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Have you ever gotten exhausted trying to make ends meet? You are burnt out, your health has deteriorated due to the overload of your daily work. But if you stop working, your income will no longer exist?
Now, with passive income cryptocurrency, you can increase your income without detriment to your health and time! Let’s learn about the concept of passive income cryptocurrency and come up with ideas for generating passive income in the following article, shall we?
What Is Passive Income Cryptocurrency?
Trading in cryptocurrencies or investing in projects is one way to make money in the blockchain industry. However, this often requires participants to do detailed research and a significant investment of time – but it still does not guarantee a reliable source of income.
Even the best investors can suffer prolonged losses, and one of the ways to survive is to have an alternative source of income, in this case – passive income.
In addition to trading and investing in cryptocurrencies, there are other ways for you to increase the amount of cryptocurrency you hold. This money can give you regular income like interest that you just need to spend a little effort to set up and maintain easily.
In this way, you can have several sources of income, and those sources of income combined can bring you a large sum of money.
This article will introduce several ways that you can earn passive income with cryptocurrency.
Determine The Your Purpose With Passive Income Cryptocurrency
The attraction of passive income has been mounting and now peaks in 2021, which leads to increasing demand for related jobs. Because when you have achieved what is called a passive income, you have a freelance job in terms of time, workspace, everything, and the money will still come back every month.
However, as I have shared, to get this kind of income, you must first invest a lot of time and effort in it.
Therefore, you need to have a clear definition of your desired income target before planning your implementation, such as: Are you just looking for an additional source of income besides the salary that comes from your main job? Are you looking for a full-time job that can generate passive income? You already have a passive income source, and you are looking for more ways to expand other sources of income? Or do you have nothing but energy, and gray matter and want to use it to create passive income?
Once identified your purpose in generating passive income cryptocurrency, here are the best 4 ways that can help you bring in an effective passive income source.
4 Ways To Make Passive Income Cryptocurrency
There are many different ways to generate passive income in the cryptocurrency world, and in this article, I will share the 4 most popular methods as follows.
Invest – Speculate
Note: Investment and speculation both hinder great risks, so you should only deploy this method when you have idle capital, which means that if you lose this capital, it will not affect your life.
To be able to generate income in this way, the most important factor you need is capital & a bit of experience in the field of investment.
You need to understand the two concepts of investment and speculation as follows:
Speculation: you will wait when the market goes down and start buying assets, wait when the market has a good signal (uptrend), then sell and eat the difference in a short time. These are called traders.
Investment: you see a certain market is going down, and moving in a negative direction, but the potential for future growth (several years) is great, you decide to invest and wait for the right time. target point and then sell usually happens for quite a long time. These are called holders.
But if you are really in need of a passive income source, I would suggest investing, rather than speculating, because, with speculation, you constantly have to check your laptop. It’s time-consuming, to say the least.
The 2 top-of-mind spheres you can think of when talking about investing – speculating are stocks & cryptocurrency, in which Crypto is a market with a smaller capitalization, but the ability to bring you a source of passive income is greater than stock.
Bitcoin mining has long been familiar to investors in the cryptocurrency market. Through this approach, you do not need to spend a lot of money to trade. In addition, this is the oldest and most popular method that you can use to earn passive income with Bitcoin.
Initially, you can mine Bitcoin mines with your home computer. However, most professional miners have to use highly configurable and specialized computer rigs for the sole purpose of mining Bitcoin.
Mining Bitcoin mines is getting more and more complicated. Now, the method is more collective than individual. Besides the relatively high cost of equipment installation, maintenance also requires good technical expertise. This causes many difficulties for some individuals who want to earn passive income through Bitcoin mining.
In the Bitcoin world, Staking is the term for you to buy cryptocurrencies and hold them for a specific time. You will receive the same fixed interest rates as when you deposit in a bank savings account. Unlike Bitcoin mining, the staking method consumes fewer resources.
Referring to Staking, it is impossible to ignore Proof of Stake, a famous algorithm in the Bitcoin market. This is an agreement algorithm that you can add to the blockchain when making a transaction. There are also some other terms related to this form such as Leased Proof of Stake or Delegated Proof of Stake.
Staking requires you to install a separate e-wallet. At times, this method may involve delegation. In some cases, Bitcoin exchanges will do this. Therefore, you only have to keep the tokens on one Bitcoin exchange, which takes care of all the separate technical requirements.
If you are looking for a method to earn passive income from Bitcoin, then lending can be the optimal choice. With this form, you earn interest from lending your digital currency to others. Many platforms allow people to lock up Bitcoins for a specific time and profit through interest payments.
Meanwhile, some other platforms offer fixed interest rates. In some cases, the market rate determines the interest rate users receive for their funds. This is an ideal method to earn passive income from Bitcoin. The highlight of this method is that it will help you to increase your number of Bitcoins at a specific time. Besides, this approach also does not require as much time and effort as other methods.
However, be cautious when lending to avoid fraud. You should use a reliable platform to minimize risks.
The above is everything about passive income that I want to share with you, and 4 ways that can help you diversify your income sources.
However, you should also be aware that there are a lot of pitfalls called “passive income” being drawn nowadays. To get an authentic passive income source, you have to put in a lot of time and effort. There isn’t any method that can bring you great passive income without doing anything, if someone is telling you this, you should think twice, and be careful.
Now good luck, and I wish you all the best!