How to make money with MetaMask? This article comes with 6 useful tips to start earning passive income over your funds with MetaMask.
Do you have some cryptos in your MetaMask cryptocurrency wallet? Or are you looking for an extra way to earn passive income over your crypto assets? Look no further! In this blog post, I’ll provide you with some practical tips on how to make money with MetaMask.
Mainly, MetaMask is a very popular cryptocurrency wallet used by millions of enthusiastic crypto and NFT users. MetaMask is a non-custodial wallet, meaning you are in full control of all your assets.
Additionally, it allows users to store, manage and exchange digital assets securely. Thanks to its easy-to-use interface and robust security features, MetaMask has become the most popular crypto wallet for many crypto enthusiasts.
Besides, did you know that you can also use MetaMask to make money? Whether you’re an experienced trader or just getting started, these six tips will help you maximize your earning potential with MetaMask.
Can I earn with MetaMask?
As explained above, MetaMask is more than just an ordinary wallet that only allows you to manage cryptocurrency assets. Thanks to the ongoing developments in the cryptocurrency and blockchain space, it’s also possible to use MetaMask to connect to platforms and start earning additional crypto assets.
Below is a summary of the 6 best options you have if you want to make money with MetaMask:
- play-to-earn(earn crypto when playing games)
- providing liquidity(make money with fees over crypto trades)
- defi lending(lend out cryptos from within your wallet)
- liquid crypto staking(earn crypto with staking, while remain liquid)
- yield farming(earn new tokens, by providing liquidity)
- staking NFTs(stake your NFTs and earn new tokens)
Don’t worry, later on in this article, I’ll go into detail according to each step mentioned above. Firstly, a basic explanation of how MetaMask works in the crypto DeFi space.
Finally, I’m just an enthusiastic crypto guy. Meaning, all info shared in this article should be considered for educational purposes only. To avoid losses and reduce risk, do some proper research before investing in your cryptos.
How Does Making Money With MetaMask Work?
To understand how MetaMask works it is essential to learn the basic concept of Web3. In particular, Web3 refers to the next generation of the internet that is decentralized, peer-to-peer, and built on blockchain technology. It aims to empower individuals by giving them full control over their digital identities, data, and assets.
DeFi (Decentralized Finance) wallets like MetaMask are an integral part of Web3. It enables users to securely store, manage, and interact with various decentralized financial applications and assets, such as cryptocurrencies, tokens, and lending platforms, without the need for intermediaries like traditional banks.
In other words, MetaMask doesn’t offer any of these services to make an additional income. With Metamask you have an interface that allows you to connect to other decentralized platforms.
How To Make Money With MetaMask
Whether you are using the desktop Chrome extension or the mobile app, MetaMask offers you the ability to make money with your crypto assets. Also, making money this way is completely free without extra fees involved.
All in all, let’s dive in…
Play-to-earn is a concept that has gained significant traction in the crypto DeFi space. It offers an innovative way for users to earn rewards and generate income by participating in decentralized gaming platforms.
Unlike traditional gaming models, where players spend time and money on games without any tangible returns, the play-to-earn model takes a different approach. It utilizes blockchain technology and smart contracts to establish an ecosystem that allows players to earn valuable digital assets.
This means that players are no longer merely investing their time and money into games; instead, they have the opportunity to receive something of value in return for their efforts.
In play-to-earn games, players engage in various activities within the game. For instance, by completing quests, achieving milestones, or participating in competitions, and are rewarded with in-game tokens or assets. These tokens hold real value and can be traded or sold on decentralized exchanges for other cryptocurrencies or fiat currencies. This provides an opportunity for players to monetize their time and effort spent in the game.
A crypto wallet like MetaMask is necessary to participate in web3 play-to-earn games. As it serves as a secure digital wallet for storing and managing the in-game tokens and assets earned. Examples of popular Web3 games are:
- The Sandbox
- Guild of Guardians
- Polygonum Online
Overall, play-to-earn represents a paradigm shift in the gaming industry, aligning the interests of online players and crypto enthusiasts. Additionally, by offering a new form of income generation and financial empowerment in the DeFi space.
#2 Providing Liquidity
Another way to earn money with MetaMask wallet is to provide liquidity. Providing liquidity on a DeFi platform like Uniswap means that you contribute your cryptocurrencies to a liquidity pool. In fact, this is a smart contract that facilitates trading between those cryptocurrencies. By doing so, you become a liquidity provider (LP).
When you provide liquidity, you typically contribute an equal value of two different cryptocurrencies to the pool, creating a balanced pair.
For example, you might contribute equal amounts of Ethereum (ETH) and a stablecoin like USDT. The pool now holds these assets and allows users to trade between them directly.
