Earning online passive income was never easy, but with the advent of Bitcoin, the blockchain, and other cryptocurrencies, things have clearly changed. However, the ‘easy’ income opportunity has also led many to fall for scams.
Bitconnect scam, Tezos scam etc are not news anymore and just so you understand the sheer magnitude of such crypto scams, here is data by Australia where over 1200 complaints regarding crypto scams were lodged last year.
To make it clearer, It is not easy if you haven’t spent time educating yourself on the latest revolution.
However, we understand that not everyone has the time for due diligence and that is why we go the extra mile by presenting our research to you. That, however, doesn’t mean you should follow us blindly. You should DYOR (Do your own research) but you can very well bank upon us for a headstart in the right direction.
In this write-up, we will discuss various, but legit, ways of making money from Bitcoin and cryptocurrency on a very high-level. I will also leave you with some specific links in each section so that you can dwell deeper into options that appeal to you most.
#1. Holding
One of the easiest ways of earning money from cryptocurrencies is to buy good cryptocoins and hold them. By good coins, we mean coins that have good fundamentals and a use case that shows that its value is bound to increase over a period of time.
Now the big question: How to identify coins with good fundamentals?
Well, this is where your own research can give you a headstart in the right direction.
You should ideally hold such coins for anywhere between 6 months to a 2-year period and take out your principal amount from the profits you are generating on the go!
This is popularly also known as HODL.
#2. Trading, Buy The Dip, Sell The High.
Trading is basically buying the coins cheap and then selling them when it rises by 10-30% or whatever your target price is.
If you are someone who is good at technical analysis and charting the price movement based on analytical tools, you can use this method of earning through crypto. Also, you can keep a regular eye on the market and make buy/sell decisions based on news or fundamental development of a particular project.
Even if you choose this route over HODLing, you should systematically take out your principal amount back when the price of the coin rises.
Some of the trading websites/exchanges that you can use are mentioned in these links:
Binance : http://bit.ly/2D9xI2D
Coinbase, Get 10$ FREE when signing up with this link!
http://bit.ly/2BaC1dp
#3. ICO Investing
ICOs, also known as Initial Coins Offering, is a modern-day method of getting crowdfunding.
ICOs are also referred to token generation events or token sales which is the same. But earning money from investing in ICOs or token sales is not as easy because you need to do a lot of due-diligence on a lot of things when buying an ICO. Some of these things are:
Use case feasibility
Competency of team
Government regulations
Technical barriers
Token-economics etc…
If you don’t research enough, you might find yourself in scams similar to the Tezos ICO or CoinDash ICO scam.
#4. Mining
Mining cryptocurrencies like Bitcoin, Litecoin, Ethereum or Monero is another profitable avenue from which you can earn passive income.
However, mining of Bitcoin or other profitable coins is rather difficult. You also need powerful equipments like ASICs or GPU rigs to mine these coins profitably.
Also, expenses on electricity and cooling equipments are huge. Because of such entry barriers, the task of mining has become limited to mining farms or cryptocurrency mining professionals.
There are some cloud mining services out there that claim revenue generation for their clients but their terms & conditions don’t look profitable at all. So choose your options smartly.
5. Masternode
Masternode is simply a cryptocurrency full node or computer wallet that keeps the full copy of the blockchain in real-time, just like you have Bitcoin full nodes and is always up and running.
Apart from being up and running, it also does some special tasks in certain cryptocurrencies and in exchange for doing these tasks these masternode owners are incentivized.
For running masternodes, different cryptocurrency projects have a different minimum number of coins, as a requirement to start.
For example…
One needs a minimum amount of coins of that particular crypto. (For DASH MN you need 1000 DASH units and for PIVX MN you need 10,000 PIVX units) so this minimum number varies from crypto to crypto.
One needs a VPS or server to host that wallet for 24 x 7
One needs a dedicated IP address for that
One needs some storage space to save the blockchain
Note: Beware of scammers because not every coin is worth buying and running a masternode.
#6. Staking
Staking is another superb way of earning in the cryptocurrency space. In this method, you simply need to buy and hold your cryptocoins in a special wallet to earning regular dividends or profits on it.
This method is usually employed by proof of stake cryptocurrencies because in this way they reward the stakers and secure the blockchain as well.
In this method, you need to keep your wallet online most of the time to earn those dividends and these dividends are paid out in the native cryptocurrency called the staking reward.
Some coins that you can stake are:
PIVX
NAV Coin
Neblio
Komodo etc..
#7. Lending
Lending is a century old method of earning money and the same concept of lending you can apply to cryptocurrencies like Bitcoin and Ethereum too.
If you have significant Bitcoins or Ether, you can lend it to people who will pay you extra interest on your Bitcoins or Ether.
#8. Airdrops
Airdrops is another exciting and novel way of earning from cryptocurrencies.
Airdrops are basically when you are freely given or airdropped new cryptocurrencies or crypto-tokens because you were holding some other cryptocurrencies.
Last year, Ethereum HODLers were airdropped with OMG tokens which are now worth $18 each. Similarly, Bitcoin HODLers were given free Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond etc.
But to claim such airdrops, you need to control your parent funds on which airdrop will be done, which basically means you should have access to the private keys of your parent funds.
That is why we recommend you to hold your cryptocurrencies on devices like Ledger Nano S or Trezor. If you hold your parent funds on exchanges, you might not get free cryptocurrencies airdropped.
Note: Never give out your seed or private keys to anyone.
#9. Cryptocurrency Dividends
Another easy of earning passively in the cryptosphere is to buy and hold cryptocurrencies that give you dividends for just holding them offline in any wallet.
There are many such currencies that give out dividends in such manner but not all are worth buying and holding.
However, there are some that are worthing buying:
NEO
Binance
KuCoin
COSS etc..
#10. Blogging
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You can earn money by blogging and writing on websites that pay you in cryptocurrencies if your content is liked by the readers. Also, if you already know that your content is valuable, you can directly monetize your content for cryptocurrencies for giving the full access to your content to the respective reader. Some of these websites that allow you to do so are:
Y’alls
Yours
Steemit
D.tube (For videos)
Conclusion
It might look like earning money from Bitcoin and cryptocurrencies is very easy. Easy it is if you do your research and put in your fair share of hard work.
Similarly, this line of earning has its own pros and cons, so beware, focus on self-education and always DYOR to avoid getting scammed.
In the end, I will leave you with this short summary by Harsh on how to make money from cryptocurrencies.
I will now leave it to you to decide which way of earning you chose from the options. Do share your choice with us in the comment section below.
Adios!
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