ICO Rankings Blog

Diversification is a basic investment technique that is particularly relevant in cryptocurrency portfolios, and of equivalent importance to traditional investment portfolios.

Having a broad range of cryptocurrency exposure spreads the risk of your investment portfolio between different cryptocurrencies, which may also strengthen stability and long term growth potential of your investment portfolio.

In this guide, we'll discuss methods of diversifying your cryptocurrency portfolio in a way that makes the most sense.

Understand Different Cryptocurrency Categories

You need to understand the various categories of cryptocurrencies and its properties before you diversify your cryptocurrency portfolio:

Major Cryptocurrencies: These are well-established and known cryptocurrency, such as Bitcoin (BTC) and Ethereum (ETH). They usually have bigger market capitalizations, high liquidity, and extreme general adoption.
Alternative Cryptocurrencies (Altcoins): Altcoins otherwise known as alternative cryptocurrencies refer to any cryptocurrency that is not Bitcoin. These include projects such as Platform tokens, Utility tokens, Privacy coins, as well as niche-specific tokens. Although altcoins have higher rewards potential, but they are more risky because of their lower liquidity and market capitalization.
Stablecoins: These are cryptocurrencies that were developed to hold a stable price or value by solving the volatility issue caused by speculation. Their price seems to be pegged to a single fiat currency such as the US Dollar, Euro, or even a particularly single commodity like Gold. They lower risk and act as a hedge to market trends.
Tokens and Tokenized Assets: Tokens are representation of digital assets or rights in the main network of computer-enabled symbolic products. These may represent real-world assets (Real estate, commodities), community engagement in DeFi, or utility in their respective ecosystems.

Spread Your Investments Across Different Categories

Now that you know the types of cryptocurrencies, the next step is to dampen your investments into a number of these categories for diversification.

To effectively balance risk and potential returns with your portfolio, you should invest in all major cryptocurrencies, altcoins, stablecoins and tokens.

Major Cryptocurrencies: Diversify your holdings with some of the main cryptocurrencies such as Bitcoin and Ethereum that not only underpin the cryptocurrency industry but have shown over time to be pretty much non-correlating.
Altcoins: Diversify with a basket of gold-standard altcoins that have a proven track record of sound value propositions, innovative tech, and strong fundamentals. Look for promising use case research projects with use-cases, active development teams, and communities to invest in.
Stablecoins: Stablecoins can help stabilize and hedge a portfolio against market volatility. Stablecoins can be used as a hedging tool, as a source of liquidity management, or valve for capital preservation in uncharted territory.
Tokens and Tokenized Assets: To further diversify your holdings, buy tokens that represent real or some actual service in the world or other DeFi protocols. Ideally, ignore the noise and hunt down tokens that have a good foundation, clear governance, and real use within their network of systems.

Consider Risk Factors and Correlations

Diversifying a cryptocurrency portfolio even with diversification, there may be more significant correlation risk across some cryptos that others, and thus residual concentration risk.

Correlate assets and aim to get assets that are less or negatively correlated to each other for a better diversification.

Correlation Analysis: Correlation analysis that will help in understanding the historical relationship between various other currencies. Find your best fit with the help of negative or uncorrelated assets to diversify your portfolio to reduce the impact of market movements on your overall portfolio performance.
Risk Assessment: Cheap coins will still not be a good buy if there is considerable risk associated with their technology, the market, regulation or if they are seemingly dried-up in liquidity. Take advantage of different risk factors by spreading your investments in different classes of assets that have different levels of risks, hence mitigating any one risk factor and arriving at a trade-off between risk and return.

Rebalance Your Portfolio Regularly

To maintain a diversified cryptocurrency portfolio, it is necessary to monitor and periodically rebalance it so that your asset allocation remains consistent with your investment goals and risk tolerance.

Rebalancing is the process of returning your portfolio to its target asset allocation by buying or selling assets.

Set Rebalancing Thresholds: Define predetermined rules for when an asset's holding in your account strays from your desired target weight. You should rebalance if your allocations have moved materially away from these thresholds to ensure diversification and risk management.
Monitor Market Conditions: Keep abreast of market trends, macro-economic factors, regulatory events, and technology developments that may influence market dynamics and cryptocurrency prices. Change your portfolio strategy as needed when the market changes or new opportunities present itself.

Seek Professional Advice and Educate Yourself

Cryptocurrencies are notoriously complicated so professional advice is vital and you need to do your own research before diversifying.

Consult with the financial advisors, cryptocurrency experts or investment professionals, but with the personal advice, it will be easy and step by step to put your best investment foot forward in the unchartered territory of cryptocurrency market.

Financial Advisors: Engage financial advisors who have experience in investing with cryptocurrencies and they should be able to provide you with advice that is in line with your financial goals, risk appetite and investment horizon.
Cryptocurrency Experts: Get insights from cryptocurrency experts, analysts and thought leaders on the markets, investments, trading strategies for all things cryptocurrency.
Educational Resources: Use educational resources, online courses, and authoritative publications to increase the depth of your knowledge of cryptocurrency investing, portfolio management, risk management, and regulatory compliance.

