I wrote this guide to help out those who don’t have disposable income for investing in a “high risk” asset like Bitcoin. I will explain some simple cashback and passive methods for “stacking sats”, a common expression for saving the smallest unit of a Bitcoin, a satoshi. Each Bitcoin is divisible into 100,000,000 satoshis so don't stress about getting to 1.0 Bitcoin. One of the best ways to learn about Bitcoin is to earn it yourself and understand the potential for your situation. Bitcoin can act as both a digital cash and payment method as well as a store of value like gold. Those living in authoritarian countries can use Bitcoin to escape financial restrictions. There’s even Bitcoin satellites as a resort for connectivity interruptions!
With the current US monetary policy, having a scarce asset in a “digital gold” like Bitcoin seems like a wise hedge against our unlimited dollar printing. The economic situation tied to COVID-19 has only pushed the envelope for “infinite cash”.
Bulleted below are my methods for earning Bitcoin cashback on everyday purchases as you go about your usual online shopping and retail spending . I’ve also noted my favorite crypto savings account and free learning resources that provide a $ incentive for learning. There’s even a privacy-focused web browser for earning a small portion of cryptocurrency for surfing.
You can use the following methods to earn free cryptocurrency, including Bitcoin.
Coinbase - free mini-courses for learning about blockchain technology
Lolli - online shopping (desktop only)
Pei - in-person shopping at chain stores
Fold - gift cards and online shopping
BlockFi - interest and lending account
Brave - desktop and mobile privacy-focused web browser based on Chrome
Coinbase
For first-time users, my go-to recommendation is Coinbase, a cryptocurrency exchange with branding akin to a Chase Bank or Facebook interface, which provides a clean, easy experience. For buying your first $100 of Bitcoin you can receive a $10 bonus. They also offer a large number of simple blockchain and cryptocurrency lessons, some of which reward users with free $ in the form of the respective token. Once you receive tokens, you can convert them into Bitcoin on Coinbase. However, that “nice” experience comes at the expense of relatively high fees for purchases. The company has stirred some controversy in the crypto community for selling minimally regulated cryptocurrencies (AKA “shitcoins”) to the masses with expectations that don’t align reality.
Each of the following cryptocurrency tokens provide token rewards ($51+ as of 5/10/20).
Note that these can only be completed in a desktop browser!
Orchid - a new crypto-powered privacy tool and VPN service - earn $12+
Tezos - a blockchain designed for participation and upgradeability - earn $6
EOS - a protocol designed for fast/free blockchain apps - $10+
Stellar Lumens - a platform for connecting banks, payments, and people - earn $10+
Basic Attention Token - learn about the privacy-focused Brave browser - earn $10
0x - representing value for tokens and greater interoperability - earn $3+
While I would generally advise against any major investment in other cryptocurrencies besides Bitcoin, it is good to be aware of other projects using blockchain technology. Why not earn a few bucks while doing so?
After earning some $ in the various tokens above, you can convert them within the Coinbase app for a small fee into Bitcoin. This is what I typically do as I’m a Bitcoin investor, not necessarily a cryptocurrency trader.
Lolli
Lolli allows you to earn Bitcoin cashback while online shopping from a computer. The chrome extension has partnered with 500+ merchants to provide Bitcoin cashback for purchases made with the extension active. My favorite company to use Lolli for is Chewy.com to order Bandit’s dog food, but I also use it for Best Buy and Ace Hardware.
Here is how Lolli works… you shop online normally with the Chrome extension installed and activated. Within a few days you’ll receive a cashback credit to your Lolli balance. Once you hit the $25 threshold, you can withdraw it from Lolli to your favorite Bitcoin wallet.
Pei
For in-person purchases at retail merchants, Pei is awesome. Once you link a card, all you have to do is swipe it like you would normally and you’ll get cash back. There’s literally no additional effort needed to “stack sats.”
Click here to sign up with a $5 bonus
Fold
Fold is an app which provides cash back when purchasing gift cards. Some partners, such as Amazon, offer high cashback percentages at up to 4%. This is a great option for topping up on your favorite store or buying a gift for someone.
