Education

How to Get Cryptocurrency for Free

Note: As of May 31, 2022, Abra Perx has been paused. Abra Perx rewards mentioned in the article below are no longer active. New ways of using CPRX are planned for the future. We will publish updated details at a later date.

Crypto has hit the mainstream. For example, U.S. crypto users will reach a projected 33.7 million in 2022, compared to just 15.3 million in 2020.

Everyone wants to buy their favorite coins and tokens on their favorite platforms like Abra. However, there are ways to get cryptocurrency for free. 

In this guide, we’ll explain everything you need to know about airdrops, staking and lending, reflection tokens, crypto referrals, and crypto faucets. 

Let’s dive in and help you find ways to score free crypto. 

Airdrops

Airdrops are one of the most popular methods that projects use to distribute crypto.

Each crypto project sets qualifications that determine whether a user receives an airdrop. Some projects ask users to complete tasks (i.e., following the project on social media). This type of airdrop pays much smaller amounts on average.

Projects that build successful platforms often decide to create their native cryptocurrency. Then, the platforms distribute their native cryptocurrencies to users.

A common way for users to get free crypto via an airdrop is by using DeFi protocols. For example, in September 2020, Uniswap airdropped 400 UNI to each user who used its decentralized exchange. Qualified users only needed to claim the airdrop on the official Uniswap website during the airdrop period. 

Each user received an airdrop of 400 UNI, regardless of their historical trading volume on the platform. At its all-time high, UNI was worth over $43. At one point, the UNI airdrop value exceeded $17,000. 

Another common way to receive an airdrop is automatic distribution. A new project may distribute a new coin or token to users holding a minimum balance of another coin in their digital wallets. For instance, Bitcoin Cash distributed 1 BCH for every person who owned 1 Bitcoin (BTC) before its August 2017 launch. At its all-time high, the value of the BCH airdrop was over $4,300.

Staking and Lending

Staking and lending are two popular ways to earn interest with crypto. Both have two different processes for users to get cryptocurrency for free.

Abra Earn offers interest-earning accounts for cryptocurrencies such as Bitcoin and Ethereum, and stablecoins such as USD Coin and Tether. Lenders deposit crypto into an account, then the platform lends those funds to borrowers. The platform generates yield when borrowers pay back loans with interest, and lenders receive a portion of the yield.

Crypto staking works a bit differently. Users commit funds to a blockchain validator, then a validator verifies transactions on a public blockchain network. 

The network generates new cryptocurrency and rewards the stakers. The amount the stakers receive varies based on blockchain network rules. 

Staking isn’t possible for all cryptocurrencies. Many networks use a different mechanism — called Proof-of-Work — to validate transactions. For example, crypto interest accounts like Abra Earn offer the only way to earn a yield on Bitcoin, Bitcoin Cash, and Litecoin.

Reflection Tokens

Reflection tokens are cryptocurrencies that distribute a percentage of every transaction fee back to holders. Most cryptocurrencies seek to minimize expenses; however, it is imperative that reflection tokens intentionally charge higher fees to incentivize holders and punish sellers – typically 4% to 12% per transaction.

The primary goal of reflection tokens people is to reduce selling pressure in volatile markets. Reflection tokens have only been around since 2021 and remain highly experimental, so it’s very important to do your own research on the project. 

SafeMoon, which launched in March 2021, is one of the earliest and most popular examples of a reflection token.

Other examples of reflection tokens include NFT Art Finance and Rainbow Token.

Crypto Referrals

Have you recommended a crypto exchange or crypto banking app to your friends or family? Several exchanges offer a referral program where both the referee and referrer earn crypto. 

To claim free crypto, the referrer needs to sign up via the referee’s unique link. Each exchange generally sets a minimum amount of crypto that the referral must purchase for both parties to receive the crypto referral reward. 

The Abra Perx refer-a-friend program offers a similar referral program. To qualify, your friend (the referrer) needs to hold $15 of crypto in the Abra app for 30 days before the reward payout. For U.S. users, both referee and referrer can earn $25 in CPRX tokens. Non-U.S. referrals earn $5.

Crypto Faucets

Crypto faucets are publicly available funds that anyone can use to add funds to their crypto wallets. For example, many blockchains require users to pay network fees(transaction fees that go to validators who validate crypto transactions). Usually, crypto faucets allow users to get a small amount of free crypto (i.e., $1 or less). This amount is just enough to cover network fees.

Requesting funds from a crypto faucet is sometimes as easy as pushing a button on a web page. Other crypto faucets ask users to complete a few tasks like viewing videos, advertisements, or solving a series of captchas. 

Ethereum-faucet.org, Fire Faucet, and Faucet Crypto are a few examples of crypto faucets.

Download Abra and Get Free Cryptocurrency

Now that you know more about the ways to get crypto for free, download the Abra app and begin your crypto journey today!

Use Abra Earn to receive interest on your crypto and stablecoin holdings. Use Abra Trade to trade 110+ and receive CPRX rewards. Plus, refer your friends to get even more CPRX rewards with our Abra Perx loyalty rewards program.

Download the Abra app on Android or iOS to begin trading or earning interest on cryptocurrency today!

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About Abra

Established in 2014, Abra is on a mission to create a simple and honest platform that enables millions of cryptocurrency holders to maximize the potential of their assets. Abra enables both individuals and businesses to safely and securely buy, trade, and borrow against cryptocurrencies – all in one place. Abra’s vision is an open, global financial system that is easily accessible to everyone.

Why Abra

Based in the United States, Abra is available in over 150 countries and makes it easy to convert between crypto and a wide variety of local fiat currencies. With over 2MM customers, $7B in transactions processed, and $1.5B in assets under management, Abra continues to grow rapidly. Abra is widely loved and trusted – in April 2022, pymnts.com reviewed and rated Abra amongst the top 5 most popular crypto wallets in the market. Abra is backed by top-tier investors such as American Express Ventures and First Round Capital.

How Abra Protects Your Funds

Abra places clients’ financial objectives and security first. Abra practices a culture of risk management across all levels and functions within the organization.

Abra employs a state-of-the-art enterprise risk management framework that comprises a comprehensive set of policies, procedures, and practices detailing all applicable risk-related objectives and constraints for the entirety of the business. Abra has instituted a complete set of requisite systems and controls that continuously enforce these policies, procedures, and practices to manage all operations, including credit and lending. Abra’s independent Risk Committee comprises experienced compliance, risk, securities, and fraud operations professionals with backgrounds in industries ranging from traditional and digital assets banking, payments, remittance, to fintech.

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