To earn your passive income from crypto, you don’t have to give it full time. Still, you can continue with your primary source of income, let it be a job or business. However, keep a close watch on the daily crypto market changes. It’s important to check the fundamentals and the technical analysis first to make your move and make the most out of the market.
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You must have heard of those crypto geeks who jumped into crypto early. Those early investors managed to earn thousands or even millions of dollars by investing very little of their money. However, only a few understood the crypto world and the way things worked. As a result, some missed the boat, whereas some invested little and did not get a higher ROI.
Even if you missed out on the crypto investment, it doesn’t mean that it’s too late to make money on it. This article will go through some strategies and ideas that even newbies and crypto starters can use to earn passive income with cryptocurrencies.
1. Use Crypto Trading Bots
A trading bot essentially is software that automatically analyzes market data and makes trading operations based on indicators built with these data.
Smart crypto investors are always prepared to get the best of a big market move. So they don’t react suddenly but remain alert round the clock using cryptocurrency trading bots so that they don’t miss any big market movement.
You could hear that many investors put their crypto bots on autopilot and forget about it, which is greatly wrong. Why? Because if you want to get the best return and be always on top of affairs, you must tweak bots as per the market condition, which is mostly multiple times a day.
All crypto bots are not reliable. So, you must be prudent while choosing the right crypto trading platform. Always do proper research while choosing a crypto bot. It is advised to work only with reputed crypto bot providers and exchanges such as Bitcoin Prime.
Bitcoin Prime is a completely free-to-use crypto trading bot. Just make a deposit of at least $250, and you are pretty much good to go.
The platform profits by charging a small 2% commission, but only on profitable accounts. In addition, it tracks price movements in 14 different cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and more. For more information and hints about this tool, read a comprehensive bitcoin prime review.
Bitcoin Prime claims to be running and ready to trade 24/7. The funds that you receive from trading are stored with a third-party broker. Therefore, Bitcoin Prime can only issue orders to execute trades using the funds in your account. However, it cannot access your funds directly. As a result, you are the only person who has access to your wallet and money.
2. Buy-and-Hold Strategy
If you decide to invest and buy Bitcoin or other cryptos, you are not required to sell it within the same day or the other day. Instead, you can hold the coins for a day, month, year, or more and potentially get a higher return on investment. For example, If you bought 1 BTC back in 2017, you would have invested just $1,000. But, if you bought it only three years later, its value would have been US$28,000. That’s the power of the ‘buy-and-hold strategy for passive income.
Once you feel ready to invest in crypto, you can do so through a cryptocurrency exchange. All you do is open an account with such an exchange, verify the account and then fund your crypto trading account.
Once you buy the crypto, you can either put it on the exchange’s cryptocurrency wallet or sell them through regular trading. It has been proved that crypto trading can help you increase earned income and residual income.
Note: You should always try to invest only as much money as you can afford to lose. Therefore, financial protection is something you always have to pay attention to. While investing in cryptos, try to invest through Bitcoin exchanges and reliable online brokers.
Mining is another way to make passive income with Bitcoin and other cryptos. Mining crypto involves solving complex mathematical problems and verifying transactions using computing power. In exchange, the fastest miner is rewarded with coins or tokens.
In the early days, individuals could earn coins easily using mining software. However, as cryptocurrency became more popular and coin prices increased, mining became increasingly profitable and challenging for miners.
As a result, today, mining is very cost and resource-intensive. As a result, individuals are no longer able to earn much. Instead, mining is mostly performed by large mining farms using hundreds of ASICs and huge amounts of electricity. So with more people mining, the rewards became reduced and the requirements to earn tokens became more intensive.
4. Staking Tokens
Mining Bitcoins requires expensive equipment and electricity costs that make it unsustainable even for many larger mining groups. As a result, proof of stake has become a popular alternative for confirming transactions and generating cryptocurrency.
When individuals stake their coins, they essentially lend their coins to the network to validate transactions. In exchange for lending your coins and helping validate, the network rewards you with additional coins – effectively allowing you to earn interest.
A person can only validate as many tokens as they have staked at a given time. Therefore, the more you stake, the greater your ability to validate transactions earn more tokens. This is usually best done in a pool, where all users combine their coins to receive a larger portion of the transaction validating power.
There you go! Now, you must have a better understanding of crypto, and you have learned some easy to start passive income strategies. It’s important to note that there are plenty of other ways towards passive income in crypto, but only a few will work for you. Therefore, it is recommended to be very careful when choosing the right passive income method.