4 hours ago
8
February 8, 2025 | 04:44 pm
TEMPO.CO, Jakarta - With a promise to transform the United States into the “crypto capital of the planet”, President Donald Trump's new administration sparks curiosity over the overall nature of the modern currency. Within the investment field, queries such as ‘How to earn passive income with cryptocurrency?’ and ‘Is it a viable income stream?’ begin to resurface.
In this article, we’ll take a closer look at some investment instruments to earn passive income with cryptocurrency to get you started on your decentralized currency journey.
Here’s How to Earn Passive Income with Cryptocurrency
Citing Forbes and Investopedia, methods like staking, mining, and yield farming are some of the updated methods on how to earn passive income with cryptocurrency. Read on to learn more and other methods:
1. Staking
Staking your coins in a blockchain network to participate in transaction validation will help you earn rewards. Interestingly, users don’t have to calculate many things as some staking exchanges only require an eligible currency in the account. In other cases, storing the cryptocurrency in a compatible software or hardware wallet will also gain users staking rewards.
Staking is accessible in common Proof-of-Stake (PoS) and Delegated Proof-of-Stake (DPoS) networks like Polkaodt, Ethereum 2.0, and Cardano. Additionally, Coinbase, Binance, and Kraken reportedly present promising staking opportunities to their users.
2. Mining
When it comes to mining, users can earn passive income with cryptocurrency if they find an encrypted solution to validate blockchain transactions. Popular digital assets like Bitcoin, Ethereum, and Litecoin usually have a process called Proof-of-Work (PoW) where miners practice their mining skills.
Unlike staking, users need a dedicated graphics processing unit (GPU), computers, and adequate programming skills to win the PoW race against other miners. There are many mining pools for beginners to join.
3. Yield Farming
Also known as liquidity mining, yield farming is a method to earn money by having direct participation in a lending process. Similar to what happens in a conventional bank, users deposit crypto coins and tokens into liquidity pools in exchange for transaction interest and fees. According to Investopedia, the rewards of yield farming depend heavily on three ranking factors, such as loan amount, loan duration, and interest fees.
4. Savings Account Interest
One of the easiest ways to earn passive income with cryptocurrency is by utilizing savings account interest. Many savings accounts in the digital currency ecosystem offer various conveniences to users, from flexible withdrawal times to higher yields. On the flip note, as with other cryptocurrency journeys, holding a savings account will expose users to several risks including platform security and market price volatility.
5. Running a Masternode
Forbes highlighted the possibility of a masternode in granting passive income to cryptocurrency users. This method can garner substantial rewards for helping blockchain governance management. However, masternodes require significant crypto collateral, adept technical expertise, and a high amount of initial investment.
As the digital currency landscape continues to evolve, learning how to earn passive income with cryptocurrency becomes an exciting journey. Remember to do your research, manage risk wisely, and embrace the potential of decentralized finance. For more inspiration, check out simple passive income ideas here.
Editor’s Choice: 7 Ways to Start a Business with No Money and Zero Experience in 2025
Click here to get the latest news updates from Tempo on Google News
10 Passive Income Ideas for Students: Make Money Without the Hustle
3 hari lalu
Being a student feels like you're always short on cash. Check out these passive income ideas for students to boost earnings without the hustle!
Top 10 Corporations with the Largest Bitcoin Holders
16 hari lalu
As trader, the rise of corporations with largest Bitcoin holder is a trend worth monitoring as it reshapes boundaries of traditional & digital finance
6 Passive Income Ideas with ChatGPT Prompts
26 hari lalu
This article introduces top passive income ideas with ChatGPT prompts, in which you can gain greater profitability & streamline your workflow.
What is Bitcoin Price History, and What is the Prediction for 2025?
30 hari lalu
This article uncovers Bitcoin price history & its predictions for 2025, providing valuable insights that can help holders before making investment.
A Guide on Ripple Cryptocurrency and Its Future Prospect
30 hari lalu
For those new to cryptocurrency, questions such as "What is Ripple?" may linger. Let us guide you to a better understanding of this crypto company.
Should You Invest in Bitcoin in 2025? Here's Expert Insight
32 hari lalu
After the 150% rally in 2024, should you invest in Bitcoin this year? Let's learn more about the forecasted nature of the cryptocurrency here.
7 Simple Passive Income Ideas Suitable for Busy Office Workers
52 hari lalu
Perfect for additional revenue streams, here are passive income ideas for working professionals. Earn dollars amidst your full schedule!
Bitcoin Surges Above $106,000 on Strategic Reserve Hopes
54 hari lalu
Bitcoin surged to a record high above $106,000 in early Asian trade on Monday, boosted by comments from President-elect Donald Trump.
Consensys 2024 Survey on Crypto in Indonesia: Awareness Increases, But Cryptocurrency Concept Still Unrecognized
54 hari lalu
Blockchain and web3 software company behind MetaMask, Consensys, announced the results of its latest survey on cryptocurrency in Indonesia.
Why Is Bitcoin So Volatile? A Recap of the Fluctuating Market
5 Desember 2024
Why is Bitcoin so volatile? What makes investing in virtual money a perilous course for investors alike? Follow the discussion here.
