ZoneBitcoin EditorialHaving passive income in cryptocurrency or even fiat currency is a kind of holy grail that many people want to have. Indeed, when we move on to passive income, we spontaneously have the image of a guy, barefoot, sipping a cocktail on a magnificent beach.
Yes, and it's normal that it makes you dream too. Although it seems too good to be true, know that it's not impossible either. Indeed, there are many methods to have passive income in cryptocurrency.
To facilitate your research, I have put here the 5 most passive methods to have passive income in cryptocurrency, which are proven and accessible.
I have classified the methods according to how much time they require to make them work. Even if we are talking about passive income in crypto, it still takes a little activity. The methods will be more or less adapted to your profile. This will basically depend on the capital you currently have, your available time and of course your willpower.
Having passive income in cryptocurrency: comparison of methods
I would like to point out that these methods do indeed allow you to generate an "income". This means that each month, or regularly, these methods allow you to generate a certain amount that you can use as you wish thereafter.
However, it remains difficult to generate significant passive income. Very often, we only manage to make a sort of additional income. But, it doesn't hurt to have some extra money, right? Especially, when you earn it by doing nothing.
1. The cryptocurrency Lending method for interest
If the method to earn passive income in cryptocurrency is that of staking and the masternode. So, the third method is cryptocurrency lending.
In fact, as with traditional business money lending, it works the same way with bitcoin or cryptocurrency lending.
Lending your bitcoins or cryptocurrencies will generate more or less high interest depending on your choice and the platform chosen.
Basically, when a borrower (a company or an individual) wants to take out a loan, they agree on an interest payment. It is this interest in addition to the repayment of the loan that then constitutes your "passive income".
In the end, you have nothing to do other than recover your interest, every month or every quarter.
If you lend a large amount, and your interest is high, it is even more likely to generate a significant income.
So that’s it for this method. There are several companies and platforms that allow you to lend your bitcoins to earn interest. One of the most interesting and reliable is Youhodler to earn up to 10%, for example. Really, I recommend it if you are looking to have passive income in crypto (and even in euros).
There are now many sites to generate passive income in cryptos through lending. I invite you again to read the article which brings together the 4 best sites for generating interest thanks to loans 4 Best Sites to Earn Interest from Loans .
2. The staking method
Cryptocurrency staking will provide ongoing payments to those who hold their cryptocurrencies in appropriate wallets. In fact, by “staking” cryptocurrencies, you are helping to strengthen the network as a whole.
This method is clearly the first and certainly the most accessible method for generating passive income in crypto. This is probably the simplest method because it requires no knowledge or specific configuration. In fact, even if you don't know anything about crypto, you can still use this method. You simply need to hold cryptocurrencies for a certain period of time.
Crypto staking essentially acts as a sort of tangible “weight” for securing a network. Basically, it's the bitcoin network equivalent of people mining bitcoin. There, for staking, it has approximately the same function: validate and secure the network.
To stake a cryptocurrency, you simply need to keep your funds in an online wallet. As a general rule, you are given a defined period of time during which you must not touch your capital. It can last 1 month or 6 months or even more. Likewise, you earn your interest after the crypto staking period is over.
Rewards may vary depending on factors such as the amount you stake or the length of your continued participation.
Cryptocurrencies that allow staking are NEO, Vetchain, Neblio, Komodo and a few other cryptocurrencies. Personally, I staking in several ways. I mainly did staking with Binance staking with Binance and also with the superb MyContainer site.
- >> Read the article on MyContainer to make staking easily
3. The masternode method
This is clearly the simplest method to have passive income in cryptocurrency. It is a method very close to staking, although there is a small difference. There are many more masternodes than staking in terms of availability. As with staking, you will need to deposit a certain amount of tokens to receive some sort of interest in the form of the same tokens that you deposited.
Basically, there are only two downsides to participating in masternodes:
- You need a significant amount of capital (Some masternodes require a large sum of tokens like Dash for example.
- In a minimal way, you will have to get involved, at least to a lesser extent, in the technical configuration.
But! Please note that these two disadvantages are swept away by the appearance of shared masternodes. Indeed, with shared masternodes, you can participate in smasternodes even with small amounts. Plus, you don't need any technical skills.
With shared masternodes, you receive your additional tokens every day or almost. This will depend on the platform you choose.
Here again, I invite you to read the article on Just-Mining on which we can also make shared masternodes.
4. The hedge fund method
This is the method I placed third because it always involves a little risk. As always in fact, I remind you. Even if we tend to think that cryptocurrency is the currency of the future, ultimately we never know. We cannot be 100% sure. That said, given the current situation and given the incredible prowess of bitcoin, it is a safe bet that this will be even more important in the years to come.
Anyway, let's talk about the hedge fund method. Know that it is one of my favorites, and that I myself have placed a percentage of my crypto assets in a hedge fund.
The principle is the same as what we find in classic finance. You deposit a certain amount into a fund. This fund will put your money to work and make it grow. It is in this sense that we speak of passive income in crypto.
5. The affiliation and sponsorship method
This method is very interesting, of course, but it is also the most difficult to access. Indeed, as you may already know, you can earn commissions if purchases are made through your affiliate links.
Many platforms use affiliation to increase their sales. Likewise, in the field of cryptocurrencies, there are many programs that offer a sponsorship and affiliation system.
Every time you share an affiliate link, you receive a commission. That said, and as mentioned above, this requires active work at the start.
Of course, subsequently, you will have passive income in cryptocurrencies, more or less substantial, but at the beginning, you will have to work a lot to find (many affiliates).
If you have a YouTube channel for example, it would be even better because you will be able to reach a wider audience.
In an article on ZoneBitcoin, I listed the best cryptocurrency affiliate programs.
Conclusion: having passive income in cryptocurrency, a dream accessible to everyone?
Finally, I have listed the 5 most passive methods for earning passive income in cryptocurrency. I would be curious to know what method you use.
Not all methods are equal. Some require you to already have a certain amount in cryptocurrency. Others require a lot of time. Everything will then depend on your profile more than anything else.
Personally, as I told you, I mainly use the shared masternode and also applications for staking cryptocurrencies.
I would also like to know if you would like me to say more about these different methods.
And what method do you use to obtain passive income in cryptocurrency?
Have you tried or are you thinking of soon trying to earn cryptocurrency while you sleep 💤?
Note: This does not constitute investment advice. Always do your own research before investing.
