There are many ways to earn passive income and interest on cryptocurrencies. Here's our recommendations to start earning crypto today.
Over the past 5 years I’ve become very passionate about investing into crypto, and earning passive income.
Having an external sources income than just your salary can make a huge difference, not only in your monthly income, but in your financial backup. Passive income can free up more of your time so you can focus on your current workload, or if you need to take some time off to focus on your health you’ll have a freedom to do so.
Passive income isn’t really passive. Whether you’re starting up a rental flat, writing a blog, or investing in fix deposit(FD), you will have to invest in some money and some time on your passive income streams.Passive income simply means that you arent investing your time for money.
In past few years, investors’ options for return have gone from the age-old HODL (hold on for dear life) strategy to various other choices. More choices means more options for earning money.
When i came to know that i could earn passive source of income and interest on my portfolio that i already owned, I went ahead to explore for option.
US Dollar conversion value of your crypto holdings will still go up and down, But with these passive income earning methods you will increase the amount of each coins you hold.
Here's few of many ways that are available from which you can start earning passive income on your cryptos.
What is Passive Income?
The passive income approach creates revenue streams that pay out over time. This is usually low-effort work with a long-term focus that generates returns.
Not all forms of passive income are created equal. When you’re deciding which to invest in, consider these six characteristics:
Time to setup
Average hours per week
Ease of implementation
Let’s dig into just what passive income opportunities are available in the crypto space. Remember: more revenue streams mean more opportunity.
Ways to Earn Passive Income on Cryptocurrencies
These methods can get a bit technical so it’s best if you already have some experience with cryptos. Passive income strategies in this category require some amount of trading and market knowledge.
Staking requires buying certain cryptocurrencies that run on a proof of staking, or PoS, consensus algorithm. Unlike mining, those who hold coins can lend coins to the network, which it uses to validate transactions. The more coins you lend, the more the network rewards you.
Popular staking coins include:
Staking is a true way to generate passive income. Hold the coins in an e-wallet, stake to the network, and earn dividends or interest. Be warned though: returns can vary and you may not be paid in the same coin you staked.
Similar to staking, a crypto-dividend is a reward given for lending a token. Tokens are cryptocurrencies that power the exchanges. Exchanges usually have their own tokens. Token owners can stake tokens that the exchange uses, which like a real-world dividend, entitles the holder to a portion of the exchange’s profits.
Popular exchanges and their token:
BitMax exchange & BTMX token
KuCoin exchange & KuCoin Share (KCS)
Naturally, investing in early-stage exchanges can be very risky. Furthermore, the value of the exchange tokens could easily fall to nil.
While not a passive investment strategy necessarily, Salt Lending will let you borrow against your crypto assets. Take the cash and reinvest elsewhere. This is high-risk and requires some serious commitment, as your investment could get liquidated.
My favorite way to earn interest on my cryptos is through lending platforms. They are really easy to set up and keep track of. Put your crypto to work and earn money online. Many popular cryptocurrencies like BTC, ETH, and DASH can be lent for profit. You give up your coins for a set amount of time and make a specified return, which is much like the interest rate a bank pays for using your money. Like any lending platform, there is some risk associated with this method because you are handing over your crypto to a centralized platform. There is a risk that the company will go out of business or that they will be hacked. Also, be sure to do due diligence into companies, because there have been instances of scamming where companies disappear overnight.
There are a range of lending options available:
Automated (or bot) lending services – Coinlend or Cryptolend
Exchange interest programs – Bitrue
Peer-to-peer lending – Ethlend
Standard financial services – Crypto.com, Gemini, or Celsius Network
Decentralized financial services – Compound
Margin funding at exchanges – Bitfinex, Poloniex, or Bitmex
MORE ABOUT CELSIUS NETWORK
Celsius is a phone app where you can easily send your cryptos and earn interest on them. Each week they send you a notification about how much interest you earned that week. You can also borrow against your crypto. There are zero fees to use the app. You can earn up to 10% on more than 15 different cryptos, including Bitcoin, Litecoin, Ethereum, Ripple, OmiseGo, and Ox.
