How to Earn Passive Income From Cryptocurrency
There are a lot of ways to earn from cryptocurrencies, you can earn actively or passively.
I have done P2P trading and made some profits, I have taken advantage of crypto arbitrage and made some profits, and I have traded cryptos on a few platforms and made some profits, but I am basically an investor. I am not sure if I can use that word because I do not have a lot of investments in crypto coins, but I have bought crypto coins and I am holding my coins on various platforms. I will profit when the price goes up and lose when the price goes down. But basically, I don't lose even when the market goes down because I do not panic selling, I just let the coins sit on my account. I spent $130 to buy 6 million SHIB tokens. If I sell those tokens right now, I will still be in a no-profit no-loss position, but if I had sold at an all-time High. I would have made a whopping profit of $300 just in three months. My favorite method of profiting from cryptocurrency is through staking, yield farming, and saving in interest-bearing accounts. I have staked my ADA on Binance, I earn 0.5 ADA per day rewards from staking. I have earned over 100,000 SHIB tokens just from staking.
Crypto Trading Vs. Crypto Staking
Crypto trading is a passive income source because you need to be active in buying and selling crypto. When you are constantly buying and selling crypto, how can you call it a passive income source? Well, you can use crypto trading bots to trade crypto and if you are using bots and don't get directly involved with buying and selling crypt, it can be definitely called a passive income source. Crypto trading is definitely a great way to earn income, however, in order to benefit from crypto trading, you need a lot of investment. Trading can also be risky because P2P trading can sometimes scam you, spot trading can make you lose money when your buy or sell orders are not executed in time, and crypto arbitrage can also cause you to lose money when your transactions are delayed. I think the better way to earn passive income from crypto is through staking. The staking option is available on a lot of exchanges and you can lock your assets for a fixed time to earn profits. A lot of cryptos are available for staking. I am using Binance to stake Matic, ADA, and Shib.
Passive Income Through Cryptocurrency
Binance is a Crypto Exchange platform available as an App, you can earn a lot of rewards from various activities like staking, yield farming, referral, etc. Since you can earn rewards, isn't Binance also a reward app. There are apps that allow you to earn NFT or tokens, you can exchange these tokens and NFT for real-world currency, can these apps be categorized as a reward apps?
Now, back to the question. If the reward app pays for small tasks or eve surveys, you cannot even earn a substantial amount let alone become rich. However, if you are the owner of a reward app, you might be able to generate a lot of revenue, though.
I am staking ADA on Binance, I am getting 12 percent APY, and my bank will also give me 12 percent APY. I have used Nexo, but I was not eligible for 13 percent APY because they did not accept my account verification documents. If your account is unverified, you cannot receive a high return. In order to make use of crypto exchange and benefit from staking you need a lot of crypto assets and it is risky to invest in crypto because the price might go down at any time.
Crypto Staking: Things to Remember
Well, exchanges can be hacked and your funds might be stolen. But you can diversify your assets, use hardware wallets, or desktop wallets and minimize the risk. You will also have to use the most secured platform and never use an exchange that is not very popular and recently launched. When you are staking, make sure the reward will include a guaranteed principle return, and check whether funds are locked or not.
