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There are many ways to make money with cryptocurrencies. If you are not yet ready to engage in trading and play on the stock exchange actively, try passive earning options – these are landing, staking, and investments in cryptocurrency funds. We will tell you more about each of them.
Cryptocurrency landing is an analogue of a bank deposit. You can lend it at interest directly or through a third party once you own crypto. You can donate cryptocurrency to centralized exchanges, special landing sites, P2P platforms. The mechanism is the same everywhere, and the difference is the methods of calculating interest and the amount of remuneration. If the crypto is leased to the landing exchange, the exchange itself acts as a security guarantor, if the P2P platform is the user who rents the asset.
Deposits on cryptocurrency exchanges are considered one of the safest types of investment and earnings.
The user leases the asset to the exchange, and it leases the crypto to traders trading with leverage, in turn. Thus, your asset works and generates passive income, and you do not need to trade on your own.
You can rent out regular crypto or stablecoins, the most stable fiat-backed digital assets by choosing crypto lending. Stablecoins pegged to the dollar are practically not subject to price fluctuations, so it is profitable to rent them for landing on a long-term basis.
Centralized cryptocurrency exchanges offer users the highest percentages for landing. Owners can receive up to 45% for a cryptocurrency deposit on some platforms. The rate of return can be fixed or floating, fixed is annual or calculated for another specific period.
Staking is another convenient, simple and profitable way to earn on virtual assets passively. You block it on an exchange or a cryptocurrency wallet for a certain period, having a crypt, and you receive interest for this. This option is ideal for investors who store quite large amounts in cryptocurrency.
An exchange blocking a cryptocurrency uses the asset to maintain its popularity, system security, liquidity of the coin, margin trading, loans, and you get interest without doing anything. Moreover, some cryptocurrencies reward holders for staking in other tokens. The user only needs to store the coins on an exchange that offers such rewards.
Since recently, cryptocurrency holders have been able to buy and store coins in exchange-traded funds. The first funds where users began to invest were Purpose Bitcoin and Evolve Bitcoin registered in Canada. Later, similar platforms appeared in the USA – these are Bitcoin Strategy, Valkyrie Investments, VanEck.
Investing in cryptocurrency funds is the newest way to invest and earn passive income. The fund buys digital assets and sells shares to investors. Investors receive income from the growth in the value of cryptocurrency, the amount of profit depends on the share of purchased shares. The advantage of investing in cryptocurrency funds is that there is no need to trade digital assets on your own. It is important to choose a reliable fund to earn effectively and safely for your capital. Pay attention to the following factors when looking for a site:
- reputation, fund name, fame;
- legality of activity, state of registration;
- service cost;
- earning strategy;
- openness of documents.
Whatever way you choose to earn passively on cryptocurrencies, you should keep in mind the volatility of assets. The cryptocurrency market is unpredictable, and it is important for every investor to approach the choice of an asset and fill the portfolio carefully.
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