MORE ABOUT CRYPTO.COM
Crypto.com is a wallet phone app which allows you to easily send and receive cryptos. You can also earn interest on Crypto.com’s coin, MCO, as well as BTC, ETH, XRP, and other popular cryptos by staking them for a set amount of time. You can earn up to 6% on your cryptos just by leaving them in your wallet. The feature of Crypto.com that I’m most excited about is crypto VISA cards. I recently received my physical crypto VISA card, and it comes with some awesome rewards, such as airport lounge access and rebates on your Spotify and Netflix subscriptions.
Gemini earn passive income on cryptocurrencies
MORE ABOUT GEMINI
Gemini is a crypto trading platform and wallet. If you are just getting started buying and selling cryptocurrencies I recommend using Gemini, it’s super easy to use and you can connect your bank account for quick and convenient trading. You can also set up automated buys if you want to purchase a certain amount of a crypto on a recurring basis.
Gemini recently launched Gemini Earn, which enables you to earn interest on your cryptocurrencies. You can earn anywhere from 3% to more than 7% on cryptos such as Bitcoin, Ethereum, and Litecoin.
Passive Income Options For The Tech-Savvy
For those of you who are more technically inclined, this is the section for you. Earn passive income by putting your tech skills (and hardware) to work. Some assembly required.
Since the beginning of BTC, miners have been hard at work earning a (relatively) passive income. Sure, it takes a lot of hardware, copious amounts of energy, and some serious technical know-how.
In short, miners power the network of cryptos like bitcoin. Miners verify the blocks of the network and are sporadically rewarded for solving complex mathematical equations. Not all coins can be mined and some are more valuable than others.
A masternode is a computer wallet that hosts an entire copy of the network. It’s a key support of a cryptocurrency. DASH is a coin that you can masternode, as is Energi (NRG).
While cheaper than mining, masternodes are difficult to set up, costly, and require a good deal of work. That said, a masternode can be a way of earning passive income if you have the chops. Discover more about masternodes at masternodes.online.
RENT OUT YOUR BANDWIDTH
This one is actually very easy to set up and is one of the simplest ways to earn passive income in cryptocurrencies.
Theta is revolutionizing the live video streaming industry, which includes the fast growing sports genre. The Theta network increases the speed and quality of video networks, and they have some high profile team members and partners, including Google, Samsung, the Co-Founders of YouTube and Twitch.
You can earn Theta Fuel tokens by “renting out” excess bandwidth on your computer. All you have to do is download the Edge Node or the Guardian Node, create a wallet, and turn on the node.
To run a Guardian Node, you need to hold and stake a certain number of Theta tokens, but the Edge Node doesn’t require staking.
To start running a Theta Fuel Edge Node, visit the Theta Token website, scroll down to just below the map, and download the node.
A crypto trading bot like Gunbot can be used to buy and sell cryptocurrencies automatically, based on price or other market indicators.
Generally more time-intensive than normal trading, a trading bot has the potential to be a passive source of income, that is if you can set it up correctly. Not for the faint of heart, as a mistake with the bot’s parameters could spell trouble for a portfolio.
A combination of financial know-how and technical chops, arbitrage bots exploit the difference in the bid-ask spread between exchanges. While you could do this yourself, it would require a lot of hands-on work and isn’t exactly passive.
The passive income strategies so far have required some effort or investment. You need to get out there and put in a little work. Not so for these next ones. They happen more as the result of luck, of being in the right place at the right time. The best thing: they’re free.
Who doesn’t like getting something for nothing? Some cryptos pay tokens for just holding. These include:
This last section is a grab-bag of unusual goodies. They might take more work and might not be profitable, but certainly represent some exciting opportunities should they take hold.
AIRDROPS, FORKS, BURNS, AND BUYBACKS
Coins are dropped into your wallet by an exchange. Used as a way to get new coins out into the market. Be on the lookout for airdrops.
These happen when a cryptocurrency needs a software upgrade that creates two versions of the currency. Bitcoin Cash is one such example. Owners of the coin get equal holdings on the new version and the old.
Burns and buybacks. This happens when the creator of the crypto wants to create scarcity. They purchase the coin and burn it in an unaccessible wallet.
That’s right, you can breed digital crypto-cats to save or sell at a later date. What might be the next collectible fad, Cryptokitties and the KittyVerse continue to gain in popularity. You can start right meow.
Don’t have any crypto and want to earn crypto online? You might try Lolli. Created to spread bitcoin to the world, Lolli allows you to receive bitcoin every time you shop online at designated retailers.
Advice : Don't be reluctant in adapting to new technology , If you do not try you never will know the bash.