Crypto deals: best passive incomes
In this section, we are going to talk about best passive incomes you can get in the crypto world.
Definition of crypto passive income:
A passive income is a cash inflow (or a crypto inflow), that you will receive at regular intervals, regardless of the actions you will take, on a daily basis. It could be contrasted with active incomes, which are incomes from your daily work as an employee, etc. (= salary).
To put it simply, it means making money without doing anything or almost nothing. I say, “or almost” because something must be done, at the begining, to trigger this annuity. Passive incomes can be triggered by:
- An initial cash investment: you have to spend money or crypto in order to get a return.
- An initial time investment: you have to spend time in order to get a return.
- Sometimes both at the same time.
Passive incomes that I will present you in the following article, requires one of the three types of investment to get started.
The best passive incomes: cryptocurrency mining:
This first type of passive income requires both an initial investment in money and a small investment in time:
A quick reminder: the mining activity is the fact of verifying network transactions using its computing power.
You have to buy equipment that is quite expensive in the first place. Here are the 3 existing types to mine crypto with few examples:
An ASIC is a specialized equipment that is not versatile but very powerful.
|Bitmain Antminer S17e
||BTC, BCH, BSV
||338 x 175 x 304
||0 – 45
||5 – 95
||CB, SEPA, crypto
A10 ETHMaster (485Mh)
||125 x 155 x 360
||0 – 40
||5 – 95
||CB, PayPal, SEPA, Bitcoin + 4
|Innosilicon A6 LTCMaster
||350 x 155 x 500
||5 – 45
||CB, PayPal, SEPA, Bitcoin + 4
A CPU (processor) is a type of versatile hardware that is able to mine all types of algorithms, but it is only profitable on a very limited number of algo.
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A GPU (graphics card) is a type of versatile mining hardware such as the CPU, but which has more computing power most of the time.
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The two last types require additional equipments such as a motherboard, memory card, power supply, connectors, etc.
Secondly, you have to take some of your time to:
- Choose your mining hardware that must be compatible with each other and that ensures good (at least positive) profitability.
- Assemble them.
- Configure them.
- Configure the mining software.
Then the process is initialized, you will receive a passive income in the form of coins that will land in your portfolio automatically.
The best passive incomes: cloudmining:
Cloudmining especially requires a financial investment to get started. It is the cloudmining company that takes care of all mining investments seen above. Your remaining share is the time you will need to spend to choose and subscribe to a cloudmining contract.
A quick reminder: Cloud mining is the act of renting mining equipments in operation to a company. It is remote crypto mining without having the disadvantages:
- Choosing the right hardware: a multitude of ASICs/GPUs/CPUs exists.
- Configuring it.
- Configuring the mining software.
- Doing maintenance: changing defective parts…
- Protecting the equipment against theft (+ fire…).
- Paying for extremely expensive equipments (for the most efficient ones).
- Suffering from noise pollution.
Cloud mining allows you to start mining in a few clicks:
- Choose a good supplier such as:
|Open an account
||BTC, DASH, LTC, ETH, ZEC, XMR, XMC
||CB, Bitcoin, Litecoin, Dogecoin, Dash, Zcash
||BTC, LTC, ETH, ZEC, DASH
||All POW coins
- Select the algorithm/crypto you want to obtain.
- Select (if possible) the duration of the contract.
- Indicate your wallet address to receive your mining rewards.
After these steps, you will receive your mining rewards (coins) regularly, without doing anything more.
The best passive incomes: staking crypto:
Staking (= Proof Of Stake = POS), or proof of stake, requires a financial investment on your part to get started.
A quick reminder: to make it as simple as possible, staking is used to check transactions and simply requires you to hold coins and to leave your wallet online. Sometimes, the fact of having coins is enough with those that allow “cold staking”/Delegated Proof of Stake: example the Callisto. If we compare this type of consensus with the POW consensus seen above, the required power consumption is totally reduced.
Here’s how it should be done:
- Choose a POS or DPOS coin. Here is a non-exhaustive list: NEO, DASH, RDD, COSMOS, NEBL, QTUM…
- You then have to buy some on an exchange. You can use this very convenient site by indicating at the top of the 4th column the symbol of your coin or pair. For example: type “RDD/BTC” ine the search box if you want to buy Reddcoins with Bitcoins. The table will show you the list of exchanges offering this pair.
- Withdraw your coins in your personal wallet.
- Synchronize it with the network, i.e. your portfolio will retrieve all the blocks of the blockchain to catch up on all the transactions that have been made in the past.
- Unlock your wallet.
- Keep your wallet online.
Then depending on:
- The amount of the coins you stack.
- The configuration of the coin to generate interest.
You will receive rewards more or less regularly in crypto “without doing anything”. If we take our example of Reddcoin again, you will get a 5% return annually.
You can also stack crypto on these exchanges:
|Click here to stake on the exchange
||Available crypto for staking
||XTZ IOST EOS VSYS ELA IOTX LOKI NRG NULS WAN ONION PIVX TOMO NRG LOKI EOSC TRX EOS LOOM ATOM
||XTZ KAVA ATOM ERD ALGO NEO KMD FET ONE STRAT QTUM TRX VET ONT XLM
The best passive incomes: running a masternode:
Masternodes, as for staking, require mainly an investment in money.
