May 9, 2020 / Beginners
Passive Profit On Cryptocurrency: TOP-5 Ways To Get Crypto Income
Passive profit on cryptocurrency is a process of generating income with minimum actions performed. Of course, in order to start receiving such income, you first need to work hard, or invest, and only then enjoy the influx of funds.
If you draw an analogy with real life, you first earned an apartment, and then you started renting it out and receiving passive income. This is not achieved overnight – the same can be said about earnings on cryptocurrencies.
The ideal model for getting passive income is when you get paid for the work you once did again and again. We consider the potential types of such income in the crypto world.
TOP-5 Ways Of Making Passive Profit
So, in what ways can you make your money work for yourself:
- HODL (investment). The method involves buying cryptocurrency at a lower price and selling it subsequently at a higher price. In order for profit to be tangible, strong growth in the exchange rate, as well as significant investments are required. That’s exactly how many Bitcoin investors got rich, who bought several coins at the start of development, and sold when the price of one coin was estimated in thousands of dollars.
- Mining. The method, previously very popular and relevant, but today having too high a threshold for entry. Mining at home is gradually disappearing, this prerogative goes to corporations. Nevertheless, we will definitely consider such a method as well.
- Masternodes. A masternode is a blockchain network node that is responsible for processing transactions or performing any special tasks. The owner of the masternode gets passive income for the operations performed. But in order to start a masternode at home, significant financial investments, provision of a dedicated IP, and other conditions will be required.
- Staking. In this case, the user buys a certain amount of cryptocurrency and holds it in his account, regularly receiving additional funds as a percentage of the available ones. Staking is an integral element of the Proof-of-Stake mechanism, which many cryptocurrencies work on. Some crypto exchanges also provide such a service to their users.
- Lending. The method is as old as the world – you give your savings to the turnover or the exchange, or directly to other users, and then return them with interest.
The choice of methods for passive earnings on cryptocurrency is wide and varied, but all of them imply initial labor or financial investments. Learn and test different methods for yourself, look for sites with the most favorable and comfortable conditions. Then you are sure to find a path to follow in order to receive a stable additional income with a minimum amount of effort.