In crypto world, there are various ways to generate tokens. Mining and staking are the most well-known, but did you know that there are other possibilities? In this article, we will explore the best ways to increase your AVAX holdings, whether with or without an initial investment.
First, What Is Avalanche?
We recommend reading our article on Avalanche, where you’ll find all the necessary information to understand Avalanche in-depth.
But in a nutshell, Avalanche is an open-source blockchain protocol that is compatible with the Ethereum Virtual Machine. This compatibility allows it to host both its own DApps and all those on the Ethereum network.
It allows users, through decentralized means and smart contracts, to trade any asset, launch their own assets, and develop decentralized applications.
How Can I Generate AVAX?
AVAX is Avalanche’s native token, and you’ll need it for any actions within the network. With its Proof of Stake (PoS) validation method, the easiest way to generate AVAX is to become a network validator. This leads us to our first method:
1. Validator, Delegator, and Staking
You might think there’s no difference between being a validator, delegator, and staking, but there are some important distinctions.
Validator: These individuals operate nodes and validate transactions in exchange for rewards. They set a service fee for delegators, and a minimum of 2000 AVAX is required to become a validator.
Delegator: Delegators contribute AVAX to validator nodes in exchange for rewards. They can view validator commissions and choose the one that suits them best. A minimum of 25 AVAX is required to become a delegator.
Staking: While being a validator and a delegator involves staking, there are also various platforms and protocols that offer AVAX rewards through staking. The most well-known are Aave and Compound.
2. Participation in DApps
As Avalanche allows for the creation of new decentralized applications (DApps), it was only a matter of time before games and NFTs started to emerge within the Avalanche ecosystem.
Play-to-earn games enable users to earn rewards for playing and advancing in the game. What’s significant is that, unlike traditional gaming, players can now buy, sell, and hold assets within their wallets.
These games gained significant popularity around mid-2021, especially on the Ethereum network due to its low fees and speed. It was expected that developers would start using Avalanche as the blockchain for their games.
Some of the notable games for farming AVAX include:
We recommend following Avalanche’s social media and communities in your language to stay updated on new DApps and the benefits of being an early user.
Faucets are the simplest way to get free AVAX. These are applications or websites that give you cryptocurrencies in exchange for completing a small task. While the amounts may be small, consistency and patience can make an impact. At the very least, you won’t have to pay gas fees.
To do this, you should go to Stakely, select AVAX, and enter the address where you want to receive your tokens. Then, complete the activity, and within a few minutes, you’ll have your cryptocurrencies.
Faucets are not a long-term way to generate tokens, as the amounts are small. However, they do help you avoid paying gas fees. Also, the AVAX faucet may not always be available. In such cases, I recommend joining communities in your country or language and asking questions there. They are the true experts.
As you’ve seen, there are various ways to earn rewards in AVAX, whether with a minimum investment of 2000 AVAX or without investing a single euro. The key is to stay informed about the different options and seize opportunities that best match your needs and investor profile. If you know of another way to generate AVAX, please share it in the comments.