Conclusion

Having a diversified range of cryptocurrencies is important to managing risk, increasing overall long-term growth performance and successfully navigating through the ever-changing and incredibly volatile cryptocurrency market.

Diversifying your investment capital with respect to these categories while including risk variables and correlations, adjusting your portfolio often, and getting competent consultancy advice will help you construct a diversified portfolio of cryptocurrencies catered to your investment targets and risk level.

How to Diversify Your Cryptocurrency Portfolio

One of the most complex (and, at least in the U.S., most widely misunderstood) aspects of owning or trading cryptocurrencies is taxation.

Given the likely interest of the world's governments in regulating the rapidly growing cryptocurrency market, cryptocurrency holders must follow internationally accepted guidelines to avoid sanctions and fulfill their tax obligations.

In this guide you will find the basics of cryptocurrency taxation for beginners: how cryptocurrencies are being taxed, reporting obligations and the main guidelines for taxpayers.

Classification of Cryptocurrency

Now that we have gone through decentralization and taxation, it is important to know the classification of cryptocurrencies for tax purposes:

Property: Cryptocurrencies are treated as property in US, and are subject to property taxes (each trade is said to be taxable), just as if they were a car or a house) In other words, if you buy, sell or make transactions with a cryptocurrency and you have or could make a profit with them, you can be taxed in the same way as buying, selling or exchanging property, shares, forex or real estate.
Income: Some jurisdictions will consider the obligation of some bases for cryptocurrency transactions, like the income tax on its miner or the receipt of cryptocurrency as a part of payment for goods and services, as the means of presenting the amount of the level of the taxable profits. In those cases, the cryptocurrency's fair market value is included in the taxpayer's gross income for the tax year.

Taxable Events

Different types of cryptocurrency transactions can trigger taxable events such as:

Selling Cryptocurrency: Selling cryptocurrency for fiat currency or other cryptocurrencies creates a taxable capital gain or loss. The capital gain or loss is the difference between the purchase price of an asset (cost basis) and the sale price, and is considered taxable.
Trading Cryptocurrency: An exchange of one cryptocurrency for another (for example, exchanging Bitcoin for Ethereum) is also treated as a sale. You will need to use the fair market value of the third party cryptocurrency at the time you received it to calculate your capital gain or loss on your transaction.
Receiving Cryptocurrency as Income: Income received in cryptocurrency (such as payment for goods or services, mining, staking, airdrops, etc.) may be taxable. When the taxpayer receives the cryptocurrency, its fair market value at the time is recognized as part of the gross income in the taxpayer's hands.

Reporting Requirements

Taxpayers need to accurately report cryptocurrency transactions on their tax returns.

Non-disclosure of the terms of your cryptocurrency transactions and/or errors in reported income can lead to severe penalties, fees, or criminal prosecution.

The primary reporting requirement includes;

Form 1040 Schedule D: Taxpayers need to report cryptocurrency sales on Form 1040 Schedule D when they file their annual tax returns.
Form 8949: Taxpayers may have to complete form 8949 (Sales and Other Dispositions of Capital Assets) detailing only for each cryptocurrency transaction including the date of acquisition, sale date, the proceeds, and the gains/losses.
Additional Reporting Requirements: Depending on the taxpayer's jurisdiction and the complexity of their cryptocurrency transactions, additional reporting requirements may be owed, e.g., FinCEN Form 114 (Report of Foreign Bank and Financial Accounts) and Form 8938 (Statement of Specified Foreign Financial Assets).

Recordkeeping

You have to keep track of all of your cryptocurrency transactions in order to follow tax rules and report them accurately. That is why taxpayers will want to meticulously document all the following:

Purchase and sale dates and prices of cryptocurrencies
Wallet addresses and transaction IDs
Receipts, invoices, or payment records for cryptocurrency income
Mining or staking activity and associated rewards
Any other relevant documentation related to cryptocurrency transactions

Tax Treatment of Losses

In general, capital losses from the sale or exchange of cryptocurrency can be used to offset capital gains, which in turn can help to reduce the taxpayer's overall tax liability.

Unused capital losses can also often be carried forward by taxpayers to reduce taxable capital gains in subsequent tax years (again subject to various other limitations and restrictions).

Seeking Professional Advice

With the realm of cryptocurrency taxation growing so rapidly and becoming increasingly hard to navigate, in the event there will be any investigations into your crypto assets, it is recommended to seek tax help from appropriate authorities, which will pay the felony money so that you can avoid as many problems down the road.

Tax pros on trading report to offer individualized instruction, get around tax laws and supply conformity with filing prerequisites.

Conclusion

Crypto tax compliance involves classifying, recognizing taxable events, reporting, and record-keeping.

Because tax laws vary from country to country, cryptocurrency holders must familiarize themselves with the regulations affecting them so as to honor their tax obligations properly.

As the market trots along, proactive tax planning & compliance continue to be the cornerstone of warding off risk and staying compliant for investors and traders.

