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7 Best Ways You Can Earn Passive Income With Cryptocurrencies in 2021

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Written by Quentin Hack

Doesn’t passive income sound perfect? How many times in your life have you wished you could make a high monthly income without a lot of effort? In addition to giving you the opportunity to be your own boss and without boring sitting in the office all day, you would also have all the free time you want. Many of you will probably think that this sounds impossible, but not in the crypto world.

The popular digital financial system that strives to be globally recognized leaves you with many opportunities to get rich. While trading and investing you can achieve this actively, there are many other methods available to you to earn a high income passively. Anyone who wants to enjoy the distant beaches and islands while the money is piling up in their account could be thrilled with this idea. If you are interested in learning more about these great methods of earning the passive crypto income that you didn’t know much about until now, keep reading.

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Trading robots

Everyone who wanted to start trading cryptocurrencies had to be well informed first. Good information primarily meant knowledge of the market, knowledge of stock exchanges, as well as other rules of functioning in the crypto world. Personal active participation in the whole process was necessary in order to achieve great success.

Today, active involvement isn’t the key to success. The reason for that is specially designed applications, or more precisely, trading robots that perform all these actions for you. All you have to do is make the deposit you want and wait for the final outcome as the robot takes on the mediating role. We suggest you to read more about these specially designed robots that can be a great way to make your passive income.

Mining

Another way to get the desired cryptocurrency profit is by mining. At the same time, this is a traditional way to acquire coins, which further implies your probable familiarity with this passive technique. In this case, all the work is done by your computer. 

Earlier, while the optimal network speed was used, the mining process could be realized with the help of weaker graphics processors. However, with the increase in network speed, the need for graphically stronger machines whose quality performance will have all the necessary capacity needed for mining has increased. In this way, coins are excavated with the help of computer power.

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Staking

The staking method is another traditional method that has also proven to be very effective according to crypto enthusiasts. The staking process involves storing a certain amount of funds in a digital wallet that increases over time as stake ownership supports network security. In addition, some small blockchain functions are performed, such as transaction verification.

All you have to do is activate a digital wallet in which you will keep a certain amount of coins. Sometimes you will be required to make transactions directed to the investment fund, but this role is usually performed by the exchange such as MyCointainer, which is a leading staking platform where no technical knowledge is required to start generating cryptocurrency rewards. In this case, it is advisable to be well-informed about the cryptocurrency you want to opt for. The rest of the process will require minimal or almost no effort.

Lending

If you need an even more passive way than the ones mentioned above, then lending would be the right choice for you. This principle is based on earning interest based on cryptocurrency assets. You can achieve this by accessing one of the specially designed platforms for this purpose. Digital lending involves temporarily locking the coins you own in order to later receive your interest payment. The amount of the interest rate can be determined by you or the platform will do it for you.

All those participants who have been in the crypto market for a long time and have gained a certain profit in the form of cryptocurrencies who now want to increase it should pay attention to this method. It is clear that such a move can be very risky but also very profitable.

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Affiliate programs

As we mentioned at the beginning, the cryptocurrency financial system tends to expand around the world. A great contribution to this can be made by affiliate programs that, among other things, offer a way of passive earnings. The program works so that as an existing user you can try to attract people to a specific crypto platform in order to increase the number of users. In return, you are rewarded by a crypto company.

Social media can be a good tool for attracting users. But be careful and avoid advertising low-quality projects. With initial research, you can protect yourself from such potential situations.

Lightning nodes

Lightning Network is a system that enables micropayments that are realized outside the blockchain. This further implies enabling faster transactions that are not initially performed directly on the blockchain. These transactions differ from the initial one-way ones. In one-way transactions, they can move only in one direction, and not backward, and in Lightning Network, persons perform a transaction according to previously determined conditions.

The launch of Lightning Network affects the expansion of network capacity. Passive income is earned by charging fees for transactions made in your channels.

Rewards will depend on capacity utilization but also on many other factors. This kind of project is certainly a big challenge, but it can pay off.

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Masternodes

Masternode can be compared to a server or digital repository that stores a copy of the network. The main purpose is to support cryptocurrency and it is managed with the help of special coins. The goal is to maintain the stability of the network, but high technical equipment is required in order to use the potential for realizing passive income.

Masternode requires certain installation skills and technical expertise. Also, advance investments are one of the conditions. The disadvantage is the possibility of predicting an unrealistic rate of return, which is why it is advisable to be well informed about the project before you decide to invest.

Which method did you like the most?

About the author

Quentin Hack