Free money has always been a temptation for everyone be it in form of credit card points or purchase cashbacks or wallet money etc. Then how can we make an exception for cryptocurrency on this.
And now, you can get many perks in form of free cryptocurrency options such as bitcoin, Ethereum, Dogecoin etc. You can get some fixed amount of money in form our regular currency which can be converted into a cryptocurrency of your choice, if supported by your cryptocurrency exchange.
If you’ve already added cryptocurrency to your investment portfolio, then you have made the right choice since they can yield a high ROI for you and hence add extra coins on top of your initial investment — but you should know exactly how it works before diving in. You should also be prepared for the added responsibilities cryptocurrencies may require, especially when tax filling season approaches in India.
While some forms of free crypto, like crypto rewards, are only taxed on the capital gains you earn when you cash out (just as any other crypto you buy with your own money), others may be considered taxable income when you receive it, and it’s your responsibility to report that to the IT department of India. Do your research to know your own tax obligations beforehand.
But if you’re already in on cryptocurrencies and are prepared to do a little extra tracking of your coins, here are 5 ways to earn cryptocurrency for free
Lolli, which is a Google Chrome or Firefox browser extension, offers “Bitcoin Back” when you shop with its retail partners. It works as a browser extension that offers discounts and cash back when you use the portal or extension to shop online. The extension rewards you for spending regular money just as you normally would when shopping online but the only difference that the rewards are given in form of cryptocurrencies.
There are various retailers on Lolli providing a range of crypto cashbacks. Rewards go from 1% to as much as 30% Bitcoin back, depending on the retailer and product. Your rewards will go into your Lolli account, and then you can transfer them to your crypto wallet or your preferred cryptocurrency exchange account.
Cryptocurrency Credit / Debit Card
A cryptocurrency card works similarly to other rewards debit or credit cards, but instead of earning cash back or points with every swipe, you’ll get cryptocurrency. While we love simple cash back rewards (and you can always buy crypto with your cash back earnings), these cards can help you more seamlessly increase your portfolio worth.
Crypto cards is still a recent phenomena in India. It is still expected that there will be many new crypto credit cards introduced in the country with exciting crypto cash back options. Below are the existing crypto card available in India
- Crypto.com cards
- Wirex Debit card
- Cryptopay debit card
- Raxcard.com debit card
- Bitplastic.com debit card
- Nexo card
- Coinbase Bitcoin debit card
- Crypterium card
- Bitpay debit card
The rewards categories on these cards are similar to many traditional cash back credit cards. For example, the MCO credit card offers 5% cashback on every transaction made from the card. Along with it, it also offers discounts on Airbnb, Netflix, Spotify & Expedia. In addition to varying rewards rates, each of these cards offer different redemption values. So before choosing a card for yourself, do compare the cashbacks & discounts offered from the various cards and opt for the one more suitable for you.
As with any credit card for traditional currency, the rewards you earn with these cards are only valuable if you avoid their high interest rates. If you use a card to earn crypto rewards, make sure you charge only what you can afford to pay off in full and on time each month, without carrying a debt balance.
Look Out for Exchange Sign-Up and Referral Bonuses
These days most of the cryptocurrency exchanges in India are offering sign-up or referral bonuses for using their services. Apps or crypto exchanges such as WazirX and CoinDCX offer cyrpto worth INR 100 or come fixed amount of bitcoin to encourage users to their platforms. On the top of it, if you refer more users to their platforms, you are offered more crypto cashbacks or bonuses.
But Make sure you pay attention to the terms of these apps. You may be required to provide more personal information or go through other actions to claim these rewards. Most of these offerings aren’t lucrative enough to warrant signing up for an entirely new exchange if you already have an account, but if you’re a beginner, keep an eye on exchanges you’re considering to check if they offer a sign-up bonus or referral for other friends that may be interested.
Popular cryptocurrency exchange Coinbase offers incentives for using the platform’s Learn hub. To get the free change, you’ll need to watch Coinbase’s videos, take quizzes, and then Coinbase will deposit a small amount of crypto into your wallet. The content is typically focused on a specific cryptocurrency and, as a result, these are the coins you’ll earn for going through the lessons.
Generally these specific cryptocurrencies or altcoins generally aren’t recommended for long-term investing, you can convert these lesser-known coins into Bitcoin or Ethereum once you earn them. But remember to keep track of these transactions, as every crypto-to-crypto trade is taxable. Additionally, you should track the price value of all your earnings through Coinbase.
You’ll need to have a funded Coinbase account, live in an eligible country, and verify all of your personal information to start earning with Coinbase Earn.
Of all the methods for earning free crypto, airdrops carry the most risk — more than we believe is worth the benefit for most investors. Developers perform airdrops when they want to gain traction for their new cryptocurrency. Put simply, they give away coins to try and garner adoption.
You can look online to find when airdrop projects are happening; they’re often promoted on the company’s website as well as by users on social media platforms and some crypto news sites. If you qualify, the developers often send the specified amount of coins straight to your digital wallet address.
It’s important to be cautious with any new cryptocurrency projects. Fake airdrops and ICOs (initial coin offerings) are common scams used by hackers. Even when they are real, many of the coins issued in airdrops are not a great investment store of value. Experts recommend sticking with the most well-known cryptos, Bitcoin and Ethereum, especially for beginners. If you follow that recommendation, then pass on airdrops.
Please note that any crypto you earn through airdrops is also taxable income. You’ll be responsible for reporting it as such based on its fair market value on the date it was recorded on the distributed ledger (in most cases, when you receive the airdrop into your digital wallet)
Even though there are ways to earn extra crypto for free, don’t let the temptation of freebies force your hand. Cryptocurrency is a very volatile investment, and you should only ever put in what you’re OK with losing in the long run.
Free crypto also might not be free as the tax season approaches. Any crypto that may be considered income, as well as crypto-to-crypto conversions or holdings you cash out, is taxable. You’ll need to track the market price of any crypto you get when you receive it, and again when you sell it, to report to the concerned government authorities or IT department.
Written by Monish Kumar