Cryptocurrency Taxation: Basics for Beginners

With all the terms and jargon that comes with the world of cryptocurrency, it can be tough knowing what is what. Whether you are just starting to explore the world of cryptocurrency or summarizing your understanding of the subject, this common cryptocurrency term glossary will help you speak with the language of crypto space.

1. Blockchain

Electronic ledger that records each transaction using computer networking via a decentralized system. It is the basis of the technology for conducting ethereum and bitcoin.

2. Bitcoin (BTC)

Bitcoin was the first cryptocurrency, created in 2009 under the pseudonym Satoshi Nakamoto by an anonymous individual or group of individuals. It is also referred to as "digital gold."

3. Altcoin

Any cryptocurrency other than Bitcoin is called Altcoin. Examples include Ethereum, Litecoin, and Ripple.

4. Wallet

Tech devices like those mentioned in the title of this post that you can use to send, receive, and store cryptocurrency or you can have software wallets (online & mobile) and hardware wallets (physical devices).

5. Private Key

Access to your cryptocurrency holdings via a secret code. It needs to be kept secret and private at all times.

6. Public Key

A string of letters and numbers that other people can use to write money to your wallet. It is culled from the private key but cannot access into the wallet itself.

7. Exchange

A cryptocurrency exchange for trading, buying, and selling. Such organizations include Binance, Coinbase, and Kraken.

8. Fiat Currency

State currencies like US dollars (USD), euros (EUR) and Japanese yen (JPY).

9. Decentralization

Decentralization of power In a cryptocurrency context, this means that there are no central banks or other entities through which the transactions are mediated (a decentralized network).

10. Mining

The process by which transactions are verified and added to the blockchain is called Proof of Work. When miners create a new cryptocurrency

11. Proof of Work (PoW)

A consensus mechanism in which validators on a network are chosen to produce blocks based on their stake in a system; proof-of- work. Its miners must solve computational puzzles.

12. Proof of Stake (PoS)

A consensus mechanism that confirms transactions by the number of coins the validator holds. It is widely regarded as more energy-efficient than Proof of Work.

13. ICO (Initial Coin Offering)

An ICO (Initial Coin Offering) is a modern way of fundraising in which new generation cryptocurrencies sell a portion of their digital coins (tokens) to those early adopters and enthusiasts who are willing to risk their money in very early stages of new projects in return for future profits in thousands and millions of dollars.

14. Token

A digital asset backed by a blockchain, which grants consumers ownership or use of property. Tokens can be used to consume services, vote or represent assets.

15. Stablecoin

A cryptocurrency that is built to maintain a stable value by tying it to a fiat currency or another asset. This includes Tether (USDT) and USD Coin (USDC) among others.

16. Smart Contract

Decentralized, trustless contracts with self-executing properties, implemented directly into the code base. They respond automatically to specific conditions.

17. DeFi (Decentralized Finance)

A payment system on a blockchain which does not have central intermediaries. This covers a wide range of financial services such as lending, borrowing, trading and others thus referred to as DeFi.

18. NFT (Non-Fungible Token)

A special digital item that represents a rare digital item such as art, music or virtual property. They cannot be exchanged on a one for one basis because they are inseparable.

19. Fork

A split in a blockchain network resulting from changes to the protocol. Forks can be challenging (creating a new blockchain) or soft (updating the existing blockchain).

20. Gas

A payment to miners for processing transactions on the Ethereum network. Gas fees depend upon network congestion as well as upon the data / code that the transactions are executing.

21. HODL

A belief in having been "had" by an altcoin, implying that one should keep the coin and not sell it no matter what happens in the market. It is usually advocated as medium-to-long-term investing.

22. Whale

A term they use to label people or entities that hold a lot of bitcoins. Due to the amount of the trades they make, whales are capable of influencing the market in a significant way.

23. Satoshi

It is the smallest fraction of a Bitcoin currency (named after Satoshi Nakamoto, its creator) That means one Bitcoin = 100 million satoshis.

24. FOMO (Fear of Missing Out)

The feeling of unease that investors get when they believe others are benefiting from an investment and they may miss out on future profits.

25. FUD (Fear, Uncertainty, Doubt)

A tactic of changing people's perception of a public figure using poor or twisted facts. It creates panic selling and market uncertainty.

26. Ledger

Blockchain is a digital ledger in which transactions are recorded chronologically and publicly. This is what they describe as the blockchain, a distributed database for recording transactions.

27. Node

A computer that is continually connected with the blockchain network to validate and communicate transaction A full node is a node that stores all parts of the blockchain, and a light node is a node that stores only a few parts of the blockchain.

28. DAO (Decentralized Autonomous Organization)

A decentralized organization built on smart contracts, without leadership. DAOs are meant to be transparent and run on code and blockchain networks.

29. dApp (Decentralized Application)

An application that uses a blockchain network and smart contracts for backend functionality. dApps are also decentralized and open-source and can work without a central authority

30. Block

A group of transactions that get added together and go on the blockchain because it never makes sense to add them individually; Every block references the one before it, so we get a chain of blocks.

