Nothing comes for free? Well, this statement isn’t entirely correct in the world of crypto and decentralized finance (DeFi). This article will teach you about a technique to earn crypto with minimal investment and sometimes even for free — no scam and absolutely legit!
I know it sounds crazy. Why in the world should someone give you crypto coins for free? And I’m pretty sure the first thing that comes into your is: “That must be a scam.” Well, I will show you it isn’t. On the contrary, I will introduce a simple, safe, and legit approach to earning crypto tokens for free.
However, there’s a tiny catch: The approach doesn’t work for any coin you probably want to have. More precisely, the technique works for freshly added coins only. Accordingly, you won’t be able to earn Bitcoins, Ethereums, or Solanas with it. Nevertheless, once you’ve earned coins for free, it is possible to swap them for the common crypto coins.
Genesis Pools — The key to earning crypto tokens for free
As the headline already states, we use genesis pools to earn crypto tokens for free. Here’s some background in case you are not familiar with genesis pools.
In fact, genesis pools are one possibility project teams and organizations use to distribute a newly created crypto token. However, they usually run for 24 to 48 hours only.
Here are the details
Once a project team decides to go for the genesis pool approach, they usually create a couple of different pools. For example, the screenshot below shows the genesis pools of the STABLE2 token. In this case, there were genesis pools for DAI, WFTM, and USDC. Moreover, they created genesis pools for liquidity pairs (HORSE-USDC, STABLE-USDC, and STABLE2-USDC).
Each pool had a specific amount of HORSE2 tokens assigned to it. In order to grab your free tokens, you have to deposit the coin needed for a genesis pool (for example, you deposit DAI in the DAI pool).
Sometimes (as shown in the above screenshot), projects require a small deposit fee when depositing (it shouldn’t be more than 2%). However, sometimes you even don’t have to pay a deposit fee.
Once you’ve deposited a token and the genesis pool begins, you start earning the new token. How many tokens you earn depends on the APR of the specific pool. Usually, the more common and stable the coin you deposit, the fewer rewards you get in the form of new tokens. However, even with stable coins, it is often possible to earn 10% and more within 24 hours. Depending on the project, the staked amount, and token, you can even earn >1,000% in 24 hours. The below screenshot shows the VVS genesis pool of the LEAF token that generated a daily APR of 1,675%
Once the genesis pool has ended, you can withdraw your initial investment. And on top of that, you can withdraw your freshly earned tokens. So the only costs that may occur are small deposit fees. Et voilá, you just earned tokens for free!
What to do with your freshly earned crypto tokens?
Now that you’ve earned some tokens for free, the question arises of what you should do with them. From my point of view, it depends on the token and the linked project. I simply hold the tokens if I think the project has potential and will grow mid-and long-term. On the other side, if I don’t see any potential in the project, I try to swap the tokens for stable coins or other tokens I’m interested in.
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Where to find genesis pool projects
There are many places where you can search for upcoming genesis pools. Whatthefork and Defigator are excellent resources to search for new projects.
Are genesis pools safe?
Well, I believe the word safe doesn’t exist in DeFi. However, personally, I consider genesis pools as one of the safer techniques. Nevertheless, analyzing and researching projects thoroughly is essential before participating in genesis pools. If you want, you can use my 10-step approach to study new crypto projects for that.
Disclaimer: This blog post is not financial advice. Please do your research before investing. Only invest what you are willing to lose.