Creating several passive income streams is a healthy way to help you achieve your personal financial goals. As such, many investors and individuals alike have found ways to multiply their income streams without having to manage them actively. This could range from creating and publishing an online course to managing an online dropshipping business.
While many are more attuned to earning passive income with fiat currency, the advancements in the crypto space have propelled a new digital economy that allows individuals to earn passively with cryptocurrency.
Though trading and investing in digital currency help individuals earn some form of passive income, these typically require additional research and skills. Moreover, with persistent price swings and market volatility, it might not necessarily be a guaranteed source of income. Even the best investors are likely to meet with periods of losses in times of market downturn.
As such, it might be a good idea to source alternative methods to help maximize the productivity of your crypto holdings to allow you to earn consistently – and yes, sometimes even when the market is facing bearish sentiments.
Here, we discuss some ways to help you earn passive income easily with cryptocurrency.
1. Deposit Your Assets in an Interest-earning Account
While investing your funds in cryptocurrency does help you earn when prices appreciate, depositing them into interest-earning accounts will allow you to earn a greater yield on your crypto assets. Presently, many platforms offer this service for investors, and most of them come equipped with other features to help you maximize the productivity of your crypto assets.
One such platform is Hodlnaut, which offers high interest rates of up to 12.73%, which is calculated daily. The platform also has features such as the Preferred Interest Payout and Token Swap to allow users to earn and receive in the currency of their choice.
Additionally, such platforms are likely to offer compounded interest. This would mean that you will earn interest calculated based on a larger sum than the initial deposit.
This is one of the prime methods to earn consistent returns even during market fluctuations. The best part? You don’t even need to actively manage it. Deposit your funds, and you’re good to go.
2. Cloud Mining
Another way to earn passively with cryptocurrency is through cloud mining. While mining requires some form of technical expertise and a physical mining setup, cloud mining does not.
If you’re new to the term, here’s a quick breakdown.
Cloud mining is the process of generating cryptocurrencies by using computing power from a third party – or a cloud mining operator. To do so, you would simply just need to place some funds into a cloud mining service provider, and in turn, the firm will invest those funds into a physical mining operation.
When it starts earning some rewards, you would be given a portion of the cryptocurrency that they support. There are also a ton of cloud miners to choose from, such as BeMine and Shamining. Some even have mining farms that use green energy from wind and solar power plants.
This is a much easier and hassle-free option as compared to the usual mining process since the procedure is extremely straightforward and does not require much technical expertise or time.
3. Holding Dividend-Paying Currencies
One of the easiest and fuss-free ways to earn passive income with cryptocurrency is by buying and holding dividend-paying tokens. However, it is important to note that not all digital currencies pay out dividends, and you should always do your own research before buying into them.
Presently, most of such dividend-paying digital tokens are issued by exchanges. Some examples of dividend-paying cryptocurrencies include NEO and Cosmos.
There are also tokens that are known to offer users discounts on trading fees and, at times, entitles them to a share of the platform’s profit. KuCoin Token (KCS) and Bibox Tokens (BIX) are some examples that pay holders up to 50% of the platform’s trading fees in the form of dividends.
The plus side about dividends is that they are pretty consistent and steady, so you know you’ll still be earning some additional income without having to actively do anything. To earn more dividends, you would just need to buy more tokens and hodl them.
If you’re looking for new ways to earn crypto passively, we have provided three methods that you can easily try to generate greater yield. Plus, these don’t take up too much of your time, and you can easily earn more without having to do much.
Depositing your assets into an interest-earning account is also great for beginners who have just started to invest in digital currencies. You won’t need any prior knowledge, and all you would have to do is research on the platform of your choice. Once done, you can start earning interest on your investments.