Cryptocurrency is fast gaining acceptance worldwide. It might still not be quite near the mainstream currencies like the dollar, but it’s evolving rapidly.
Are cryptocurrencies the future of money? I think that’s hard to tell. But they are certainly the most prominent digital asset of the present times. For the tech-savvy generation, cryptocurrencies are already emerging as a lucrative investment destination. Some people might still be suspicious of these digital assets. But as governments are recognizing the potential of cryptocurrencies, they are certainly getting more mainstream.
Can you earn passive income with cryptocurrencies?
Passive income is the kind of income you earn with minimal investment of time. A passive income source should ideally require no more work than a bit of checking and management once in a while.
Mainstream currencies like the dollar are a great source of earning passive income by investing in financial instruments like high-yield savings bank accounts, certificates of deposit, stocks, bonds, etc. But did you know that cryptocurrency can be a great source of passive income?
As cryptocurrency is getting more popular, many crypto-backed financial projects are emerging.
Instead of letting your cryptocurrencies sit there idly or taking unwanted trading risks, you could use these to earn passive income.
4 ways to earn passive income with cryptocurrencies
1. Cloud Mining
Cloud mining is one of the most popular methods for earning passive income through cryptocurrency.
It’s technically not very demanding, and you can start with low amounts.
Cloud mining is an innovative strategy for mining cryptocurrency, without having to directly run or install related hardware or software. It lets you rent hashing power from a cloud mining firm or operation.
By opening a cloud mining account and paying a minimal fee, you can mint your cryptocurrencies remotely. You get to buy cloud mining contracts that give you access to a certain hash rate for a fixed time. The amount of cryptocurrency you receive for mining depends on the size of your contract.
Many mobile cloud mining software like Minedollars let you mine Bitcoin from whatever location you desire.
Cloud mining is a truly passive source of income using cryptocurrency. The mining firms take care of all the technicalities and operations. You don’t have to bear the cost of equipment maintenance.
Despite its many advantages, cloud mining comes with some risks. You must do through research before choosing the right company to provide you with this service. This will save you from cloud mining scams.
2. Interest-Bearing-Digital-Asset accounts
You can earn interest on cryptocurrencies just as you would on traditional currency with a savings account.
Many users provide the option of depositing crypto and earning interest on it. Depositing your cryptocurrencies in interest-bearing-digital asset accounts is more lucrative than traditional cash savings accounts. Cash savings accounts are not a popular passive investment option as the returns are low. But with crypto accounts, the rates are much higher, so the returns can be great.
Crypto savings accounts provide yearly yields. Companies are offering different kinds of accounts, you can pick one depending on your risk-taking ability. Certain accounts will provide you greater protection volatility of assets. Others will give you a chance to make more money, but you have to put up with the risks that come with added price fluctuation.
Putting your coins in a crypto savings account is a good strategy for those looking to stay committed to investing in crypto long term.
3. Crypto staking
Staking is one of the easiest ways to earn passive income using cryptocurrency. If your exchange offers the option of staking, you just need a click, and you are good to go. You might need a fixed time commitment for staking your coins.
If your crypto exchange doesn’t offer the option of staking, you would have to move your assets to another platform or wallet that offers the option.
The most popular method of crypto staking is Proof-of-stake. It is a blockchain consensus mechanism that is ideal for keeping the network secure. Proof-of-stake is a more popular and reliable model than the proof-of-work system used by bitcoin.
Proof-of-stake enables distributed network participants to reach a mutual agreement whenever new data is added to the blockchain. Since participants become a part of the governance process, the need for supervisory entities like banks is eliminated.
Staking can be highly profitable to users over time.
4. Affiliate Programs
Affiliate programs are one of the least complicated methods to make a passive income through cryptocurrencies.
You simply need to join a cryptocurrency affiliate program by creating an account. Once the account is created, you would be given a unique link. You could start marketing the link by sharing it through social media platforms, blogs, websites, etc. Each time anyone signs up using the link or makes a purchase, you get a commission.
If you are already a social media influencer or blogger, affiliate programs can be a great source of passive income. You just got to capitalize on your existing network for marketing crypto assets.
Affiliate programs are great for individuals looking to generate passive income using cryptocurrency in the long term.
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