Investing in Cryptocurrencies
Cryptocurrencies have been a hot topic for 2017. People have made millions of dollars and realized gains of well over 1,000%. The media has been covering cryptocurrencies regularly now and more people are interested in investing. However, some might not feel comfortable risking their money, or just not have the money to invest. This is where bounties come into play.
What Are Bounties?
Cryptocurrency bounties are rewards that companies pay for helping with their project. Most of the bounties will involve promoting these companies, but there are a few others that do not involve promoting. Each bounty provides some form of compensation that is generally in the form of the company’s token. Occasionally, you can also find bounties that payout in BTC (Bitcoin) or ETH (Ether). Here is a list of the most common bounties:
- Social Media
- Signature and Avatar
- Community Involvement
- Bug Bounties
Bounties tend to have a pretty low barrier for entry, but they will require some time and effort in the beginning. It is a small trade off though because you don’t have to worry about losing your hard earned cash. Payouts generally occur after the ICO for the company has finished, so it may be a month before you reap the rewards, but it will be worth it. I will go over the basics of each bounty type below and write more in depth posts on each at a later date.
Social Media Bounties
The social media bounties generally involve promoting the company on Twitter, Facebook, or Reddit. The type of activity required will depend on the specific bounty campaign. A list of the typical activities associated with each platform is listed below:
- Twitter – Tweeting, Re-Tweeting, commenting on tweets, and liking Tweets
- Facebook – Sharing posts, creating posts, commenting on posts, and liking posts/pictures
- Reddit – Creating posts on certain subreddits, upvoting posts
There will be a certain number of each activity that must be completed within a certain time frame. These time frames vary and can be weekly, bi-weekly, or just need to be completed by the end of the ICO. It is important to note that a campaign will not always require every activity type. For example, some campaigns only require re-tweets.
Normally a minimum number of followers/friends are required, and rewards can be tiered based on that number. Sometimes they set a restriction on the age of an account, or require a report from twitter audit to make sure you don’t have a bunch of fake followers. I will go over ways to beef up your accounts for bounties in a future post.
Article and Blog Bounties
The article and blog bounties are pretty self-explanatory. Write an article about the company and post it to a blog or website. I have seen people post to Steemit, Medium, LinkedIn (not often), and their own personal blogs. Keep in mind the guidelines are normally very specific for these bounties, so be sure to read them carefully. Here is a sample of the guidelines from the Trade.io one I did recently:
- Minimum 500 words
- Publicly accessible on a platform which is relevant to cryptocurrencies and blockchain technology
- Content must be original
- Must contain links to the company website and BitcoinTalk announcement thread
Signature and Avatar Bounties
The signature bounties are done on the BitcoinTalk forum. The company will provide signature images and avatar images for you to use on your BitcoinTalk account. There is normally a minimum number of posts that must be made per week and in specific areas of the site. These also vary based on your account ranking and “Newbie” ranks normally can’t participate. The signature and avatar bounties tend to payout well, so this is one to start working towards.
This is essentially the visual version of the article and blog bounties. The majority of these have been YouTube related, so you will need a YouTube channel to post your videos on. The video will need to be longer than a specified amount of time, and there is likely a minimum number of subscribers that will be needed. I have seen some accept Facebook videos, so be sure to check the bounty’s guidelines to see if that’s acceptable.
Community Involvement Bounties
This is the broadest bounty out of all of them. Some company’s payout just for subscribing to their mailing list or joining their telegram/discord/slack channels. I have also seen payouts for providing feedback on an alpha version of a platform. Surveys are another one that have popped up in this category. These are probably the easiest bounties to complete because sign-ups are quick and don’t require much effort. As always, check the guidelines because some will require you to be active in their channels.
These are the first to go when a company starts a bounty campaign, so you must be quick. Most of these will just involve translating the company’s white paper into another language. There are also bounties involving translating announcement threads on BitcoinTalk and then moderating them. These can payout very well, so I suggest them for anyone that is multi-lingual or does not speak the native language of the company.
The bug bounties are reserved for those with strong technical skill sets. These can also have extremely high payouts, so it’s worth considering if you are up for a challenge. Even if you aren’t right now, you can always learn more and work towards being able to complete these later. These bounties are not as common since most companies will hire outside auditors to review code, but there are still enough that recruit help from the community to make it worthwhile.
Where can you find bounties?
The best place to find them is in the “Bounties (Altcoins)” section of the BitcoinTalk forum which can be found here. Another website that occasionally has bounties is “The Viral Exchange” . They have a systematic way of tracking bounties which makes it very easy. However, not many companies use them, so it’s a hit or miss. There is also a new blockchain project I am excited for that should help immensely with bounty campaigns. That project is Bounty0x and you can read about them here. Please note that some projects will have their bounty information on their website, and may even provide a portal to submit work.
What do you need to get started?
My recommendation is to go sign up for a BitcoinTalk account first. Posting and being active will increase your rank on BitcoinTalk, which will allow you to participate in more bounty campaigns and earn more from signature bounties. A lot will also require you to post your work in their bounty thread. The nice thing about that is that those posts will help increase your rank.
Next it will really depend on which of the bounties you are interested in. If you want to do blog posts, I would recommend getting a Medium or Steemit account. Both of those platforms are free and used a lot within the crypto community, so it’s a natural fit. The others are pretty self explanatory, if you want to do Twitter bounties you need a Twitter account.
I would also go ahead and get an Ethereum wallet and NEO wallet. I have a guide for the Ethereum wallet and NEO wallet that you can check out if you need help with those. Be sure to check the bounty details though to see how they will be sending payment!
How do payouts work?
Payouts vary greatly between campaigns. Some place more value on blog posts, others place more value on Twitter activity. Read through each one and understand how they are distributing their allocated bounty funds. The two main types of payouts are “tokens per” and “stakes”. Some will pay x number of tokens for each activity, which is the “tokens per” model. Others will give x stakes for activity. These stakes are totaled at the end of the campaign and you are given tokens proportionate to the number of stakes you earned.
Stake example: ABC campaign will give out 1,000 tokens for their Twitter bounty. During the campaign you receive 100 stakes out of a total of 500 that were given. This means you will receive 1/5th of the 1,000 tokens, or 200 tokens.
Bounties are a fantastic way to invest in cryptocurrencies without having to put up your own money. Nothing in life is free though, so you will be putting in some time. I will be writing articles on each bounty type to give strategies on efficiently completing them, as well as ways to spot highly profitable bounties. This will help you save time and maximize the amount of cryptocurrencies you receive for bounty hunting! A lot will require an Ethereum wallet, so check out my guide on setting up an Ethereum wallet if you don’t already have one!