A cryptocurrency is a virtual asset that can be exchanged for a secure financial transaction. In 2009, Satoshi Nakamoto introduced the first decentralized cryptocurrency named bitcoin. Since then, there are hundreds more operating in the market.
You can make money by trading or investing in the blockchain industry. But, that also requires a substantial investment of time and research for a profitable income. Yet, this is not a guaranteed source of income.
If you don’t have an alternative source of income, then it may become difficult to survive. Even the best investors suffer from prolonged losses. Besides, there is another way to increase your cryptocurrency income.
A passive income is similar to earning interest but requires little effort once you set a platform. This also allows you to integrate several streams of income and pile a significant amount. You can try crypto indicator alerts from apps to monitor your crypto coins and try different methods of passive income to skim more profit.
This is the simplest of all passive income methods. You just need to hold your cryptocurrency in a suitable wallet for a specified time. In some cases, you may have to add funds to a staking pool. Most exchanges do this for you. You just need to keep your token, and they will take care of all technical issues.
Staking provides a more predictable ROI than other investment methods. Furthermore, you don’t have to invest in hardware. Once you are done investing for a lock-up period, you will get back your coin as well as rewards. This reward can be up to 30% of your coin in the stack.
Though it looks like bonds in cryptocurrencies, in reality, that is more instrumental in participating in any corporate investment scheme. They just return a portion of the benefits of your investment. In the latest trend, people are more interested in binance staking for a wide variety of coins. It is simple- just deposit your coins and follow the guide for a quick start.
It is one of the easiest and reliable methods of earning passive income with cryptocurrencies. In the early days, most people used the Central processing unit (CPU) for Bitcoin mining. Later, people turned for Graphic processing units (GPUs) for increased rates.
Currently, there is higher competition for mining, and people have no other option other than Application-Specific Integrated Circuits (ASICs). This has tailored mining chips that are more specific to the purpose.
You can try crypto mining on your PC, laptop, or even smartphones. How much you can mine depends on the strength of your device. Besides, you can join crypto pools for more productive mining. Crypto pools have more equipment and provide frequent returns for a higher passive income.
3. Lightning Nodes
The blockchain contains 2 main layers- the implementation layer and application layer. The implementation layer or layer 2 has a lightning network. The owner of lightning nodes can do a lot of transactions in a quick time. Though they do not offer immediate ROI, you can earn from transaction fees. Its income potential varies according to market demand. So, if you invest in lightning nodes, the ROI will increase according to market demand.
4. Master Nodes
Masternodes are a series of decentralized servers that support a blockchain network. They offer specific services that miners can not accomplish under the regular proof of work (PoW). They perform additional verification of transactions and bring more profit to the user. In a nutshell, they take part in stalking, but with further actions, they can earn 10 to 20% more profit than usual stalking.
5. Forks and Airdrops
It is a relatively straightforward tactic to take advantage of a hard fork. You just need to hold forked coins to a date determined by fork height. Balance the token on each other when you find two or more competing chains after the fork.
Airdrops are no big difference to forks. All you need is the ownership of a wallet address for airdrops. This is a marketing stunt where new virtual currencies send free coins and tokens to your wallet address for market promotion. You don’t need any capital investment for this passive income.
There are a lot of peer to peer(P2P) funds where you can lock-up your funds and collect it after a fixed time frame with interest. This interest rate is mostly fixed based on the current market rates.
Some exchanges have lending features implemented on their platform. As this is an automated process, it is more secure and easy to manage lending operations. Both loan size and length is variable; you can customize it or pick any plans provided by your platform.
7. Affiliate Programs
Some crypto business platforms have affiliate links or referral programs to grow their business. If you promote them, they will offer you commissions. The more people join their platform from your referral link, the more you will earn commissions.
People usually try social media platforms or websites to promote affiliate banners or links. Other than that, you can try email marketing or try a sales funnel for effective affiliate commissions. Before you go for affiliate incomes, do research on their business and make a rough calculation on their referral system.
Possible Risks with Crypto Passive Income
1. Some of these passive methods require more technical expertise. So, as a beginner, it can be more challenging. Make sure you try more user-friendly platforms that require minimal technical competence.
2. As a beginner, most people do not understand the lock-up currency strategy. Crypto prices are not fixed and change from day to day. So, a wrong lock-up strategy can be detrimental for some investors.
3. Buying low-quality assets with misleading return rates can hurt the investors. Other than that, there are stalking networks with multi-token systems. In general, they reward you on your second token and create unnecessary sales pressure on investors.
4. Locking of tokens on stalking wallets has a risk of bugs. So, long term lock-up or high amount of crypto locking in one wallet can be dangerous.
No wonder passive income in the Blockchain industry is the new revolution in business. But, adapting quickly to the system is a big challenge. If you get the concept right and know the possible loopholes, then surely, this is one of the best sources to scale up quickly. So, learn it before you apply it.