Cryptocurrencies might be a relatively new financial market but that doesn’t mean it’s far below other existing investment options. In fact, countless people have gained major wealth through crypto already. You can be a part of that elite group as well as long as you know what you’re doing.
There are two common ways people earn money through crypto. One is through short trades of crypto which is riskier but quicker in terms of gains. The other is through investing in crypto and holding it until the value of the coin rises significantly. Both are great options but what they aren’t is a way to earn consistent passive income.
What many don’t know is that there are actually multiple ways for people to earn passive income through crypto. If you want to make the most out of yours, then here are a few amazing ways you can earn extra on the side without having to do anything.
Mine Cryptocurrencies
One of the first ways people could earn money through crypto before was through mining. This was the process of getting your own coins from the blockchain. The process used to be complex and hard but there are now many platforms that would allow you to mine crypto easily.
The most important requirement you need to have when mining crypto is that the device you need to use must be powerful. Smartphones and desktop computers are capable of mining crypto but they need a strong processor to do the job efficiently in a way that you can make significant gains.
To this day, this remains to be one of the most common ways for people to earn money through cryptocurrencies. However, without a powerful mining rig, the passive income you’ll make out of this is relatively low and it would be better if you just put your computer to some other use.
Staking
Next to mining cryptocurrencies, the most popular way to earn passive income through crypto is through staking. When staking, you participate in a transaction validation similar to mining on a proof-of-stake (PoS) blockchain. Those who are able to meet the minimum required balance on specific crypto can help validate transactions and then earn rewards.
When you stake your coin, you won’t be able to do anything during a set period that’s dependent on the contract that you choose. Contracts can range from 3-12 months depending on the platform where you are stalking your coin on.
Try Lending And Interest Accounts
An alternative to staking is interest accounts and lending platforms. To put it simply, these services let you earn interest on your cryptos like Bitcoin and a few others by allowing borrowers and lenders to transact with each other in exchange for passive income.
Platforms like these are growing because more and more people are diving into the crypto space. As such, the need for safe and easy ways to earn money through the industry has become more important than ever. As there are many of these platforms that are now available, it’s best to choose where you can earn the best.
When looking for a platform that allows such a service, look for ones with a fair and realistic APY (annual percentage yield). If you check this comparison guide from HedgeWithCrypto, you can see which platforms offer the best rates. Of course, you should also look into the fees of the platforms as well.
Blockchain Game Scholarship Programs
The latest trend to hit the crypto community are blockchain games. These include popular games like Axie Infinity, DefiCit, and many others. What’s great about these games is that they allow you to generate income through various ways including the selling of in-game items, as well as through mining coins and getting rewards.
The most popular blockchain game currently is Axie Infinity. It is currently taking Asian countries by storm. People earn passively through it by letting other players, AKA scholars, play the game on their behalf. The profits made through the game are then split between the scholar and the actual owner of the account.
This is still a relatively new method to earn cryptocurrencies. When looking for a scholar to play your accounts, make sure that you are hiring a person that you can fully trust. This can be a friend, a family member, or just about anyone you can trust to keep their word.
Holding Your Coins
Others might not consider this as a means to earn passive income but in a sense, you are already generating good money if you invest in and hold crypto that has a ton of upside potential. Almost all major coins grew significantly well over the last year and their room for growth is still pretty high.
If you want something that can pay off well in the future, invest your money in proven and tested coins like Ethereum and Bitcoin. These still have a lot of potential for growth and there are lesser risks of them falling anytime soon. Once you reach a certain amount of gains, sell your coin for a big profit.
Precautions With Crypto
As you can see, these means to earn passive income through crypto require an investment along the way. With mining, you need to buy a good mining rig. With the others, you need to invest in crypto to be able to generate passive income. That means that you’ll need to invest in crypto.
Your passive income in crypto will be subject to the volatility that the industry is mostly known for. As such, it’s important that you only invest in what you are prepared to lose. Crypto can be a great means to generate passive income but that doesn’t mean that risks aren’t involved in the process.
Earning passively through crypto is now made possible thanks to the advancements in the sector. It can be a bit intimidating to dive into the industry at first but with proper guidance and a good plan ahead, you can earn a good amount of money through crypto.
