Many people dream of making money and doing nothing at the same time. A financial cushion is certainly good, but to start making a profit passively, you need to work hard. If you choose a source of income for digital assets, then you need to spend time at least studying the market. You need to know which method of passive earnings will be the most attractive for you. In this article, we will give some examples of how you can start earning passively using cryptocurrencies.
As you can see, passive profit is a form of earning when money comes to you in your account and you do nothing. This can be the case, for example, for investments. What are the ways in which the industry crypto is able to earn passive earnings are:
- HODL (investment). This means buying an asset in the long term. So you buy a crypt cheaper than you sell in the future. In order for the profit to be more substantial, you need a strong growth of the asset you have purchased. The amount of the investment is also important.
- Mining. Previously, mining was in high demand. Today, it is already losing its relevance due to the high entry threshold. If earlier anyone could start mining coins at home using their PC, now this is mainly done by corporations with mining farms.
- Stacking. A method for those who are going to buy cryptocurrency with its further storage on their wallet. The difference from HODL is that the investor will receive additional funds as a percentage.
- Landing page. There is hardly anyone who has not heard what a landing page is. This is a way when you give your money into circulation to the exchange or another investor, and they, in turn, will return it with interest.
Let’s analyze these methods in more detail.
Landing in the crypto industry is a simple way of passive earnings on the crypto, if you do not plan to use your funds for a certain amount of time. It will allow you to get a greater profit from interest than if you just put money on a deposit in a bank.
The essence of the landing page in the crypt is simple. The lender gives its money to the borrower so that he can ensure his margin trading on the exchange. After that, the borrower can open a long position, believing that the asset price will rise. When the loan term comes to an end, the lender will receive its funds back, but with additional interest.
To make a profit from stacking, the user must keep his coins on the Proof of Stake (PoS) algorithm, thereby ensuring the operation of the blockchain. Stacking came to replace mining, so that it was possible to extract new blocks without large computing power. The main task of stacking is to provide blockchain operations and support the operation of the network. For this, coin holders are entitled to receive a reward. In other words, if you are a holder of coins that work on the PoS algorithm, you can agree with the exchange that your token will participate in the mining of a new block. The probability that you will become the creator of a new block and receive your reward is directly proportional to how many tokens will be on your wallet.
The difference between stacking and mining
In order to engage in mining, you need to have large computing power. Miners who mine coins in this way ensure the efficiency of the blockchain. This process takes place on the PoW algorithm. The main difference between these two processes is that stacking does not require computing power, video cards and ASICs. In this regard, stacking can be called a more environmentally friendly way to create new blocks. In addition, these advantages include the fact that the user does not need to delve into the work process. That is, he can do without additional technical knowledge that is necessary to work with computing power.
Investing in crypto is the most popular and easiest way to get passive profit. Every year more and more people come to this method.
Before you start investing, you need to know some set of “rules”:
- It is necessary to invest in digital assets, only those funds that are not so sorry to lose in case of failure. It is not worth investing the last money, which, if lost, can affect your financial stability. You should also not take a loan, because investing will not guarantee a monthly profit that can cover bank payments.
- You need to be prepared for the fact that at first, and in the future, you are likely to incur losses. At such moments, you should not give in to panic and withdraw all your funds. A cryptocurrency asset can grow as quickly as it can fall, it is necessary not to forget about this. It is also worth understanding that you can not be focused only on profit. Otherwise, the investment will develop into a kind of gambling.
- Study the coin you are going to buy well.
- It is necessary to diversify investments. It is not necessary to invest only in one asset, for example, bitcoin. We need to systematically allocate our funds to various types of assets. And it doesn’t have to be just a cryptocurrency, you can also look at stocks.
Mining can also be included in the methods of passive earnings. But today, it is quite problematic for single miners to mine new coins, especially bitcoin. This is due to the fact that now such mining has become unprofitable, due to the appearance of huge mining farms that mine coins on an industrial scale. But miners do not stay away and create new ways to earn money. So, cloud mining appeared. It consists in the fact that the user rents equipment and mines coins in a more “easy” way. This happens as follows:
- The user enters into a contract with a service that will provide a certain amount of mining capacity.
- Then he will give a certain percentage of profit for using the equipment on a monthly basis.
The advantages of this kind of mining include the fact that the initial capital may be small. The threshold for entering the market can start from a couple of hundred dollars.
In 2021, there are two main ways to mine the first cryptocurrency – asics and cloud mining.
As you can see, there are different ways to get passive profit from your investments. But it is worth understanding that in order to start earning in this way, you need to initially make efforts and work. At least in order to have the capital that will be possible to realize.
But for comfortable trading on crypto exchanges, you can use the services of RevenueBot. The service provides the opportunity to create trading bots on the largest cryptocurrency exchanges: Binance, Bittrex, Bitfinex, Exmo and others. Creating a bot is free of charge, the service will not take commissions until the client begins to make a profit from trading the bot. With the help of deep settings of the bot, the service’s clients implement trading strategies that are problematic to experience in normal trading. We will immediately indicate: the bot does not have access to customer funds on the exchange, but trades using API keys, that is, the account will remain out of access. RevenueBot has over 28 thousand customers who earn money thanks to trading bots.
Why should I choose this service?
- Pay the commission only after making a profit.
- The bot settings open up a variety of ways to make a profit.
- Inside RevenueBot, a marketplace is implemented where customers can buy a ready-made bot so as not to bother creating their own, or sell their own if the configuration has shown efficiency. Also, the services of a mentor (an experienced customer of the service) are purchased on the marketplace, who is ready to answer the questions of newcomers. Over time, you can become a mentor yourself, getting additional profit for this.
- Regular updates of the service’s features that optimize the trading process.
- The presence of the RevenueBot referral program allows you to earn money on trading, even without resorting to trading. Attract new customers for the service and get up to 30% of the profit they receive every month (but not more than 15 USD).
This is a small list of the advantages of the service. You can continue to list the positive qualities of RevenueBot, but why do this if you can go to the official website of the service and see for yourself everything? It is highly recommended to make decisions faster, because the crypto market does not stand still, but grows at exorbitant steps. Who knows how much profit is missed by someone who does not dare to come and start trading with RevenueBot.