Earning passive crypto income is a dream for many of us (and even those who say it isn’t are probably lying!). But how can you earn passive income in crypto?
With these ingenious crypto passive income ideas, you’ll be able to generate that extra cash and build a solid stream of income from cryptocurrency.
What is Bitcoin passive income?
Bitcoin passive income involves maximizing returns on your Bitcoin holding so that you can work decreasingly hard over time. Bitcoin is currently the most recognized cryptocurrency in the market, with a market capitalization of more than $800 billion -which also means it is the best crypto to earn money with.
How to earn passive income with Bitcoin?
This involves solving cryptographic puzzles and adding new blocks to the Bitcoin Network. You can step your own Bitcoin mining equipment or sign-up for cloud mining. You only need to pay once for the contract to receive your share of the mining rewards.
Moreover, cloud mining does not require you to buy any software or hardware. But it is sensible to always verify the credibility of the cloud mining company before investing your money.
2. Buy and hold (HODL)
It involves buying Bitcoin and holding it for the price to increase. You simply buy some Bitcoins and hold them in your wallet. As soon as the price increases, sell it and profit from it. However, you should spot the right time to sell.
3. Lend Bitcoins
If you can buy Bitcoins and hold them, why not let Bitcoins make money for you. Simply lend your Bitcoins to other people and earn an interest in return. Many websites help you with your lending services, including Coinbase, Binance, Bitbond, among others. These platforms allow you to earn up to 15% in interest annually.
How can your computer earn passive income?
You can earn passive income right from your computer by engaging in various activities that generate money, such as investing in high yield tokens, staking crypto, and so on. It doesn’t have to be mining – that’s just one of the many ways you can earn passive crypto income while sitting at the computer.
Ways to earn passive crypto income
To find the best ways to make passive crypto income, you need to start with clear aims and plans. You’ll need to know how much you’re able to commit in terms of money and time. You’ll need to be prepared to make short-term sacrifices to meet your long-term goals.
Here are some of the best passive crypto income ideas that almost anyone can take advantage of.
1. Stake coins
Proof-of-Stake (PoS) is a consensus mechanism that compels clients to stake their money instead of contributing to the network computing power (as is the case with Proof-of-Work chains like Bitcoin)—staking gifts holders cryptocurrency tokens in return for verifying transactions and securing the blockchain.
Staking cryptos is a great way to generate passive income. One can take between 10 to 20 percent interest each year on their assets by staking tokens. But it does take some specialized skills to make good profits.
Some projects have no or low staking thresholds—for example, you can start staking Cosmos with as little as 0.05 ATOM and Cardano with as little as 1 ADA (minimums vary by staking platform). Unless you join a staking pool, Ethereum requires a minimum of 32 ETH. As a result, staking Proof-of-Stake tokens is a typical method of generating passive income on a blockchain platform. Staking is popular among long-term “HODLers” (those who acquire crypto to hold). It increases the predicted returns on their trading portfolios. If you’re seeking alternative investments with higher returns may want to consider staking. All you have to do is purchase crypto, lock up your coins inside a staking pool and sit back to collect your rewards.
2. Participate in yield farming
Yield farming is depositing cryptocurrency in a trading and lending pool then staking the protocol’s coins to earn extra coins.
If you’re yield farming on a decentralized exchange like PancakeSwap, you’ll need to stash two coins into a liquidity pool to get revenue from transaction fees. In addition, you have to stake a group coin, named LP token, that you can invest to receive yield farming profits payable in the platform’s token – CAKE! You can then trade your earnings for ETH, BTC, or fiat currency.
For example, hi launched a 200 million $HI liquidity provider reward program. It is currently one of the biggest reward programs in the market. Participants can add liquidity to the HI/BUSD pair on PancakeSwap, and then stake their LP tokens on stake.hi.com. Liquidity providers will be rewarded based on the percent share of the liquidity pool according to the APY and number of LP tokens they’ve staked at any time.
3. Join airdrops
Many crypto projects often engage in airdrops to promote their coins and gain traction within the crypto community. The project asks crypto investors to help perform a specific set of tasks (such as sharing posts, signing up to the platform, etc.), and in exchange, users receive the project’s tokens. That way, blockchain projects incentivize the use of their platform and coins. Once the project is launched, those tokens can be traded for other coins or sold for cash.
4. Try cloud mining
Cloud mining is the leasing of Bitcoin mining equipment from specialized mining facilities. It allows one to earn regular income without buying and maintaining the mining gear. Like Genesis Mining and HashNest, entities levy a daily service fee on their cloud drilling rights.
Cloud mining gives crypto investors a handy passive income possibility. However, it also carries a significant degree of volatility. This is due to shifting crypto rates and mining challenges.
5. Start crypto trading
Trading crypto CFDs is one technique to get passive income through trading. Cryptos are suitable for trading CFDs due to their variation and volatility. Crypto CFD trade allows you to speculate on both increasing and decreasing prices (Go long and short). This will enable traders to profit regardless of how the economy is moving. Yet, ensure you have a solid trading technique. Besides, have a solid understanding of the fundamentals.
Alternatively, you can just buy the digital currencies in the hope they increase in value. Before you can start, you need to create a crypto wallet to hold your funds.
6. Try dividend-earning tokens
Certain tokens provide investors with part of the income generated by the entity that made them. You will get a specific amount of the project’s profits if you only hold the coin. The percentage of income you earn is dependent on the amount of your staked tokens.
7. Run a lightning network node
The Lightning Network is a second-tier system based on blockchain systems like Bitcoin. It is a web of billing systems not connected to the main blockchain. In other words, it is suitable for fast payments that don’t need submission to the core blockchain right away. You earn crypto by charging a small fee for allowing people to process transactions through your lightning channels.
8. Consider cryptocurrency lending
Crypto lending is like regular cash financing in terms of its fundamentals. The lender receives interest from the debtor. It’s collateralized by higher virtual assets than what you are acquiring. Thus, you can deposit BTC and lend banknotes or cash. Several platforms oﬀer crypto lending services, including exchanges and DeFi protocols. However, it would help if you considered some key factors before selecting a crypto lending platform. These include interest rate, cost, platform risks, minimum deposit, loan duration, and collateral amount.
9. Hold dividend-paying tokens
Holding dividend-paying assets is the most pleasing way to make passive income in the crypto space. Exchange-issued assets are the most common type of virtual currency that pays dividends.
You must keep them on the issuing platform or invest them using a private account to receive dividends on such assets. The more coins you own, the more passive income you will generate.
Refer your friends to hi.com and earn passive income
Some cryptocurrency projects oﬀer sign-up or referral bonuses for bringing users to their services. Hi.com, for instance, makes it very easy to participate in cryptocurrency. Simply recommend your friends to join hi to get free HI. If they buy HI from the Web App or Mobile Apps, you’ll get a bonus of up to 10% of the value of their purchase.
In addition, you get half the daily rewards for any friend you refer who claims daily. And the friends of your friends give you rewards too (downstream referrals).
Sign up to hi.com today to obtain the referral link that you can use to invite people to hi.com.