If you've followed me for any significant amount of time, you'll know that my two biggest passions are Bitcoin and my growing passive income from cryptocurrency. Everyone loves being able to earn extra money while they sleep or do nothing. Over the past few years, the cryptocurrency market has seen incredible growth and with that, the methods or abilities to use your cryptocurrency to achieve passive income have grown in number. Starting from crypto faucets, lending your bitcoins to a third party, staking your coins, mining, DLC, participating in DeFi and using farming, selling NFTs, using the browser Brave or even reading articles on places like Publish0x, and also earning cryptocurrencies from the games. While some of it, the "passive" part of it can be up for debate, they can still be performed while you're at home, and that's part of what I think passive is. But which method is the best way to make that passive income? Everyone is different and what works great for me may not actually be the best for you and vice versa. The great thing about earning crypto passive income is how quickly the market appreciates. While the money you receive may initially seem quite small. The same amount can increase in value by 10 times or even more, and the previously smaller amount of income can quickly become something much larger. Especially if you continue to reinvest all your earnings. it may not actually be the best for you and vice versa. The great thing about earning crypto passive income is how quickly the market appreciates. While the money you receive may initially seem quite small. The same amount can increase in value by 10 times or even more, and the previously smaller amount of income can quickly become something much larger. Especially if you continue to reinvest all your earnings. it may not actually be the best for you and vice versa. The great thing about earning crypto passive income is how quickly the market appreciates. While the money you receive may initially seem quite small. The same amount can increase in value by 10 times or even more, and the previously smaller amount of income can quickly become something much larger. Especially if you continue to reinvest all your earnings.
I'd like to start by talking about the methods I'm not a fan of. The first of them are cryptocurrency faucets. Yes, you can earn cryptocurrency dust by doing what can turn into a higher value in the future. But in my experience, it's often hard to find reputable faucets that actually pay out, and I also feel like it's not worth the time or attention it takes. To maximize the faucets, you have to constantly click to win, which means it will take up a lot of mind space and prevent you from doing other tasks. Time is money and I found that I could use the same time and make a lot more money doing other tasks.
I'm also not a fan of DLC, (Discrete Log Contracts). You can earn passive income by agreeing to sell your coins at a certain price by a certain date and get an initial bonus for doing so. If the price reaches this target, you are forced to sell your coins. If it doesn't reach that price by the deadline, you can keep your coins. If you are open to risk, this can be quite a profitable venture, especially if you take on more risk by agreeing to sell at a price that is more likely to be hit. But if you're a spender like me who hopes to never sell, it might seem too risky. One of my biggest fears is losing my bitcoin and all the hard work I put in to build it up to the point I have so far. Only to be forced to buy back at a higher price.
And finally for my controversial choice; DeFi or farming. Please don't take this the wrong way, I'm a big fan of DeFi for the long term and I'm extremely excited about its potential and technology. But you must understand that I am extremely averse to taking an incredible risk. It seems like every day there is some kind of DeFi hack where funds are stolen and I have to admit it worries me. This is incredibly young technology. Investing in cryptocurrency itself is always quite risky, no need to increase my risk even more. With that said; as the technology matures and becomes a bit safer, then I will start investing more in DeFi. For now, I'm taking a wait and see approach.
Now let's move on to the methods I really like. I'm a big fan of earning crypto from using the browser Brave, and also just from reading articles on places like Publish0x. Admittedly, you won't gain much with these methods. But if you walk, chances are your earnings will increase over time. At least for me, these types of activities are now two of my biggest passions (surfing the internet and reading about crypto), which means I would do them even if I wasn't getting paid. Getting paid cryptocurrency is just a bonus.
Next, let's talk about mining. This is one of my favorite methods and can also be extremely profitable. He can also be quite demanding. The initial cost of purchasing the equipment can be very expensive, and then there is the monthly electricity bill, which can also become large. And then it takes some knowledge and know-how to set up the platforms and maintain them. Mining ethereum is an amazing opportunity to earn money, but since ethereum is moving to ETH 2.0, it means that the mining of this chain will also end. Bitcoin mining requires ASIC machines, which are very expensive and out of reach for most people. This means that future mining prospects are less exciting for me and I will most likely turn my attention elsewhere.
You can also earn money by playing different games. Be careful; just like taps, they can take a huge amount of time and not become passive at all. With that said, this has incredible potential for the future. You can see this with how this sector of the crypto market has been playing out over the past few months. Although I have to admit that I haven't done much in this area yet for several reasons. There were a few games that I really enjoyed and enjoyed; meaning it wasn't passive at all and felt more like a chore. Or the initial investment needed to get started was too much for me. With that said; I'm excited about where things can go in this area and will keep my eyes open for future opportunities.
Finally, let's talk about my favorite methods. If you know me, you've probably already guessed that my two favorite methods are borrowing my cryptocurrency and also betting on it (specifically ethereum). For simplicity, I'll put them in the same category here. In my situation I lend both bitcoin and ethereum and also stake ethereum. There are risks with both options. When lending; you give up custody of your coins to third party services like BlockFi, Celsius, Nexo and the list goes on. If that company goes bankrupt, gets hacked, or even decides to freeze your account, it could mean losing all your money. Although some places claim to have insurance, we haven't actually seen any of this happen and it's never a guarantee that you'll actually get your money back. Now the betting risks. Currently, when you stake ethereum, you lock it into the ETH 2.0 contract. Once you do this, it is locked until ETH and ETH 2.0 merge. It may take a few months, a year, a few years, or it may never happen. There is no guarantee that you will ever get these coins unlocked, so the risk is that you are giving up your liquidity. Of course, if ETH and ETH 2.0 manage to successfully merge, this risk will no longer be the case. I love lending and staking cryptocurrency because I think it's the easiest of the bunch and the most accessible to most people. You can start your journey with $ 1 or even less and then keep building up. The magic of compound interest is an amazing thing and you will be amazed at how quickly you can grow your income. Then also considering that the price of your coin will most likely rise over time as well. When I first started lending bitcoins, I was only making two dollars a month worth. But now that has grown to almost a thousand dollars a month. Just keep increasing your stacks.
What about you? What forms of earning passive crypto income do you like and dislike? Which method earns the most money?