Passive income is one of the top trends among investors, entrepreneurs, students and even crypto enthusiasts nowadays. If you have some cash saved up and want to use it to earn passive income for life then investing in cryptocurrency might be the right option.
You might think that crypto is very unreliable, given the recent volatility and turbulence in the crypto industry. However, experts do believe that it could potentially shape the future world. Technologies like “Internet Computer” that strives to build a decentralized internet and “Arweave” that makes it possible to permanently store files on the decentralized cloud for a small one-time cost are examples of the potential the industry holds.
If you ask me, the smart decision would be to invest in the cryptocurrencies. But don’t be mistaken. I am not saying that you should go all in and stake everything that you own. Only invest that you can afford to lose.
Can you really earn passive income with Crypto?
Absolutely, Yes. In fact, many people are actually buying cryptocurrencies to build a sustainable future for themselves. But don’t get confused, they aren’t buying it for trading. Trading is not for everyone. It requires a huge amount of research, time and focus. Not everyone has the time to watch the market trends 24/7.
A better option would be to just invest a small amount and wait for it to grow. Even better if you stake your cryptocurrency and generate more. Yes, that is possible and I will show you how.
The most trusted and reliable ways for generating passive income with crypto are:
- Mining (A process through which cryptocurrency are verified and added to blockchain)
- Staking (Holding funds in a crypto wallet to support security and operations of a blockchain network)
- Lending (Lend your crypto currency to earn interest)
The easiest way to earn passive income from cryptocurrency is via Crypto exchanges like Binance, and Coinbase. They provide a user-friendly interface that allows you to invest and earn with a few clicks. We are going to look how to use those exchanges to generate a stable income stream.
How to Earn Passive income through Binance
Binance is one of the biggest cryptocurrency exchanges in the world and its users are growing at an alarming rate. The exchange not only allows you to trade cryptocurrencies but also earn rewards and passive income from them.
On Binance, there are two great options for generating stable income with cryptocurrency:
- Binance Staking
- Binance Earn (Lending)
The first step is to create an account on Binance. Simply click the link below and create your account:
Once you have created an account and verified you profile, the next step is to buy a crypto currency. You can buy any cryptocurrency that you like including Bitcoin, Ethereum, Dogecoin etc.
Staking on Binance
After you get the currency in your wallet, the next step is to head over to the Earn section and opt for Locked Staking or Defi Staking.
Locked staking means that your cryptocurrency will be locked away for a certain period of time. It could be 15 days, a month or even a year. You will earn rewards in the form of more crypto coins during the lock-away period.
Defi Staking is a means of providing financial services to users through “Smart Contracts”. You can opt for either one of them based on the rewards you will get.
Lending on Binance
The other method to generate passive income on Binance is Lending. Fortunately, Binance Earn offers a number of features and products that you can subscribe to earn money passively. Those include, “LaunchPad”, “Dual Investments” and “Pool Saving”.
Launch Pad allows you to lend your coins in return for new and upcoming cryptocurrency coins. Whenever a new currency gets launched on the launchpool, you will get a share of the total reward tokens based on your investment.
Dual Investment lets you deposit your crypto coins and earn yields based on two assets. When you commit your coins and lock in your yield, you will earn more if the value of your coins increases.
Pool Saving allows you to lock in your idle cryptocurrency. Binance uses your pool savings to do quantitative trading and other operations. In return, you get rewards on regular basis.
You can opt for any option that suits you best. In my experience, Locked staking is a more reliable way to earn more coins from your existing coins. However, it has its own risks.
How to Earn Passive Income through CoinBase
Coinbase is the largest crypto exchange that offers trading in a huge number of cryptocurrencies. The good news is, Coinbase offers a way to earn money without investing anything. That means you will be able to generate income without buy any cryptocurrency or making any kind of deposits.
The feature is called Coinbase Earn and it allows users to earn cryptocurrency while learning about latest coins.
The way it works is there are a set of tutorials that you have to complete to earn a specific currency. You will need to know the working and the concept behind the new coins. You might have to take a quiz at the end to prove your knowledge. When it’s done, you will receive your coins in your Coinbase account. Convenient right?
How to Generate Passive Income by Running a MasterNode
You can think of Masternode as a small scale Data center that’s responsible for making the network operational and provide storage and processing functions. With crypto, you can run your own Masternode and reap the benefits in the form of more coins.
Masternode can be run for any cryptocurrency that supports the feature. However, creating and running it is not so simple if you’re not a techie. Also, you need to buy a substantial amount of coins to be able to run a masternode. You will also need a high specs computer with decent processing power, memory and gpu, which will need to be operational 24/7.
Here’s a list of masternodes that you can participate in.
Earn Passive income by Staking coins
As discussed previously, you can earn money in the form of more coins by staking and locking your existing coins in the system. There are various currencies and platforms that support staking rewards. Take Ethereum for example, you can earn more ethererum by locking your existing ETH coins in the system. Those coins will be used to validate “smart contracts”, another term that you might be unfamiliar with.
If you own an ethereum wallet, you can easily stake your ETH coins to earn rewards. However, staking ETH via the official Ethereum platform, it will require you to buy a generous amount before you can stake them.
Fortunately, a few other systems like Ankr have made it possible to stake as low as 0.5 ETH and get the same ROI.
What’s the quickest and easiest way to earn passive income with Crypto?
The most convenient and fastest way to invest in cryptocurrency for generating passive income is via exchanges. Binance and Coinbase both provide great options for people who are not tech savvy or and don’t want to get into the technicalities, but still want to reap rewards from it. Because, why not? everyone deserves a chance to play with crypto, at least once. Joining mining pools and running masternodes is not for everyone. That’s for a highly specialized group of users who are closely working or interacting with the ecosystem.
Thus, if you’re new to the crypto world and want to build a sustainable future for yourself, the easiest way to is to join a reliable exchange, buy a few coins, stake them and count your rewards.