31. Block Reward

This is the reward miners receive when they add a new block to the blockchain. This, in its simplest form, comprises mainly of created cryptocurrency and transaction fees.

32. Consensus Mechanism

A consensus protocol employed by blockchain networks to agree to the actuality of transactions. Some common mechanisms are Proof of Stake (PoS) and Proof of Work (PoW).

33. Decentralized Exchange (DEX)

A platform that enables cryptocurrencies to be directly traded with one another, without the need for a centralized authority. Such as Uniswap, SushiSwap.

34. Hot Wallet

A good cryptocurrency wallet for the web that need to be kept online to enable transactions but at the cost of being less secure(shows more exposure to hacking).

35. Cold Wallet

An offline wallet, which prevents hacking and other online threats. Paper wallets and cold storage wallets are a few examples.

36. Hash

A function that takes data and returns a fixed-length string of characters, whose purpose, in its simplest form is to make to it difficult to reverse engineer the original data. Hashes - secure data and verify transactions in the blockchain.

37. Initial Exchange Offering (IEO)

A way of fundraising where a cryptocurrency exchange does the actual token sale on behalf of the project.

38. Market Cap (Market Capitalization)

The combined value of all the coins currently in existence, time the current price of the coin.

39. Liquidity

The degree to which an asset's price remains unaffected when bought or sold. High liquidity means more market participants and less price volatility.

40. Rug Pull

It is a type of scam where developers withdraw all funds from a project, leaving investors with worthless tokens. It often occurs in DeFi and ICO projects.

41. Yield Farming

A DeFi practice where users lend or stake their cryptocurrency to earn rewards in the form of additional tokens. It aims to maximize returns on investment.

42. Cross-Chain

Specifically, it is the functionality to carry out asset and data transactions across more than one blockchain network.

43. Multi-Signature (Multi-Sig)

A security feature requiring multiple signatures to authorize a transaction. It enhances security by requiring consensus among multiple parties.

44. 51% Attack

In which the majority of control over a blockchain network - stemming from ownership of more than 50% of mining power - is held by a single entity or a group of entities, which could manipulate the transactions, and reverse the coins for their own interest.

45. AirDrop

A form of giveaway (as promotional strategy, reward for community participate, etc.), in which free cryptocurrency tokens are being distributed to users.

46. Dust

Few remaining cryptocurrencies, often the residue of past trades It spends/ trades worth the transaction fees because the size of the dust is very small.

47. Hash Rate

Computational power used to mine and secure a blockchain network. We would want the network to be more secure with higher hash rates.

48. Sharding

A solution to improve the scalability of a blockchain network by dividing the network into smaller, more manageable pieces - called shards. It makes total sense because each shard processes different transactions which makes the operation more efficient.

49. Staking

This is the process of locking up cryptocurrency used to participate in a Proof of Steak (PoS) network to validate blocks and receive rewards.

50. Token Burn

Cryptocurrency tokens are burned in order to remove them out of circulation, thus reducing its supply and increasing scarcity. This is often attempted to increase value to the rest of the tokens.

As you become accustomed to these common cryptocurrency terms you will be more equipped to navigate the crypto market and make sensible decisions. The terminology is the most basic exercise to understand digital assets.

Cryptocurrency Glossary: Common Terms Every Beginner Should Know

Acquiring knowledge about cryptocurrencies can assist you in staying aware of market trends and current Web3 developments. However, did you know that one of the best ways to obtain free tokens is to educate yourself about cryptocurrency?

Many popular exchanges and crypto data platforms offer learn and earn crypto programs that pay you to get educated. To claim your cryptocurrency reward, all you need to do is finish a quick course and a quiz.

To find the best learn and earn programs, we've tested out dozens of them. Discover the top resources for learning about cryptocurrencies and obtaining free tokens by reading on.

Top Crypto Apps to Learn and Earn Reviewed

To help you understand what tokens you can earn, let's take a closer look at each of the best cryptocurrency learn and earn programs. We'll also go over the duration of the lessons, the potential earnings, and other important features that make these platforms unique.

1. 99Bitcoins – Huge Learn-to-earn Platform with CompleteContent

Providing nearly 80 hours of interactive course content to a community of over 2.8 million subscribers, 99Bitcoins is one of the biggest platforms for crypto education. It's a one-stop resource for information on purchasing Bitcoin, trading cryptocurrencies, purchasing new tokens, decentralized apps, and much more.

Learning rewards are not currently offered by 99Bitcoins, but that will soon change with the introduction of its new $99BTC token. You will receive $99BTC as payment for watching videos, taking part in interactive lessons, and finishing challenges on 99Bitcoin.

99Bitcoins Learn and Earn Crypto Program

Owners of $99BTC tokens can use their funds to spend at partner platforms at a discount as well as gain access to exclusive premium content on 99Bitcoins. Additionally, 99Bitcoin intends to provide $99BTC token holders with cryptocurrency trading signals, enabling them to earn even more cryptocurrency.

