Top Ways to Earn Passive Income with Cryptocurrency
The Cryptocurrency market has created a new Digital Economy that provides individuals new ways to earn passively from the Cryptocurrency trading. Cryptocurrency has been the new sensation of the trading world. Investors and traders are interested in its volatility.
Today, there are many online platforms that provide its services to fellow traders and help them with a user-friendly trading environment, bitxtapp.com is one of the most visited platforms for the traders and investors who wish to trade in Cryptocurrency.
The Cryptocurrency has not only been a mainstream investment, but today investors are also using this trading field to earn passively.
Let’s check out the methods they have been using to earn passively.
- Cloud Mining
If you are already in the Cryptocurrency trading market then you will also agree with the fact that Cloud Mining is one of the most controversial ways to earn passively.
Cloud mining here means renting out the electrical equipment and hardware to the specialised mining farms. This method can also help the individuals to earn income from the mining without actually owning and maintaining the Cryptocurrency Mining Farms.
Cloud Mining is a good way of earning passive income. However, if you see all the historical cases, you will be able to notice one thing that if you put the same effort in buying and holding the Cryptocurrency asset, it will be more profitable than that of Cloud mining.
- Running Masternodes
Masternode is similar to Staking but is more volatile and profitable. In simple terms, a masternode is a Node in the Blockchain technology that performs certain functions. These nodes are maintained by the dedicated community members and require a huge initial investment.
The first Masternode was launched by DASH (A privacy-focused Digital Currency). To Start with the Masternode, you first need to invest “1000 DASH. in restun the DASH operators will receive a ROI of 6.45%.
Hence, running a Masternode for moderate investors is not possible. Masternode Investment is suitable for professionals only.
- Peer-To-Peer CryptoCurrency Lending
If you want to have a more straightforward and hand-on approach, then you can engage yourself in Cryptocurrency lending. This method is quite simple and straightforward and brings in more profit than the conventional means.
There are several online platforms that offer a stage for both lenders and borrowers. You can lend Cryptocurrency to the people or businesses who are in need of financial support. And the payments are incremental. That means that you will get your Cryptocurrency little by little during the loan period.
Yes, of course, lending out your Cryptocurrency can be risky. There is a chance that the borrower might not give you back your Crypto coins. To negate this possibility, it is better to diversify your lending portfolios. This will help you to accrue less loss in time of betrayal.
- Holding Dividend Paying Tokens
Finally, we are at the best method that helps you earn passively without any worry. The best way to earn passive income out of the cryptocurrency is by buying and holding on to the dividend-paying Tokens. And for your kind information, currently, Exchange-issued Tokens are the main types of dividend-paying tokens in the market.
Recently, there have been many Digital asset exchanges that have issued their own Tokens. These tokens provide a special discount on the trading fees, and in some cases some of them promise to share the profits.
So if you are thinking of having these kinds of tokens then you first need to have a stake of coins in your Cryptocurrency wallet. Only then you will be eligible for the Dividend Paying Tokens.
Before you jump on any of the methods mentioned above to earn passive income, it is very important to know that none of the methods are risk-free. Whether you are talking about mining, lending or Masternodes, every method comes with a risk that you must take into consideration. Having said that, once you are comfortable with all the risks, you can start with your passive income.