How to earn passively on cryptocurrencies?
Do you have bitcoins, but they are sitting idle in your wallet? Are you wondering how to earn passively on cryptocurrencies? With the increasing adoption, there are quite a few options that allow you to earn passive income from digital assets. In today’s article, we will explain how to make money on crypto using staking, cryptocurrency mining, loans and cloud mining. But before we start, let’s briefly explain what passive earning is all about.
What is Passive Earning?
Passive earning is a way of earning money in which you receive income without having to actively perform work or activities that are related to generating this income. In other words, passive earning means that putting some effort and capital in the beginning allows you to earn income in the future without continuous work.
An example of passive income can be, for example, income from renting a property, where the property owner collects rent without having to work every day. Other examples of passive sources of income include, for example, income from bank deposits, dividends from investments in shares, profit from cryptocurrency staking or income from copyrights.
Passive earning typically requires an investment of time, labor and capital up front. However, if well planned, it can bring huge financial benefits in the future.
How to make money on crypto passively?
Many people have made money on cryptocurrencies, but now they are sitting idle in their wallets. They do not know that cryptocurrencies lying like this can be “sent” to work and receive a certain percentage from them (something like a bank deposit). Below you will find ways that will allow you to earn passively on cryptocurrencies that you already own.
Staking
Staking is the process where you keep your cryptocurrencies in a wallet and share them to secure the blockchain network. In exchange for sharing them, you receive rewards in the form of new cryptocurrencies. The process is very simple and actually takes just a few mouse clicks (especially if you want to stake your coins on an exchange). The most popular staking platform is the Binance exchange. Below you will find step-by-step instructions on how to stake your digital assets and earn passive income on them.
Step 1: Go to www.binance.com, create an account on the exchange and complete identity verification. We walk you through the full process in our Binance guide. Also, remember to claim your Binance bonus.
Step 2: On the main page of the exchange, in the top menu, find the option Earnings and click Binance Earnings.
Here you can choose to stash the cryptocurrencies that are sitting idle in your wallet. You can choose a flexible or permanent option (tokens are blocked for a selected period of time).
Cryptocurrency mining in the cloud
Cloud mining is a cryptocurrency mining process that involves renting the computing power of a decentralized computer network (cloud) to perform mining operations. This process allows you to minimize the costs that are usually associated with traditional mining. These include equipment costs, electricity costs, and the need to keep equipment in good condition.
In the case of cloud mining, the user buys a contract for a certain amount of computing power from a cloud mining service provider. In return, the service provider performs mining operations on behalf of the user and returns the obtained cryptocurrencies (minus a certain percentage, of course). This process is automated and takes place directly in the cloud, so the user does not have to worry about any technical issues.
Most cloud mining services are just scams. Nevertheless, the reputable and largest crypto exchange in the world recently introduced its own cloud mining option. It is 100% legal and safe. So, how to mine in the cloud and earn passively on cryptocurrencies with Binance? Just follow the instructions below.
Step 1: Go to www.binance.com, create an account on the exchange and complete identity verification.
Step 2: Go to Binance Cloud.
Step 3: Select the subscription you are interested in and click buy now.
Cryptocurrency mining
Mining is the process where you use your computer to solve complex math problems that make it possible to generate new cryptocurrencies. This process requires a lot of computing power and is increasingly difficult to perform as the number of people involved in mining increases. Nevertheless, it is still one of the most popular ways to earn cryptocurrency passively
Crypto loans
Passive earning on crypto loans is the process where an investor lends his cryptocurrencies to other users for a certain fee. There are two main methods of earning on crypto loans: through P2P platforms and through DeFi (Decentralized Finance).
P2P platforms are platforms where investors can lend cryptocurrencies to other users in exchange for a certain fee. On such platforms, investors deposit their cryptocurrencies into the platform’s account, and then the platform allows users to borrow these funds for a certain fee. Investors then receive interest on the amount borrowed, which is paid by the borrowers. P2P platforms have different terms and fees. However, the most reputable and best platform is www.binance.com, as in the previous subsections.
DeFi are platforms that allow users to use various financial services such as borrowing, investing and trading cryptocurrencies. With DeFi, investors can deposit their cryptocurrencies with the platform and then receive interest on loans that are made to other users. DeFi allows you to automate the borrowing process, which increases the user experience. However, it is important to carefully research the risks before making any decision.
DeFi Yield Farming
DeFi Yield Farming is the process where you use your cryptocurrencies to invest in DeFi (Decentralized Finance) protocols and receive returns in the form of additional cryptocurrencies. This process requires a bit more work than staking, but it can be much more profitable.
Buying and holding
Buying and holding cryptocurrencies is the easiest way to passively earn cryptocurrencies. In this case, you keep your cryptocurrencies in your wallet and expect their value to increase. This approach requires a bit more patience, but if you invest in the right projects, the potential returns can be really big.
Cryptocurrency affiliate programs
Passive monetization with crypto affiliate programs is the process where you promote cryptocurrency related products or services and earn a commission each time someone uses your affiliate link. This process requires a bit more work, but it can be very profitable if you manage to build a large network of partners.
