There are innumerable ways to make real money online, one of them being cryptocurrencies.
And if you are one of those who has overlooked this avenue until now, it is time you stop ignoring it because you can easily earn extra passive income from cryptocurrencies if follow the right path.
Well, the obvious question is, what is the right path? Not getting caught in scams in the crypto space is the right way, and so is finding the right avenues.
Therefore, in this post, I will walk you through some of the popular and interesting ways that can help you make money.
I would recommend these posts by Coinsutra on how not to get scammed.
- 7 Most Common Types Of Cryptocurrency Scams & Tips to Avoid Them
- 5 Smart Tips For Beginners Before Investing In ICOs
One obvious way to earn money through crypto is by holding (HODLing) good coins. But what if you hold your coins in an even smarter way to earn more money.
Yes, it is possible. But what are those smart ways to hold cryptocurrencies for the extra benefit, you may ask.
- Running Masternode
- Holding Dividend Paying Cryptos
We are not going talk about each of them in detail but for sure I will give you a gist of each of them and tell you which cryptocurrencies under each category is worth looking at.
Best ways to earn passive income from Cryptocurrencies:
1. Holding Dividend Paying Cryptos
This is another smart way to HODL cryptocurrencies.
It is extremely simple. You don’t need to do much to receive the extra income. You just need to find out good cryptocurrencies that pay dividends regularly and keep it to yourself.
There are many such currencies that give out dividends but not all are worth buying and holding.
However, there are some that are worth every penny:
- NEXO: Nexo is a popular service that pays dividends for Nexo owners.
- KuCoin Shares (KCS): By holding this KuCoin shares, you receive a daily bonus/dividend called KuCoin Bonus. The bonus you receive is 50% of the trading fees.
Staking cryptocurrencies is the easiest way to make extra passive income through cryptocurrencies that you already hold.
Here, you need to keep your proof-of-stake coins in an open-wallet for the maximum time to generate new similar coins.
For example, Tezos (XTZ) is a POS cryptocurrency. If you stake, let us say 10 NEBL coins, over time in a year you will have 11-12 XTZ coins by just holding and staking them. No extra effort. Isn’t it wonderful?
Binance is a platform which let you buy these coins, and stake them at the same time.
But in some POS currencies such as NEO, you need not even keep your coins in an open wallet 24 x 7!
Some of the notable cryptocurrencies to hold and stake are:
3. Running Masternode
Running masternodes of POS or POW cryptocurrencies is another lucrative way of earning extra income from cryptocurrencies while holding them.
For the uninitiated, “Masternode is simply a cryptocurrency full node or computer wallet that keeps the full copy of the blockchain in real-time and is always up & running to perform certain tasks in order to get extra rewards”.
Some of these tasks are:
- Doing instant transactions
- Increasing privacy of transactions
- Participating in governance and voting
- Enable budgeting and treasury system in cryptos
But for every currency, there are certain eligibility limits of minimum coin holdings to run a masternode, plus the hardware required to run different nodes can also vary slightly.
- One needs a minimum amount of coins of that particular crypto. (For DASH MN you need 1000 DASH units and for PIVX MN you need 10,000 PIVX units). The minimum number varies from cryptocurrency to cryptocurrency.
- One needs a VPS or server to host that wallet 24×7
- One needs a dedicated IP address for that
- One needs some storage space to save the whole blockchain.
Some resources to set-up your own masternodes are:
Holding your cryptocurrencies and simultaneously staking, running a masternode, or keeping dividend-paying crypto in your portfolio has dual benefits.
This way you earn in two ways – one, from the price appreciation of the underlying asset, and second, from the reward staking reward, masternode reward, or dividend rewards for holding that asset.
This accelerates the rate at which one earns money through crypto. And not to say, of course, I understand the limitations such as minimum coin holdings and hardware requirements etc., but if you acquire some extra coins to satisfy the eligibility, it is totally worth it.
Write back to us: What coins are you currently holding, and why?
Do you know of any other good coins that one can hold as well as stake, run masternode or receive dividends for? Let us know in the comment section below.
A few other hand-picked articles for you to read and widen your knowledge base:
- Airdrops In Cryptocurrencies: Everything A Beginner Needs To Know
- Top 5 Bitcoin Myths That Need To Be Busted
- How Is Ethereum Blockchain Different From Bitcoin’s Blockchain?
- 7 Best Crypto That Pays Dividends
- Coins vs Tokens: Know The Difference [Crypto Basics]
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.
Join us via email and social channels to get the latest updates straight to your inbox.