Having a passive income is the best way to add on to your monthly earnings.
Luckily, there are many ways with which the digital currency users can make passive income with cryptocurrencies.
What is Passive Income?
Investing or trading in projects is among some ways of making money in the blockchain industry. Nonetheless, it generally requires a substantial time investment and detailed research and still doesn’t assure a reliable income source.
Even the best of best investors experience an extended period of loss. Having an alternative source of income is one of the ways to survive those loses. You can increase your cryptocurrency holdings by other ways than just investing and trading. These methods can give you an ongoing income akin to earning interest. Also, these ways only require some efforts to set up and maintain.
You can have many streams of income in this way, which in combination with each other can add up to an impressive amount. For more information visit bitqh app.
Let’s discuss some of the very popular ways of earning passive income in this blockchain economy that you probably aren’t aware of.
Bitcoin Savings Account
Instead of solely holding your bitcoins in your wallet, you can transfer them into your savings account, such as Bsave and earn interest on them.
Bsave is a savings platform which is perfect for both short-term as well as long term savers. If you have an account on Bsave, you will get daily interest payments along with the facility to withdraw your funds any time. The amount that you deposited along with the length of the deposit decides the interest payments. What Bsave does is that it engages in the margin lending on Bitfinex trading platform on your behalf and pay you the interest on your bitcoin holdings.
It’s super easy to get started with Bsave. You need to sign up and transfer your bitcoins to the Bsave account. Once you do these steps, you will begin to receive your interest payments right away.
Another well-known bitcoin savings platform is Magnr.
Depositing your bitcoins with a third party is the only risk that a bitcoin savings account comes with. In case the third party savings account stumbles, you’re very likely to lose your funds. That’s why even earning interest from your coins has a risk.
Mining is using computing power and securing a network for receiving a reward. Even though it doesn’t need you to have any crypto holdings, it is the original method for earning passive income in cryptocurrency space.
Mining was a very viable solution on the everyday CPU in the earlier days of Bitcoin. With the increase in the network hash rate, maximum miners switched to using more powerful GPUs (Graphics Processing Units). This created an even more competitive shift; it gave rise to ASICs (Application-Specific Integrated Circuits) which is nothing but electronics that use mining chips custom-made for the particular purpose.
Corporations that have significant resources started dominating the ASIC industry and deploying development and research. The chips become already outdated by the time they reach the retail market. Now they need a lot of time to break-even.
For an average individual now, Bitcoin Mining is not as much an option for passive income as it is for corporate businesses.
Au Contraire, Proof of Work coins, the mining lower hash, are still a somewhat profitable venture for some. Using the GPUs can always be practicable on these networks.
PoS (Proof-of-Stake) gives a beautiful means to generate passive income in crypto space. With the PoS coins, the users can receive new coins for staking their coins in the official wallet of digital currency for securing the network. Unlike Proof-of-Work, PoS is a consensus mechanism that doesn’t require high computing competence.
PIVX, i.e. ‘Private Instant Verified Transactions’ is a community-directed, privacy-central cryptocurrency project that’s become popular in 2017. It allows the users to carry out fast, private and secure transactions and offer them an opportunity to make passive income by staking their PIVX coins.
Lending is an exclusively passive means of earning interest on your crypto holdings. There are n numbers of P2P (peer-to-peer) lending platforms where you can secure your funds for a while and later collect the interest payments. The platform may fix the interest rate, or you can set it depending on the ongoing market rate.
Some exchanges that have margin trading get this particular feature carried out inherently on their platform.
This is a perfect method for the long-term holders who are looking to increase their holdings with minimal efforts.