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 passive crypto income ideas, you’ll be able to generate that extra cash and build a solid stream of income from cryptocurrency.
What is crypto passive income?
Crypto passive income involves maximizing returns on your crypto holding so that you can work decreasingly hard over time. Passive income from cryptocurrency is possible but not easy. It takes time, eﬀort, and a little bit of capital to get started. You should only consider investing in crypto if you have the money you don’t mind losing while learning the ropes of making money in this space.
How to earn passive crypto income for free?
To find the best ways to make passive crypto income, you need to start with clear goals 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 aims.
Here are some of the best passive crypto income ideas that almost anyone can take advantage of.
1. Stake coins
Crypto staking is a process used to verify cryptocurrency transactions. It involves committing your crypto holdings to be used to conﬁrm transactions and support the blockchain network. In return, you receive rewards for what you’ve staked. It is similar to earning interest on what you have in a savings account, except that crypto staking generates better returns than what a bank would give you.
Depending on the crypto, you can earn anywhere between 5 to 20 percent per annum on the amount of cryptos you stake. But you’ll need to hold a large amount of coins to make healthy 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 (or liquidity staking) involves lending your crypto to others, and in return, you receive some interest and other rewards. 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.
The reward from DeFi yield farming comes in the form of a digital token, though the real payoﬀ comes if that coin appreciates rapidly. However, yield farmers have to lock up their crypto for a while to earn interest. The interest you earn by yield farming is expressed as APY, or the rate of return you’d earn during a year. AAVE, Compound, Curve Finance, PancakeSwap and Uniswap are some of the best DeFi (decentralized ﬁnance) yield farming protocols to consider.
3. Join airdrops
Airdrop in crypto refers to the sharing of cryptocurrency tokens or coins for free, to numerous wallet addresses driven by creating a buzz around a coin/token, gaining new followers, and strengthening the user base. You can easily take advantage of emerging projects to earn crypto through 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 hits the market, the tokens received can be used – traded for other coins or sold for cash on listed – cryptocurrency exchange.
4. Refer a friend
One of the quickest ways to earn free cryptocurrency is through signup bonuses from cryptocurrency protocols such as exchanges and brokers. The platforms may have different conditions that a user must meet to be eligible for the bonus. For example, some platforms require users to deposit or trade a certain amount within a specific period to earn the rewards.
Some cryptocurrency projects oﬀer sign-up or referral bonuses for bringing users to their services. hi has a unique invitation-only feature, where every member is a referrer. The project offers members many incentives to help grow the network. One major incentive is the referral bonus of 5% if a member’s downstream referral buys HI token within four years of signing up and one-year daily release options.
5. Learn to Earn
Some platforms offer crypto bonuses for using the platform’s learning hub. It rewards users who watch videos and take quizzes as a process of learning about the platform. The content is typically focused on specific altcoins, and it is in these coins that the users earn at the end of the lessons. Since some of these altcoins may not be recommended for long-term investment, users can convert them into other digital coins within the platform or even sell them and use the money to buy tokens for another promising project.
6. Start playing games (P2E)
GameFi or gaming ﬁnance operates a “play to earn” model that allows players to earn just for playing a game and moving through levels. This could be in the form of crypto, in-game items, or NFTs (non-fungible tokens). On top of that, users can convert tokens earned from a game into other cryptocurrencies such as Ethereum, Bitcoin or swap them to ﬁat currency. For NFTs, you can build and grow your characters and then trade those characters and in-game items or sell them for real-world currency. Interesting right? Then, try it.
Some of the most popular P2E games oﬀering excellent returns include hi Play, Axie Inﬁnity, CryptoKitties, and Decentraland.
7. Try cloud mining
Another great way to obtain some crypto coins is through mining. It involves using your computer to solve complex mathematical equations that validate blocks of transactions. Cryptocurrencies are already created inside a protocol. It just needs to be validated to get on to the market. The ﬁrst person to validate it receives a portion of the crypto coin.
However, the prevalent problem with earning money mining cryptocurrency is the cost. The more computing power you generate when mining, the more likely you will beat others to solve the math problem required to earn your crypto. This means you’ll need high-end equipment such as ASIC or GPUs to have a realistic chance to earn crypto consistently. However, you can always join a mining network to minimize your costs (and share the rewards with other members).
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.
8. 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 open a cryptocurrency wallet to hold your funds.
9. 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. 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.
10. Cashbacks on Crypto Cards
Crypto debit cards in circulation are supported by the world’s largest payment processing networks – Visa and Mastercard. These cards can be used at any merchant accepting Visa or Mastercard. Crypto card cashback works like the traditional rewards credit cards. However, instead of earning cashback or points every time a user swipes their cards, they get cryptocurrency rewards – Bitcoin and other altcoins. In some cases, the rewards may be given in other forms yet can still be redeemed for cryptocurrency.
Some of the projects that have announced plans for cryptocurrency reward cards include hi, Gemini and other exchanges. For example, hi debit card allow members to geet between 1-10% back in spend rewards on purchases depending on membership tier.
11. 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.
12. 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.
13. Participating in Crypto Faucets
Crypto faucets are sites that reward users with digital currency for performing simple tasks such as playing games, watching videos, or simply clicking advertisements. As such, these faucets allow users to earn cryptocurrency without any upfront investment. Some of the sites used to give visitors as much as 5 BTC. However, back then, five Bitcoins were not worth much. Currently, they do not pay as many valuable cryptocurrencies. However, the basic idea remains the same – they provide a way of earning cryptocurrency free. Users are required to supply their wallet addresses to receive the tokens.
