With the economic mess that’s going on, earning a passive income has never been more important. The fact is if you don’t make money when you sleep, you’ll always rely on working for a living, even in your 'retirement'.
A passive income doesn’t mean you’ll get rich, but it certainly can. The more you put into it, the more money you can earn, and if you earn money while you sleep, you have a much better chance of getting rich.
The cryptocurrency space has created more ways to earn a passive income, and if you know what to do you can make yourself some serious income, and maybe even build yourself a little empire for the future. The following is a list of ideas that can help you earn a nice passive crypto income.
Get Paid To Browse the Internet
That’s right, you can actually earn cryptocurrencies while you surf the Internet. Brave Browser and its token BAT allow users to generate the token just for opting into privacy-respecting ads. We all know Google, Safari and others sell our data to the highest bidder, and they get rich from doing so. Brave, however, respect our commoditization and share the revenue with us if we want.
Brave Browser is faster than other browsers, and you also get unmatched security and privacy as Brave blocks trackers. On the home screen, it ads up the minutes, hours and days saved, and it let’s you know how many ads have been blocked and how many minutes, hours and days have been saved due to the speed of the browser.
Brave is et to block ads, because it first and foremost respects your privacy. If you opt in, however, Brave will reward you with a share of the revenue they get from advertisers. Brave Rewards will pay you in the cryptocurrency BAT, and you will gradually earn as you surf the Internet. It's a great way of getting into cryptocurrency without spending a penny.
Airdrops is a purely passive form of income. Basically, you get a free cryptocurrency from a new crypto asset built on a platform such as EOS. There are other cryptocurrency platform, like Ethereum, where you get airdrops, but you get many more with EOS.
EOS is similar to Ethereum in that they’re both platforms for decentralized applications (dApps). These dApps are built on the EOS architecture, and many of them issue tokens to EOS holders.
The airdrops are purely free and the company that issues them is either trying to get exposure and build a network effect, or they have been funded by EOS’ huge investment war chest, and the tokens they issue are given out as airdrops.
For this you have to hold EOS, a bit similar to staking (which I discuss further down the page), in your wallet and watch how the airdropped tokens simply appear in your wallet. Some of them are worthless, but it only takes one of these crypto assets to take off and you will be quids in.
Crypto Savings Accounts
If you have crypto stored somewhere, hodling until it goes up in value, you can actually hodl it in a crypto savings account and earn a good size of interest. Depending on the company you choose, and the cryptocurrency you save, will depend on the interest you get.
For me, Blockfi is the safest. They have the New York BitLicence (no easy task) and are one of the most respected cryptocurrency companies going. They have backing from some of the biggest venture capitalists, and Gemini custodies their assets.
You can earn about 6% a year if you hold Bitcoin, although this does fluctuate depending on the price. Still, you’re not going to get anywhere near 6% from your bank. You can also get over 8% if you hodl GUSD.
For those of you that don’t know, GUSD is Gemini Dollar, and it’s pegged to the USD. So, your value will always be pegged to the dollar. This means, if BTC is too volatile for you, you can make a massive amount of interest even without having to touch.
You can also choose to be paid your interest in any currency they custody. For now, it’s GUSD, BTC, ETH and LTC. It’s a great way of getting exposure to cryptocurrencies without even having to buy them.
Of course, being a mining platform, we couldn't write a passive income article without including mining.
Cryptocurrencies are synonymous with mining, although not all cryptos can be mined. The biggest and best crypto: Bitcoin can be mined, and so can Ethereum, Litecoin, Monero and many others.
Depending on which crypto you want to mine, will determine the type of computer (mining rig) you have to acquire. With Bitcoin, for example, you really need to get your hands on the latest application-specific integrated circuit (ASIC) devices to make some good profits. You can mine with a GPU set up, but they’re not as powerful as ASICs and so your hashrate won’t be as high, meaning you won’t earn as much.
A GPU mining rig is good enough for many other cryptos, however, and in some cases you can still mine some cryptocurrencies with your CPU, and even your phone (although I wouldn’t advise this).
One thing you should take into account when buying a mining rig is the power consumption and cost of your electricity. At the moment, with the price of Bitcoin just around $7,000 miners are generally just in profit. But it all depends on the cost of your electricity as to how much you will earn.
There are other factors, too, such as the mining difficulty, which adjusts every 2 weeks on Bitcoin. This depends on the amount of miners mining during any given two week period. If many miners are mining (usually when the price goes up) the hashing ramps up and you will burn more electricity, that’s why even using a mining calculator to see whether it’s profitable or not is hard to discern.
Either way, you can make some serious money mining Bitcoin and some altcoins. If you do decide to start mining, however, make sure you do a bit of research first.
Staking is similar to mining, in a way, but the difference is that stakers will buy the cryptocurrency of their choice and hodl it in a special wallet that’s connected to the protocol, and the coins in that wallet will be staked and help validate the transactions (same as what miners do for Bitcoin).
Staking burns a lot less energy than mining, too, so your electricity will hardly be a factor if you choose to stake for a passive income. It’s a consensus mechanism known as proof-of-stake (PoS), which means the stakers are the ones validating the transactions.
Additionally, the more cryptocurrencies you stake, the more you will earn. There are many different coins that you can stake with, such as DASH, Tezos, and NEO. They all pay a different amount, but basically you just hold it in the wallet and you earn more of the token.
You can also stake some tokens on an exchange such as Binance and Coinbase. Both exchanges allow you to hold the PoS coins in your wallet account and you will earn a nice passive income, without it leaving the exchange. Although, it's not advised to leave your cryptocurrencies on exchanges for too long.
Related Reading: 5 Ways To Earn Passive Income With Your Cryptocurrencies
These passive income ideas are just scratching the surface, and cryptocurrencies, because of their decentralized and democratized nature will definitely introduce many more ways of earning a passive income.
Whether it’s mining or staking, receiving airdrops, earning while you surf the Internet, or putting your savings in a high interest account, the possibilities cryptocurrencies bring to anyone wanting to earn a passive income is either not possible with legacy systems or you get a much better return with the cryptocurrency counterpart.
I believe this is only the beginning, too. Cryptocurrencies are democratizing data ownership, and as it grows, there will be many more ways to earn a passive income, but for now, I’m sure you will agree that all the above are a great start.
Are you earning a passive income with cryptocurrencies? If so, please share your thoughts and let our readers know about other excellent ways to earn while they sleep.
Author: Tommy Limpitlaw