Bitcoin is the most profitable asset class in the 20th century, and you might be someone who is holding a small or a large amount of Bitcoin. Perhaps that’s why you are looking for ways to earn passive income with Bitcoin. Here in this guide, I will share the top ways by which you can earn Bitcoin passive income.
However, you should know by chasing extra income from Bitcoin (Apart from HODling), you are also increasing your risk. I’m not suggesting that you should not explore other avenues, but I definitely recommend you to learn the ins and outs of each method, before you put your Bitcoin for extra use.
Let’s go ahead, and learn everything about Bitcoin passive income.
Also see: Crypto passive income
Earning online passive income was never easy, but with the advent of Bitcoin, the blockchain, things have clearly changed. However, the ‘easy’ income opportunity has also led many to fall for scams.
Bitconnect scam, Tezos scam, etc are not news anymore, and just so you understand the sheer magnitude of such crypto scams, here is the data from Australia where over 1200 complaints regarding crypto scams were lodged last year.
To make it clearer, it is difficult if you haven’t educated yourself on the latest revolution.
However, we at CoinSutra understand that not everyone has the time for due diligence and that is why we go the extra mile by presenting our research to you.
That, however, doesn’t mean you should follow us blindly. You should DYOR (Do your own research) but you can very well bank upon us for a head start in the right direction.
In this write-up, we will discuss various, but legit, ways of making money from Bitcoin on a very high-level. I will also leave you with some specific links in each section so that you can dwell deeper into options that appeal to you most.
7 Best Ways To Earn Passive Bitcoin income
1. HOLDING (#HODL)
One of the easiet ways to make money from Bitcoin is by holding. BY simply not doing anything, and treating this as a long term investment. I’m pretty sure you might be knowing this already, but it is my duty to remind you that again, and sit tight with your investment.
However if you have sizeable investment in Bitcoin, you can consider putting some of the portion for earning alpha. I have discussed some of the methods below.
This is popularly also known as HODL.
2. Lend Bitcoin to Earn Interest (Risk: Moderate to high)
Lending is a century old method of earning money and the same concept of lending you can apply to cryptocurrencies like Bitcoin and Ethereum too.
If you have significant Bitcoins or Ether, you can lend it to people who will pay you extra interest to your Bitcoins or Ether.
Here are platforms which allows lending and let you earn a passive income from cryptocurrencies:
There are companies that help you lend your Bitcoins, some of which have been listed by CoinSutra in this article: How To Earn Interest on Bitcoin & Other Cryptocurrencies ( Practical Guide)
2. STAKE Bitcoin To Income Passive Income
Staking is another superb way of earning in the cryptocurrency space. In this method, you simply need to buy and hold your crypto coins in a special wallet or on an exchange that supports staking to earn regular dividends or profits on it.
This method is usually employed by proof of stake cryptocurrencies because in this way they reward the stakes and secure the blockchain as well.
In this method, you need to keep your wallet online most of the time to earn those dividends and these dividends are paid out in the native cryptocurrency called the staking reward.
For example, Tezos (XTZ) a popular coin offers 6% as staking return. More over, as this cryptocurrency gain more popularity, the price increases over the time.
Some more coins that you can stake are:
- Komodo etc..
To find some good cryptocurrencies for staking, here is what you can do.
- Login to Binance account (Create one for free, if you don’t have one)
- Click on Finance > Binance Earn and select Staking under Fixed term
Here you will find the list of many new and proven coins that allow staking. You can get the coin from Binance platform, and stake it there.
4. Bitcoin Mining
Mining cryptocurrencies like Bitcoin, Litecoin, Ethereum or Monero is another profitable avenue from which you can earn passive income.
However, mining of Bitcoin or other profitable coins is rather difficult. You also need powerful equipment like ASICs or GPU rigs to mine these coins profitably.
Also, expenses on electricity and cooling equipment are huge. Because of such entry barriers, the task of mining has become limited to mining farms or cryptocurrency mining professionals.
There are some cloud mining services out there that claim revenue generation for their clients but their terms & conditions don’t look profitable at all. So choose your options smartly.
- Also, read: Bitcoin Mining: A Basic Guide For Beginners
5. Bitcoin TRADING (#BUY THE DIP, #SELL THE HIGH)
Bitcoin Trading is basically buying the coins cheap and then selling them when it rises by 1-30% or whatever your target price is.
If you are someone who is good at technical analysis and charting the price movement based on analytical tools, you can use this method of earning through crypto. Also, you can keep a regular eye on the market and make buy/sell decisions based on news or fundamental development of a particular project.
Even if you choose this route over HODLing, you should systematically take out your principal amount back when the price of the coin rises. Day trading or seasonal trading has become a major passive money maker for many Bitcoin users.
Some of the trading websites/exchanges that you can use are mentioned in these links:
- 11 Best Cryptocurrency Exchanges In The World To Buy Any Altcoins
- 15 Crypto trading tools highly recommended by Experts
- 3 Best Crypto Copy Trading Softwares
6. Blogging to earn Bitcoin
You can earn money by blogging and writing on websites that pay you in cryptocurrencies if your content is liked by the readers. Also, if you already know that your content is valuable, you can directly monetize your content for cryptocurrencies for giving the full access to your content to the respective reader.
Some of these websites that allow you to do so are:
7. Bitcoin Affiliate Programs
Another great way to earn passive income from Bitcoin is by joining the popular Bitcoin and crypto affiliate programs. There are many exchanges, wallets and services that offers a lucrative affiliate program that you can join, and earn income in Bitcoin when a referred users use their services.
Here are the top Bitcoin Affiliate programs for you to join:
|Bitcoin Affiliate Programs||Link to Join|
|Binance referral (Exchange)||Join here|
|Bybit referral (Exchange)||Join here|
|CEX.io referral (Exchange)||Join here|
|Ledger (Bitcoin Wallet)||Apply here|
|3Commas (Trading terminal)||Apply here|
|Coinbase (Bitcoin Exchange)||Apply here|
|Impact (Network)||Apply here|
|Paxful (P2P exchange)||Join here|
|Coinmama affiliate||Join here|
Conclusion: Bitcoin Passive Income
It might look like earning money from Bitcoin and cryptocurrencies is very easy.
Easy it is if you do your research and put in your fair share of hard work.
Similarly, this line of earning has its own pros and cons, so beware, focus on self-education and always DYOR to avoid getting scammed.
In the end, I will leave you with this short summary by Harsh on how to make money from cryptocurrencies.
I will now leave it to you to decide which way of earning you chose from the options. Do share your choice with us in the comment section below.
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Harsh Agrawal is the Crypto exchange and bots expert for CoinSutra. He founded CoinSutra in 2016, and one of the industry’s most regarded professional blogger in the fin-tech space.
An award-winning blogger with a track record of 10+ years. He has a background in both finance and technology and holds professional qualifications in Information technology.
An international speaker and author who loves blockchain and crypto world.
After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
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- 7 Best Ways To Earn Passive Bitcoin income