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Passive Income With Cryptocurrency

Crypto-currencies and cryptocurrencies, in particular, have been a hot topic recently.

Bitcoin, launched in 2009 by Satoshi Nakamoto, is the best known and most valuable cryptocurrency to date (1 BTC = $ 4790 on March 17th) . According to crypto experts from BitDegree, Bitcoin value has plummeted at the beginning of the year, but it regained the market leader position after initiation of numerous crypto fundraising projects. Other currencies such as Ethereum or Dash make it possible to conduct transactions without involving third parties such as banks or states.

These currencies are often associated with hackers who use them like payment channels for ransoms, malware manufacturers who buy their products in bitcoins, etc. But they also attracted many people interested in this new way of transferring wealth between individuals directly and without intermediaries or financial institutions.

This has naturally extended to other uses that go beyond the simple cryptomoney exchange: using tokens for access control, certificates, time stamping and certification management. We will focus on the first two usages: access control and timestamping, which we call “decentralized assets”.

How can you benefit from decentralized assets?

Source:investright.org

As with cryptocurrencies, there are several ways to benefit from decentralized assets. The simplest way consists in buying them to store value or speculate on their appreciation or depreciation. However, it is also possible to buy tokens that offer a right of use or payment for a service or product rendered by a company. This type of investment is called an ICO (Initial Coin Offering), it’s like an IPO but at the scale… cryptographic! The advantage compared to traditional financing methods is not only faster but also… cheaper because you do not need intermediaries!

Of course, you’ll need to choose carefully the coins you buy. A good way to conduct your research is to follow so-called ICO trackers available on the internet or specialized forums . The goal is also to know if the ICO is trustworthy and has a real project behind it. Beware of scams!

We invite you to read up on the latest news on cryptonews.com where you can find the latest on crypto.

How can these “decentralized assets” be used?

When giving blockchain digital certificates, one can use decentralized assets as proof of ownership. For example, one could certify that their identity documents are up-to-date by having them verified by an independent notary registered with a decentralized asset.

The best known use of “certificates” is in the form of ICOs, but we can also think about time-stamping documents and registering employees’ hours . Think for example about the simplification of transfers between two contracting parties (when you change your job or company, it’s often difficult to obtain a copy of all your previous pay slips). By having such information certified on the blockchain, life will be easier!

So let’s list some of the ways you can make money with crypto!

1. Staking

Source:levelup.gitconnected.com

When you have a PoS coin, each wallet has to stake at least once in two weeks or it can drain your funds (specifically for PIVX). To earn from staking, make sure to leave your wallet open and never miss staking. You can set up stakes to occur automatically using applications such as cron jobs on Linux/Unix based systems or taskschd.msc on Windows.

2. Masternode

This requires a large upfront investment and is not for everyone but if you do what it takes and invest early then you could end up making multiple streams of income from the same initial capital. However this type of passive cryptocurrency income does require a lot of work like building community, updating software, maintaining servers, paying for servers etc.

3. Mining (Proof of Work Coins)

This is one of the most difficult and least passive ways to earn cryptocurrencies mentioned here as you need to constantly invest in hardware. If you’re not a serious miner then this option might not be for you since it requires a lot of initial capital and even more patience if your objective is to earn from mining than trading.

4. Arbitrage

There are lots of arbitrage opportunities but most require an initial large amount of capital which can range from $10,000 – $100,000 USD depending on the coin traded and its liquidity. Arbitrage usually means having to buy low on one exchange and selling high on another so that the difference adds up to a substantial amount that can be withdrawn from the exchange. Another option is the high-frequency trading where you need software and a lot of technical knowledge about market tickers, trends etc.

5. Crypto Trading

Source:coindesk.com

In crypto trading it’s important to have a good strategy for making accurate predictions because if you accumulate enough funds from time to time you’ll get in a position where a well timed trade can make a big difference. Good traders know when to take their profits and how much to keep on hand for future trades while always maintaining enough liquidity for any sudden spikes or dips which could end up costing them money if they don’t stay updated with current events going on within the Cryptocurrency Market .

6. Creating a Faucet

It’s not exactly passive income but faucets help expose new users to cryptocurrencies by giving them small amounts of free coins/tokens to get started. There are lots of ways to monetize a faucet and in all cases, it does work best if you start with a large established userbase so that your payout from rewards is worth the time spent maintaining the faucet.

7. Dice Game

In this case, you can either get paid out in dividends for holding P3D tokens or get paid directly from your investment funds through running a Dice site where everyone puts their money together and takes a cut of each bet placed by other players. Some have said that they made over 200% returns doing this but there’s also some risk involved since sometimes people just lose a lot at once which means you’ll take a loss even though your investor did well on it since they’ll still owe you a certain percentage of their earnings.

8. Create a Cryptocurrency related Marketplace

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In this case, people will come to your site where they can buy or sell items using cryptocurrency as payment while also learning about different cryptocurrencies at the same time. People can spend a lot of time researching what cryptocurrencies to use so if you have a marketplace where they can spend their money then it’s also good for them to know which coins that best suit their needs. You’d be surprised how many people visit multiple sites that might work together as the crypto ecosystem becomes more decentralized as each day goes by.


Ricardo is a freelance writer specialized in politics. He is with foreignpolicyi.org from the beginning and helps it grow. Email: richardorland4[at]gmai.com