amount. The wallet will display the amount of Ether receivable and, of course, the purchase price.

3. Earn Ethereum Ethereum Casinos

The best Ethereum casinos let you stake Ethereum on real money games for the chance to increase your investment.

As the number two cryptocurrency in terms of market capitalization, it therefore comes as no surprise to learn that a number of Ethereum casino websites are now growing in popularity. Not only does this include traditional casino games such as blackjack, roulette, and slots – but fully-fledged sports betting facilities, too.

With that being said, as the crypto-casino space is largely an unregulated battleground, you need to make sure that your platform of choice is safe and read Ethereum casino reviews online.

Stake

Stake is a popular option for betting crypto on sports and casino games for many reasons, including their neat user interface, and the variety of sports/games they offer.

Bitcasino

Bitcasino is an online casino and sportsbook platform. Founded in 2014, the brand stands out with innovative features and accepts crypto deposits.

BetOnline

BetOnline is an online casino with higher than average betting limits. It offers sports betting, poker, casino, esports, and lots of bonuses throughout the year.

FortuneJack

FortuneJack is an outstanding casino and sportsbook with provably fair games and stellar customer service.

4. Mine Ethereum

Perhaps the second most-popular option for earning is getting a share of fees in liquidity pools, which has taken its crown place in the DeFi segment. ETH liquidity providers earn commission fees that traders pay when making swap transactions in pools. Here’s an example: you are a member of the ETH-USDT pool with some liquidity. A trader, making an exchange in this pool, pays commission fees in the Ethereum token, thereby increasing the pool and making it richer. You, as a liquidity provider, are entitled to receive a share of this commission equal to your share of the total liquidity of all providers. To receive the earned fee, you only need to withdraw it from the pool by performing the liquidity removal operation.

In order to become a member of the Ethereum pool, you need to select the desired card in the Honee wallet and add liquidity in the corresponding tokens. An important parameter for evaluating the pool is APY, which stands for Annual Percentage Yield, as it can be used to understand how much fees the pool generates at the moment.

5. Ethereum Staking

Staking on Ethereum can be done in a variety of ways. Custodial staking systems handle the complete staking process on your behalf. You simply deposit Ether, and they will set up the node for you. They also run and manage the node for you, so you don’t have to.

The fundamental distinction between solo and other staking platforms is that you do not control the validator node’s private key. The staking provider is in charge of and manages your assets. They take a cut of your rewards in exchange for their services.

Staking on the new Ethereum network requires setting up a staking node using Ethereum 1.0 and Ethereum 2.0 clients. Ethereum clients are simply applications that allow nodes to communicate with the Ethereum network.

How to Get Ethereum for Free?

1. Ethereum Faucets

Ethereum faucets are one of the easiest and 100% free ways to earn Ethereum.

To earn Ethereum from an Ethereum faucet, you only need to do simple tasks like watching videos, playing games, and answering surveys.

However, you should know that you can’t make a living only by faucets. These can just be as some side income that you earn in your free time.

There are many scam faucets out there. That is why we create a list of the best legit Ethereum faucets to rescue you from getting scammed.

2. Ethereum Airdrops

In 2022, Ethereum Layer 2 solutions, NFTs, and cross-chain bridges seem to have likely chances of hitting an airdrop. Besides Ethereum, other ecosystems such as Solana, Cosmos, and Avalanche are also expected to launch an airdrop to its users.

3. Make Ethereum DApps

Another way to earn ethereum is to make DApps. Ethereum has made the development of a completely new category of software possible. Ethereum’s core technology can be used to make so-called “smart contracts”, which can be used to build DApps (Decentralized Apps).

DApps have practically limitless applications and it’s your task to come up with an amazing idea that you can later monetize to earn Ethereum. The cool thing about DApps is that once they are set up properly, they can make you money day and night without any need for maintenance or supervision. This allows you to eventually build up a portfolio of DApps that provide you with a nice monthly passive income.

4. Ethereum PTC Sites

Ethereum PTC Sites, are websites that reward small amounts of ETH people for completing simple tasks. Wouldn’t it be great to earn free ETH by clicking claims? If this is what you are looking for then you should consider joining one or some of ETH PTC Sites.

Since there are numerous crypto earning sites these days providing services like watching ads, viewing websites, referring other users, and much more in order to earn cryptocurrencies so that many of Ethereum earners can’t really tell which of the PTC Sites is genuine and really pay you for your time and efforts.

You can get started earning free Ethereum from home through Best ETH PTC Sites.

5. Ethereum GameFi

All objects in these types of Ethereum GameFi are expressed as NFTs – digital tokens used to prove ownership of scarce intangible items. Think of things like plots of land, avatars, costumes, weapons and gold bars. Once players find and accrue these items through gameplay, many have the option to trade these with others in digital marketplaces for different NFTs, or sell them in exchange for Ethereum.

6. Ethereum Bounties

The bug bounty program is an experimental and discretionary rewards program for our active Ethereum community to encourage and reward those who are helping to improve the platform. It is not a competition.