Early investors can stake their tokens to earn an incredible return of 1,828% APY in additional $99BTC tokens during the ongoing $99BTC token presale. Furthermore, you have the opportunity to participate in 99Bitcoin's $99,999 BTC airdrop giveaway to win over $1,000 in Bitcoin. There's a giveaway going on right now, and entering is free.

2. Coinbase – Get $3 Each Month in Major Crypto Tokens

One of the first cryptocurrency programs to launch in the US was Coinbase Learn and Earn, which is still very well-liked by new users. Because it is accessible in over 100 nations, it is a fantastic choice for cryptocurrency users everywhere. It focuses on providing information about particular altcoins that Coinbase hopes to persuade users to trade, after which users are rewarded with those tokens.

This month, traders that learn about the Near Protocol can earn $3 worth of $NEAR, and those that learn about the SHPING dApp can earn $3 worth of $SHPING. Approximately once a month, Coinbase releases new coins for you to learn about, offering you the opportunity to win $6 worth of new cryptocurrency tokens each month. New Coinbase listings are a common subject of lessons.

Each course lasts for roughly ten minutes, and in order to demonstrate your understanding, you must pass the final quiz. You can hold your earned tokens right in your Coinbase account or send them to a self-custody wallet.

3. BitDegree – Discover Web3 to Get Rewards, Discounts, and More

BitDegree offers a sizable cryptocurrency learn and earn program that teaches users how to use Web3. Everything from trading on centralized and decentralized exchanges to safeguarding your cryptocurrency in hot and cold wallets to reaping rewards through staking and cryptocurrency interest is covered in the lessons.

Because BitDegree courses are divided into several lessons, learning modules take a lot longer than on other platforms. Each course should take about an hour. You will, however, also receive more practical experience, as some lessons require you to create an account with a wallet or exchange in order to use it yourself.

You will receive NFT completion certificates and Bits upon course completion. When you sign up for a cryptocurrency exchange, you can redeem your bits at BitDegree's reward center for deposit matches, discounts on services, and cryptocurrency tokens. Compared to other platforms, this one requires a little more preparation because the rewards have the potential to be significantly higher in addition to the cryptocurrency you can trade.

4. Revolut – Get $15 or more in $DOT

Revolut, the finance app juggernaut, has its own cryptocurrency education program that awards students with up to $15 worth of Polkadot's $DOT token upon completion of foundational courses. The courses, which are geared toward beginners in the field, cover the fundamentals of token security in a cryptocurrency wallet, how blockchains operate, and how to buy and sell cryptocurrency.

Lessons on Revolut are brief—roughly five minutes each—and blend textual information with hurried videos. You will need to finish a brief quiz at the conclusion of each lesson in order to get your $DOT reward.

You are able to take as many lessons as you like, but each Revolut account can only earn a maximum of $15 in $DOT. Thus, even though this learn-and-earn program is a fantastic way to receive free cryptocurrency, there is a cap on the total amount you can make.

5. CoinGecko – Learning Rewards in $ALI, $ZBU, $AZERO, and More

Like Coinbase, the cryptocurrency data aggregator CoinGecko offers a fun learn-and-earn program that allows you to earn free cryptocurrency. In addition to earning rewards in the token you just learned about, you can learn about a wide range of new altcoins.

For tokens like Zeebu ($ZBU), Aleph Zero ($AZERO), and ALI Agents ($ALI), CoinGecko presently provides lessons and rewards. Oasys ($OAS), Sei Network ($SEI), Tezos ($XTZ), and other topics have been covered in previous lessons. If you're interested in learning more about these coins, you can still enroll in these older courses, but there are no more rewards.

The lessons on CoinGecko last for about 20 minutes and award you with $1–$5 in cryptocurrency. You also receive some candy, which you can exchange for access to special NFTs and airdrops, giveaway entries, and discounts with partners using CoinGecko. A few of the incentives are really valuable; one offer gives you a lifetime 20% discount on a Coinrule subscription, for instance.

6. Phemex – Get up to $1 for each cryptocurrency trading lesson.

A crypto learn and earn program is available on the cryptocurrency trading platform Phemex, and it pays money directly into your trading account. After that, you can purchase any of the hundreds of cryptocurrencies offered on Phemex with your rewards.

The trading platform is the main topic of Phemex's instruction. Lessons on how to earn with Phemex Launchpad, trade cryptocurrency spot and derivatives, and move cryptocurrency between Phemex and a wallet are included.

Lessons are completed in about five minutes, and each one is followed by a brief quiz. Each lesson has a different reward, but generally speaking, you'll get $0.60 to $1 in cash in your trading account. There are six lessons available right now, with a $4.40 maximum earnings.

7. CoinMarketCap – Learn and Receive Dozens of Token Rewards

With CoinMarketCap's crypto learn and earn program, you can learn about a variety of alternative coins, such as DeFi Chain, Tron, Solar, Sandbox, and more. The platform is a great way to obtain small amounts of many different altcoins because it offers rewards in the token you learn about.

CoinMarketCap only pays out rewards for one or two tokens at a time, which is a drawback. If a coin does not have an ongoing campaign, you can still learn about all of the tokens for which the platform has produced courses, but you will not be rewarded.

