Cryptocurrency Passive Income Ultimate Guide
Most of us are here to make money. Some people try trading, while others just HODL and check the prices every 5 minutes. And even though many of us have made decent amounts, neither of these two ways can guarantee a reliable source of income.
But what if I told you that apart from trading and holding, there are other ways that can make you money in the crypto space? Well, in this guide I have collected most of these methods so that you can pick out the ones you prefer, and start earning passive income with crypto.
#1 – Staking
Staking is an activity where a user locks or holds his funds in a cryptocurrency wallet to participate in maintaining the operations of a proof-of-stake (PoS)-based blockchain system. It is similar to crypto mining in the sense that it helps a network achieve consensus while rewarding users who participate.
Staking can be an excellent way to increase your cryptocurrency holdings with minimal effort. You can stake various cryptocurrencies such as DOT, ADA, AVAX etc. By doing this, you earn a certain APY (annual percentage yield), usually between 4%-25% depending on how long you are willing to lock your cryptos.
You can either stake a coin from a wallet such as Exodus, or you can stake your coins on a few exchanges (e.g. Binance). As always, DYOR before locking your crypto for 30-60-90 or more days.
#2 – Airdrops
An airdrop, in the cryptocurrency business, is a marketing stunt that involves sending coins or tokens to wallet addresses in order to promote awareness of a new virtual currency. Small amounts of the new virtual currency are sent to the wallets of active members of the blockchain community for free or in return for a small service, such as retweeting a post sent by the company issuing the currency.
The famous Uniswap airdrop made 49 million UNI claimable for users whose address has ever called the Uniswap v1 or v2 contracts. Each address could claim 400 UNI (worth ≈ $7400), which is a nice sum for doing almost nothing.
It is worth keeping an eye out for possible future airdrops, so make sure to follow the news! :)
#3 – Reddit Moons
Most of the users here already know, but for those who don’t (and with a large influx of new members, it’s possibly a lot of you guys), you can earn Moons for upvotes on this subreddit. But what are Moons?
“Moons exist as ERC-20 tokens on the Ethereum blockchain, where they are managed by a suite of smart contracts that handle balances, transfers, distribution/claiming, and purchasing Special Memberships. The smart contracts and mobile apps have been reviewed and audited by Trail of Bits, an independent security firm with blockchain expertise.
As blockchain tokens, Moons are independent of Reddit. Once you’ve earned them, neither Reddit nor moderators can take your Moons away or decide what you do with them. They’re all yours.”
In order to be able to claim your Moons, you’ll need to download the Reddit mobile app and set up your vault (click on your icon at the top left of the home page).
The main purpose for moons is to own a share of the community (vote on governance/distribution proposals) as well as redeem them for the premium membership, which allows you to change the color of your username, embed gifs in comments, add custom flair, etc.
To sum it up, you earn Moons by commenting and posting – something that you’d normally do anyway. Just don’t forget to create your vault!
In case you want to, you have the option to sell your Moons. The current price of Moons is $0.071380 / coin (15/02/2021), and you can only sell your moons on Honeyswap at the moment.
#4 – Nexo, Celsius, etc.
This method is very similar to what banks offer on your investment, except that on Nexo and Celsius you can earn up to 6-14% just by keeping your crypto, stablecoin or fiat on their site.
While the saying “not your keys, not your coins” is true, these companies are insured and have never been hacked before. As far as I know, both of these sites have a daily payout system, and you can deposit and withdraw funds whenever you want to.
If you choose this method, it might be worth splitting your investment between these sites in order to prepare for the worst and also to be able to claim offers and bonuses on both sites once available.
#5 – Coinbase Earn
Not a “passive” method, but I felt like I should add this one to the list. Many of you are already familiar with the “It ain’t much, but it’s honest work” meme referring to Coinbase Earn, a program where you can earn a few coins by watching educational videos of certain cryptocurrencies and solving the quizzes that follow said videos.
In my country, currently Graph, Compound, XLM, CELO, Band, and Maker are available through Coinbase Earn, and if you complete all of these crypto’s quizzes, you can earn up to $30-$40. In crypto, of course.
Compared to the previous methods, it truly ain’t much, but it’s honest work, and who knows how these coins will perform in the upcoming years. Worth a shot!
If you have any other suggestions or feel like sharing your experience on passive income and cryptocurrencies, feel free to do that! :)