You heard it right, trading cryptocurrencies is not the only way to bank on the decentralised digital revolution. With more and more development coming out everyday, opportunities to earn are on the rise. This is crypto land, the land of the free where do you can do or say anything you please!
I’ve been doing a few videos that explain how to trade cryptos in a simple way using Binance, which is my favourite exchange and its linked in the description. But generating income from crypto doesn’t stop there.
In fact, it is possible to earn passive income by simply holding certain coins. And in this video im going to go over 4 ways to do that and at the end I will share with you some of the coins that you can pick up to start generating some passive income.
Number 1 - This is an obvious one. Mining! Im going too deep into this one as it is becoming harder and harder to profit from this due to high competition. Especially for the larger cryptocurrencies, such as bitcoin and ether, the initial investment is usually high and it can take pretty long to get your ROI. Back in the day this was insane, I remember mining Monero all the way in the beginning and being able to mine BTC on an old laptop, those were the days!
Now you’re looking at either buying a mining rig and being strategic about energy cost (not saying you should steal energy wink wink) or resort to cloud mining and mining pools. Mining smaller coins could turn out profitable, but you never know, they could decrease in value too and this change is pretty high.
Number 2 - Masternodes
Running a masternode, especially for the more popular cryptos can still be insanely profitable. Simply put, a master node acts as a server, bit in a decentralised network. They are use to complete unique functions that regular nodes can’t.
Running a master node requires a large amount of native cryptos of the network you want to become a master node of. Im not gonna lie, for a lot of cryptocurrencies it is becoming pretty expensive. For dash right now I believe its 1 million dollars, but it used to be a couple grand only.
You can find more information about running a master node and which cryptos have master nodes using the link in the description (https://masternodes.pro/) But essentially you get paid by the network for having a master node.
Number 3 - Proof of stake or POS
The PoS model is an alternative to the energy intensive PoW consensus model for mining cryptocurrencies. Instead of mining the cryptocurrencies through hardware, Proof of stake blockchains mine cryptocurrencies by holding cryptos in a staking wallet.
In this way, the more coins you stake, the bigger the chances are that your getting paid more. This can also be seen as a downside though.. As chances of you earning through this model depends on the amount of coins you have invested in. But there is an upside too!
You can stop staking and sell your holdings at any time. If you want to see a list of all the Pos Coins check out the link in the description (https://www.poslist.org/)
Number 4 - My favourite, Dividends
Some blockchains offer dividends to holders of their cryptocurrency. These cryptocurrencies have to be kept in specific wallets. Holders are paid dividends or gas in accordance with how many tokens they own, they are incentivised to keep their cryptocurrency instead of selling or trading them. This, obviously leads to greater price stability, which I think is really smart.
In order to receive these dividends you should hold the coins in specific wallets like I said, but some exchanges also offer this. Im going to get into that in a second.
Here are some of the Most recommended passive income coins
Some of the methods that I mentioned need a bigger initial investment than others, so there is something useful here for everyone! In most cases your passive income will depend on the size of your holdings, but you can start making an okay return even with a small amount of these cryptocurrencies.
Neo
You’ve heard me talk about NEO countless times, I’m extremely happy with NEO. All you have to do to get paid dividends for your Neo holdings is store some Neo in an official NEO wallet or on Binance which is linked in the description under my favourite exchange. Other exchanges keep the rewards for themselves, but not Binance, binance is awesome! Check them out!
Neo holders are rewarded with GAS, the token that fuels the platform. This means that there are transactions on the Neo blockchain, Gas will be in demand and thus will hold value. I have a link in the description that allows you to calculate the gas rewards for your Neo holdings. (https://neotogas.com/)
Kucoin Shares
Kucoinshares are the tokens of the kucoin exchange, I will refer to kucoinshares as KCS as KU in Portuguese means asshole and I don’t want to get demonetized …this exchange is getting more and more popular. KCS has been used to gain funding to develop the exchange and in return, kucoin shares their daily profits with KCS holders. I will also link a calculator for this in the description (https://kucoinshares.com/)
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Coins mentioned in post:
Thanks for the mention