One can use cryptocurrency as one of their passive income sources. Passive income from cryptocurrency means earning money from your digital asset without actively selling or buying any holding. The concept is somewhat like CI (compound interest) fetched from savings or reinvesting dividends earned from any investment. This is quite an established concept in conventional financial investments. Besides, many investors like to refrain from taking an undue trading risk, to avoid huge losses, yet have a definite interest in BITPRIME-GOLD.COM. Instead, of just stacking your digital holding, you can also use them to earn passively, without disturbing your actual holdings. Here are a few ways how you can do that.
Interest-Bearing Cryptocurrency Accounts
Many service providers offer interest against a term deposit of your crypto holdings. To avail of this, you need to deposit your digital assets for a fixed term, to start yielding earnings from it. However, there are also many scammers out there, therefore before you plan for investing in any such service, make sure you have done complete research about the service and its authenticity. Since the conventional deposit and savings scheme interest rates have fallen drastically recently, people are taking a keen interest in interest-bearing crypto accounts.
- Open an account with a service
- Choose an according to lockup period for the deposit of your digital assets
- Earn crypto interests against your crypto deposit
- U.S. Dollar Coin (USDC), Dai (DAI) are recently offering the best interest rates.
Cloud Mining
Crypto mining is an expensive process since one needs to invest a lot in a high-tech computing device. The concept of the cloud evolved from the complications of setting up a mining set, investment in computing hardware as well as all the technical knowledge to do the setup. Eliminating all the chores with cloud mining one can rent cloud computing power, with all essential software support being available on the cloud. Besides, mining proof-of-work digital currencies require substantial investment in computing hardware along with the necessary technical knowledge. Cloud mining contracts offer an alternative.
This way you can remotely participate in cryptocurrency mining, and all you need to do is
- Open an account with a cloud mining firm
- Pay their according charges
- Read through all mining regulations before starting
Against a fixed rental sum, people can purchase cloud mining contracts, allowing them to mine for cryptocurrency at a hash rate for a definite time.
Lending
Just like conventional loans cryptocurrencies can also be lent for a definite period against a certain rate of interest. The amount earned from the loan is dependent on three things:
- Total digital currency on lent
- Term of loan
- Interest rate
As per the lending system, the lending of cryptocurrency can be segregated into four different categories.
Centralized Lending
Centralized lending involves a third party who decides the term of the loan and the entire lending infrastructure. Both interest rate and loan term, etc. are pre-decided. Users interested to lend must deposit their cryptos on the lending platforms before earning any interest.
Margin Lending
Margin lending is termed the process of lending crypto only to traders planning to use the capital sum to trade. In this way, the traders can amplify the borrowed sum which helps with making the payback easy. This kind of lending is mostly handled by cryptocurrency exchanges, which handle the lending details.
Peer-to-Peer Lending
Peer-to-peer lending cuts the role of third parties and allows users to manage to lend directly. There are dedicated platforms with custodial wallets where the lender needs to deposit the digital asset which he wants to lend. Then there are comprehensive options to select the rate of interest, lending period, and other terms as well, which gives the lender at least some control over the process.
Decentralized Lending
Popularly termed as DeFi lending, this lending option is controlled directly through blockchains. Therefore, not only third parties but no intermediaries have also involved rather both parties that is borrower and lender, and connect through smart contracts.
If you have been holding on to your Bitcoins for a long time now, and are interested to earn passively and keep a constant flow of income, check out Bitcoin Pro and start earning or trading right away.
