The advent of cryptocurrencies and blockchain technology ushers with it a new paradigm in the world of passive income. Besides introducing innovative ways of earning , cryptocurrency have also disrupted incumbent models of passive income. Outlined below are some of most profitable streams of passive income:
Staking and loaning are principally the same thing, except for the context in which the money is risked. Staking has been previously identified as a profitable stream wherein users stake their coins and earn interest on them, however, crypto loans are more of a recent development. This recency is due to the near-nascence of the Open Finance movement, which is aiming to democratize the world of finance through P2P commerce. The innovation with crypto loans is that users who are HODLing can earn extra capital on the coins they HODL by earning interest on loans.
Those who say there is no such thing as free money have clearly never participated in an airdrop. Airdrops occur when projects send free tokens to registered wallet addresses in the aim of building awareness. Usually, the value of airdrops does not exceed 10 USD, but over time this can compound to a handsome sum. This is a particularly useful approach to accumulate crypto for those who do not want to risk any of their capital.
Forks occur when there is a change to the underlying protocol which needs to be updated in the main chain. This can take the form of a soft fork, where the incumbent main chain continues being the principal chain after the updated; or a hard fork, where the incumbent chain is split in two because the community cannot arrive at an agreement. When the chain splits, the transaction history, addresses and balances are duplicated into the new chain, resulting in free money!
It is possible to make money by processing transactions and minting new coins; this is often called mining, like in the Proof-of-Work. Alternatively, one can set up a masternode, which is a node with more responsibilities than other nodes (e.g. governance). For these extra processes, masternodes earn interest form the network. We have a dedicated page of Staking Pools and Masternode platforms , which are easy to use and suitable for beginners.
Generally speaking the advantages mining and masternodes are that they take relatively little maintenance once they are set up and running and are a reliable source of passive income (depending on the coin’s price volatility). But they can be quite expensive to set up, not mention it can require some technical knowledge.
Blockchain based work tokens are a fantastic innovation in the world of cryptocurrencies. Work tokens are blockchain tokens used as incentive mechanisms to maintain and secure the respective blockchains. There are variety of ways to earn work tokens, depending on the purpose of each blockchain: from sharing storage and processing power to browsing , users can earn tokens for participating in the network.
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