It is 2023 and the bear market is still in play. The cryptocurrency market has lost more than 60% of its value over the past few months. However, as investors prepare for the bull run, some are already looking for ways to earn passive income.
In this post, we will look at four different ways to earn passive income in the cryptocurrency market.
Four Leading Ways To Earn Passive Income With Crypto
One of the easiest ways to earn passive income from your cryptocurrency assets is via lending platforms. The last bull run has seen the entrance of numerous lending platforms into the market.
To make passive income on lending platforms, all you need to do is deposit your assets on the platforms. The platform loans your assets to borrowers and the interest the borrowers pay will be paid back to you in the form of cryptocurrency.
There are numerous lending platforms currently available to investors. However, with the recent troubles faced by some of these companies including Genesis and BlockFi, you need to do your research before choosing a lending platform to invest your crypto assets.
Cryptocurrency staking is one of the best ways to earn passive income in 2023. With more blockchains migrating to a proof of stake protocol, the options available to investors continue to increase.
However, Ethereum staking is an excellent way to put your assets to use and earn passive income, thanks to the fact that Ethereum is currently the second-largest cryptocurrency by market cap.
Staking Ether coins involve having at least 32 ETH staked to become a validator. This is tough to do unless you are a seasoned crypto enthusiast. There are other ways to stake your ETH coins without allocating such a huge amount.
Validators on the Ethereum network allow smaller ETH holders to assign their tokens to them and earn part of their staking rewards. This means that you can stake your ETH coins on centralized cryptocurrency exchanges and with staking pools.
However, if you have the funds, you can operate your own node and become a validator on the Ethereum network. This is reserved for those who own 32 ETH coins and can stake them. Furthermore, you will need a powerful computer to help you run transactions while constantly connected online.
Masternode is another way to earn passive income with crypto. It works similar to staking but requires more investment. A masternode is a server designed to support the network of a particular cryptocurrency.
In the crypto space, masternodes earn rewards for processing transactions and boosting the security of a network. To operate a masternode, you will be required to have a certain amount of the native cryptocurrency of the network you wish to run a masternode.
In addition to that, you will need a significant amount of technical knowledge before you can set up a masternode.
Referral programs are becoming quite popular in the cryptocurrency space and they provide an excellent way to earn passive income. A large number of crypto projects offer referral programs where you are compensated for each person you refer to their platform or project. What you earn will vary depending on the project you promote.
As you wait for the next Bull Run, you can earn passive income with your cryptocurrency assets. The above-explained four ways will help you make money as a cryptocurrency investor or enthusiast.