It is not a secret that the blockchain industry offers a great number of methods regarding money making. Today we are going to speak about trading or investing in other words. So take your favorite cup of coffee, a pen and a notebook (if you need to write down any notes), get comfortable and have a look at our interesting (as we see it) article.
Autumn has come. A lot of people need vitamins and consider some ways to get money for them. Of course, trading or investing always needs thorough analyses and spending a lot of time on it. Nevertheless, these methods cannot guarantee a reliable way of income because it is not very stable, unfortunately.
Has anybody heard about loss of money and time concerning even the most powerful and experienced investors? We have. Is it a pity? For sure. Otherwise, people should not get into a blue mood and even depression and they had better try new sources of money making.
I can get passive income with crypto by the means of…
1. Mining, of course. The matter is that when we use computing power so as to firm a network to obtain a lot of rewards in the future, we can take mining for this aim. On the one hand, we do not have to possess cryptocurrency holdings, because it is the oldest method of getting income in a passive way in the cryptocurrency universe.
At the dawn of Bitcoin life, there was an amazing option regarding CPU (it is an abbreviation for Central Processing Unit). It was mining on it every day. Then the moving to GPUs (it is an abbreviation for Graphics Processing Units) was done by miners. Afterwards, the first place in this list was occupied by ASICs (the abbreviation for Application-Specific Integrated Circuits). As far as ASICs are concerned, they are electronica which take mining chips tailor-made for the very exact reason.
It should be noted that ASICs perform in a really competitive sphere which is ruled by corporations. It is filled with huge resources which can be used for development and progress. Nevertheless, these chips can get to the retail market too late and this, in turn, will lead to their out-of-date features, a lot of time wasting in order to break-even. We can see that Bitcoin mining is about a corporate business, not about money making for an ordinary person who wants to emphasize individuality.
However, do not neglect this option, please! mining lower hash rate Proof of Work coins is sometimes a good progress. GPU may really be workable and appropriate in this case. One rule should be kept in mind: if there is a very good reward, there will be greater risk. It is a pity, of course, but…The matter is that we should keep in mind such chances as turning mined coins into useless in a day, having little liquidity, coming across bugs and so on. Please, always remember about discovering and analyzing investing information and potential technical issues.
Now it's our turn to speak about lending. It is a highly passive method of getting interest in crypto possessions. On the Internet, we can find a lot of lending platforms that allow locking up funds in order to save some interest payments. If you want, you can set the interest rate yourself or allow the platform to do it. We should tell you that some platforms offer this option automatically. If you are really tired of your work, because you make a lot of effort every day, you can just choose this method and relax from making efforts. But one issue can be found in this case: some bugs. It happens, you know.
2. The second option is staking. Do you remember what staking means? Let us remember this information a bit. To begin with, staking is usually about holding funds in your appropriate wallet and fulfilling different network features. Such features can include validating transactions, for instance. It is done in order to obtain staking rewards. Proof of Stake is constantly used as a consensus algorithm. Of course, there can be various variants of it, for example, Delegated Proof of Stake and Leased Proof of Stake.
As a rule, we can notice that staking consists of having a staking wallet and just having the coins. It can happen that adding or delegating funds to a staking pool can take place there. You can find this option in a lot of exchanges. Just do not forget about paying attention to technical requirements.
If you do not need to make huge efforts, choose staking, because it is the best way of increasing your cryptocurrency holdings. If you want to continue in this direction, you can just deposit your coins on Binance and follow the guidance rules to begin your amazing journey.
3. Have you ever heard of Lightning Network? Oh, it is a wonderful variant, which works on the top of a blockchain, for instance, Bitcoin. This network is usually used for very speedy transactions.
Nevertheless, these transactions are not moved to the underlying blockchain at once. Such transactions money in one direction. It means that if you send a bitcoin to your friend, your friend cannot use the same payment channel and send this coin to you.
Otherwise, the Lightning Network gives a way out to bidirectional channels. It means that there should be two participants in this deal and they should agree on any terms together.
Lightning nodes can reassure liquidity, capacity of the Lightning Network when they lock up bitcoin into payment channels. Afterwards, they gather the fees of the payments running via the channels.
4. Masternode performs as a server, on the one hand On the other hand, it works as a decentralized network and has peculiarities in its system. Masternodes have a necessity for big upfront investing and of course great technical knowledge.
For some masternodes, however, the requirement of token holding can be so high that it effectively makes the stake illiquid. Projects with masternodes also tend to inflate the projected return rates, so it should be a ruleto do some kind of analysis before your investment.
5. Do you like to tell your friends about the crypto world? If your answer is positive, you will be happy to know that you can even get money for your advice! The matter is that you will be rewarded after your friends will join the platform after your advice.
This method consists of referrals, any links, any other discounts. They are given to new users if they join the platform based on your advice.
So, in case you are a friendly and sociable person, please, use this opportunity so as to get a lot of additional income. In any case, keep in mind your potential risks if these offers are not reliable. Check the information first. The first step to begin with is to join the Binance Affiliate Program. Ready, steady, go!
6. The last but not least important is blockchain-based content creation platforms. Due to the advent of distributed ledger technologies it became possible to experience a lot of content platforms.
In this situation, content creators become able to make money from the content they created. They can do it in many special steps avoiding starting new and worthless advertisements.
We should notice that the creators of content hold ownership of the created staff. Of course, they monetize attention, too. Undoubtedly, you should make efforts to have a steady and reliable income, but why should not we try?
Are there any risks of earning passive income concerning crypto?
- User error can happen. For sure, the world of blockchain is growing and developing. It means that everybody who deals with this, should dive into piles of information regarding technical data. Such people should investigate, look into details and analyze a lot of data. If you do not feel like it, it is better to wait for this system. It also will be better if there is a lack of technical knowledge.
- Lockup periods can occur. If you deal with lending or staking methods, you should lock up your funds for a while. It should be said on the platform for how long it should be locked. In this case the holdings can be illiquid for the time of locking. It may lead to price worsening, unfortunately.
- isk of bugs can also happen. Bugs are everywhere! Alternatively, almost everywhere. If you lock up tokens in a staking wallet or smart contracts, unfortunately, there can be the possibility of bugs. As a rule, there are various opportunities available with different quality degrees. Keep in mind analyzing the opportunities until you commit to them. Nobody can argue that open-source systems can be great.
Laziness is the mother of progress, they say. Passive income is very attractive to all people around the world. If you want to invest in this sphere, you can find a lot of ways to do it, because its popularity is developing and increasing. Additionally, the products become really reliable and useful, that is why they can be a marvelous variant for passive income without great efforts, fortunately.