Top 8 Ways to Earn Passive Income With Crypto
To get financially comfortable, everyone works. Some people put in a lot of work all month long for a paycheck, while others try to diversify their sources of income and set up passive income avenues. Passive income is a way to earn money without having to put in work daily. It's not a get rich quick scheme, and it might take some effort to set up. But having a passive income avenue is a great way to make money, even when you sleep.
Years ago, passive income avenues were restricted to owning property. Today though, there are more diverse ways to earn passive income, from investing in stocks to running a blog, etc. Here, we're going to talk about earning a passive income using cryptocurrency.
How to Earn Passive Income With Crypto?
When it comes to cryptocurrency, there are a lot of ways to earn passive income, evident in the fact that the value of most cryptocurrencies increases over a period of time. Here, we'll discuss some of the various methods you could use to generate a passive income with your Cryptocurrency.
Staking is simply put, holding your coins so you'll get a reward. Most people involved in the crypto scene actively trade these currencies, and as such, budding blockchains might have issues growing up. Staking basically is them telling you "Keep these coins on our blockchain, and get a reward". It's a very lucrative source of crypto passive income, given that if the value of your currency goes up when you're done staking, you'll both get a reward, and get more value for your coins. The reward for staking is normally a percentage value per year. However, not all cryptocurrencies can be staked. For instance, Bitcoin can't be staked. Etherium too, but it soon will be added to coins that can be staked.
As the name suggests, crypto lending is a collateralized loan. One simply puts up their crypto assets as collateral and takes stable coin or Fiat currencies at an interest rate. The reverse can also be the case, giving people your crypto assets to trade, while taking collateral at an interest rate. This is usually done through a peer to peer platform or financial institution, that would guarantee and ensure the transaction for you.
Mining is the most popular way of getting passive income in the crypto world. Mining is basically using computing power to secure a blockchain and get a reward. The reward comes in the form of a cryptocurrency, the type that's on the network you're securing. However, Mining cryptocurrency requires substantial investments to get equipment with effective computing power. It is also a luck driven venture, as such, you'd need the luck to get rewards since the coins are given to the first person to successfully mine and drop the right hash. Crypto mining is still very lucrative, to the point that there are entire corporations that are dedicated to mining cryptocurrencies, especially Bitcoin.
4.Running A Lightening Node
Lightning nodes are basically a system created to help the BTC blockchain. While it might not be very profitable, it's still a way of making a few hundred dollars on the low per year. All you have to do is set up your node, process transactions, and collect a fee. However, the fee is so low that if you process $10,000 worth of translations, you'd be earning $25.
Crypto affiliate programs are another stress-free way of making a passive income. It works just like every other affiliate marketing program. You sign up for a platform's affiliate program, they give you a unique referral link, and you share it on your social pages or wherever and people click on it. For every purchase made, you get a percentage. This is a great source of income, especially for bloggers or website owners, as their readers are liable to click, and they'd make money even when they're sleeping.
Masternodes are essentially a decentralized server that does more work on the blockchain. It's more rewarding, but you'd need someone tech-savvy to help you handle it, as it's a bit complicated. However, it doesn't have a high enter bar, and everyone can enter into it. Right now, it's not really popular, but it's becoming more known as time goes by and getting into it quickly is advisable. It also has a high ROI.
7.Forks And Airdrops
Forks are a fantastic passive income opportunity. But it's just that, an opportunity. A fork is when a cryptocurrency divides it's code and splits into two cryptos. If you had some of the existing coins, you'll get a portion of the new coin being created. For instance in 2017, when BCash was created, it gave bitcoin owners Bcash a 1:1 value. Airdrops are similar to forks. In this case, people apply to new coins and get free cryptocurrencies. While it's not completely passive, as you'd have to be applying to get coins, it's still a great way to get cryptocurrency for free and get some extra income.
8.Blockchain Based Content Creating Platforms
These platforms are places where content creators post their work and if a consumer likes it, they give them tokens in form of cryptocurrency. These tokens can then be taken by the content creator and exchanged for more popular cryptocurrencies. An example of this kind of platform would be STEEMIT. Here, content creators are paid with a STEEM token, and this token can be exchanged for Bitcoin or Ethereum outside the platform.
The world of cryptocurrency is a dynamic place, filled with lots of opportunities for passive income. Most of these are very profitable, some, however, might require capital input. Regardless, you can always choose the one that suits your taste the most, and set up a passive income avenue for yourself.
BitForex is an exchange service platform that can be classified as one of the Top 10 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.
BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts, derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.