Most people believe in the ability to earn income passively, but few think they have the skills needed to achieve it. From blogging to Amazon e-books, the digital age has produced many new and innovative ways to earn revenue online. How much do you know about earning income by trading cryptocurrency? First we’ll cover the platforms and then what should look for when it comes to monetizing your investments.
Sites You Can Earn On
There are numerous sites where you can trade cryptocurrencies, including:
Bitcoin Trader Software
The Bitcoin Trader system is software that promotes the buying and selling of coins based on mining and exchange of cryptocurrency. As Bitcoin has risen in value, it is an easy way to invest since their software does all of the work for you.
Invest In KCS
Kucoin offers participants access to a straightforward cryptocurrency platform that allows for easier access to manage your assets. Kucoin also offers participants a 50 percent daily transaction fee split which is much higher than other cryptocurrency exchanges.
When Decred first launched in 2016, a coin was valued at $1.20. Today, a token is worth $71.76 which shows that passive investments pay off in time. Had you invested $120 when this currency first hit the market, it would be worth $7,176 today. As this currency is technically in its infancy, it is smart to buy in and let these coins grow to full profit value.
ARK is a delegated proof of stake (DPOS) cryptocurrency system that enables you to sit back passively and allow those you voted for to validate your transactions and also create blocks that lead to rewards of fees in which you get a stake for your vote.
While other platforms tend to buy and sale in-house, earn.com is taking on email marketing return on investment (ROI) by offering earnable tokens that pay in cryptocurrency. Unlike other systems, you cannot buy into this ecosystem. You will also earn tokens by recruiting new users.
Unlike the other cryptocurrency systems, Cent uses Ethereum smart contracts to monetize question and answers. You can ask questions for a fee, and those who answer earn coins. In this case, knowledge in specific areas would be worth investing your time.
The essential element of passive income is to understand in what you are investing and set into place a profitable system for buying, selling, earning or exchanging cryptocurrency.
Proof of Stake
Blockchain technology is expanding which is why proof of staking enables you to invest without having to oversee every dollar invested. You also receive a proportionate amount in return as the cryptocurrency value inflates. As the blockchain admin validates transactions, it legitimizes them and rewards the miner who decrypts each problem. At that point, it is added to the blockchain and becomes a part of the public ledger.
Each proof of stake setup requirement is different. Some sites offer node staking while others ask for a one-time wallet initiation. Each cryptocurrency has incentives and often require more staking than other blockchain technology platforms requires.
Sites like COSS and Kucoin enable users to invest and then receive shares based on the exchange of a cryptocurrency. When exchanges occur, the coin owners split with the site based on the portion of your token investment. The key to exchange is to buy in early before the volume grows as those participants tend to earn higher returns.
It can also be risky since an exchange’s volume may lag behind, which would cause you to lose money. You also receive your returns in coins which means they may not be big enough to sell to other participants. The risk and reward depend on your knowledge of this coin exchange system, which increases your chances of making money.
Some of the cryptocurrency platforms provide coins just by being an owner of the original coin. As an example, NEO’s blockchain platform and corresponding cryptocurrency are built on the ability to scale networks by adding decentralized applications. They generate GAS, which both have a cap of 100 million coins.
The way this system works is that the initial coin offering predetermines the value of the second coin, which pays network fees. The original coin serves as your investment in the coin’s networking which is why the return on your investment is lower than other cryptocurrency platforms. The value is that you do not need to invest your time which also lowers your risk of loss while also improving your chance of earning an income.
Airdrop is a bit different as this cryptocurrency distributes coins to existing blockchain currency holders. Participants that are just starting out with their projects reward users with tokens who hold the responsibility of generating buzz about their work. Token receivers may receive tokens for signing up or participating in their community.
The coins given are small, but they have the potential to grow substantially if you chose a well-structured project and hold onto your coins until their value grows, which is how airdrop currency would be a suitable way to invest your time initially. As you can participate in multiple airdrops, it has the potential to be a good way to earn money.
A website like Binance offers incentive referral programs to generate buzz that attracts new customers. For someone with no followers, this would probably not be the best way to earn through an exchange. For someone who already had a website following, it would be lucrative since you already have the infrastructure to refer interested investors.
These sites pay in coins, so you can sit on them while they grow in value. Adding to them with new followers would double or triple your cryptocurrency referral bonuses in time since you receive a percentage of the collected fees.
Earn is straightforward which is why it is easy to monetize your time. Upon your initial platform signup, you will have an official profile that enables you to participate. You then have the opportunity to send and receive messages. Users will choose to send you tasks which further incentives the Bitcoin investment