The mechanics of cryptocurrency is just like how fiat currency works. It is used to buy goods and services through virtual currencies instead of real money. The main advantage of digital tokens is that it is not under any centralized authority which makes it untouchable and uncontrollable by the government. Hence, it is an inflation-free and tax-free type of monetary transaction. Another advantage of it is the absence of a middleman, which is equivalent to abank in the real world, in terms of exchanging native tokens to another one.The question that the beginners would be left with is: how does this decentralized crypto exchange works?

How To Earn Cryptocurrency

In the real world, we earn cash by working. But in the world of cryptocurrency, there are a lot of ways in earning virtual tokens which are broken down into the following:


This method is best suited for beginners who do not have any virtual tokens at hand. You can acquire your first crypto by buying using your credit card or cash. The only thing you need to do is to use decentralized exchange apps that will convert your cash to tokens as soon as you have verified the account you have registered.If you are already a crypto holder and you want to try another crypto blockchain, you can use decentralized exchange apps like Cardano DEX to convert native Cardano tokens like ADA to other virtual tokens and vice versa.

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Some blockchain providers like BitCoin and Ethereum employ this method by giving users complex mathematical equations that need to be solved to validate their transactions. The user who validated first the transaction will receive tokens from it. The downside of this is that it uses high-end equipment like Application-Specific Integrated Circuit (ASIC) which is considered not environmentally friendly because it would consume large energy to solve complicated problemssince it is a high-functioning integrated circuit chip. This method is typically employed by Proof-of-Work (PoW) blockchains.


Staking is employed by Proof-of-Stake (PoS) blockchainwhich works more like a lottery because the transaction is validated based on how many coins a user holds. The larger you have, the more the system chose you. In this way, a user can do this on a regular computer which requires less energy consumption compared to mining-based or PoW blockchain.

DeFi Yield Farming

Yield Farming or Liquidity Mining works like bank loans wherein the users called investors can deposit their cryptos into a lending protocol to earn interest from trade forex fees.


Airdrops campaigns are used by emerging blockchains to attract crypto enthusiasts by giving them a set of tasks that they need to complete to acquire tokens that can be traded when the project hits the market.

The crypto blockchains never run out of ideas in providing ways for their users to earn virtual currency that is why its popularity continuously skyrocketed.