Are you looking for a passive income? Well, if that’s the case then you need to be ready to get familiar with the most modern trends in the financial market. More precisely, you should pay more attention to the crypto market as its popularity is exploding in the last couple of years.
Many people believe that cryptocurrencies can only bring profit in two different ways – trading and mining. However, that is far away from the truth. These two methods can’t even be your passive income because they require in-depth knowledge of the crypto market as well as a full-time job (or even more).
1. So, how to start a crypto journey in general?
If you are broke, then starting any sort of career in the crypto industry is impossible. Because of that, the best possible option you have is to get a crypto loan. Believe it or not, something like this does exist and should focus on those loans that come without collateral. If this seems like a legit way to start your journey and ensure passive or active income, then visiting cryptolaun.ch after reading this article is a good choice. You will gain all the relevant pieces of information there.
Anyway, after you got instructions for the first step, let’s continue with some other interesting facts. We will give you some tips for earning passive income in the crypto market that you apply. Of course, we do not want to say you will become a millionaire over the night because something like that is impossible. Besides, additional education is a must-do thing if you want to succeed. The list below is full of ideas you can use, and it is up to you to organize your time, money, and other relevant factors. Let’s go!
2. You Can Run Masternodes
Have you ever heard about master nodes? It is the type of node that you can find in a blockchain network. However, this one has a bit specific function which leads to specific requirements that you need to meet.
These nodes are only dedicated to the community members which is a strict requirement that you can’t skip. Despite that, you will have to prepare an initial capital and invest it in the staked coins that will allow you to set up. We already provided you with one of the options that you have to generate the initial capital.
3. Modern Option: Interest-Bearing Crypto Account
This may be a perfect option for passive income because it is relatively new. It is probably better to use real-life examples to explain everything.
For starters, we will use BlckFi as a sample. This type of platform allows all digital asset holders to earn around 6% of their holdings. However, there is one single option – you need to do that with BockFi Interest Account. This platform is not accepting a lot of digital currencies. You can store only Ether and Bitcoin, and the minimal amount is 1 BTC and 25 ETH.
Generally speaking, if you already have digital currencies, and you HODL them for years, this may be a good option to profit out of that “trading strategy”.
4. You Can Try Out Peer-to-Peer Bitcoin Lending As Well
As mentioned, you can get a crypto loan and start your journey in different ways. However, have you ever imagined yourself as a crypto lender? Well, this could be an excellent way to generate some passive income and ensure your financial stability.
Generally speaking, your target audience can be everyone who wants to get a loan expressed in cryptos. However, the most loyal customers are going to be businesses that accept and work with crypto-based payment options. Despite that, you can potentially collaborate with crypto traders as well.
Of course, for this type of passive income, you will need to have a bit more experience. Keep in mind that some of the borrowers are not going to be able to get you back their money. That is the reason why you need to have some crypto experience as well as life experience to recognize reliable borrowers as well as unreliable ones.
5. You Can Collaborate with Margin Traders
Peer-to-Peer may seem risky to some individuals. Because of that, lending cryptocurrencies to margin traders can also be a good option. Good platforms for this sort of income are Poloniex and Bitfinex.
So, how exactly do things function? The amount of money you will get depends only on the platform that you choose. However, the entire procedure is mostly identical at all the platforms. Logically, the first step is to connect with margin traders through these platforms and lend money to their funds so they could leverage their traders. After you do that, you will get a daily interest that directly depends on the amount of money that you lent to this sort of trader.
The income depends as well on the type of crypto you borrowed. For example, if you borrowed BTC, then you will get a 0.003536 interest rate (this amount varies).
Is there any risk? Unfortunately, a certain risk does exist. All the platforms that serve as an exchange for different crypto assets are often attractive targets for hackers and scammers.
Because of that, you need to be careful when choosing this platform. We suggested two of them that can be good, but we invite you to do your own in-depth analysis before finding the best option.
6. Try Out Cloud Mining
This option may be the most controversial on this list, but it is worth mentioning. Cloud mining suggests that you rent the mining hardware and allow individuals to mine a wide range of cryptos. Logically, providing this service is not for free as all these pieces of hardware are extremely expensive. You will charge for maintenance through mining contracts.
Just like in previous cases, this one also comes with a certain level of risk. Your success depends on the value of the crypto that people are mining with your machine. Despite that, offering this service requires experience because you will need to realize who the scammers are.
All these options are good or bad in some way. Keep in mind that neither of the investments is going to be perfect. At least, the pandemic confirmed that all the business fields are risky. However, living with uncertainty is a normal thing for entrepreneurs and investors. So, we suggest you develop a proper strategy and figure out which option is the best for you.