How to Earn Passive Income with Cryptocurrency? Here Are the Easiest Ways

TEMPO.CO, Jakarta - With a promise to transform the United States into the “crypto capital of the planet”, President Donald Trump's new administration sparks curiosity over the overall nature of the modern currency. Within the investment field, queries such as ‘How to earn passive income with ?’ and ‘Is it a viable income stream?’ begin to resurface. 

In this article, we’ll take a closer look at some investment instruments to earn passive income with cryptocurrency to get you started on your decentralized currency journey. 

Here’s How to Earn Passive Income with Cryptocurrency 

Citing Forbes and Investopedia, methods like staking, mining, and yield farming are some of the updated methods on how to earn passive income with cryptocurrency. Read on to learn more and other methods:

1. Staking 

Staking your coins in a blockchain network to participate in transaction validation will help you earn rewards. Interestingly, users don’t have to calculate many things as some staking exchanges only require an eligible currency in the account. In other cases, storing the cryptocurrency in a compatible software or hardware wallet will also gain users staking rewards. 

Staking is accessible in common Proof-of-Stake (PoS) and Delegated Proof-of-Stake (DPoS) networks like Polkaodt, Ethereum 2.0, and Cardano. Additionally, Coinbase, Binance, and Kraken reportedly present promising staking opportunities to their users.

2. Mining 

When it comes to mining, users can earn passive income with cryptocurrency if they find an encrypted solution to validate blockchain transactions. Popular digital assets like , Ethereum, and Litecoin usually have a process called Proof-of-Work (PoW) where miners practice their mining skills. 

Unlike staking, users need a dedicated graphics processing unit (GPU), computers, and adequate programming skills to win the PoW race against other miners. There are many mining pools for beginners to join.

3. Yield Farming 

Also known as liquidity mining, yield farming is a method to earn money by having direct participation in a lending process. Similar to what happens in a conventional bank, users deposit crypto coins and tokens into liquidity pools in exchange for transaction interest and fees. According to Investopedia, the rewards of yield farming depend heavily on three ranking factors, such as loan amount, loan duration, and interest fees. 

4. Savings Account Interest 

One of the easiest ways to earn passive income with cryptocurrency is by utilizing savings account interest. Many savings accounts in the digital currency ecosystem offer various conveniences to users, from flexible withdrawal times to higher yields. On the flip note, as with other cryptocurrency journeys, holding a savings account will expose users to several risks including platform security and market price volatility. 

5. Running a Masternode 

Forbes highlighted the possibility of a masternode in granting passive income to cryptocurrency users. This method can garner substantial rewards for helping blockchain governance management. However, masternodes require significant crypto collateral, adept technical expertise, and a high amount of initial investment. 

As the digital currency landscape continues to evolve, learning how to earn passive income with cryptocurrency becomes an exciting journey. Remember to do your research, manage risk wisely, and embrace the potential of decentralized finance. For more inspiration, check out simple . 

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