Your personal financial well-being may be improved by creating many sources of passive revenue. It’s because of this that a growing number of investors and people are finding methods to expand their income streams without having to actively maintain them. An example of this would be designing and distributing an online course, or running a dropshipping company on the internet.
Despite the fact that trading and investing in digital currency might provide some passive income, they often need extra knowledge and abilities. In addition, the market’s constant price fluctuations and volatility may not be a reliable source of revenue. During a market downturn, even the most successful investors may suffer losses.
When the market is experiencing pessimistic feelings, it may be beneficial to look for other ways to increase the productivity of your crypto holdings so that you may continue to profit even when the market is down.
With cryptocurrencies, there are several methods to make a steady stream of money without having to put in any effort.
1. Deposit Your Assets in an Interest-earning Account
Depositing your crypto assets into an interest-earning account will enable you to earn a higher rate of return than just investing them in the cryptocurrency market. Currently, there are a number of platforms that provide this service to investors, and most of them include additional features that may help you increase the productivity of your crypto assets.
For example, Hodlnaut offers daily interest rates as high as 12.73% for short-term loans. With features like Preferred Interest Payout and Token Swap, users may earn and receive in whichever currency they like.
The interest accrued on these sites is likely to be compounded. This means that you’ll be able to earn interest on a higher amount than the amount you put in at the start.
Consistent profits may be achieved even amid market volatility by using this strategy. Isn’t it the best? Managing it isn’t even necessary. After making a deposit, you’re ready to go.
2. Cloud Mining
Cloud mining is another option to make money using cryptocurrencies on autopilot. Cloud mining, on the other hand, does not need a piece of physical mining equipment.
For those who aren’t familiar with the word, here is a brief explanation.
There are several ways to mine cryptocurrency, but one of the most common methods is cloud mining, which involves renting out processing power from a third party. Simply deposit some money into a cloud mining service provider, and the business will invest that money in a real-world mining operation for you.
You will get a piece of the cryptocurrency that they support when it begins to generate rewards. Cloud miners like BeMine and Shamining are also available. Some even have wind and solar power facilities on their mining farms.
Compared to the conventional mining method, this is a simpler and hassle-free choice since the operation is really simple and does not take much technical skill or time.
3. Holding Dividend-Paying Currencies
Investing in dividend-paying tokens is one of the simplest and most hassle-free methods to get passive income using cryptocurrencies. It is crucial to keep in mind, however, that not all digital currencies pay dividends, and you should always do your own research before investing.
At this time, most digital currencies that pay dividends are produced by exchanges. Cryptocurrencies such as NEO and Cosmos pay dividends to their holders.
Additionally, there are tokens that are known to give trading costs savings and, at times, a percentage of the platform’s profits to users. In the case of KuCoin Token (KCS) and Bibox Tokens (BIX), holders get up to 50% of the platform’s trading fees as dividends.
Even if you don’t work, dividends will keep bringing in extra cash for you. To increase your dividends, all you have to do is acquire additional tokens and keep them in your hodl.
4. Final Thoughts
Looking for new ways to earn cryptocurrency passively? We’ve offered three strategies that you may try out right now to get a higher return on your cryptocurrency investment. Apart from that, they do not need much of your time, and you may quickly make extra money without exerting much effort.
Placing your assets in an interest-bearing account is also a good idea for novices who are just getting started with digital currency investing. You will not be required to have any previous expertise, and all you will have to do is a study on the platform of your choice before starting. Once this is completed, you will be able to begin receiving interest on your assets.
5. Depositing crypto in a DeFi lending protocol
Autonomous lending protocols like Compound (COMP) and Aave are more decentralized alternatives to the likes of BlockFi and Nexo (AAVE). Using DeFi lending applications, crypto holders may deposit their coins into smart contract-powered lending pools and receive interest.
Because DeFi does not need any KYC (know-your-customer) documents or onboarding procedures, it is a major distinction between CeFi and DeFi lending.
Depending on availability and demand, each platform’s yields will be different. In addition, certain DeFi lending applications are riskier than others. It’s worth noting that DeFi’s large returns come with a greater degree of risk.
6. Providing liquidity in liquidity pools & yield farming
Depositing cryptocurrency into decentralized trading pools, known as liquidity pools, allows users to generate passive income.
Depositors get trading fees and LP tokens in exchange for supplying liquidity to an autonomous trading pool. Users may then invest the LP tokens in so-called ‘yield farms’ in order to generate further income on deposited digital assets.
Yield farming, like DeFi lending, is a risky endeavor in the crypto markets, but it has become a popular method to make passive crypto income.
Popular liquidity pools include Uniswap (UNI), SushiSwap (SUSHI), and PancakeSwap (PANKE) (CAKE).
7. Staking PoS-based cryptoassets
There are other options if you want to make money passively, such as staking proof of stake (PoS) coins.
To safeguard the blockchain, PoS-based crypto networks need validators to ‘lock up’ a share in the network’s native asset. As a reward, you get a slice of the block reward in the form of freshly created tokens.
To stake, some networks need complex software settings, while others merely demand you to keep your funds in the official wallet and retain them there.
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