So you started investing in crypto and you've seen some crazy gains. We can all buy and sell crypto but you want something more, something passive, something where you can make consistent income rather than just buying and selling all day. Don't worry I got you covered.
In this blog I'm going to be going over how you can start making passive income with cryptocurrencies. So without further ado let's see some ways we can make some extra money with cryptocurrencies passively.
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Staking Crypto
Coming in at number one is going to be staking. I know you can find thousands of articles that go in depth about staking and how it works and all this and that but to save your time, Staking is just locking up your crypto and receiving rewards. Think of it like a savings account with a bank you deposit money into a savings account and you'll receive interest on your money something like 0.0001% a year.
Now how much can you actually make from staking your crypto well it all depends on each coin because each one has a different percentage you can earn up to 6% with ethereum, 2.0 to 5% with cosmos, and almost 4% with tezos. When staking your crypto unlike a traditional bank most cryptos require a lock-up period pretty much a certain amount of time your crypto is locked up and you can't do anything with it and the coins that you lock up is what you get as your percentage return. Now also with each exchange they also have their own different staking awards some might be more and some might be less. You can use plenty of different staking platforms such as BlockFi, Coinbase, Voyager, crypto.com all these exchanges will give you a percentage return for locking your crypto up with them.
Let's say you have a 1000 dollars worth of a coin and you lock it up for a year you would probably earn anywhere in between 50 to 100 dollars a year now I already know what you're saying, that's nothing for years worth of time I agree but if you plan on holding crypto it really doesn't matter because you are in it for the long term and if you don't you're essentially passing up on free money. Now let's say you're a big baller and you put in 50,000 dollars you can earn close to 4,000 dollars a year for just holding your crypto which you are already gonna do. So staking is a great way to earn passive income with crypto there's also something called yield farming which I won't get into because it gets super complicated.
Mining Crypto
All right coming in at number two is going to be mining crypto. No I'm not talking about literally mining crypto. Mining crypto is pretty much adding new crypto into the circulating supply. When someone sends bitcoin or any other crypto anywhere it's called a transaction. If we look at transactions in the real world they are documented by banks, POS systems and receipts. But in crypto world those are bitcoin miners. They achieve the same thing by clumping transactions together in blocks and adding them to a public record called the Blockchain. So basically think of them as middleman for transactions. Anytime they helped one, they get rewarded with some coins.
Now how can you make money from mining crypto. I'm sure by now you've seen those crazy memes of people decking out warehouses full of mining rigs and receiving rewards that way. Now obviously you don't want to do all that, well I mean you can if you want, but you can start out with one and work your way up. Sad news is that you can't even do that because in order to start mining crypto you need graphic cards GPUs and a whole bunch of other things, which are sold out though everywhere because everyone wants to mine right now and if you really do want them good luck because you're gonna have to pay some steep resale prices along with the crazy electricity fees that come with mining. But there are ways around all of this it's through cloud mining. This is pretty much sharing someone else's mining rigs and they give you a percentage of the rewards. There are websites out there that offer their service but you have to be very very careful because the majority end up being scams. So make sure you guys do a whole bunch of research before investing your money into it.
How it works? You give them an investment amount and for about 30 to about 120 days whatever you choose, your money is locked up and you'll receive mining rewards until then and when your contract is up you'll get your money back.
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Affiliate Rewards
Coming in at number three is going to be affiliate rewards. I'm sure you guys know what I'm talking about. But for those of you that don't, it's pretty much when you get other people to sign up for different exchanges or accounts exchanges will give you money for inviting your friends and telling them to use their platform instead of other. What you can do is take those links and share them on your social media, investment groups, to friends and family. You can write a blog about it and include links in there and anytime someone uses your link to create an account or fund it with that you'll receive a bonus usually in the form of crypto.
Now you might be asking yourself, how is this passive you have to do work by promoting it I agree but it's only upfront work. You do all the work only once let's say you make a youtube video about the exchange, reviewing it or something about it. Anytime someone watches your video and clicks the link in your description you'll get a kickback once they sign up. If you think about it, crypto is still very very new. A lot of people don't know how to do anything with it. If you can make a tutorial or reviews of certain things in cryptocurrencies and each time someone searches it up and your video pops up and they use your link to sign up or fund their account you'll receive a bonus.
Holding Crypto
Finally coming in at number four is going to be what we all have a love-hate relationship with, which is, holding or say as Hodling Crypto. You can hold your crypto for the long term and over time crypto prices usually rise, which will result in your portfolio going up in value. This is pretty much passive income as long as you don't check your portfolio every 30 minutes and are constantly buying and selling different coins. If you just keep it in your wallet, prices usually for the most part end up rising which will increase your portfolio value. You can technically look at this as passive income.
Conclusion
So those were the four ways you can make passive income with the crypto, staking mining affiliates and holding. If you want to buy all the majority coins make sure you guys check out crypto.com.
Have a great day..