Best Ways to Earn Passive Income from Cryptocurrency

Best Ways to Earn Passive Income from Cryptocurrency

As you know by now, there are so many ways to make money online. With the inception of Bitcoin in 2009, there came about new ways to make money online. Some refer to Bitcoin as “the currency of the internet”. The decentralized, distributed, worldwide cryptocurrency has made receiving payments online a lot simpler and faster. So, here are some of the best ways to earn passive income from cryptocurrency:

Mining

Passive income with cryptocurrency - Mining cryptocurrency
Without Bitcoin mining, there wouldn’t be any Bitcoin. Bitcoin miners help keep the Bitcoin network secure by confirming transactions and adding it to the blockchain. Every time a miner successfully mines a block, he/she gets paid a specific amount of Bitcoin as a reward. Right now, this reward is 6.25 BTC.

So, you can mine Bitcoin as a way to earn passive income. It is important to mention that Bitcoin is not the most profitable cryptocurrency to mine. If you plan of mining cryptocurrency as a way to earn passive income, then you must know how to find the most profitable coin to mine. You can learn that here.

For mining to be profitable, there are a few conditions you need to meet. Firstly, you must have a powerful GPU, CPU, or an ASIC. Secondly, you must live in an area where electricity cost is very inexpensive. Thirdly, you must estimate the mining profitability of a cryptocurrency to decide if it’s worth your time mining that coin. You can use a mining calculator for this.

If mining is not profitable with the resources you have, don’t be disappointed. There are so many other ways to earn passive income from cryptocurrency.

Trading

Passive income with cryptocurrency - Trading Cryptocurrency
Trading is not for everyone. However, if you are willing to put the time and effort to learn about trading and different analytical tools, this method of earning can be very profitable. Don’t expect to become a trading expert overnight. If you are new to cryptocurrency trading, I suggest you practice trading on virtual cryptocurrency exchanges. Perfect your trading strategy and apply it to the real market. If you are already an expert at trading, you can apply that knowledge on trading cryptocurrency. Here are some of the best exchanges for trading cryptocurrency for both beginner and advance traders:

Hodling (Holding)

Passive income with cryptocurrency - Hodling (Holding) cryptocurrency
This is perhaps the easiest way to earn passive income with cryptocurrency. What you essentially do is buy cryptocurrencies that have good fundamentals and that are likely to appreciate in value in the future, and you hold them.

When the coin has sufficiently gained in value, you sell it, hopefully at a profit. Yes! It is easier said than done. The biggest question here is “which cryptocurrencies should you hodl?”. In a market where most cryptocurrencies are just oscillators of bitcoin price, it can be even hard to choose the best cryptocurrencies to hodl. When Bitcoin rises, these coins rise harder; when bitcoin falls, they fall harder. The best investment could be to just buy Bitcoin and hodl bitcoin.

There is no guarantee that bitcoin will rise, however, there is also the potential for some random coin to 10X or even 100X sometimes. No one knows which cryptocurrency is going to rise. That is why it is important to do your research and find coins that have good underlying technology to hodl. Check out the video below:

Staking

Passive income with cryptocurrency - Staking cryptocurrency
Staking is one of the safest ways to earn passive income with cryptocurrency. However, you do need a special wallet and this wallet needs to be online all the time.

All you have to do is buy proof of stake coins and keep them in a wallet. It is similar to earning interest on a fixed deposit. Proof of stake coins, as opposed to proof of work coins, eliminate all the energy costs associated with mining, making it the most efficient way to mine cryptocurrency.

However, to stake profitably, you do need a significant amount of coins in your wallet. The majority of cryptocurrencies reward you according to the size of your stake. Staking can be very profitable, especially if the cryptocurrency you stake gains in value.

Now you may wonder which cryptocurrencies are best for staking. Here are some of the most popular cryptocurrency to stake:

  1. Tezos
  2. Dash
  3. Neo
  4. PIVX
  5. Reddcoin

You can check out the full list of proof of stake coins here.

Interestingly, Binance exchange, the biggest cryptocurrency exchange, has added staking as a feature. Now you can stake multiple cryptocurrencies in just one place. You can check out here.

Blogging

Passive income with cryptocurrency - Blogging
Blogging is another popular method of earning money online. You can blog about anything. Since you want to earn in bitcoin, you must monetize your site with services that pay in bitcoin. For example, A-ads is an advertisement platform that pays in bitcoin and other cryptocurrencies for ad impressions and ad clicks. You can place there ad snippet on your website to earn money from website visitors.

If you do not want to place advertisements on your website, you can place affiliate links on your website instead. There are many services that pay in cryptocurrency when you send them a referral through your referral/affiliate link. You can find the full list of cryptocurrency affiliate/referral programs here.

Lending

Passive income with cryptocurrency - Lending cryptocurrency
Lending is another popular way to earn passive income with cryptocurrency. Lending is one of the oldest ways of earning income, and this concept can also be applied to bitcoin and cryptocurrency.

If you own some cryptocurrency, you may want that cryptocurrency to work for you instead of lying around in a wallet. Lending cryptocurrency is one way of doing that.

Here are some of the best lending services available today:

  1. Binance Savings
  2. Bitbond
  3. BTCPop
  4. Ethlend
  5. XCoins

Conclusion

It is possible to earn passive income with cryptocurrency. All methods mentioned above require some form of investment from you; be it time or money. In some of the methods, luck also plays a role. If you are willing to put the time and effort to refine any one of these methods, you can guarantee a good return on investment.

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