Passive Income with Cryptocurrency
Cryptocurrencies are not a passive investment as many know. It is so new, there are still new technologies coming out. Will there be a way to invest into crypto and get some interest back with more certainty than today? We believe so. However, you need to ride the wave first. Just like the dot com bubble, only a few of the companies are still around but they’ve done so well since.
With that being said, there is still a way to go around it and get some passive income investing in cryptocurrencies. We will highlight a few of the ways.
Airdrops: If you are going to look for passive income, airdrops are the last way you should invest. Don’t rely on it but it is not bad when you do end up getting more of the coin or token. Airdrops are when the developers decide to distribute more of the crypto to the people holding it in their wallets.
Forks: Forks are being talked about more recently and that’s because it’s happening more often. A fork is when a group of people can’t come to an agreement on how the future of a coin should proceed. Problems are arising but the difference in views causes one group to fork the coin. This means it will take the same info on the blockchain up until that point then create a derivative off that coin. When a fork happens, you get the same amount of the new coins as you had in the other coin.
Mining: Mining is something that is taking the world by storm. People have been talking about the electricity consumption. Mining cryptocurrencies is quickly becoming a favorite amongst individuals who want to learn more about the technology. Mining is when you use computer equipment like graphics cards to solve complex mathematical problems using brute force. It definitely puts your hardware to work. Mining helps more coins come into circulation along with helping transactions get verified on the blockchain.
Staking: Staking is the process of holding cryptocurrencies in your wallet and getting a percentage of it. This can be the closest thing to getting dividends. Staking can give you 3–10% of your coins in a year which can be pretty good. This is a better way of going about what mining does as it does not consume electricity.
Lending Services: Lending services in the cryptocurrency world have been noted to use shady tactics but so far, pretty much all of them are giving the returns they’ve promised. Some are expected to be scams and pyramid schemes waiting to topple over. Just because it hasn’t been done yet, it does not mean it cannot happen.
Bitcoin ATM: Buying and owning a btc atm can be a very lucrative idea if you live in a dense population. The more people there are the more chances of someone purchasing or selling from you. You can make money on top by charging a percentage on top of what people buy or
With all that being said, the best passive income in cryptos proves to be holding. Holding your coins and not selling is a great idea. Instead of chasing the get rich quick coins that have a higher risk, go after the ones that have proven themselves already.
Putting any sort of money into cryptocurrencies can be risky. It is all so new and you can wake up tomorrow with a portfolio at $0. Only invest in what you can afford to lose. We are not financial advisors but we have been buying, selling and reading up on cryptos since 2015 so we are giving you our opinions.