Money has always been a driving force. It moves the economy, fulfills dreams, and makes life easy. But with a fixed set of income, getting around all that becomes a tad bit tougher. To bridge the gap between dream and income sources, advancement in technology is opening up portals every now and then, creating new means to earn more. Cryptocurrency is one such prime example.
The ushering era of crypto redefined passive income and how fast one could make multiple streams of cash inflow with a little hard work in the beginning. Let’s take a look at a few passive income methods in cryptocurrency.
Yes, it’s precisely like digging for gold. But, instead of shovels or diggers, you use a modern machine like an ASIC rig (Application Specific Integrated Circuit), and you’d mine for digital currency like Bitcoin. It can be started at home but requires constant electricity.
The electricity consumption of the mining rig is very high, so people living in areas with high electricity rates would find the progress less worthwhile. Nonetheless, it can be hugely rewarding. Getting started requires knowledge and tech skills to get by encryptions. Otherwise, a novice miner would have to dig a lot about mining to begin mining.
Other than that, you’d need a mining rig, mining software and a crypto wallet integrated with it.
Did you know you can earn interest from the cryptocurrency you buy? There’s no requirement for technicality here and even someone with basics of crypto can set up an account on lending platforms and track for interest earnings. There are many cryptocurrencies like BTC, ETH, XTZ (Tezos) that you can lend to earn money.
The process is easy to understand; you buy crypto and you lend it for a specified time for a specific amount of return, just like a bank. You let banks use your money, and they pay you interest in return. Unlike trading or mining, there’s lesser risk involved and is a good investment to have a passive income.
Staking is similar to lending but a lot more complicated. One must know about trading and the crypto market, or it could prove to be a nightmare. Basically, an investor needs to buy cryptocurrency that allows staking and running a PoS (Point of Stake) algorithm.
It may sound similar to mining, but it is not. Here, an investor holding on to the digital assets can lend it to the network. The network makes good use of those coins in validating transactions and rewards the coin owner: the higher your stake, the more rewards you earn.
4.. Margin Trading
In margin trading, an investor borrows capital from exchange to trade at a higher volume. Since a trader has only limited capital, he/she deposits the capital into his account and the exchange provides bigger capital. The trader uses the capital to open a position higher than the trader’s account balance. For example, opening a margin position at 4x leverage. So when the price of assets grows by 20 percent, the open position will earn 80 percent.
An investor can either choose to hold the position or trade in short term openings. Margin trading is less risky than volatile trading. It requires knowledge of the crypto market along with keen insight to keep an eye on moving market trends outside the crypto ecosystem that could affect the prices. For Example KoinPro. It is a good place to start and practice as they even offer a free practice account.
5.. Affiliate Marketing
Affiliate marketing is pretty common and old but it’s comparatively new in the crypto world. It is possibly the easiest way to earn and comes with the lowest risk. All you need is a website where you sell a vendor’s product for a decided percentage of commission on each sale.
A user creates informative blogs about relevant topics and includes affiliate links to the vendor’s program. Now the user needs to bring traffic to its affiliate site through various means and SEO. The only risk here is failing to sell because selling requires skill to convince readers with the means of your blog.
Creating one or multiple streams of income in the cryptocurrency isn’t hard. With a little research and market knowledge, anyone willing to take a shot can make stable passive income in less than a year. Risks are there, but the profits outweigh them.