Participation in Testnets as a way to Earn Money

Crypto climate

Every person was interested in the question of the possibility of earning money without investments at least once in their life. Such opportunities exist and they can be used. It is hardly worth counting on huge profits, but you will get invaluable experience and some cryptocurrency. One such opportunity in the crypto industry is participation in testnets.

The launch of a cryptocurrency project is always preceded by the launch of a testnet – a set of nodes to test the functioning of the protocol in a controlled environment. Using protocols in test mode helps ensure that it works correctly and is ready to run on the mainnet.

Creating smart contracts and deploying them on the mainnet is expensive, as developers are charged for gas. Testnets are used to reduce the cost of protocol development. In fact, a testnet is something like a working network layout. Blockchain provides free tokens to pay for gas. These tokens have no value, so they cannot be exchanged for another cryptocurrency like BNB to USDT and generally cannot be used in any way on the main network. But within the test network, all the same actions are possible as in the mainnet.

What is the difference between mainnet and testnet

So, mainnet:

  • Fully functional blockchain
  • Real transactions are carried out and stored in the blockchain
  • Tokens have real value
  • Transaction fees are charged
  • Transactions are executed frequently
  • The real reward for mining is paid

In turn, the testnet:

  • It is a test environment
  • Transactions mimic real processes
  • Coins have no real value
  • Transactions are free
  • The transaction rate is low
  • Mining has no economic benefit

How can you make money on the testnet?

After reading the list of testnet characteristics, the possibility of earning money looks doubtful, but this is not always the case. Some projects do not really pay for participation in testing (Non-Incentivised testnet), and some – reward participants in one way or another (Incentivised testnet).

As part of testing the protocol, users are offered different ways to test the protocol’s performance: check codes, write scripts, or conduct transactions with tokens.

The methods and amount of rewards in the Incentivized testnet are also different, depending on the financial capabilities of the project. Some projects pay rewards in project tokens to all or only the most active project participants, others provide certain allocations on the sale. Therefore, before deciding to participate in testing a new protocol, you need to carefully study the conditions of participation.

What to pay attention to

  • Landing platform interface: Usually, instructions and rules for participation are published on the official channel of the project in Medium. Most often, all documents are available only in English, but some projects also host localized versions translated into other languages. Once you’re sure the project rewards testers, evaluate whether it makes sense to join it.
  • Profitability: The formula “earnings without investments” is not entirely accurate. You will still invest at least your time in it, the only non-renewable resource. If the payments are very symbolic, and your interests are purely economic, then it is probably better to wait for other offers.

It is most likely impossible to evaluate the profitability of an event with an accuracy of a cent, but it is quite possible to weed out unpromising and dubious projects.

  • Check if the project tokens are traded on exchanges, how popular they are, and how much they cost at the moment. This data is already enough to understand whether it is worth it or if is it still more profitable to swap BNB to ETH and wait for a sharp change in the exchange rate.
  • Ask what platforms the startup works on. If a team launches their product on reputable launchpads like RedKite or CoinList, that’s a good sign. Such cooperation indicates support from major market players and the startup has a good chance of survival.
  • Look for feedback from members. Testing can last up to 1 month and its participants have time to form an opinion about the project and share their impressions. If positive reviews prevail, you can try your hand.

What do you need to Participate?

If you decide that the project deserves attention, you will need:

  • Twitter account
  • Discord profile
  • Telegram account
  • Email and best of all Gmail
  • Crypto wallet. The most commonly used is MetaMask, but some projects recommend other non-custodial stores.

After your application for participation is accepted, you will receive and study the instructions, you can begin to act. However, remember that no financial contributions are required to participate in the testnet. If the conditions of participation immediately stipulate the need to invest in a project, or if such information pops up during the testing process, this is a clear sign of fraud and it is better to bypass such a project.

Yogesh Patel: Yogesh Khetani is a famous Tech Blogger who loves to be surrounded by tech gadgets. So obviously, we can see his contribution here in that field. He also contributes to Now I am Updated website.