If you are anything like me, maybe your newest favorite thing to do in the crypto markets is to go after that passive income. The money that comes in a monthly basis with basically no effort of your own. It's my goal to eventually raise my passive income up to a point where I can officially quit my day job, and while I am still quite far away from reaching this goal, I am on the right path. While that is my long-term goal, I do feel it is important to keep shorter-term goals that are easier to reach, and my goal is simple. This goal is to increase my passive income each and every month. As time goes on, if I continue to do this, I believe I will be able to achieve my main goal.
This passive income list will include many of the obvious choices out there. But they are obvious, because they are great choices and are proven to bring great returns. But I won't be mentioning any options that require a lot of attention, that bring extremely low returns. For example faucets. In my opinion faucets are a waste of time, causing high amounts of frustration especially for the returns that they bring.
So without any further delay, let's talk about my favorite ways to get passive crypto income.
If you aren't aware of what staking is, Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards. And there are many popular coins that can currently be staked, some of those include; Polkadot, Cardano, Cosmos, Tezos, Tron, Algorand, and much more.
One of the greatest things about staking is that you don't need to give up the keys to your coins to earn these profits. And some of the staking rates are quite high. For example, you can currently earn a 12% annual rate just for staking Polkadot right now. Now depending on the size of your portfolio, the larger amount you have, of course the higher returns will be. But please keep in mind, no matter what the price is, you will always receive that same percentage staking rate.
For example; let's say that I am staking 500 Polkadot coins starting today. During the first full year of staking I should receive about 60 new Polkadot coins. With the current DOT price at about $4.50, that would result in a passive profit of around $270. But for speculation's sake, let's say that the bull run has indeed started and the price of Polkadot went up to over $50.00. Those same 60 coins would now be worth $3,000! Not a bad passive profit at all. Also, the great thing about compounding interest is that as time passes, the amount you receive will also continue to increase as well.
In the near future ETH's 2.0 release will bring about staking for Ethereum. The goal being to have 32 ETH to stake by yourself. There are many people out there that believe in the future staking 32 ETH could be people's full-time job. Meaning it could result in enough to retire.
I'm also a big fan of lending my crypto as well. Yes I know the famous phrase, "Not your Keys, Not your Bitcoin." But my mindset in the moment is that I'm in the money making business. I'm wanting to retire from my 9-5 as quickly as possible. But before lending my crypto out, I always do extensive research.
There are a lot of coins out there that I love, such as Bitcoin and currently Ethereum, where it's not possible to stake them to grow a passive income. But you are able to lend them out!
My favorite place to lend is BlockFi. They offer compounding interest rates for your crypto. Bitcoin(6%), Ethereum (4.5%) Litecoin (5.0%), USDC (8.6%) among other stable coins as well.
There are other places that offer similar services to BlockFi, but it has remained my favorite. One of my favorite things about BlockFi is the fact that you can gain high-interest on stable coins, which I buy a lot of. While you are holding these coins you can gain a high-interest, then when the price of BTC or ETH drops, you're able to trade those stable coins for the coins you desire. I'm always ready for my trade, but while I'm waiting I'm still gaining a passive income.
For anyone interested in BlockFi, here is my reference link. https://blockfi.com/?ref=dde31f50
Anyone reading this article probably already knows this, but there are some great resources on the internet to get free cryptocurrency. You can earn just by reading and being active on Publish0x, Uptrennd, and also Read.cash. If you are into creating your own articles or content you can make even more, especially on Hive and Publish0x.
Then there are places like Coinbase Earn, where you can earn free crypto currency just for watching videos and answering a few questions about the videos you have watched. (availability worldwide can vary)
Then of course there is using the Brave Browser. Just by surfing the web, something I'm sure all of us do, you can earn a small amount of BAT each month.
While each of these things aren't massive in size, they are consistent and as the price of coins go up, so will your portfolio value as well.
As I mentioned before, I do think that all 3 of these ways to get passive income are very basic, and many of you probably already know about them. But being the most popular ways, often means that it is the best or safest way to do so.
I would love to hear about what you do to earn passive income, and also the places you use as well!
As always, thank you for reading!