How can one make money from cryptocurrencies? The thought of earning from cryptocurrency trading is often associated with conventional trading methods, like buying into ICOs and trading currencies. However, there is also a real possibility to earn Passive Income from cryptocurrencies. That said, here are some proven ways that can see you make money from passive cryptocurrency trading.
Some blockchains allow traders to leverage on the power of proof-of-stake, to add additional coins by staking their investment. Staking secures the blockchain network, and investors who stake are entitled to receive some interests when the prices increase.
Another way of making passive income is by buying exchange coins. Investing in exchange coins means that the investor is entitled to a fixed fraction of the investment depending on the number of coins he or she has. The best time to buy exchange coins is when the volume is relatively low as you wait for it to increase.
Some coins earn a dividend in the form of other coins when the investor holds their coins. In the case of dividend coins, the amounts of other coins awarded as dividends are often predetermined. Dividend coins require no work beyond owning the original coin. It is a low-risk method of investing in cryptocurrencies, as much as the rate of return might be relatively lower than other options.
Earning from referrals is often a semi-passive method of earning from cryptocurrency trading. The amounts you get from referrals depend on the magnitude of your audience. Notably, referrals are possibly not going to offer much income.
If you are looking for a passive income earning activity, the options highlighted above are worth trying. As such, when setting a cryptocurrency portfolio, the possibility of earning passive income from your investment should be factored in before making any decision.