As a liquidity provider, you earn fees for the trading activity that occurs in the pool. Whenever someone trades or swaps between the two assets you provided liquidity for, a small fee is charged. This fee is proportionate to your share of the liquidity pool.
So, if you provided 10% of the total liquidity, you would earn 10% of the fees generated.
Overall, providing liquidity on Uniswap allows you to earn fees from trading activity. In effect, you potentially earn additional cryptocurrencies through yields. This is a perfect opportunity to generate income from your crypto holdings.
#3 DeFi Lending
DeFi lending allows individuals to lend and borrow cryptocurrencies without the need for intermediaries like banks. In this system, users can lend their cryptocurrencies to others and earn interest on their loans or borrow cryptocurrencies by providing collateral.
With MetaMask, you can connect to different Defi lending platforms like Aave, Compound, and MakerDAO. To earn interest, you’ll need to deposit your cryptocurrency into one of these lending platforms.
The interest you earn will depend on factors like the platform you choose, the cryptocurrency you deposit, and the length of time you lend.
Also, you can withdraw your cryptocurrency at any time. However, you may have to pay a penalty for withdrawing before the lending period ends.
Defi lending can be a way to earn passive income on your cryptocurrency, but it also carries risks like price volatility and smart contract vulnerabilities.
It’s important to do your research and understand the risks before depositing your cryptocurrency into a Defi lending platform.
#4 Liquid Crypto Staking
Liquid crypto staking is a process that allows cryptocurrency holders to earn rewards by staking their tokens in a staking pool. In addition, it is facilitated through smart contracts on a blockchain network.
To enable liquid staking, tokens are pegged to a derivative asset or a synthetic token that represents the staked tokens and can be traded freely. This allows users to continue using their tokens while earning staking rewards.
Tokens can be pegged using various methods, such as over-collateralization. Meaning, a certain amount of collateral is required to issue the synthetic token. Also, there is algorithmic stabilization, where supply and demand are balanced to maintain the peg.
Below is a list of the most reliable platforms for liquid staking coins. In short, you just need to connect your Metamask to one of these platforms and you can start staking from here. The platforms for liquid staking coins:
- Lido – Liquid staking solution originally built for ETH 2.0
- Rocket Pool – Decentralized Ethereum staking protocol
- Ankr – Rising Web3 & staking platform
- BenQI – Liquid staking and Defi
- StaderLabs – Multichain liquid staking platform
Finally, more on liquid crypto staking can be found in this article: 👉The ultimate guide to staking crypto with MetaMask.
#5 Yield Farming
Next on the list of options to make money with MetaMask is yield farming. Yield farming has been popular in the cryptocurrency world for quite some time now. It is a decentralized finance (DeFi) practice that involves users staking their crypto assets in liquidity pools to earn rewards in the form of tokens.
Yield farming gained popularity in 2020, and the trend continued in 2021. After that, the entire crypto market went into bear territory where most of the liquidity into these protocols went away.
However, to start to yield farming in 2023, you can use platforms such as Compound, Aave, Curve Finance, and Yearn. Also, you need a MetaMask wallet with funds available to be able to use them.
Additionally, the gas fees associated with yield farming have increased significantly on blockchains like Ethereum. Gas fees are the transaction fees paid to miners to validate transactions on the blockchain. This increase has made yield farming less profitable, especially for users with small amounts of crypto assets.
#6 Staking NFTs
Besides crypto assets like ETH, USDC, WBTC, or DAI you can also store NFTs in MetaMask. In short, Non-fungible tokens (NFTs) are unique digital assets that represent ownership or proof of authenticity of a specific item. For instance, a piece of art, or collectible on the blockchain.
Unlike ordinary crypto tokens such as Bitcoin or Ethereum, which are fungible and can be exchanged on a one-to-one basis, NFTs have distinct characteristics and cannot be directly exchanged for one another due to their uniqueness.
Most people use NFTs in their MetaMask to buy or sell them for ETH on sites like OpenSea.io. However, the NFT space has evolved as well, and there are many NFT projects and platforms out there that allow you to stake NFTs.
Ultimately, the way this works is that you lock up your NFT into a smart contract or pool. As a result, you’ll earn additional rewards in the form of new crypto tokens.
Conclusion: Earn Money With MetaMask
In conclusion, MetaMask offers a range of options for earning money with cryptocurrency. Whether you’re lending out your coins, providing liquidity to AMMs, or staking NFTs, MetaMask makes it easy to participate in the world of decentralized finance.
However, it’s important to remember that cryptocurrency can be volatile and risky, and you should always do your own research before investing.
With that said, I hope this blog post has inspired you to explore the many ways you can earn money with crypto using MetaMask!
Related: 10 Best Web3 Apps To Earn Money
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