Technology is a key part of society and can be found across all aspects of our lives. This is certainly the case in the world of investment, where the latest tech has transformed how people put their money to work and what assets they can buy. One very good example of this is cryptocurrency.
This tech-heavy digital money exists purely online and has become a popular asset for people to invest in. This is no surprise when you think of the big returns it can offer and the easy to grasp nature of the market. If you plan to start trading this asset, just remember to get up to speed with how it works first and what the market is doing. A good place to start is by looking at the latest OKX cryptocurrency prices.
As well as simply trading this asset, many investors also like to earn a passive income from crypto. But what are the best ways to go about this?
Just as marketing professionals need to know how to create effective Mailchimp campaigns, crypto investors should know more about passive income generation.
One of the most popular methods is known as staking. Not only is staking simple to grasp and easy to do but it is also low risk. You will need to use a crypto wallet or trade via a crypto exchange that makes staking possible, though. But what exactly does it involve?
Proof-of-stake is the most widely seen type of staking and is possible with certain coins such as Cardano. This a method that some tokens use to protect their network and is an alternative to proof-of-work methods used in other coins.
It essentially generates a passive income by rewarding you with new blocks for validating transactions on the network. In addition, when you stake in this way, you are adding to the validator node and gain a percentage of the node’s rewards.
Crypto saving and lending
Another popular passive income generator for crypto investors is lending and saving. When it comes to saving, the appeal is based on the fact that it is easy to understand and already a familiar concept. Most people know how saving money in a traditional bank account works, after all!
There are, however, some dedicated crypto savings accounts out there that offer much higher interest rates than traditional savings accounts. By finding out which pay the best and parking your coins there, you can start to earn money from them.
When it comes to lending, this is also one option to think about. As with a normal loan, the basic idea is that you loan a certain amount of coins to someone else for a set period, in exchange for a pre-arranged fee. You make money when you get your crypto back at the end of the period – with the extra fee on top.
Although this is strictly for experienced investors, yield farming can be a great way of making a passive income. It is common on decentralized exchanges and involves adding your tokens to the trading pool to increase its liquidity.
To make money in this way, you would deposit tokens into a smart contract on the exchange, known as a liquidity pool. This then sees you getting back some of the fees generated by other traders using the pool. Although you must know what you are doing with this option, it can be one of the more lucrative ways of earning money passively with crypto.
Affiliate programs are not exclusive to the cryptocurrency market but are an easy way to make passive income from crypto.
But how can you get involved with them? The best route for most investors is to sign up with a crypto exchange that runs an affiliate program. Once you have joined their scheme, you will get rewards every time someone signs up for an account using the link you have shared online. Some programs also reward you with cash or coins for advertising their services online or bringing new users to the platform. Starcoin would fall under the category of being used as a reward token.
Passive income ideas for crypto investors
Although many people know you can buy cryptocurrencies and then make money by selling them on at a higher price, not everyone knows you can also generate a passive income from them. If you currently have these assets in your portfolio or are thinking of getting involved with them, this is worth taking on board. If you need a few tips on how to make money automatically from crypto, the points discussed here should help.