Cryptocurrency is a popular way of investment among investors worldwide. In many countries such as Japan, cryptocurrency is a legal mode of payment where you can pay for everything in crypto while few countries such as in India crypto is in process of regulation while buy, sell and trading is allowed. There are many ways to earning with the help of cryptocurrenccies, such as:
- Trading cryptocurrency on safest crypto exchange in the world.
- Participation in various promotion and airdrops of the crypto projects.
- Earning interest of cryptocurrency by lending them or making deposits.
- By staking with the most profitable PoS coins.
- By Investing in coin/tokens offering regular dividend on holding
- Few other ways to earn free cryptocurrencies are listed in our previous article.
One more way of making money with cryptos is earning with Coin Burning. It is very similar to earning with holding a coin or PoS coin but the mechanism is completely different. Before getting into how Coin Burn events can be profitable for the investors lets have a look at what exactly it is and how does it works?
What Is Coin Burn?
CoinCoin Burning is a process of permanently removal of a portion of the total supply of the coin. This process id done intentionally by the development team of the project. Technically, it is done by sending coins to an address where they they become inaccessible and useless and record this “burn transaction” on the blockchain to prove the users that dev team actually removed certain amount of coins from total number of coins. These addresses (known as eater address or blackhole address) are generated randomly without having any associated private key.
Effect of Coin Burn
Buyback is a conman concept in economics. Similar to stock market, in Coin Burning company itself purchases a portion of coins from the open market and Burn them to increase the value and reduce the circulation supply. The primary goal of coin burning is to increase its value in the market by reducing the supply. There are different reasons for which projects are burning their coins one every transaction basis or quarterly basis.
Earn Cryptocurrency With Coin Burn
OKEx (OKB)
OkEx is is a Malta based cryptocurrency exchange and OKB is the native cryptocurrency of the platform. OkEx ecosystem is powered by OKB token and is has many use cases including a fee discount when paying with OKB. On the other hand OKB has a clear and public coin burn policy in which they buy back and burn OKB worth 30% of the OKEx spot market transaction fee collected by exchange. The process will benefit OKB holders as the value of it increases. So the more users will start using OkEx for trading, the more coin will be burnt , The more benefit OkEx holders will gain in terms of value increase of OKB. Join OkEx to Buy OKB
Binance Coin (BNB)
Binance coin (BNB) is the native cryptocurrency of the Binance exchange which helps users to execute their orders on exchange with discounted fee. BNB is also used for the lottery process for the investment opportunities in initial exchange offerings on Binance launchpad. Biancne exchange burns a fraction of BNB tokens in every quarter to reduce the supply of the token and increase the value of BNB in circulation supply. They aim to reduce the total supply of 200 million to 100 million as mentioned in project’s whitepaper. Join Binance to Buy BNB
LocalCoinSwap (LCS)
LocalCoinSwap is a P2P exchange and LCS is the native token of LCS exchange which is also used as a medium to distribute a portion of the revenue collected by the LocalCoinSwap exchange to LCS holders. LCS token is also used as a medium of voting between community decisions. LCS is a deflationary asset which has constant buying pressure and coin burn schedule. Holding LCS will also allow you to participate in the community votes time to time arranged by LCS team. Users holding LCS will also gain free Airdrops when new ICO will be listed at LCS. The more number of tokens you will hold, them more number of benefits you will get. Join LocalCoinSwap and Buy LCS
Factom
Factom is another blockchain platform working on data integrity and Factoids (FCT) are the native cryptocurrency of it. Built on the top of Bitcoin, it is an open-source data layer protocol which allows users to make applications on the top of Bitcoin blockchain. Factom uses a complicated implementation called burn and mint process. Tokens are constantly being generated in Factom ecosystem via Factom’s policy. On the other side, Tokens are burned as weal. The more the network grows, the more token will be burned. which may results into supply decrease. But In my opinion BNB and LCS will be a safer choice. Join Bilaxy Exhcange To Buy FCT
Final Remark:
Burning process of a coin does not always results to an immediate value gain. But it reduces the supply amount of the tokens so more number of coin burn results to less number of tokens in supply. As the demand for the coin increases, then this can contribute to significant gain the the value of the coin.
I hope you enjoyed the article on earn cryptocurrency with coin burn. We will keep updating this list. In case you want to suggest us any coin/token which should be a part of this list, feel free to tell us in the comment section below.