Additionally, one has to consider the minimum redeemable amount. Some platforms may set the minimum withdrawal amount so high that it may take you a very long time to reach, making the entire faucet a waste of time.
Some of the popular cryptocurrency faucets are Cointiply and Bituro. Cointiply pays out the users in Bitcoin, Dash, and Dogecoin whenever they complete the puzzles on the platform. The platform also allows users to earn interest on the cryptocurrency they earn on the platform once the token has reached 35,000 Cointiply coins (translates to $3.5). Butoro enables users to redeem their rewards once the points hit 1,000, which translates to the $1 work of Bitcoin. The platform rewards people for taking surveys. For example, a one-minute survey earns the user $10.
14. Receiving Payments in Crypto
Another way of earning cryptocurrency without buying is receiving payments in digital coins. While this may not sound like a freeway to getting your hands I digital tokens, it still enables you to start earning crypto without any upfront investment. This method works best for online merchants. For example, Publish0X is one of the famous crypto publishing platforms, which rewards its users – writers and readers. A user will read an article and get a reward. Users decide on the portion of their earnings they want to give to the author of the article they have just read. The remaining crypto reward is immediately sent to the user’s account. They can transfer these tokens to their preferred wallets.
15. Browsing and Shopping Rewards
Another way of earning free cryptocurrencies is shopping through media that offers cryptocurrency giveaways to shoppers. Lolli, a Firefox or Google Chrome browser extension, rewards those who shop with its retail partners with Bitcoin. This extension rewards users for spending regular money as they normally would when shopping online. One need not make purchases with cryptocurrencies.
Retailers on this browser extension include Nike, Malaysia Airlines, and Sephora. The reward depends on the retailer and products and may range between 1% and 30% “Bitcoin back.” The prizes are deposited into the user’s Lolli account. Users can then transfer those assets to their cryptocurrency wallets or even exchange account.
Brave Browser also awards users with the Basic Attention Token. Unlike Lolli, Brave does not require users to shop on any specific retailer to give the rewards. The Browser is available both on desktop and on Android devices and typically blocks all ads from the user’s internet viewing experience. However, users will be asked if they want to opt for the Brave Reward Program. Brave will show some ads to users who opt for the reward program. In exchange for showing ads, the Browser rewards the user with Basic Attention Token (BAT). Users can transfer their tokens to Hi and earn decent commissions.
10 Tips on earning passive income with cryptocurrency
These tips explain how to create a passive income using cryptocurrencies:
- Keep your privacy in mind – Many people have concerns about governments and corporations spying on their every move, especially regarding cryptocurrencies.
- Use the right digital wallet – Wallets are where your earned cryptos will be stored until you’re ready to sell them or use them for purchases.
- Choose a suitable exchange – If you want to use your cryptos for buying items online, trading, or changing them into fiat currencies, then you’ll need to choose a reputable exchange that oﬀers those benefits.
- Always remember the risks – Cryptocurrencies are volatile, with prices ﬂuctuating every day. So, if the market takes a dip, there’s always a possibility of your earned cryptos deteriorating in value.
- Get started with mining – Instead of buying cryptos outright; you can use your computing power to mine them. The higher your processing power, the more likely you will make money.
- Invest in assets or coins that have the potential to go up in value – This is by no means a get-rich-quick strategy.It’s not as simple as just buying a digital currency at its low price and selling at its high cost.
- Lump-sum vs. dollar-cost averaging – Lump sum investments are ideal for making money with cryptocurrencies.
- Join a cryptocurrency community – You can make money with cryptocurrencies simply by being a part of any cryptocurrency community. Participate in airdrops, invite contests, etc., to earn free coins.
- Don’t sell out too quickly – Many people get frustrated when they don’t see any return on their investments after a few months. But remember that it takes time for cryptocurrencies to generate real value.
- Don’t forget about taxes – If you’re making money with cryptocurrencies, always remember that you could be liable to pay taxes on them.
How to avoid a cryptocurrency scam?
Earning crypto-free may be the quickest way to acquire digital tokens without risking any money. However, one should understand the risk that comes with it. There are scammers trying to defraud users by creating false free crypto campaigns.
Many scammers use clone cryptocurrency browsers and social media to scam their targets. They may create clone browsers that collect the user’s details to hack their wallets. Supplying them with wallet addresses gives them a good starting point to conduct the attack. They may still have the user’s available tokens on the wallet or threaten to spread the information for a ransom.
To avoid this risk, users must pay close attention to the web browsers they are using. They should ensure that the domain name is correctly spelled. The addresses that begin with “HTTPS” are also secure. Additionally, a small lock icon in the URL is also a sign of a certain website. Users should only use the websites that they trust.
Social media scams are also popular. Fraudsters use bot accounts to send promotional messages. While many genuine cryptocurrency projects promote their tokens and services, users should be able to identify genuine promotional messages from bot messages. One should be careful with offers, which seems too good to be true. For example, no company can easily offer 300 BTC for simply clicking a link.
Earn passive income with hi
If you’re new to cryptocurrency, hi is one of the best crypto for passive income as they make it very easy for users 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. You can also stake HI to earn crypto interest and get a crypto card to earn rewards on every purchase.
Sign up on hi today to obtain the referral link that you can use to invite people to hi.com.
The most popular ways to generate passive income with cryptocurrency are through: mining, buy and hold (HODL), staking and crytpo lending.
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.
There are different ways to earn free crypto. Some of the most common ways are staking, yield farming, airdrop, play-to-earn, cashback from crypto card.