Coin Market Cap Learn and Earn Free Crypto

The course for each coin is divided into multiple video lessons, each lasting a few minutes. The lesson and follow-up quiz take ten to fifteen minutes to complete in total, and you will receive a reward of about one token for each one.

8. Binance Academy – Watch Videos to Win Dozens of Popular Cryptocurrencies

There are numerous courses available on a variety of altcoins at Binance Academy. Axelar, CyberConnect, Kyber Network, Radiant, DeXe, and many more topics are covered in the lessons. The courses are also brief; the majority include a three to five minute video and some textual material afterward.

You can take a quiz at the end of a course to get rewarded in the token you just studied. Although rewards differ, they usually total about $1 in cryptocurrency.

Binance Academy Crypto Learn and Earn Program

Every few months, Binance Academy offers a new coin to learn about and earn. You can only earn about $1 at a time because old coins aren't eligible for rewards. The good news is, if you're just eager to learn more about a particular altcoin, you can access all of the previous lessons whenever you'd like.

9. Pixel Realm – Discover Metaverse Initiatives and Get $LBL

A Web3 gaming ecosystem called Pixel Realm informs users about play-to-earn games, NFT, and the metaverse. At the moment, it provides a single educational course outlining the NFTb project, which is a platform that allows users to amass NFTs.

There are four lessons in the course, each lasting roughly five minutes, and a knowledge test at the conclusion. Upon passing the test, you'll get 205 $LBL tokens, which are roughly equal to $1.

Pixel Realm Learn and Earn Crypto Program

More educational courses with rewards in alternative tokens are being developed by Pixel Realm. Yoda Labs, a Web3 gaming hub and launchpad, is the subject of one upcoming course; SatoshiSync, a DeFi platform, is covered in another.

10. BeinCrypto – Get a $200 Coinbase Trading Bonus

BeinCrypto provides US traders interested in purchasing cryptocurrency on Coinbase with an incredibly lucrative learn and earn program. Through this program, you register for a Coinbase account, take a quick course on using the platform, and get a $200 welcome bonus. You can trade Bitcoin and other altcoins that are available on Coinbase with the bonus.

Seven lessons make up BeinCrypto's Coinbase course; each takes roughly ten minutes to read through. You have to complete the quiz at the conclusion of each lesson in order to get the bonus.

BeinCrypto Crypto Learn and Earn Program

Importantly, only US citizens are eligible to participate in BeinCrypto's learn and earn program. In order to receive your learning reward, you need to finish the KYC verification process in Coinbase.

11. Robinhood – Get $1 in Free $AVAX While Using a Mobile Device to Learn

Avax, USDC, and BTC are all offered for $1 each through the learn and earn program of cryptocurrency broker Robinhood. You can enroll in quick courses on each of these tokens; they last for about two minutes apiece and are quickly followed by five-question tests. You can try the quiz as many times as you like, but in order to receive cryptocurrency, you must correctly answer 4 out of 5 questions.

The program from Robinhood has the benefit of being mobile device optimized. Thus, you can learn and get free cryptocurrency while on the go—something that isn't achievable with every app we looked at. It should be noted that in order to use the learn and earn program, you need to have a Robinhood Trading account.

Currently, Robinhood only allows $3 in cryptocurrency, but the broker might be developing plans to support more coins. Thus, your potential earning potential could rise in the future.

How We Organized the Best Crypto Learning and Earning Programs

Hundreds of learn and earn cryptocurrency apps were analyzed in order to select the best ones. The following criteria helped us determine our top choices:

Earning Potential – 25%

One of the most crucial criteria we used to rank these programs was the amount of cryptocurrency you could earn with a learn and earn program. There are programs that provide practically infinite rewards, and new courses and incentives are added on a daily or weekly basis. Some have somewhat lower earning potential, and new rewards and courses are added every month.

Although our list of the top learn and earn programs includes some with low maximum earnings ($10 or less in lifetime crypto earnings), these programs are still highly recommended. Other features that made these programs stand out were their excellent instructional content and short time requirements.

Time Requirement – 25%

To find out how long it really takes to earn the promised cryptocurrency reward, we put each program's courses to the test. This is crucial because two programs might have identical payout amounts but drastically different time requirements.

The majority of the programs we reviewed performed a good job of dividing the material into manageable chunks and cutting down on the total amount of time needed to finish a course. With the learn and earn programs we chose, you can generally anticipate getting a $1 reward every 5–10 minutes.

Accessibility and Ease of Participation – 20%

We considered this when comparing programs because not all learn and earn options are accessible to all users. Certain learn and earn programs, for instance, are restricted to US users only, while others expressly forbid US citizens.

We also examined the prerequisites for enrolling in a learn and earn program. While registration was required for every program we looked at, some did not require identity verification. This lowers the entry barrier for those who wish to amass as much cryptocurrency as soon as possible.

