3 Ways to Earn Cryptos While You Sleep
Is there anything better than knowing that your hard earned money is working for you while you are having fun or getting your much deserved rest? Well, the crypto universe offers quite a few opportunities for you to do just that. So, just for you, here are three ways you can put your crypto investments to work while you sleep (Mining cryptos was deliberately left out as we will be covering it in an upcoming article — stay tuned):
Masternodes
Masternodes are full node wallets with a certain amount of coins locked up as collateral. They support the smooth running of the network providing for some functionalities more than normal nodes. When a user hosts a masternode, the network rewards him/her in native coins for helping maintain the network.
Here at Coinvision we love Masternodes. Most of them require a relatively small investment and give back a continuous daily stream of income without you having to do anything at all. If the hosting is made through a Virtual Private Server, you don’t even have to let go of computer power to run the node, and those can be rent for as little as USD$5 per month from a number of different providers.
Financial entry barriers vary widely from coin to coin. To run a masternode for Dash, for instance, the 1000 coins one needs to stack amount to over USD$340k today. For other, less popular coins, a masternode can cost as little as USD$1. If Dash yields a bit over 7% return on investment per year, others give back some thousands of times your investment. However, some of these have daily volumes in the low thousands and trade in obscure exchanges. Setting up a masternode can also present some technical challenges for less tech-savvy users.
Here at Coinvision, XUMA or STRAT are two of our favourites, but there are hundreds to choose from.
To know more about masternodes and their underlying opportunities, read our article about Masternodes.
Dividend paying tokens
Some blockchain projects have native coins known as dividend tokens. This means they pay investors for the simple fact of holding the coins. Normally, the rewards come from the distribution of part of the company’s/network’s earnings. This contributes to price stability as investors are more likely to hold their positions as they earn dividends.
Perhaps the most famous of these coins is NEO. By acquiring and holding NEO in an official wallet, the network will automatically reward the user in GAS.
The list of coins paying dividends is quite extensive: QUA, OMG, ARK and LSK, just to name a few of the better known ones.
Coins native to exchanges also tend to pay dividends, either directly as share of the profits of the exchange, or through discounts on transaction fees. That is the case for Binance’s BNB, Bibox’s BIX, KuCoin’s KCS or BridgeCoin’s BCO. They all offer similar features.
This is a comfortable way of earning income just by holding coins. In contrast to masternodes, this normally does not imply any setting up of systems or any technical knowledge. However, return on investment tends to be relatively low when compared to masternodes, with most dividend paying coins returning from 5% to 15% per year.
Proof-of-Stake
The Proof-of-Stake model is a transaction confirmation system that is becoming increasingly popular as a substitute for the more traditional Proof-of-Work. It is a form of mining coins that does not request specific hardware to operate. Instead, miners stake their own coins in a wallet to assure that they are correctly confirming transactions. This system has the advantage of being much less energy-intensive and of making attacks on the network harder, as the attempt to confirm a false transaction would require an enormous amount of coins stacked in order to acquire more than the 50% network consensus necessary for a transaction to be wrongly confirmed.
By staking your coins in a POS wallet you have the chance that your wallet will be the one solving the blocks and getting rewards. However, the more coins you stake the higher your chances, so this might be a better suited system for large investors. Tokens like STRAT, NEO, DASH, FCT or OK, all operate with POS systems.
There are quite a few things to explore here, and if you don’t have the time or the skill to be a day trader, you might be much better off with one of these systems in order to make money from crypto.
You can also explore other more active options. Read our take on how you can earn an extra-income in crypto by performing some simple tasks.
Stay tuned for our updates and join our Coinvision Premium community to be the first to get alerts about high ROI opportunities.
Disclaimer
We are stating our vision and opinions, we are not giving you financial advice and if you invest in this project it is your full responsibility. You are investing at your own risk. Always invest only what you can afford to lose and try to diversify your investments. Finally, do your own homework and learn about the project use case, roadmap and team.
Originally published at www.coinvision.co.