Click here to sign up for Fold and earn 20,000 satoshis on your first purchase (0.0002 BTC)
Fold is also working on a privacy-focused Bitcoin rewards credit card. There is a wait list to sign up, but you can claim your spot with this link.
Some perks of the card I’m looking forward to include:
single-use virtual cards
instant transaction alerts
opt out of transaction surveillance
Brave
Internet privacy in an age where everything happens on the internet should be a no-brainer. Brave strives to block the relentless ad tracking from scraping your data to feed the machine of surveillance capitalism. Basic Attention Tokens (BAT) is a cryptocurrency associated with the Brave browser. Through optional ads, you can earn BAT each month for both your desktop and mobile browsing. Part of the magic of Brave is the ability to tip creators and websites with BAT tokens. This helps support the sites you frequent as they’re missing out on ad revenue from Brave blocking nearly everything. If a website hasn’t yet signed up to have “Brave Creator” status, the tokens remain in their tips wallet until they do so! Be sure to turn off the “Auto-Contribute” option in the settings if you’d rather pick and choose who to send tips to. Each month I’ll earn $20-30 between both my desktop and mobile browsing with ads. Below are some earnings from the last few months browsing on my phone.
Click here to reclaim your privacy by blocking internet trackers and invasive ads.
If you like this article you can even visit my twitter page and tip me with BAT :)
Once you’ve earned enough BAT tokens you can convert them into Bitcoin using Uphold.
BlockFi
If you’re planning on holding your Bitcoin or other crypto for some time as an investment, you might as well earn interest on it like a traditional fiat savings account. BlockFi offers variable interest rates with a monthly payout. You will need to go through the KYC process to open an account, including submitting identification such as driver’s license and SSN for tax purposes. Each year they send out a 1099 form to report crypto earnings. BlockFi also offers crypto-collateralized loans should you need $ in the short term, but want to keep your crypto invested long-term. Click here to open an account with a $10 BTC bonus if you hold $100 BTC in your account for 30 Days. They also offer interest rates on other crypto besides Bitcoin including cryptocurrencies pegged in value to the US Dollar (USDC and GUSD).
Each month, they email a report detailing the interest earned. If you intend on keeping your crypto for some time, BlockFi is a nice way to passively accumulate more Bitcoin.
Storing Your Bitcoin
For small amounts of Bitcoin that you want to be easily accessible and convenient, I recommend my favorite mobile app wallet: Dropbit, which is available for both iOS and Android. The MOST IMPORTANT PART of setting up a Bitcoin wallet is to physically write down your seed phrase and keep it in a safe place. DO NOT screenshot the seed phrase or store it somewhere digitally as malware can find seed phrases and steal your Bitcoin. A seed phrase is a unique set of 12 or 24 words that allows you to restore your Bitcoin in any wallet should your device be destroyed or your account inaccessible. It’s even wise to store a safe copy somewhere at a safe, secondary location with a person you trust.
Some Final Thoughts
While it’s great to earn some free Bitcoin, understanding the technology and it’s implications for monetary policy is also an important part in educating yourself. You shouldn’t necessarily invest in something you don’t understand. This is especially so if it has the volatility and risk of Bitcoin. Just because you own Bitcoin doesn’t mean you should necessarily be open about it to everyone. Even if you store your Bitcoin in a secure way, you’re still susceptible to a $5 wrench attack. For those who are unfamiliar, it’s when someone attacks you in real life until you hand over your Bitcoin.
It’s impossible for me to cover all you need to know about Bitcoin in a single article. I do intend on writing more about Bitcoin for Beginners in the future, but for the time being I recommend reading through Jameson Lopp’s Bitcoin resource page. Jameson is a veteran Bitcoiner and is one of my favorite Bitcoin podcast guests. Read about his swatting experience and some practical advice on protecting your personal privacy.
If you’d rather listen than read, ‘What Bitcoin Did’ is an excellent beginner podcast. There is a 16 part Beginner’s guide by Peter McCormack that covers everything, starting at the non-technical level.
If you’ve found this post useful please share it with any Bitcoin-curious people you know! Support through the referral links in this post help encourage me to write more Bitcoin articles in the future.