7. Shopping Reward

You can earn free Ethereum when doing your regular shopping online. Using shopping reward companies you need to download an extension to your browser, use it as a checkout on various brands and earn up to 30% cashback on your purchases.This is a great way to earn Ethereum while shopping for stuff you were gonna buy anyway.

8. Ethereum Interest

The cost of borrowing anything, in this case ether, is referred to as interest. If you already own Ethereum, you can deposit it in an interest-bearing account and gain interest on it. Most companies that supply Ethereum loans also allow customers to lend out their Ethereums for interest. If, for example, you don’t need cash, you can still deposit your Ethereums and receive annual interest on your deposit. This means your Ethereums can generate additional income for you, instead of just lying around in your Ethereum wallet.

9. Owning a Faucet

While participating as a faucet user might not earn you a lot of money, owning your own CRYPTO faucet is a whole different story. Today, you can build a cryptocurrency faucet relatively easily and earn money or crypto coins including Ethereum from selling ads on your site. Running a faucet requires a reasonable amount of time and effort. You’ll need to set up your own website, manage users, prevent fraud and also bring some initial capital to fund the faucet when starting out.

What Does Ethereum Do?

Ethereum can power a number of applications offering a wide range of functions:

Currency: With a cryptocurrency wallet, you can send and receive ether or pay for goods and services, if the digital currency is accepted as payment. Some platforms, such as Coinbase, even allow you to take custody of your coins in a digital wallet, so you can make them less exposed to hackers, in theory.

Smart contracts: Smart contracts are a kind of permission-less app that automatically executes when the contract’s conditions have been met.

Decentralized apps, or dApps: Ethereum powers digital apps that allow users to play games, invest, send money, track an investment portfolio, follow social media and more.

Non-fungible tokens: These tokens can be powered by Ethereum and can allow artists or others to sell art or other items directly to buyers using smart contracts.

Decentralized finance: By using Ethereum, some people may be able to avoid centralized (government) control over the movement of money or other assets.

Again, it might be more accurate to think of Ethereum as a token that powers various apps rather than as merely a cryptocurrency that allows users to send money to each other.

Ether and Ethereum: What’s the Difference?

You can use Ether as a digital currency in financial transactions, as an investment or as a store of value. Ethereum is the blockchain network on which Ether is held and exchanged. As mentioned above, however, this network offers a variety of other functions outside of ETH.

“These can be simple movements of funds, but they may also be complex transactions that do anything from exchanging assets to taking out loans to acquiring a piece of digital art,” says Boaz Avital, head of product at Anchorage. The transactions are processed and stored on the Ethereum network.

The Ethereum network can also be used to store data and run decentralized applications. Rather than hosting software on a server owned and operated by Google or Amazon, where the one company controls the data, people can host applications on the Ethereum blockchain. This gives users control over their data and they have open use of the app as there’s no central authority managing everything.

Perhaps one of the most intriguing use cases involving Ether and Ethereum are self-executing contracts, or so-called smart contracts. Like any other contract, two parties make an agreement about the delivery of goods or services in the future. Unlike conventional contracts, lawyers aren’t necessary: The parties code the contract on the Ethereum blockchain, and once the conditions of the contract are met, it self-executes and delivers Ether to the appropriate party.

Benefits of Earning Ethereum

Ethereum offers an extremely flexible platform on which to build decentralized applications using the native Solidity scripting language and Ethereum Virtual Machine. Decentralized application developers who deploy smart contracts on Ethereum benefit from the rich ecosystem of developer tooling and established best practices that have come with the maturity of the protocol. This maturity also extends into the quality of user-experience for the average user of Ethereum applications, with wallets like MetaMask, Argent, Rainbow and more offering simple interfaces through which to interact with the Ethereum blockchain and smart contracts deployed there. Ethereum’s large user base encourages developers to deploy their applications on the network, which further reinforces Ethereum as the primary home for decentralized applications like DeFi and NFTs. In the future, the backwards-compatible Ethereum 2.0 protocol, currently under development, will provide a more scalable network on which to build decentralized applications that require higher transaction throughput.

Is Ethereum a Good Investment?

Ethereum has risen significantly over the last few years, so those who bought-and-held years ago have done well. But rather than look at yesterday’s price moves and be fearful of missing out, it’s important to understand what you’re investing in. And on this basis, those who buy Ethereum are buying a cryptocurrency that is not backed by any hard assets or cash flow.

That may sound trivial, but it’s the key difference between stocks and cryptocurrency. A stock is a fractional ownership in a business, so its performance over time is due to the ongoing success of that business. If the business grows its profit, its stock is likely to follow that growth over time. Stockholders have a legal ownership stake in the assets and cash flow of that business.

In contrast, Ethereum – and most other popular cryptocurrencies – are backed by nothing at all. The only thing holding up the price is the optimism of other investors, all of whom think they’ll be able to sell the cryptocoin for more money later to someone else – what’s called the “greater fool theory” of investing. Speculation is the only thing driving Ethereum and other cryptos higher.

For this reason, among others, investing legend Warren Buffett won’t touch cryptocurrency and has even gone on record to call it “rat poison squared.” Buffett’s approach is a good cue about the enduring value available in cryptocurrencies.

How to Make Money With Ethereum (ETH)

What is Ethereum?