The cryptocurrency market knows no boundaries and it’s expanding incredibly fast. According to recent data from TripleA, there are about 420 million crypto investors worldwide. The growth prospects for this market are also excellent, with more countries creating inclusive legislation for cryptocurrencies and some countries even adopting it as fiat currency.
However, you don’t need to wait for your favorite crypto coin to skyrocket to make money with it. Discover how to earn passive income with crypto and all the ways you can make it work for you.
More Than Money
Cryptos are known for their volatility, an attractive feature for more aggressive investors. Still, there are some pretty stable ways of making a passive income from them if your risk appetite isn’t that big. Platforms like Coinweb.com can help you manage your assets, trade, follow market trends, and more.
Check below how to use cryptos to boost your income.
Yield farming rewards those who give liquidity to DeFi (decentralized finance) protocols with cryptos. In this system, investors offer their own tokens for lending and market-making exchanges. Those rewards are funded by trading commissions, meaning investors receive proportional commissions on exchanges.
You can also help create new cryptos in a “mining” process. Cryptos are created by solving complex math problems, which only highly capable computers can handle. It’s also possible to make several computers work in a chain to speed up the process. If you have a spare computer at home, you can configure it to join a mining pool.
Staking your cryptos requires less programming and other specific skills; that’s why it’s becoming more popular. A proof-of-stake, or PoS, is a validation system for creating new blocks and processing new transactions.
Why not earn cryptos in a fun way? Play-to-earn games have become widely popular in the past couple of years. Those games offer you crypto rewards for completing specific tasks and missions. Popular names include Decentraland and Axie Infinity, but there are many others. Play-to-earn games also allow you to trade items earned in-game in marketplaces.
Airdrops are free tokens regularly distributed to owners of specific cryptos. Airdrops typically promote new currencies by sending small amounts to active wallets. Airdrops can also be earned by performing small tasks, like retweeting promotional content.
Investing In Cryptocurrencies – What the Experts Say
Cryptocurrencies are highly volatile and, as such, should be considered speculative investments. Prices fluctuate a lot, not only for Bitcoin, as prices in this market are only regulated by supply and demand. That’s why it’s important to have a diversified portfolio of cryptos and, above all, not to risk all your funds in a single cryptocurrency.
Still, some investors take Bitcoin and Ethereum as long-term investments due to their size and price fluctuation. Also, many specialists believe that the prices will rise since both options have a fixed supply.
Ethereum blockchains use smart contracts, a technology with huge disruptive potential. As Ethereum’s network expands worldwide, its token becomes more widely used, increasing its market value.