Passive Income from Cryptocurrencies

A significant number of people dream of receiving money without any effort or contribution. Economists call it a passive income. The most common example is a bank deposit. However, the interest rate in banks only counterbalances inflation in the country. Hence, it is difficult to call it a passive income. Cryptocurrencies have significantly changed the financial market. So let's take a look at the crypto industry's options for generating passive income.

          The first thing that comes to mind is cryptocurrency mining, which takes place without your participation.

          Pros: high income

          Cons: dependence on the cryptocurrencies prices, significant initial investments, monthly expenses

          The average payback period of the invested funds is from six months to 2-3 years.

          The second option is staking, which we mentioned previously.

          Pros: average income

          Cons: dependence on the cryptocurrencies price, significant initial investment.

          The main feature is the need for a significant amount of cryptocurrencies.

          The third option is cryptocurrency landing. In short, it is a cryptocurrency deposit. Funds are blocked using smart contracts.

          Pros: no need to worry and do anything

          Cons: low profitability, the need of significant investments to generate significant income.

          The fourth option is a hard fork (or a hardfork). In the crypto industry, a software update is called a fork. There is a soft fork and a hard fork. We shall focus on the hard fork. So, a hard fork is an update that is not compatible with the previous one. Thus, if some of the users do not update, then two separate blockchains will be formed. And the initial amount of cryptocurrencies in your wallet will be duplicated.

          Pros: implies no efforts

          Cons: infrequent nature, profit depends on the prices of two cryptocurrencies.

          This post is published for informational purposes only.