DeFi Chain Learn to Earn Course on BeinCrypto

Variety of Tasks Offered – 15%

Learn and earn programs that are monotonous can quickly wear you out and make it seem like a chore to finish learning and get the most out of your rewards. Thus, in order to keep the user experience engaging, we took into account whether each program provided a range of learning options, such as interactive tasks, videos, and text, as well as whether the content covered a broad range of topics.

Quality of Educational Content – 15%

Lastly, we thoroughly examined each learn and earn program's content to assess its caliber. We searched for comprehensive, user-friendly content that was accessible to those who were new to cryptocurrency. In order to accommodate users with varying learning styles and to reinforce key points, we also assessed whether the content is delivered in multiple formats.

What is Learn and Earn in Crypto?

You can get paid to learn about cryptocurrencies through learn and earn programs. They ask you to take a quick course covering a cryptocurrency-related subject, after which you must pass an exam to prove your understanding. If you pass, you'll receive bonus money for a cryptocurrency platform or cryptocurrency tokens.

Consider the upcoming learn and earn program from 99Bitcoin as an example. This platform will provide engaging classes covering cryptocurrency trading. You will receive $99BTC tokens upon course completion, which are valuable in the 99Bitcoins ecosystem. You can also sell your cryptocurrency for cash or convert the tokens into another cryptocurrency, such as Bitcoin.

Typical components of a program designed to learn and earn include:

Text and video courses covering basic crypto topics such as trading, utilizing a crypto exchange, and blockchain technology
Textbooks and videos on particular cryptocurrencies, such as altcoins or Bitcoin, Ethereum
At the end of each course, there are quick tests to assess your knowledge.

You might also have to confirm your identity and open an account with the program provider (like a cryptocurrency exchange account) as part of an educational course.

Top Tips for Learning and Earning Cryptocurrency Programs

Programs that teach you how to earn cryptocurrency while you learn about Web3 can be a useful way to get free cryptocurrency. Here are some best practices to adhere to in order to ensure that you get the most out of these programs.

Change Up the Way You Participate

You can learn more about a variety of topics, boost your overall earnings, and maintain a fun and engaging experience by enrolling in multiple learn and earn crypto programs. This is due to the fact that various programs may introduce courses covering various facets of the cryptocurrency market and offer rewards in various altcoins.

Although it can be beneficial to join a few different programs, avoid overcommitting yourself by attempting to participate in each and every learn and earn initiative. If you select a few top programs to remain with and then optimize your earnings within those, you'll have a better overall experience.

Have Reasonable Expectations

It's critical to have a realistic expectation for both the amount of money you can make and the turnaround time for crypto learn and earn programs. These are not get-rich-quick schemes, but rather rewarding and educational programs.

The majority of learn and earn programs have maximum earnings caps. You will have a much better experience if you enter with realistic expectations for your earnings rather than entering with knowledge of how much you can make and setting goals to reach that amount.

Remain Informed and Up-to-Date

Programs for earning cryptocurrency are constantly evolving. New courses are offered by providers, who also phase out rewards for previous courses and offer rewards in new tokens. To make sure you're getting the most cryptocurrency for your time, it's crucial to be aware of which courses are currently offered and where you can earn the greatest rewards.

Conclusion – Is it Worth It to Learn and Earn in Cryptocurrency?

With the help of cryptocurrency learn and earn programs, you can become more knowledgeable about Web3 trends, blockchain technology, and the cryptocurrency market while also receiving free cryptocurrency to take part in the decentralized revolution. These programs won't make you wealthy, but they can be quite helpful if you want to experiment with different altcoins or get a taste of cryptocurrency without having to purchase tokens yourself.

According to us, 99Bitcoins has the greatest cryptocurrency learn and earn program for 2024. Explore hours of interactive content and gain access to even more exclusive content by earning the platform's new $99BTC token. To participate in the $99BTC token presale or the $99,999 BTC airdrop giveaway, visit 99Bitcoins right now.

11 Best Learn and Earn Crypto Programs in 2024

Cryptocurrency has the potential to bring some of the greatest return on investments, but it also comes with a brand new set of risks that investors need to be aware of. Risks of this kind are worth the possibility of huge returns, but on the other hand, you equally need to study and control them to protect your investment capital. This guide will cover the main risks related to cryptocurrency investments, such as market volatility or regulatory uncertainty, and provide advice on how to mitigate them appropriately.

1. Market Volatility

Overview:

Crypto markets are renowned for their volatility, where prices can change quickly and unpredictably based on variables like momentum, similar technology advancements, changes in legislation with broader economies. A high degree of price volatility is one of the primary reasons cryptocurrencies carry a substantial amount of risk — often leading to large gains or losses in mere days.

Impact:

Price Swings: There will be dramatic price swings of 2–3%, which can make an investor rich or poor, depending on their stand and risk appetite.
Whipsaw Effect: Volatility can lead to cascade effects, which in turn trigger panic selling or buying that enhances price volatility.
Market Manipulation: Cryptocurrencies are susceptible to market manipulation caused by whales and market manipulators, especially in illiquid markets with low trading volumes, resulting in dubious price movements.

