How can you make passive income regularly in cryptocurrency?

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Crypto passive income opportunities can help you offset losses during market downturns and crashes. They also represent a more proactive way to grow your crypto capital than using the increasingly outdated HODL strategy.

While holding promising coins for a long-term perspective worked great in the earlier years of the crypto market, it’s no longer the optimal way to earn passive crypto income in the current market. Read on to find out all about the best crypto passive income strategies relevant in 2023 and beyond.

Crypto Mining

Blockchains require all blocks to be validated before they can be finalized. This is known as achieving consensus and blockchains use different mechanisms to reach it. Popular coins like Bitcoin and Litecoin use the Proof of Work consensus mechanism.

Under this system, users or “miners” must employ their computers to solve complex cryptographic puzzles. The first to arrive at the solution is rewarded for the time and energy expended. This is known as the block reward for mining.

You can start earning a passive income with mining today. Simply choose a blockchain to mine on and download the required tools. Alternatively, you can join mining pools which groups computers together and use their combined power to increase the likelihood of earning rewards.

Copy trading.

This is the most profitable way of earning passive income with crypto. All you have to do is to earn more by trading on what you already have.

How?

We all know how lucrative crypto trading is but learning how to trade can be all-consuming for a beginner. Worry not. With copy-trading, you can start earning money via crypto trading without knowing anything about trading.

Yes, you heard that right

Copy-trading in real is about copying other people’s trades. Cryptocurrency traders copy the trading positions of other investors within a social trading network. To do this, the crypto trader links his/her account to the original investor’s account and positions are mirrored. The original investor typically earns a monthly fee as compensation for allowing to copy his/her trades.

Copy trading is used by beginners and seasoned traders. With this trading strategy, you can save all the time spent on research and can start generating money with little time and effort.

Traders can also decide how much they want to invest in the trader who they are copying.

Crypto copy trading is an officially recognized trading strategy. It is hassle-free and also excellent for diversification in your portfolio. You don't need to know anything about trading to copy my trades as I will guide you through it.

Staking

The most popular alternative to Proof of Work is Proof of Stake. Under this system, you don’t have to expend any computational power or energy. Instead, you simply have to “stake” or lock in the native token of the blockchain. This acts as proof of your investment.

If you have enough tokens staked, you can create a “node” and begin validating transactions. However, this can be costly and prohibitive. On some other networks that use Delegated Proof of Stake, you can delegate your tokens to an active validator and earn a share of their block rewards.

For users already invested in the crypto ecosystem, this can be a simple way to earn more. To begin staking, simply open a crypto wallet, purchase the required number of tokens and select the staking option.

How can you make passive income regularly in cryptocurrency?

Yield Farming

Yield farming refers to providing liquidity for lending and borrowing services and earning interest from it. This process involves locking your tokens into the smart contracts of a decentralized finance app. The app’s protocol automatically connects borrowers to the pool of funds, who pay interest for using the funds.

The borrowers are usually other DeFi applications that need quick access to liquidity, so the repayment risk is low. It is a popular choice for passive income but requires you to research the pools you lock your tokens in.

Crypto Lending

While yield farming is a variation of lending in crypto, it has many other possibilities. As a crypto lender, you can use centralized or decentralized platforms to find borrowers. Alternatively, peer-to-peer lending platforms enable you to lend directly to an individual.

Such platforms usually include a user’s history and credit scores to reduce the risk of non-repayment.

Savings Accounts

Some crypto platforms offer accounts where your funds and tokens can earn interest. Similar to savings accounts with your bank, the platform uses these funds for lending and staking or other investments. Having a savings account with the platform entitles you to a portion of the returns made using your funds.

Forks and Airdrops

Forking is the launch of a new blockchain that’s based on an existing chain, but which has its own modified set of rules and functionality. Launches of newly forked chains are sometimes accompanied by the free distribution of tokens. Recipients of the new chain’s native tokens are often users of the parent blockchain on which the fork was based. The free token distribution is used as a marketing tool to attract the parent chain’s user base to the new platform.

Another marketing freebie used by new crypto projects is the airdrop, which is the distribution of a project’s native crypto to its user community. Strictly speaking, airdrops may be employed by existing and established projects, as well as by new platforms.

The intent is the same as with the initial distributions — namely, to foster a closer and more active user community for the crypto’s operation. Both blockchain platforms and DApps which are based on them might carry out airdrops. To track upcoming airdrops, you may use resources such as Airdrops.io and Airdrop Alert.

Final Thoughts

The advantages of crypto passive income are clear, especially in the current bear market. In fact, even those who prefer to be actively involved in crypto trading would do well to try and allocate some of their capital to passive income streams. considering However, when considering any potential opportunity carefully research the market and the specific platforms you might be considering.