Digital currencies can do much more than just make and receive payments. It’s possible to own different cryptocurrencies and still earn a regular income by using innovative strategies as well as smart contracts.
A few projects achieve this using Proof-of-Stake and Smart Contract.
We will be looking at two well-known ways to generate passive income using cryptocurrency.
Five Most Promising Ways to Make Money With Cryptocurrency-
1. Network Staking
The consensus algorithm that powers Proof-of-Stake digital currencies (PoS), is used. It means that the block maker on the network is chosen through a combination of wealth and age.
Bitcoin is a mining-driven digital currency. Proof-of-Stake users submit a portion of the equilibrium to have an impact on the network.
Individuals who contribute a greater percentage of their balance to the network have a better chance of being selected by the network to power a stake. Users who stake the network receive mining rewards.
2. Lending
It is a great way to make extra income by lending your digital currency assets. This is where you lend your cryptocurrency assets to third parties for a fee. The third party then attempts to make more money off your cryptocurrency.
This is similar to how banks pay interest to keep your money. There are many types of lending options available in cryptocurrency, including –
- Automated lending
- Exchange Interest Programs
- Exchange Lending (On Margin)
- Decentralized Financial Services
- Regular Financial Services
- Peer-to-Peer Lending
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3. Mining
Bitcoin and other digital currencies that are based on a Proof of Work framework are technically managed by miners. They verify transactions in exchange for rewards. Although mining Bitcoin has become prohibitively expensive and energy-consuming due to its restrictive nature, there are still some popular cryptocurrencies that can be mined.
Depending on the digital currency you choose, you might be able to mine with your CPU or a dedicated GPU or you might need to purchase specific hardware.
4. Affiliate Programs
Affiliate programs are a great way to make a steady income if you have a website, blog, or a large following on social media.
Affiliate programs can be joined for free and you will get paid for referring users to their platform. This method has the best advantage in that you can join quickly and start earning. If you put in the necessary effort, the money will continue to come in for many months, years, or even days.
You don’t need to promote too many affiliate links. Only promote products of high quality. This will ensure that you only purchase the best products.
5. Blogging
Blogging is the best way to make passive income from cryptocurrency. It’s low-risk and cost-effective.
You can make a steady passive income through blogging and potentially even earn a profit using digital currency.
A single blog post won’t bring you instant results. However, once you have a loyal following and receive enough traffic to your blog each month, you can make money a lot quicker than you might think.
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Conclusion
Here you go! These are five promising ways to generate passive income in cryptocurrency. Go ahead, check your Bitcoin Exchange and get your Bitcoins working for you. These earning opportunities can help you increase your cryptocurrency holdings.