Earning any kind of income, especially passive income is never easy, but now with the introduction of the blockchain, Bitcoin and other coins to choose from, things have changed. They are sold as easy income opportunities and have led many people to fall for their scams.
There are many scams out there today, such as the Bitconnect scam, Tezos scam etc, there are simply too many to mention. Over 1200 complaints about crypto scams were lodged in Australia last year.
However, we understand that not every person has the time to do their own research and this is why we try to do our best to present this information to you. However, this doesn’t mean that you should follow us or anyone else blindly.
Below are some of the best ways you can make passive income through cryptocurrencies.
Cryptocurrency Made Easy Bitcoin Trading Course
One of the best ways of earning money through crypto is to buy good coins and hold onto them. By good coins and investments we mean coins that have strong fundamentals and a realistic use case that will increase over time.
The question then is what makes a good investment? Consider coins like these:
These coins are popular because they all have a realistic use case and could increase in value over time.
Trading involves buying coins cheap and then selling them high.
If you have knowledge with technical analysis and charting price movements, then you can use technical analysis to earn money through crypto. You can also check the market to ensure that you are making the right buy and sell decisions.
Investing In ICOs
ICOs, sometimes known as initial coin offerings, are the modern-day equivalent of crowdfunding.
ICOs are also named token generation events or token sales, which is the same thing. Yet earning money through an ICO is not always easy as you need to beware of scams and go through a due diligence process.
At the minimum, you should consider the following before investing in an ICO:
- Use case
- The team
- Government regulations
- Technical barriers
- Token economics
If you don’t do enough research before investing in an ICO, you could end up losing all your money.
Mining popular cryptocurrencies like Bitcoin or Ethereum is another popular method for generating passive income.
However, the cost of rising these coins is slowly rising, and gets difficult every year. You’ll also need to buying powerful mining equipment that will cost you a fair chunk of money.
There are other expenses to mining too: such as electricity costs and cooling equipment.
A masternode is a cryptocurrency full node or computer wallet that stores a copy of the blockchain in real-time, just like you have Bitcoin nodes that operate the network.
Aside from staying up and running, Masternodes also perform specialist tasks and in turn, owners of master nodes are rewarded.
There is a degree of technical expertise and assets required to run a masternode, including:
- A minimum amount of coins of that particular crypto
- Requires a VPS server
- Dedicated IP
- Storage space
Among other things.
Staking is yet another way to start earning in the space of cryptocurrencies. With staking, you simply buy and sell your coins in a special wallet to earn regular dividends or profits for them.
This method is usually used by proof of stake coins as they reward stakers and power the blockchain using this technique.
With staking, you need to keep your wallet for most of the time to earn those dividends paid out in cryptocurrency named staking reward.
Some staking coins include:
- NAV Coin
Lending is one of the oldest methods for earning money and is the same concept of lending that you can apply for cryptocurrencies like Bitcoin and Ethereum.
If you have a large amount of Bitcoins or Ether, then you can lend them to people who will pay you back extra on your investment.
There are a number of companies that will help you lend your Bitcoins, with some listed on this site and others.
Airdrops are another way that you can earn passive income. Airdrops are given to people for free for new cryptocurrencies or tokens because you were holding those coins.
For example, Ethereum HODLers were airdropped OMG tokens that are now worth $18 each. In a similar vein, Bitcoin HODLers were given free Bitcoin Cash.
But to claim airdrops, you first need to control your principal funds for where the airdrop will be carried out, which means that you need to have access to the private keys of your funds.
Another genius idea to earn passive income is to buy and hold cryptocurrencies that give you dividends just for holding them in any wallet.
There are numerous currencies out there that pay you dividends but not all of them are created equal.
However, these are some of the most popular coins: