When people think of earning interest on crypto, they usually imagine a person doing day-trading or buying into new ICOs 24/7, who always has to stand by their laptop or smartphone.
However, there are other ways to earn income from cryptocurrencies that don’t require lots of effort, time, or even gray matter. These methods range from semi-passive, which requires a small amount of time, to passive, requiring no time at all.
If you are searching for a way to make a profit from cryptocurrency, this article is for you. Let’s dive into the following article to find whichever investment method is the most suitable means for you!
Blockchain uses the Proof-of-stake (PoS) protocol that allows you to earn by staking coins. You will be rewarded for helping to secure the network by locking up your capital. Different PoS coins will have different ways of operating and rewarding.
A specific type of PoS is a Proof-of-stake (DpoS: Delegated Proof-of-stake) delegate, in which people vote for those who are authorized, rather than directly participating in staking. The staking rewards of DPoS coins like Ark and Lisk are usually a bit higher than others.
The minimum number of coins you need to participate in the stacking setup will vary from coin to coin; some require you to keep your nodes online all the time, while others like Ark only require a one-time setup via a dedicated wallet.
These stacking nodes usually have more attractive rewards, but take more time and require a larger amount of money. Let's say stacking coins – Ark can bring about ~10% profit if the holder doesn't have any other settings and doesn't delegate it to someone else.
Some exchanges like Kucoin and COSS have tokens that allow you to receive a portion of the fees collected by the exchange. Usually, a certain percentage of the fees collected by the exchange is returned to the holders, and the dividends they receive are proportional to the number of tokens they are holding.
This method is inconsistent, as it depends on the volume of trades over a certain time. However, if you can buy an exchange coin before it reaches a lot of volumes, you will be able to earn a very high rate of return due to the low original price. Note that this will also have the opposite effect; i.e. if trading volume drops, you could lose both your tokens and your dividends. Note that these dividends take the form of exchange coins and not a single currency. This means that if you hold only a small amount of the exchange's tokens, you can receive an amount corresponding to the value of each coin on the exchange, but that number is really small.
Some coins offer dividends in the form of other coins simply to hold the main coin. For example, NEO generates Gas, and Vechain generates THOR. Usually, each unit of the original coin generates many new coins at a predetermined rate. These new coins are used to pay the network's fees. The margins on these methods are quite low (almost 3% for NEO Gas), but they don't work if you don't hold the main coin, so it is a very risky and profitable income method. have low income.
Airdrop is cryptocurrency but it is similar to free samples in the shopping mall. Projects that are just getting started will occasionally release a small number of free tokens to verify and promote their project.
Usually, new projects will offer free tokens when joining the community or signing up and providing some basic personal information. Usually, the amount given is usually less than the value of fiat currency, but if you hold tokens for a long time and you have chosen an airdrop of a good coin, these tokens may increase in price, and if convert those tokens to fiat money, you will get a significant amount. In addition, airdrops are usually reviewed very quickly, so it is easy to do many different airdrops in a short time.
A monetization platform is a very simple way to monetize what you care about. After signing up to their platform (you will need a company or school email), you will have a profile on their website. You will then get paid for receiving and responding to messages or other tasks sent to you by people on the platform.
Currently, payments are offered in the form of Bitcoin. The specific payout amount is up to you, but usually, it goes up if you're an "important" person. Additionally, Earn.com has lists you can subscribe to, allowing you to receive messages from people targeting a specific demographic or group of people.
For example, on Earn.com there will be aggregated lists of people from certain universities or occupations.
Many sites, such as popular exchanges like Coinbase and Binance, offer referral programs that will pay you if you can attract new customers to their exchanges. . This method probably won't bring you much income. However, if you have a large audience on some SNS like blogs or YouTube channels, your earnings can be quite attractive.
These referral programs usually pay in coins listed on the exchange. Coinbase will pay a Bitcoin, while Binance pays you a certain percentage of the transaction fees collected from the people you refer.
This article is intended to provide information but not advice on your investment plans. Do your due diligence before starting to invest in any cryptocurrency.
I hope the above article has given you an adequate insight into some of the most popular methods of earning interest with cryptocurrency. However, this article is intended to provide information, not to advise on your investment plans. Having that said, do your due diligence before starting to invest in any cryptocurrency. I wish you luck with every investment in the future.