Cryptocurrency has proven itself to be one of the most valuable and accessible asset classes of the last few decades. While not everyone believed in their potential when they first came on the scene, we have more than proved the doubters wrong. Perhaps one of the most impressive things about cryptocurrency is the fact that there are opportunities to fit every investor type, whether this is risk tolerance or any other preference.
If you’re someone looking to make money from cryptocurrency but don’t want to do a lot of work day-to-day, the industry thankfully has a lot of options. In this article, we will touch on the different ways you can make money from crypto passively:
One of the most common ways to make money passively from cryptocurrency is to stake tokens. Cryptocurrencies like Ether and Solana, based on the proof-of-stake consensus, can be locked away for a period of time to support network activities. In exchange for dedicating tokens to these activities, owners are given a percentage in interest after the period has elapsed.
This is usually between 1% and 3% and while this isn’t a dramatic profit compared to speculative trading, it is virtually risk-free and doesn’t require anything beyond committing the funds. By looking online, you’ll see various platforms that let you stake different tokens for various amounts and for different periods of time. Of course, make sure these are tokens you do not need to trade at any point, as once you commit to staking them, it is nearly impossible to get your tokens out before the time has elapsed.
Demand for cryptocurrency means that more people are willing to borrow from others for their needs. And if you already have any cryptocurrency lying about, this represents an opportunity for you. You can easily log on to various online platforms to buy Bitcoin now and then lend them for profit. After purchase, sites such as Compound and Maple Finance are good options for lending and allow you to list the number of tokens you have, the amount of interest you want to charge, and other things.
These platforms are governed by smart contracts, which means that the deposit and withdrawal of tokens is done automatically. Once it is time to return your tokens with interest, the smart contracts automatically deduct from the usual wallet and so on. It also collects collateral if the loan is defaulted on, which saves you from having to chase down your borrowers.
The concept of the lottery has existed for centuries and continues to appeal to consumers. Those who want to earn money from cryptocurrency can tap into this using no-loss lotteries. These essentially see players deposit an amount of crypto to enter, and the collective tokens are then staked for interest.
The winner of the lottery is given both their initial deposit and all accumulated interest, which can be a substantial amount. Those who don’t win the lottery are then given their initial deposit back, so there is virtually no risk. Many crypto users are happy to list their tokens for lotteries simply and hope to get picked.
- Move-to-Earn/Play-to-Earn
These days, it is easier to earn money for doing mundane everyday tasks, and cryptocurrency is very much in the loop. Platforms like Sweatcoin or ARUCO pay users money to move around, and while it might not be a lot, it does mean you get paid to engage in activities you have done anyway.
There’s also the option of play-to-earn, which, while not exactly passive, is a more enjoyable option for players. As the name would suggest, these are games that allow players to win cryptocurrency in exchange for their efforts. For many, getting paid to play games that they would have played for free either way is a major perk.
- Interest-Bearing Accounts
As more options have emerged for cryptocurrency users, there is a chance to earn interest with special accounts. These allow you to deposit your crypto and receive a percentage back as interest. Unlike staking, you’re not necessarily committing your tokens to a particular network, and in many cases, you don’t have to worry about what the tokens are used for in the meantime. This also applies to certain cryptos that are not part of the proof-of-stake consensus and widens your options.
Conclusion
Anyone looking to make money from cryptocurrency should be aware that active trading is not a requirement. As we highlighted in this article, there are many ways that your current tokens can generate even more money for you without having to do anything. From traditional staking to lotteries and so on, your crypto earnings will continuously increase while you do just as much or even less work than before.
