Are you trying to save for that much-needed vacation but your wallet seems shrunken and weepy?
Well, you don’t have to mop over it. Consider making some passive income to help you take care of all this without disrupting your budget.
But how? you may ask.
Well, have you heard of crypto? If yes, chances are that you know a person who makes his living off this new industry. If you haven’t here are 8 ways to make passive income from cryptocurrencies.
When you stake coins, you can easily vote and generate an income. This can be compared to receiving interest for offering cash to a bank to invest or holding it in your bank account. If you hold your cryptocurrencies in the appropriate wallets, you receive ongoing payouts.
Your token balances will act as tangible weight to help in securing a network, similar to how a bitcoin miner’s electricity usage and mining tools acts as the weight to secure the bitcoin. However, keep this into consideration.
- You need to hold your money in an online wallet
- You’ll get a specific maturity period where you have to stake your tokens for a given period before you earn any rewards
- Rewards vary based on how long you have been staking and how much you are staking
- Be cautious about whether you’ll get rewards paid in a different token rather than the one you’re staking. Some of these secondary tokens are less valuable than your primary token.
- The setup process may vary and you’ll incur ongoing costs such as remaining online
Do you have crypto that is sitting idle? Consider lending them out for interest in return. You’ll find several lending platforms available where you can do the lending. Some of them include:
Ethlend- this is a peer-to-peer lending app where you can lend around 250 tokens.
Margin Funding- this offers a solution for most coins including Ether, Bitcoin, Neo, XPR, IOTA, and OMG. Also, Bitmex, Bitfinex, Quoine, and Poloniex are exchanges that offer margin funding.
If you are holding coins offered on these exchanges, just sign up and deposit your crypto and watch as the returns come trickling in.
Crypto Lending Bots– if you want to take advantage of Margin Funding but you are too busy or the fuss of doing it manually doesn’t appeal to you, Crypto Lending Bots is your best option.
The lending bot does all the work at a small fee. All you need to do is provide your API keys and they’ll take care of everything as you go about your daily duties.
This is a combo of staking and working or the ability to offer resources to the network. This may include storage, transcoding, and providing computational resources.
When you provide a resource or work, you’ll earn fees in return for the work or in the form of inflation rewards.
This way, you create a blockchain-powered system that connects demand with supply. Most of them have high inflation rates which are used as incentives to accommodate any future scaling and bring supply to the network.
If you are an oracle token holder, you can also earn from being a trusted data provider. This is where data acts as a resource offered in a trusted manner.
Participate in Ethereum dApps
You can earn token through supporting the network with Ethereum dApps such as MakerDao, Golem, and Augur. These have fewer active users but they are becoming popular. They might even end up more profitable in the coming days.
If you already hold Ether, consider participating in these dApps with lower interests. The system depends on Ether for these dApps to run. MakerDao offers you a unique incentive where you act as a Keeper. This is important as it helps maintain the DAI token ‘s peg.
You don’t need to worry about the entire process as it can be fully automated for you. The bots look for crypto arbitrage chances to help maintain the DAI peg and expedite the liquidation in case the ETH price drops.
Invest in Lighting Nodes
The Lightning Network is a layer or a two-payment protocol similar to that of bitcoin. Its major purpose is creating a payment channel between two users. This helps solve any scalability, time, and fees in the current blockchain networks.
As of Q1 2019, operational lightning nodes have grown to 77% which translates to 7,800 by the end of Q1. You can earn passive income from this by setting up a lightning node. This enables users to transact virtual currencies with each other.
You get paid the transaction fees for enabling the transaction and processing it. If you’re wondering how much you can earn, a Bitmex research report found that you can earn up to 2.75% returns.
Earn By Running Masternodes
A masternode is a complete node on a computer that keeps a real-time copy of the whole blockchain that’s running on a proof-of-work system. This is a collateral-based system that motivates node operators to do operations crucial for running a blockchain.
Although running a masternode can prove to be extremely lucrative (offers up to 10% interest annually), the red flag is that blockchain systems are incurring increased operational costs, and running masternodes comes with technical challenges.
You’ll find irregular random airdrops occurring on public crypto wallets. Keep a lookout for these and hold coins on exchanges. An airdrop is a random distribution of coins or tokens to random addresses for free.
However, greedy exchanges don’t always pass on airdropped coins since they control the assets during the airdrop. If you can control the private keys rest assured that airdropped coins will soon be yours.
Have you been holding Ether in your address and have not checked it for some time? Go and have a look at it to determine what has been dropped there. Don’t be shocked to find a few coins has been dropped for simply holding Ether.
Participate in EOS dApps
Investors are running to the EOS ecosystem as it’s rapidly growing than most smart contract platforms.
To stake on EOS dApps, you will need RAM and CPU computational power that comes from owning EOS tokens. When you stake your tokens, you provide resources to dApp users and game players and earn interest in exchange.
Some of the most popular dApp tokens to consider include DICE and PKE. Both are games for gambling and poker. You can earn between 0.2% and 1% each day for staking your tokens.
However, there is a catch. Some of these dApps are offering their own tokens and you’ll need to buy them in order to stake on their network to get paid in EOS.