For a couple of years now, I've been writing about Web3 social media platforms such as Hive, Minds, Publish0x, and many others. Regular readers know that Hive is my favorite, and I have a few second favorites that I play around on regularly. If you've been curious about these platforms, then you may be wondering what you can do with your earnings once you have them. In this post, I'll give you three ideas for what to do with your earnings once you have them.
What Cryptocurrencies Can You Earn On Web3 Social Media Platforms?
The first question that must be answered is what specific cryptocurrencies can you earn on the Web3 social media platforms that are accessible. The short answer is: a variety.
The truth is, it depends on the platform.
Some platforms have their own native tokens. Others allow you to earn legacy cryptocurrencies such as Bitcoin Cash or Ethereum. Some Web3 social media platforms sit atop a legacy platform. In fact, many of them are on Ethereum. Others have their own blockchain.
Which type of Web3 social media platform you play around on depends largely on your values and personal interests. If you are committed to Ethereum, you might be interested in some of the many platforms that are connected to the Ethereum platform. If you want the full experience of decentralization with censorship-resistant technology, you'll likely prefer a platform with its own blockchain and distributed network, such as Hive. If your primary focus is on learning and earning, Publish0x may be more to your liking. Each platform has its benefits and drawbacks, so you have to decide what interests you and exploit the benefits of those platforms.
One caveat: There's nothing that says you can't play around on more than one. I do, as do many others who are creating content for these platforms.
Determine Your Crypto Goals
One thing you'll want to decide early on is what you want to get out of your participation in the crypto space. Many people in crypto are content with buying their favorite coins and tokens for accumulation or for day trading. There's nothing wrong with either strategy, but whether you are a HODLer or a day trader, you'll have to figure out how the Web3 social media platforms fit into your overall strategy.
If you're like many crypto enthusiasts, you employ both a HODL strategy and a day-trading strategy. You may hold onto certain coins for their long-term benefits while day trading others for short-term gain. On top of that, you may have a few choice cryptocurrencies that you obtain for utilitarian purposes.
Your crypto goals may determine which Web3 social media platforms are geared more toward helping you achieve your goals. If you want to accumulate Ethereum for long-term HODLing, for instance, you may be interested in Publish0x where you can earn ETH for reading and writing. You might also be interested in the many Web3 social media platforms on the Ethereum blockchain that allow you to trade the native cryptocurrency for ETH when you're ready to make that trade.
3 Things You Can Do With Your Web3 Social Media Earnings
Now that you understand which cryptocurrencies you want to play with and what your overall crypto goals are, you can focus on earning those cryptocurrencies, or others, on Web3 social media platforms. You can then incorporate the time you spend playing on these platforms into your overall crypto strategy. With that in mind, here are three things you can do with your Web3 social media earnings once you have them.
- Hold them and/or use them - Several cryptocurrencies have incredible utility. I believe these are the best ones because they are not speculation assets. They are assets that allow you to do something that is of interest to you. For instance, MATIC is a practical Ethereum blockchain Layer-2 cryptocurrency with utility. It is the native cryptocurrency for the Polygon blockchain. If you earn MATIC on Paragraph, or another platform that allows you to earn MATIC, you can accumulate as much of the cryptocurrency as you want. You can also use MATIC to purchase NFTs on the Polygon blockchain, which may be a speculative asset for you. Additionally, some merchants will allow you to make purchases with MATIC using BitPay. There are other cryptocurrencies you can earn on Web3 social media platforms that you can HODL and use for practical, utilitarian purposes. I've earned several hundred XRP on gFam that is now worth thousands.
- Trade them for other cryptocurrencies - One of the best parts about cryptocurrency is the ability to trade one for another. This trading usually takes place on an exchange. There are two types of crypto exchanges: centralized and decentralized. Centralized exchanges such as Coinbase and KuCoin allow crypto enthusiasts an easy way to buy and sell cryptocurrencies, but trading fees can often chew into profits. Decentralized exchanges such as Uniswap and PancakeSwap allow crypto traders to trade on the open market in a peer-to-peer fashion. Trading fees tend to be lower than on centralized exchanges but you must mitigate your losses due to slippage. Publish0x makes it easy to trade ETH for ERC-20 tokens by allowing you to withdraw your earnings directly to KuCoin. Minds is an ERC-20 token you can earn on the Minds platform. One challenge with ERC-20 tokens like Minds is that Ethereum can often have huge gas fees that make trading small amounts of cryptocurrencies unprofitable. Therefore, you must earn a lot ERC-20 tokens to make it worth your while to trade. Other blockchains, such as Solana and Polygon, have lower gas fees that make trading smaller amounts of crypto more profitable.
- Stake them - Some platforms allow you to stake your cryptocurrencies leading to a couple of unique benefits. With staking, you can potentially earn additional rewards. Staking allows you to lock your crypto into an account for an indefinite period and earn additional rewards as you would a bank savings account. These rewards are often distributed daily. Another benefit to staking is that it gives you influence on the blockchain. The more you stake, the more influence you have, and your stake allows you to vote on important matters pertaining to community governance. Hive operates this way allowing you to increase your influence over time as you earn more HIVE, the native cryptocurrency of the blockchain, and increase the amount of rewards you earn over time by staking your earnings. This process is a process I call compound staking. Hive is not the only Web3 social media platform that allows you to stake your earnings, but it has become my favorite.
There are other things you can do with your cryptocurrency earnings on Web3 social media platforms. Some platforms allow you to engage in yield farming or participate in other decentralized finance processes. I discuss more than 100 different Web3 social media platform and their benefits in my book Web3 Social Media: How Creators Are Changing the World Wide Web (And You Can Too!). The book is available for purchase on my website, on Amazon, and anywhere else you can buy books.
Connect With Me
Feel free to connect with me on the following Web3 social media platforms.
This post was first published by Author Allen Taylor at Paragraph. Header image from Pexels, modified.
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