Use Cryptocurrencies To Earn Passive Income
To many, a dream of having a steady stream of passive income flowing in remains just that: a dream. In an economy with stagnating salaries and mounting household debt, financial independence may seem to be unrealistic.
However, there is hope on the horizon for the tenacious and tech-savvy. With the 2017 crypto bull-run, millionaires were made overnight when the prices of Bitcoin and other cryptocurrencies exploded.
While most investors and punters have made their fortunes speculating on wildly fluctuating price changes, it is also possible for cryptocurrencies to provide you with a steady passive income stream.
Over the years, the term passive income has become bastardized by both get-rich-quick scams and pyramid schemes. These scammers often dangle the prospect of easy-money in front of gullible investors hoping to make a fast buck. More often than not, these investors usually end up losing money and in debt.
On the other hand, cryptocurrencies are a new commodity that has plenty of potential for growth in the market. Here, we’ve prepared a quick guide which outlines how just about anyone can earn a passive income with cryptocurrencies.
How Cryptocurrencies Can Help You Earn a Passive Income
1. Start staking cryptocurrencies
The cryptocurrency market is an extremely volatile one with prices that fluctuate almost hourly. While this volatility can be risky, hundreds of companies, businesses and start-ups are looking to get in on the crypto rush.
Nearly every day, new coins and tokens are issued by just about anyone looking to get in on the crypto game. This is exactly why staking cryptocurrencies can be a viable means of developing a passive income stream.
Staking a cryptos means that an investor holds or stores a particular coin or token in an e-wallet for an extended period of time. Known as “hodling” i.e., a misspelling of the term holding, investors receive a reward for holding cryptocurrency.
This allows one to develop a steady stream of income simply by holding on to particular crypto. However, one should also be aware that hodling crypto is a long-term strategy with a relatively low but steady rate of return.
2. Start a crypto portfolio
Just like how investors buy up foreign currencies in order to profit from fluctuating prices, the same concept also applies to cryptocurrencies.
In this situation, the volatility of the crypto markets can be extremely beneficial to an investor with large risk appetite. With the eToro app, you can easily purchase any type of cryptocurrency and hold on to it.
When the market conditions are favorable to you, you can quickly sell it to turn a profit. This method is one of the simplest ways to earn a passive income from cryptocurrency. Besides controlling when to buy and sell, you can also decide how much you’d like to invest.
Given the volatile market situations, care should be exercised when trading in cryptocurrencies. Always keep up-to-date on the latest developments to stay ahead of the game.
3. Accept cryptocurrency payments
Accepting payments in cryptocurrencies is one of the easiest ways to get your hands on crypto while still also earning a passive income.
With the connectivity offered by the internet, freelance work is now easily available to anyone with an Internet connection. If you have a marketable skill, you’ll be able to sell your skills online as a freelancer while accepting payments in cryptocurrencies.
From here, you can opt to hodl your earnings and receive a dividend or trade it on a crypto exchange. Besides earning extra income as a freelancer, you’ll have the added benefit of being able to speculate on cryptocurrencies.
Investing in the world of crypto is extremely risky, given the unregulated nature of the market. Upon entering the market, only invest what you’re prepared to lose and always be on the lookout for scammers.
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