How do you earn free Ethereum?
Ethereum isn’t only the second biggest cryptocurrency token: it’s a huge global shared computer powered by code called “Smart Contracts” that anyone can upload.
That means other companies (or even people) can create their own tokens on the Ethereum “Blockchain”, which is a combination of an incorruptible ledger, and mini-wallet-type addresses that can host both tokens and code.
Interacting with the Ethereum Blockchain (like moving tokens around or using Smart Contracts) requires you to pay ETHER (ETH), the native currency of the Blockchain. Most people buy this from exchanges, from crypto finance apps or card issuers such as Revolut or Wirex, or through third-party providers in apps or websites, such as MoonPay, used by GCISL.
As of writing, a single ETH is worth around $3,000, but you don’t have to have a whole one: like almost everything in crypto, you can own or trade a fraction of a thing. Well, except NFTs (single, one-off tokens that represent a particular thing – you can’t split those).
But you don’t always have to buy ETH: you can earn it too: how would you like free Ethereum?
Faucets
There are not many times in life that you get something free without having to put something in first, but Crypto Faucets get close.
The basic ones simply give you a tiny amount of free Crypto just by pressing a button. Don’t get too carried away though, they’re tiny amounts.
Of course, Faucets have got to make money somewhere, and they make it by attracting users who will play games, look at ads, watch videos, fill in surveys or perform other tasks to earn tokens. Users effectively exchange their time for Crypto.
While there are Faucets that give out free ETH, transmission fees are so high on the Ethereum Blockchain at the moment that everything you earn gets wiped out in one hit by fees.
Everyone is waiting for the ETH 2.0 upgrade that stops this madness, but in the meantime, there are lots of Cryptocurrencies that can be sent and converted cheaply.
Mining
To “mine” ETH you download software that runs 24/7 trying to be the first to solve different mathematical puzzles to earn the chance to validate a new block of transactions for the Blockchain. If you’re the first, you get a reward in ETH.
We’re stretching the definition of “free” here since unless you pay someone else (like a mining company) to rent processing power to mine ETH, you need to buy expensive equipment to do it (this is why there’s a shortage of graphic cards). Plus you need to pay for the electricity to do it.
Another good reason for not buying into this is that Ethereum is undergoing an upgrade that will stop mining altogether…
Staking
… and replace it with “staking”, which is where ETH holders with processing power to spare (called “validators”) lock up some of their coins in the blockchain to get ETH. Since the ETH 2.0 blockchain exists, you can already do staking.
BUT, to be a standalone “validator”, you need to stake 32 ETH (about $96,000 at the time of writing). That needs to be a really long-term investment, because ETH 2.0 doesn’t have the code to “unstake” yet, and no one quite knows how long it will be until that bit’s written!
Exchanges and other companies run “staking pools”, which allow you to stake much smaller amounts of ETH (for a much smaller reward of course). And access to your rewards is much simpler.
The return on Ethereum staking tends to be about 4.0% (Annual Percentage Yield).
No one really knows how that will change when ETH 2.0 is rolled out properly and explodes in popularity.
Buy and Hold
I hate to break it to you, but this strategy doesn’t get you free ETH. If you buy 1 ETH, in 10 years’ time, you’ll still have 1 ETH. Of course, its value in dollars will be wildly different! But unless you do something extra on top of “hold”, you won’t see an increase in your ETH wealth over time (if you traded it regularly to and from another currency or Cryptocurrency at an exchange, you might end up with more ETH: you might also end up with more stress and less ETH).
Whatever solution you choose for your free-thereum, make sure it’s interest-ing!