The following article and information provided in it shouldn’t be taken as an investment advice. Remember, you’re doing investment into cryptocurrencies always at your own risk.
Some individuals who earn fat salaries are gawked at when they express the fact that they’re seeking new investment opportunities. But for some investors, earning cryptocurrency passive income is quickly becoming a preferred method of making money.
How difficult is passive income with cryptocurrency?
Earning money online, normally, is a chore. Think of Forex, freelancing and creating content on the Internet. These are seen as extremely difficult means of earning money and people frown against it. Also, going into passive income from cryptocurrency, many are dissuaded when they think of the numerous scams people have experienced.
One popular means of passive income cryptocurrency investment is day-trading. Even though this is a very viable means of earning money, there are several other available methods. We shall attempt to study 5 different approaches.
1. Initial Coin Offering investment
ICOs have been touted as the best means of crowdfunding and this has caused several founders to breathe a sigh of relief. An ICO is a popular means of generating events or driving token sales. Can cryptocurrency be a passive income source? Yes. In fact, if you find a perspective project to invest in, you will be happy you made the right decision.
Although it is not easy to spot the right cryptocurrency investment opportunity, with assiduous study and the right consultations, you may come out on top. Here are few things you should consider when trying to elicit passive income from cryptocurrency via ICO.
How feasible is the project for large-scale projects?
How competent is the team? Are they experienced?
Will the government’s regulation affect the success of the ICO?
Are there obvious technical barriers to the adoption of the project?
Have you calculated the token economics?
2. Running master nodes- the best passive income cryptocurrency investment
A master node is a server in a decentralized network which is required to meet with certain prerequisites in order to effect transactions on the network. For each transaction completed, there are rewards offered and it has been observed that master nodes have an extremely high return on investment when compared to mining cryptocurrency or proof of stake algorithms. The amount of money available to earn makes it one of the best passive income cryptocurrency investment.
What are some of the most popular passive cryptocurrency income sources via master nodes?
Dash is one of the cryptocurrencies that many people invest in at the moment, although it is also one of the most expensive to invest in. You need about $400,000 to start investing in it. The ROI is between seven percent and 14 percent.
VeChain provides a means of tracking the supply chain on the blockchain network and the products that can be tracked range from agricultural produce to luxury goods. This increases the complexity of a master node in a VeChain network. Between 10k are 250k are usually made available.
PIVX, unlike DASH, makes use of a Proof-of-Stake which depends on the validator’s economic stake in the network. Running a master node to earn passive income with cryptocurrency makes you eligible to earn even more rewards. You need about 10,000 PIVX to start.
3. Holding cryptocurrency to earn passive income
This is one of the easiest ways to earn considerable Bitcoin passive income. For one, it is not difficult to buy. In addition to this, it is relatively easy to store and secure your cryptocurrency with the large number of available wallets. However, apart from passive income with Bitcoin, what are the other currencies popular with investors?
We have Ethereum, Monero, Ripple, Komodo, Litecoin, LISK, etc. You can learn more about how to identify coins with potential and the questions to consider before joining ICOs also apply. Holding coins is only recommended when you are in need of Bitcoin passive income and you are ready to exercise patience.
4. Cryptocurrency trading
In the process of trading, you buy at a time when the currency is at a considerably low price and then sell when you observe an increase in the price. If you are an expert at analysis and statistical projections, you can get information from the news and then buy/sell when you reach your target price.
At the moment, when you consider Bitcoin passive income, it might not sound so appealing. At the time of this publication, Bitcoin is trading at around $7,500. This means that if you invest in one BTC, you will be hoping for a dramatic surge in order to enjoy the real privilege of Bitcoin passive income.
5. Cryptocurrency mining
Finally, this is one more passive income cryptocurrency investment. You install rigs to solve computational problems which then authenticate transactions to the blockchain network. It is always advisable to research the investment before going into it. For example, the cost of electricity, cooling, processors, etc. can be exorbitant and this discourages people from getting into cryptocurrency mining.
However, you can choose to invest a certain amount with several other crypto enthusiasts in the hopes of setting up a mining rig. Also, cloud mining services are available to make you earn money and then claim the revenue generated. However, you should be careful so as not to fall prey to some of the numerous scams.
We have presented several options to you, it’s now a matter of choosing what you want. Going into cryptocurrency passive income sphere is one decision to ponder on carefully and it cannot be done cursorily. You should carry out your own research to determine which you’ll go for. When you get into it, it is not easy to get out. However, your choice may set you on the path to making money while you sleep.