10 Best Crypto Life Hacks Everyone Should Know

DCV - November 1, 2021

Here are some crypto life hacks that I’ve compiled throughout my time in the crypto space. These tips have helped me keep my funds safe as well as maximize my earning potential. Read on to learn more. Disclaimer: this is not financial advice.

1. Earn interest on idle crypto

From staking to lending out crypto to farming, each one of these strategies can earn more crypto passively with varying amounts of risk.

  • Staking is locking up crypto to earn interest. This is typically done on proof of stake systems. Once the crypto is staked, there may be a length of time where they cannot be moved.
  • Lending your crypto out is available on many centralized finance crypto exchanges (CEX) like Celsius, Gemini, and BlockFi. The crypto is deposited with the CEX and they use it to do with what they want. In return, they pay you a percentage of your deposit. Check out all the interest rates various platforms offer here.
  • Farming is a truly decentralized use case of cryptocurrencies in which you are providing liquidity to a market. In return for providing liquidity, you get to pocket a portion of the transaction fees for people swapping cryptocurrencies. These annual percent rate returns can get into the triple digit percentages. Check this post out here to read more about farming. This is one of the more risky and complicated options to earn interest.

2. Use the Presearch search engine to earn free crypto

Presearch is a decentralized search engine that rewards users with PRE tokens for every search that they make. Users need to accumulate 1000 PRE coins before withdrawing to a wallet address. All that needs to be done to start earning is to make an account. 

3. Use the Brave browser to earn free crypto

The Brave browser is a browser based on the Google Chrome browser that allows you to passively earn Basic Attention Token (BAT) as you browse the internet. It does have some ads sometimes but it’s a great way to earn free crypto. I typically get a couple of bucks worth of BAT a month but it’s great for something passive. Be aware though, you currently cannot earn BAT on the Brave browser on iOS mobile.

4. Coinbase Pro fees are much lower than Coinbase

Generally, regular Coinbase trades cost 1.49% on the value of the transaction while on Coinbase Pro, the trade costs 0.5% of the value.

5. Gemini has 10 free withdrawals per month. BlockFi has 1 free withdrawal per month

This tip is self explanatory. If you’re transferring crypto out of Gemini or BlockFi, you get a certain amount of free transfers per month meaning no transaction costs (no gas fees). Gemini and BlockFi will spot you on the gas fees. Sign up for Gemini here and BlockFi here for a bonus on sign up (subject to minimum requirements).

6. Try using Stellar (XLM) to move funds between exchanges

Due to the current high fees Ethereum based tokens experience, it may be economical to move coins from exchange to exchange using XLM. The difference is dollars versus cents. 

For example, a transfer of ETH would look like: convert ETH to XLM, use XLM to transfer funds, then convert it back to ETH on the other exchange. Currently, the transfer may take minutes on the Ethereum blockchain whereas on the Stellar chain, it takes seconds. Similarly, gas fees may be in the tens of dollars on the Ethereum blockchain but cents on Stellar.

7. Improve your safety and security

If you are keeping your crypto on a centralized exchange (CEX) like Coinbase or Celsius, always do the following to ensure your funds are as safe as can be:

  • Enable 2 factor authentication (2FA) using an authenticator app like Google Authenticator or Yubikey. Ideally, you don’t want to use your phone number to do 2FA because hackers can use something like a sim swap to redirect SMS or phone calls to a device they are in control of.
  • Whitelist withdrawal addresses. This protection prevents withdrawal of funds to addresses other than the ones that you have allowed. For example, I have a Metamask wallet and I will only allow Coinbase withdrawals to that Metamask wallet address. In this case, if the exchange’s wallet gets accessed maliciously, it’s still not possible to withdraw the funds.
  • Don’t keep all funds in a single exchange (or wallet). If you lose access with only one exchange or wallet, you lose all your funds. Split your funds up to spread out the risk. There are many great platforms to choose from.

Here are some more general tips to follow when dealing with cryptocurrencies:

  • Triple check addresses that you are transferring crypto to and from. It’s best to check each character but it may be sufficient to check the first 6 and the last 6. Stay focused!
  • Test the transaction first. If you are transferring a large amount of crypto, first send a small amount to make sure the transaction works. Then, you have a bit more confidence in sending the rest of the funds.
  • Don’t ever tell anybody your seed phrase.Nobody needs to know your seed phrase except for you.

8. Lookout for “the spread” on crypto trades

Some exchanges like CoinLoan, BlockFi, and AnchorUSD advertise that trading on their platforms are free. However, in reality, they are buying the crypto at a lower price than you are paying for it, selling it to you at a higher price, and pocketing the difference. Similarly, you sell your crypto at a lower price than the exchange finds a buyer for. The difference between the high and low prices in which the transaction occurs is the spread. “Fees” resulting from the spread have been anecdotally seen to cost up to ~1.5%.

9. Keep a ledger of your trades

Keep a history of all your trades whether it be purchasing, selling, or converting crypto. Note the value of the cryptocurrency at the time of trading, Although very tedious, this will become important for taxes.

10. Never believe anything on the internet and always DYOR

This tip was written in semi-jest since almost everything is on the internet now but essentially, it means do your due diligence and be careful about the information that you consume (yes, even this post). Always do your own research (DYOR).

There are a lot of scams in the crypto space and you should be knowledgeable about rug pulls, connecting your wallet to specific applications and websites, recognizing scams, etc. Don’t trust any direct message that you receive on any social media platform.

Check out the YouTube video for actual footage of some of these tips:

Disclaimer: decryptoverse.com does not provide tax, business, legal, investment, or accounting advice. This material has been prepared for entertainment purposes only, and is not intended to provide, and should not be relied on for, tax, business, legal, investment, or accounting advice. You should consult your own tax, business, legal, investment, and accounting advisors before engaging in any transaction. The information on this website should not be misinterpreted as an endorsement to buy, trade or sell a cryptocurrency, nonfungible token, or any specific product or service or application.