Earn passive income the following 3 ways from cryptocurrencies
In today’s day and age, with the technology advancing rapidly ever so fat, it is indeed very hard for one to keep up the pace. But with this boom, it opens for us the doors to make another source of income, passive income. And of the forms being cryptocurrencies.
There are many means by which one can easily make a killing for a living on cryptocurrencies. If you were the one who had overlooked this arena in your life so far, then it is time to stop doing so as there are plenty of options where you can earn an extra means of passive income from cryptocurrencies. But you will need the know-how on how to do it and follow the right path.
One of the most obvious and easiest of ways is by holding (HODLing) good coins. That might be obvious to some of the many over here. But what if we told you that there is an even smarted way to do it and earn more money on the side.
Yes, this is possible with cryptocurrencies for your extra benefit. And they are:
- Running Masternode
- Holding Dividend Paying Cryptos
The above mentioned 3 forms of earning shall not be discussed in detail, but a gist of it shall be explained here.
This is the easiest form for one looking to make an extra source of passive income provided that you have already purchased some form of cryptocurrencies. All you need to do is hold your cryptocurrencies for a good amount of time and they will easily grow in number.
But in order for this to work, your cryptocurrencies will have to follow some of the proof of stake (POS) consensus mechanism. Else it won’t work. And note that this does not work on all cryptocurrencies out there. Also the coins will have to be in an open wallet. While there are some that don’t need to be in an open wallet.
So over here, in staking, you will have to keep some of the proof of stake coins with you for a good long time or for the maximum time that you can in order to see the return being generated in the form of similar coins.
For example: The cryptocurrency Neblio (NEBL) is a proof of stake cryptocurrency. Now if you manage to stake say 10 NEBL coins over a time frame of 1 year, then you easily earn an extra NEBL coin or two. That means, by the end of the year, you should be having about 11 or 12 NEBL coins.
Staking is that simple and that easy.
Following are some of the cryptocurrencies wherein which you can gain a lot of opportunity in just staking alone
- NAV Coin
Running masternodes on a proof of stake (POS) or a proof of work (POW) algorithm mechanism is again another very lucrative form of earning a passive income from the cryptocurrencies while again holding them.
For those of you who do not know what a masternode is, in even simpler terms, the masternode is a cryptocurrency full node/computer wallet that keeps a complete copy of the blockchain in real time and has it updated from time to time. The masternode is always up and running in order to perform certain tasks and complete certain functions so as to get some extra rewards.
Some of these tasks and functions are:
- Doing instant transactions
- Increasing privacy of transactions
- Participating in governance and voting
- Enable budgeting and treasury system in cryptos
Note that for every cryptocurrency there are certain eligibility limits of the minimum number of coins one must hold in order to run a masternode, plus the hardware that is very much required for these nodes to run on can vary.
Following are some of the resources wherein which you can set your own masternodes:
- Masternode Pro
- Masternode currency
- DASH Masternode
- PIVX Masternode
Holding Dividend Paying Cryptos
This is by far the most smarted way of the three forms that are mentioned here to earn a passive income. It is very simple and very efficient at the same time. One need not do much and need not wait too long to receive the extra income. All that you will need to do is just find out a very good cryptocurrency that will pay you dividends on a regular basis. And those dividends you can keep them to yourselves.
But do note that these dividends are not applicable to all the cryptocurrencies there are currently present in the market. There are only a few of them provide dividends and of them there are a few worth mentioning to save you your time.
Investing in the following is worth every penny. Literally.
- NEO: Neo dividend calculator
- KuCoin Shares: A daily bonus/dividend can be earned by holding KuCoin shared. The bonus is also phenomenally large if you look at the same. You receive 50% of the whole trading fee.
- TenX: TenX reward calculator
Buying cryptocurrencies and holding on to them for the long term by staking, running a masternode or by keeping a crypto that is dividend-paying all in the name of passive income has got dual benefits.
You earn in two ways when you practice this technique. One, from the price appreciation. Two, from the reward by holding that asset in the form of staking reward, masternode reward or the dividends reward.