Passive income is the income source that does not require the individual to actively participate in the process. You can earn passive income in cryptocurrency by investing your crypto assets in a particular crypto platform or a market strategy. Thus you can earn some passive income without putting in much effort. Here are the best ways to earn passive income from the crypto market.
Mining is the traditional method to earn passive income. You have to use computer skills and power to secure a blockchain network, for which you will be rewarded. As mining has become more competitive, miners have to use specific hardware for mining that is highly expensive. Mining also consumes a lot of energy and you need technical expertise to mine crypto coins.
Staking asks you to store your digital assets in a particular wallet. By performing functions like validating crypto transactions or other network tasks, you can earn some passive income through passive income. This is one of the easiest methods to increase your crypto earning with minimal effort.
There are many crypto platforms that allow you to lend your crypto assets and earn interest on it. The process involves a lender, a borrower, and a legal agreement between them that explains the amount given, the time period of repayment, and the interest to be paid. Mostly, the lender and the borrower will be individuals and not financial institutions like banks.
Airdrops are the process in which developers or companies will give away crypto coins as a part of the promotion of the launch of their new cryptocurrency. They will announce airdrops through their website, social media profile, or crypto news sites. However, there are many scams associated with airdrops and therefore, you have to research if the coin is valuable or not.
- Affiliate Programs
If you can bring new people into the networks of some of the crypto companies, you can earn some profit. There will be referrals, affiliate links, or discount coupons for the new customers you bring to the network. But, you have to be a social media influencer to get affiliate programs.
Masternodes are servers of a decentralized network with more special properties than the other nodes. If you have good knowledge in setting a master node, you can earn some passive income from it.
- Hard Forks
Hard Forks are the changes in the protocol of the network that causes a break in the network. Thus, there will be two different networks running alongside. If you are an investor who has invested in a network prior to the hard fork, you will receive a token from the new blockchain automatically, which you can sell or hold as per your choice.
- Crypto Interest Accounts
You can hold your crypto assets in a crypto savings account and earn passive income. They are similar to bank savings accounts. This method is a low-risk and sustainable method as the crypto savings account will offer you fixed interests for the assets stored in the account.