In the crypto world, unlike in the classic financial markets, there is no possibility of guaranteed returns. However, there are other ways to generate passive income with cryptocurrencies. Most of the big investors’ money in the market comes from purchases made during periods of low prices and then converted into a sale when the market is high. But besides the classic “buy low & sell high” method, there are other ways to make a profit from dealing with cryptocurrencies. In this article, we’re going to introduce 3 ways to generate passive income in the crypto world:
Staking with cryptocurrencies
Blockchains, in which either the Proof-of-Stake (PoS) consensus mechanism or a modification of it is used, enable users to generate passive income for a certain period of time by locking (staking) their coins. In this way, you make a contribution to network security and receive a certain percentage of return. How much, how often, and in which currency is paid out varies from project to project. There are quite a few projects like this, so it shouldn’t be too difficult to find one that suits you.
With proof-of-stake, unlike mining, new blocks are not generated by providing hardware and computing power, but by holding coins in a staking wallet. You send a certain amount of coins to the wallet and choose how many coins you want to secure or deposit. The more coins you stake, the higher the corresponding reward and the chance of receiving a block award.
A masternode is a full node that supports the network by storing a copy of the entire ledger of the underlying coin and making it available in real-time. There are usually special requirements for operating such a masternode, for example, the computer on which the node is operated must be online 24/7 and connected to the network. In addition, there is usually a certain amount of coins that you have to have in order to participate. A popular coin that offers the operation of masternodes is the Top 15 project DASH.
DASH pays out a 6.45% return per year to the operator, but without a minimum of 1,000 DASH in the wallet, there is no question of operating a masternode.
The difference between staking and operating a masternode is that you are more than a worker when staking, while the masternodes take on administrative work such as checking private/instant transactions or voting for software updates. The distributions of operating a Masternode are usually higher than the rewards for punting.
Many successful crypto exchanges such as Coinbase or Binance offer so-called affiliate programs. These enable every customer to bring further customers to the platform and thereby receive a commission from the operator. For the normal user, there will now be no exorbitantly large sums of money, but for people with a large reach on their social media channels, such a program can be very lucrative.
How much and in what form is ultimately paid out depends entirely on the platform. At Binance, for example, you start with a commission of 20% on the trading fees collected by Binance from the referred user, which increases to 40% when you hold 500 BNB in the platform’s wallet. At Coinbase, on the other hand, you receive $ 10 per referred user who registers, verifies, and makes a purchase of at least $ 100 in a maximum of 180 days after registration. The referred user will also receive $ 10.
Stay Ahead, Stay Updated