The crypto market is filled with investors who are looking for various ways to earn profits.
Are you wondering how to increase your passive income streams through Bitcoin and other cryptocurrencies
and want to know how to grow your cryptocurrency earnings with minimal effort?
I'm Garry, this is Olga and it's nice to see you in another video on our OG Crypto channel!
In today's video, we will discuss the following 6 ways to earn passive income through cryptocurrency.
We will describe each of these methods in detail and hope that each of you will choose something for yourself.
If you are interested in this topic, be sure to watch this video.
Also, don't forget to subscribe to the OG Crypto channel.
This will keep you up to date with all the news in the world of cryptocurrencies.
Now that the introduction is behind us, let's get started!
You can earn passive income by holding your cryptocurrency in a crypto savings account.
These accounts are similar to regular savings accounts.
This is a sustainable and low-risk method to earn passive income in crypto since crypto
interest accounts offer fixed interest on your idle crypto assets.
Instead of keeping your digital assets in a wallet, you can put them to work by depositing them in interest-bearing accounts.
Based on your needs, you can choose between different interest rates.
These can range from flexible savings plans, where you can withdraw your assets whenever you want,
to fixed savings plans, where you deposit your assets for a set amount of time.
Generally, interest rates are higher for fixed savings accounts, although, unlike traditional
bank accounts, you’ll be able to get up to 6% APY for a USDT 30-Day Fixed Savings
plan.
There are many such platforms available in the market.
Among them are Crypto.com, BlockFi, Binance or Coinbase.
The choice is up to you.
Staking involves keeping your digital assets in a specific wallet.
You can earn staking rewards by performing different network-related functions, i.e.
validating the transactions.
The term ‘Stake’ refers to holding the crypto, which incentivises the user to help
maintain the security of a network via ownership.
For this purpose, staking networks rely on Proof-of-Stake, a consensus algorithm.
There are different types of PoS, including Leased Proof of Stake and Delegated Proof
of Stake.
Generally, staking requires creating a staking wallet and holding a specific number of crypto
assets in it.
This process also includes delegating or adding funds to a larger platform known as a staking
pool.
It is simple, as you just have to keep your crypto assets with the exchange.
Staking is referred to as the easiest way to earn cryptocurrency.
It allows you to increase your crypto assets with little effort.
When choosing a platform, select one that is reliable and offers good return rates to
ensure you maximise your staking rewards.
The popularity of crypto lending services is surging with each passing day.
Trusted lending platforms offer these services in both the decentralised and centralised
segments.
Hence, you can earn passive income in the form of interest from lending your digital
assets to the borrowers.
Listed below are the four major lending strategies for earning passive income from crypto:
- Decentralised or DeFi Lending - Centralised Lending
- Peer-to-Peer Lending - Margin Lending
Mining is the oldest way to earn passive income with crypto.
This process allows you to receive a reward for securing a network using computing power.
You don’t need to hold crypto to earn passive mining income.
Initially, people used to mine Bitcoin on a regular PC or general-purpose mining rigs.
However, with the increased hash rate, miners started to use more powerful computers.
At present, mining equipment uses ‘Application-Specific Integrated Circuits’ (ASICs) with integrated
chips tailor-made for mining.
Setting up and maintaining mining rigs also requires some investment and technical expertise,
even more so with the current mining hardware.
As a result, mining is becoming a corporate business and is becoming increasingly out
of reach for a regular person to use as a source of crypto passive income.
Nevertheless, there is an alternative to traditional mining — cloud mining.
Cloud mining lets you rent the computing power of a specialised mining rig based anywhere
globally.
It usually requires paying a fixed amount to the third party for handling the technical
aspects of mining on top of a daily maintenance fee for managing the mining rigs.
However, since you’re renting part of a pool with plenty of computational power, you’ll
have a higher chance of generating a winning hash than other miners with less powerful
machines.
Liquidity Pools.
This is a sustainable way to earn cryptocurrency online, as liquidity pools serve as a foundation
of the DeFi ecosystem, although there are some risks involved.
In addition, a wide range of crypto-related services relies on these pools.
Some of these include: - Automated Market Makers
- Borrow/Lend Protocols - Yield Farming
- Synthetic Assets - On-Chain Insurance
- Blockchain Gaming
Airdrops are a great way to try out new altcoins, where fulfilling
certain criteria entitles you to receive an airdrop.
Airdrops are tied to various blockchain-based projects, where developers offer free tokens
to the members of the crypto community to gain the public’s attention.
This is a marketing tactic, and you just need ownership of a specific wallet address to
receive an airdrop.
Some crypto exchanges also offer regular airdrops to their users.
Usually, airdrops are issued to users after completing a particular task.
Some of these tasks include:
- Holding a specific smart contract wallet - Signing up or creating an account for receiving
regular updates - Re-tweeting or sharing a post
- Receiving or sending crypto through a particular platform
The basic idea behind airdrops is to distribute newly minted coins or tokens to specific wallet
addresses to keep the recipients engaged.
Here are some of the ways to offer airdrops:
- Asking a user to perform different tasks on social media and receive airdrops.
- Auto distribution of tokens to holders of a specific digital asset
That's all we wanted to share with you in this episode.
If you liked it, be sure to leave a thumb up.
If you have other ideas for passive income through cryptocurrencies, then let us know
in the comments.
Thanks so much for watching this video and see you in the next one, bye!