Mitigation Strategies:

Diversification: Diversify your portfolio like in real estate (different areas) to avoid single failures and huge losses that could result from it.
Risk Management: Utilization of stop-loss orders, hedging strategies and partial allocation to stablecoins/ traditional assets can help in managing downside risk.
Long-Term Perspective: Having a long-term perspective that is not influenced by short term speculation will be beneficial in getting through these ups and sills making the most out of long-term growth from investments.

2. Regulatory Uncertainty

Overview:

Cryptocurrencies are broadly seen as an inevitable part of the growing world economy, but currently, their legal standing is in limbo because they do not adhere to any sovereign legal authority. As we all know, Regulatory uncertainty leads to compliance risks, legal challenges and market volatility that will definitely weaken Investor confidence and acceptance.

Impact:

Legal and Compliance Risks: Legal challenges, fines, or even shutting down of exchanges and projects can impact cryptocurrency markets due to regulatory changes and enforcement actions.
Investor Uncertainty: Problems with regulatory clarity or inconsistent positions from regulators on different cases can put off institutional investors and the general public towards using cryptocurrencies.
Market Fragmentation: Different regulatory requirements and rules among jurisdictions can fragment the global cryptocurrency ecosystem by impeding access to international markets and innovation.

Mitigation Strategies:

Compliance Frameworks: Compliance FrameworksThese requirements are mainly around Know Your Customer (KYC), Anti-Money Laundering, and other compliance standards that ensure cryptocurrency business or investor is not being used to launder money in exchange for cryptocurrencies.
Engagement with Regulators: Partnering with regulators, policymakers and industry stakeholders to support transparent and balanced regulatory frameworks will help build trust in the industry by encouraging regulatory certainty while spurring responsible innovation.
Diversification Across Jurisdictions: You can mitigate regulatory risks that pertain to jurisdiction uncertainty by investing in cryptocurrencies that adhere to the legal framework of regulation across multiple jurisdictions.

3. Security Vulnerabilities

Overview:

As a result, cryptocurrencies and blockchain networks are potentially exposed to numerous security threats and risks, such as hacking attacks, smart contract bugs, phishing tricks, money laundering attacks, etc. Attackers take advantage of flaws in software or taxon structure or even tempt vicims to fish for information so they can do things like empty people's bank accounts, move markers, and/or fear ally-owed operations are potentially on the line as well. These threats are real to users.

Impact:

Loss of Funds: Investor money stored in cryptocurrency wallets, exchanges or smart contracts can be hacked, phished and broken.
Reputation Damage: How security incidents and data breaches can hurt the credibility of cryptocurrency projects, exchanges and service providers, souring investor/ user trust.
Market Manipulation: Attackers can manipulate the price of a cryptocurrency by launching security vulnerabilities and exploits, disrupting trading operations, or undermining network integrity.

Mitigation Strategies:

Secure Storage Practices: Not keeping cryptocurrencies in only hardware wallets, cold storage solutions or vetted custodial services may mitigate risk to theft and unauthorized access
Strong Authentication: Includes two-factor authorization, multi-signature wallets and biometric authentication to further secure all operational transactions of cryptocurrency.outputs.
Code Audits and Security Testing: Regular security audits, code reviews & penetration testing of smart contracts, wallets and infrastructure can help to spot vulnerabilities before an abuse.

4. Technology and Operational Risks

Overview:

Cryptocurrency investing can carry a level of technology and operational risk due to the development process associated with blockchain networks, software upgrades, network maintenance and governance. Examples of faults include technical issues with the software, bugs exploited by smart contracts, blockchain forks and consensus failures.

Impact:

Network Disruptions: Technical issues, software bugs and even protocol upgrades can disrupt blockchain networks resulting in transaction delays, network congestion or service outage.
Loss of Funds: Operations can be affected regardless. Exchanges can be hacked, or problems with smart contracts can cause investors to lose their crypto wallets at a credit bank.
Governance Challenges: A fruitless debate over inadequate arguments for protocol upgrades, consensus mechanisms or governance decisions can cause contentious hard forks with community splits as ecosystem fragmentation.

Mitigation Strategies:

Due Diligence: Conduct due diligence on cryptocurrency projects and the development team's technical stack governance model to assess the risk of technical failures and, hence operational failures.
Network Monitoring: Continuous monitoring of blockchain networks, updates to software and network health metrics of the same can serve as an early warning system for potential problems or vulnerabilities that need to be addressed.
Diversification: By spreading your cryptocurrency investments across multiple projects, protocols, and ecosystems, you can reduce exposure to single points of failure and lower the impact or likelihood of successful technology or operational systemic threats.

Conclusion

The promise of returns, innovation and financial inclusion draws investors to cryptocurrency court risks. In order to navigate this landscape of the purgatory digital asset world effectively, investors need to be aware of certain values at risk, including market volatility; lack of regulatory clarity; and risks related to security and/or technological and operational contingencies. Using appropriate risk management strategies instead, they can manage their exposure to these risks effectively and start working towards financial goals within the dynamic world of cryptocurrencies.

Main Risks Associated with Cryptocurrency Investments