Lets take a look at Cryptocurrency passive Income opportunities and ways you can earn passive income from cryptocurrency. There are lots of ways to do it and then there are also lots of companies out there that claim they will make you passive income but in reality they are ponzi’s or scams. The first obvious one is buying a good coin and holding (HODL) for the long term but this is not guaranteed and no coin is a 100% set winner that will keep going up. We wish it was that easy 🙂
Cryptocurrency Passive Income
Below I have a list of the most common ways and I will break each of them down into separate posts and videos to expand on each passive income stream and how they work in depth.
Mining is done on POW (proof of work) coins like Bitcoin and requires you run a mining rig which is basically a high end computer or group of computers. This is a very popular method but does have its complexities. Some people do buy the mining rigs and set them up at home while others use cloud mining services which is basically where you rent out some of the hashpower that is produced by a company running massive amounts of rigs and you get the rewards. 2 of the most popular ones are Hashflare and Genesis.
Mining consumes alot of electricity so the price of your electricity will be a factor in whether it is profitable for you to do it at home or use a cloud service. I will get deeper into mining in a full block post soon.
Staking is done on POS (Proof of Stake) coins and is one of the easier ways to earn passive income. This is the process of holding the coins in a specific wallet and keeping that wallet open 24 hours a day. For holding the coins in the wallet and keeping the wallet active on the network/blockchain you will be rewarded new coins. The more coins you hold the bigger the rewards but the amount of coins you are rewarded and how often is different with each coin.
Examples of these coins are NAV, LISK, Tokenpay, ARK
I will dig more into POS advantages / disadvantages and specific coins when I do a full post on staking
Divdends Paying Coins
This is a very easy way to earn passively. It is similar to staking in that you earn coins by holding that coin in its own wallet but with dividends you don’t need to keep the wallet open. All you basically need to do is hold the coin and that’s it.
Examples of these types of coins are:
- NEO – Pays out GAS and you can use this calculator to work out how many you can earn –neotogas.com
- Kucoin Shares – This is Kucoin’s own coin and Kucoin pay out 50% of the funds they earn from fees to members hold Kucoin Shares on their exchange
Kucoin also now pay you GAS if you want to hold your NEO on the exchange but personally I hold mine in my NEON wallet.
Matsernode’s are becoming a very popular method of earning passively from cryptocurrency. They can be run on POW or POS coins and this is a topic you will see me doing a few more videos on soon as I am working to set up a few masternodes. With masternode’s it is like staking that you need to have the coins and keep your wallet open 24/7 but you need a to have a certain number of that coin to run a masternode. They are used to complete unique features on a network like instant and private transactions, they contain a full copy of the blockchain.
Masternode’s can be very profitable but they can also be hard to set up so in another post I will dig deeper into how to set them up and I will also record some videos of how I set up the nodes I personally run. One website that is good for tracking masternodes is masternodes.online.
For masternode’s the majority of people use a VPS so they dont have to leave their own computer running 24/7 and the most popular for Masternode’s is Vultr.
Rent Your Hard Drive
With this option you can rent out space on your hard-drive that you are not using and you will be paid coins from the currency that you rent the space to. Some of the popular options in this sace are SIA and Storj.
This method is not fully passive but I will mention it anyway. You can also earn coins by creating content like videos or posts and adding them to blockchain platforms like steemit or dtube. There are other platforms too and new ones popping up all the time as this is a growing niche and I think is only getting bigger.
Common Scams in Passive Cryptocurrency Income
As with any niche that there is big money in the scammers will come in too so here are some things to be careful of.
- Bitcoin Doublers – These are usually advertised as magic systems that will double your Bitcoin. You generally have to send them your Bitcoin to them.
- Turn 0.001 BTC in 5 BTC.. Cyclers.. These types of adverts are generally always based on recruiting and 99% of the time there is no real product and you just earn money by referring in others and you get their money. You will get some people talking about how brilliant these are and they come with all different names but always look at the details before joining and see what is the product. They might also talk about just sign up and you will earn from ‘spillover’, yes spillover is possible and I have done well from it in the past when there was a real business and product but is the product is just a pdf or handful of training videos it will crash and burn
- AutoTrading Platforms – There has been a huge inflow of these to the market because everyone is searching for the golden opportunity that will earn them huge money for doing nothing. Not all auto-trading services are scams and there are some good ones out there but a huge majority of them are scams and just looking to get your money. If you have to send them the funds rather than the trades been done on your account that you control you need to be cautious and do alot of due diligence. Even the legit services can lose as trading is volitile and losses can happen even to the best traders.
Always do your research before you get into anything and never stop at the first results in google you get on your research journey, dig deeper and make sure it is the truth and real.
Summary of Passive Cryptocurrency Income
Hopefully this post has been useful to you and opened your mind to the possibility of earning money passively from cyrptocurrency. I will add more to this post as well as links to the posts dedicated to each of the methods so make sure you check back soon as well as subscribing to my YouTube and Newsletter.
If you got some value or learned something new please SHARE to help others earn and learn too.
Thanks Paul great stuff. Looking forward in due course when you go into more depth on the passive incomes
Hi Paul, are there any Auto Trading Platforms for Bitcoin that you could recommend or if not can assure me isn’t a
Is there any legit bitcoin auto platform that I can invest in as of now? Because analysing chats and applying technical indicators is too hard to full time employed people like me.