Creating multiple streams of passive income is a healthy way to help you reach your personal financial goals. As a result, many investors and individuals find ways to increase their income sources without active control. Advances in the crypto space are fueling a new digital economy that allows people to make passive income from crypto.
Trading and investing in digital currencies helps people earn passive income but usually requires additional research and skills. In addition, price fluctuations and market fluctuations continue, so it doesn’t guarantee a source of revenue. Hence, there is a need to set up a consistent means of income.
- The crypto industry provides multiple opportunities for investors to earn without any form of active participation
- Holders of crypto can either stake or lend them out for rewards
- You can also earn by paying others to mine crypto or receive rewards on every transaction on your network via NOWPayments
So how can we define passive income?
Passive income is money you get from your property without your participation. This could include income from rental properties, Earning interest on your bank account, etc. More recently, owning your cryptocurrency is another type of passive income. In essence, investments that make money on their own without your interference are considered passive.
Ways Of Getting Passive Income
Now we know what passive income is, we will be sharing with you ten ways by which you can earn passive income with cryptocurrency.
One of the top ways of earning passive cryptocurrencies is by cloud mining. While mining requires some technical expertise and physical mining setup, but cloud mining does not. For those unfamiliar with this term, here is a brief overview.
Cloud mining is generating cryptocurrencies using the computing power of a third party or cloud mining operator. To do this, simply invest money in a cloud mining service provider, and the company will invest that money in physical mining operations.
When you start earning some rewards, you will get a share of the cryptocurrencies that support them. For example, many cloud miners exist, including Shamining, ECOS, and IQ Mining.
Some have mining farms that use green energy from wind and solar power. This is a much easier and hassle-free option than the usual mining process, as the procedure is very simple and does not require much technical expertise or time.
Cloud mining is a process in which the latest Bitcoins are put into circulation. With the help of cloud mining, you can earn money without investing. However, you need an Application-Specific Integrated Circuit (ASIC) or GPU to set up a mining rig.
Deposit Assets in an Interest-Bearing Account
Investing your money in cryptocurrencies helps you earn when prices are high, but depositing them in interest-bearing accounts. These accounts allow users to make higher profits on their cryptocurrency deposits.
Many platforms now offer this service to investors, most of them with other features that help maximize the productivity of crypto assets. One such platform is CoinLoan which offers high-interest rates of up to 12.3%.
The platform also features preferred competitor payments and token exchanges that allow users to earn and receive in the currency of their choice. Also, these platforms may offer compound interest.
This means that you will earn interest calculated based on more than your first deposit. This is one of the main ways to get consistent returns even when the market is volatile.
The staking is based on a consensus algorithm called Proof of Stake (PoS). Staking requires the purchase of certain cryptocurrencies running on PoS. Token holders then lend their crypto (stake) to the network used to validate transactions.
At the end of a specified period, stakers are rewarded. The more coins you lend, the more rewards the network will give you. Thus, staking is an easy way to earn passive income as the market pays you to hold cryptocurrencies for a while.
This allows investors to be more predictable than other investors and have a potential return on investment that does not require an investment in hardware as in the mining industry.
Getting started with cryptocurrencies often requires a minimal investment to establish a staking pool, but it can also join the pool as a smaller staker. Certain networks like eToro, Binance, and Coinbase require you to own and deposit a minimum of tokens. The most effective way to earn passive income from your bets is to maximize your chances and stay connected to your crypto wallet.
The basics of cryptocurrency lending are the same as traditional cash lending. The borrower pays interest to the lender. In this case, the loan is secured by more crypto assets than you are borrowing. For example, you can deposit Bitcoin and borrow fiat currencies (currencies issued by countries such as the US dollar, instead of cryptocurrencies backed by decentralized networks).
Certain platforms like NEXO, Binance, CoinLoan act as a marketplace, paying fixed interest rates to cryptocurrency depositors such as high-yielding savings accounts, looking back on their assets, and lending to lenders who can get even higher returns.
Some cryptocurrency companies may reward you for bringing more people to your network. Affiliate links, referrals, or other types of discounts offered to new users brought to the platform are examples of this.
An affiliate simply means you connect other people to a company’s product or service. This can be achieved majorly through content writing in blogs, which would link people to the company, and as people come into the network through you, the company gives you a commission.
NOWPayments offers a great affiliate program for you to earn passive income. By creating an affiliate account and building your merchant base, you can earn up to 0.25% of all the transactions in your network.
In addition, NOWPayments makes purchasing cryptocurrencies significantly easier. With NOWPayments, you can receive over 100 cryptocurrencies, making it easier to build your network of merchants.
AirDrop is a marketing strategy that involves sending coins or tokens to your wallet address to facilitate the recognition of new cryptocurrencies. A small number of new cryptocurrencies will be sent for free or in exchange for a small service to the wallet of active blockchain community members, such as retweet emails sent by the company that issues the currency.
Recipients may need to have a minimum number of cryptocurrencies in their wallets to qualify for AirDrop. Alternatively, you may need to perform specific tasks, such as posting coins on social media forums, contacting specific members of a blockchain project, or creating a blog post.
Blockchain Gaming or BlockFi is one of the hottest topics in the crypto space at the moment. These play-to-earn games allow users to earn (in cryptocurrencies) while playing games.
Blockchain Games retain the decentralized feature of blockchain technology, meaning these games are not owned and controlled by a central authority. Instead, these games are owned by the users, who possess digital assets and game objects.
In 2020, the crypto gaming industry had a market revenue of $321 million, with around 41.9 million gamers owning crypto. Today, the blockchain gaming market is capped at over $36.3 billion.
By participating in play-to-earn, gamers are rewarded with cryptocurrency or unique NFTs, which can be resold. Blockchain gaming became very popular during the lockdown. Now, gamers reportedly earn between $500 and $2,000 monthly by playing games. This figure varies depending on the game. 1
Running a Lightning Network Node
Lightning Network is a second-tier protocol built on networks such as the Bitcoin blockchain. This is an off-chain payment system network. In other words, it can be used for high-speed transactions that do not need to be sent immediately to the underlying blockchain.
In the Bitcoin network, most transactions are one-way. That is, if Alice transfers Bitcoin to Bob, Bob cannot transfer the same currency to Alice through the same payment channel. On the other hand, Lightning Network uses bidirectional channels, so transaction terms must be agreed in advance between the two parties.
Maintain Dividend Payment Currency
One of the easiest and hassle-free ways to earn passive income with cryptocurrencies is to buy and hold dividend payment tokens. However, it is important to note that not all digital currencies pay dividends. You should always do your research before making a purchase.
Currently, most of the digital tokens that pay these dividends are issued through exchanges. Examples of cryptocurrencies that pay dividends include NEO and Cosmos. NOWPayments not only provides you with the fastest means of purchase but also provides the information you need to know about every asset.
The positive side of dividends is that they are fairly consistent and stable. Therefore, you can continue to earn additional income without having to actively do anything. To get more payouts, you need to buy and save more tokens.
A master node is a server that runs on a distributed network and has features not found on other nodes on the network.
Token initiatives are likely to bring special benefits to players who have a keen interest in network stability. However, setting up a masternode requires considerable upfront costs and a great deal of technical knowledge.
However, for certain masternodes, the token retention requirements are so high that interest can be inherently illiquid. Masternode projects tend to overestimate the expected rate of return, so it is advisable to do your research (DYOR) before investing.
If you are looking for a new way to get passive crypto, we have provided ten ways to easily generate higher returns. In addition, they don’t take much time, and you can earn more easily without doing much, so get started and start earning much without stress. NOWPayments gives you more knowledge on all the aforementioned and other new ones out there.