A quick reminder: on the same principle as staking, the masternode needs you to leave your wallet up to date online. The difference comes in the utility that is different: masternodes are not used to verify transactions, but to add a feature to the network such as anonymization of transactions.
To get masternode rewards, you need:
- Choose a coin with Masternode (MN) technology. Here is a non-exhaustive list of masternode coins: DASH, PIVX, XZC, BLOCK, SMART…
- Buy this coin on an exchange platform. Indicate the symbol of this crypto at the top of the 4th column of the table to know on which platform you can get it.
- Withdraw it.
- Synchronize your wallet.
- Configure your masternode.
- Keep your masternode online. To this end, you can rent a VPS.
Once these steps are completed, you will receive your rewards automatically. All you have to do is wait.
The best passive income: investing in trading platforms:
Again, this type of passive income only asks you for money/cryptos to start with.
There are some platforms that operate a bit like a publicly traded company whose share is represented by a cryptocurrency. Indeed, these platforms issued their own coin or token which gives the right to get a part of their generated profits (collected trading fees). On the other hand, I would like to point out that:
- You will not own a portion of the company’s capital by owning these cryptos.
- Only a portion (most of the time) of their collected revenues is redistributed to holders.
If you are interested in this type of passive income:
- Find a platform that propose a this sort of investment to their customers. I therefore propose to you:
- Buy or deposit these coins/tokens to the exchange.
- Keep them on the platform.
All you have to do is wait. Your rewards will be credited to your platform account.
The best passive incomes: crypto lending:
For this sixth type of passive income, you still only need to invest your money/crypto.
There are platforms that propose you to lend your cryptocurrencies to other customers.
If you are interested in this investment, you need to:
- Register on a platform offering this type of income like BINANCE.
- Buy or deposit the coin or token.
- Leave it on the platform for a given period.
You will receive your interest at regular intervals. This interval will be defined at the time of your subscription as well as the rate you will receive.
The best passive incomes: affiliate/referral programs:
Affiliation is a passive income that, in general, requires more of an investment of time than money.
A quick reminder: affiliation is a way for a company to promote its image or its products (or services) by remunerating those who bring new customers to it. The referral program is a type of affiliation, but more personalized.
There are many different affiliate programs, but usually you will have to:
- Open an account. In the crypto world, the main part of affiliate programs concerns exchange platforms, although there are also some for certain products such as wallet hardwares, etc.
- Go to the sections: “sponsorship program”, either “refer a friend”, “referral program”, “invite friends”…
- Copy your referral/affiliation link provided by the platform.
- Distribute your link through:
- Word of mouth.
- Your social networks.
- Your website/blog.
Please note that you must follow the rules of where you want to publish your referral link. Sometimes, you won’t be able to promote your link. For example, some forums prohibit this kind of link and if you do not respect this rule, you may be sanctioned by the forum (permanent ban …), or even by the platform that values its image.
It is the way of distributing your link that will take you more or less time. If you want to distribute your link through social networks, this can be relatively fast. On the other hand, if you want to distribute it by creating a website, it will take you more time and money.
Once this is done, same rule, all you have to do is wait for the referral/affiliation rewards to accumulate on the wallets of your platforms.
Remember to withdraw them regularly as soon as their amounts become significant!
The best passive income: crypto trading bots:
For this second-to-last type of passive income, you will need either time or time and money.
A quick reminder: bot trading, or trading with a robot, is a way of placing orders using computers (software).
Depending on your computer skills, your available time and your financial resources, you will be able to:
- Program this bot yourself. You need to know programming (or why not learn?) and have time to create a program that will place your buy and sell orders according to your strategy through an API. By strategy, I mean the conditions that will trigger the opening and the closing of orders. For example, if the RSI (a technical indicator) of a crypto falls below 30, the bot must trigger a purchase or close a sale.
- Rent the services of a platform that will provide you with a bot, for a fee. Everything will be pre-configured there or you can determine your own rules too. I have never personally tested this kind of platform, so I can’t tell you if it works well. Here is an example of bot trading: Cryptohopper. From the reviews I saw on the Internet, it seems to be a serious site.
Depending on the settings of your bot, you will receive added value.
Be careful, this system can also generate losses! Be sure to check their reliability if you want to use a bot-trading service. If you are building your own bot, do tests in real conditions but with virtual money or with past data (= backtesting).
The best passive incomes: use the BRAVE browser:
This is not the most profitable solution, but it seems to me to be the easiest to implement.
Brave is a new type of open-source browser created in 2016, based on the chrome (Chromium) browser, with the following advantages:
- To be paid to see advertisements. The money generated by advertising is shared in the form of basic attention tokens (BAT), between the three actors: advertisers, readers and web content creators.
- To be able to remunerate your favorite content creators easily.
- To increase the speed of navigation on the Internet.
- To block advertisements and trackers of all kinds, which put in danger your privacy.
- To improve your navigation security.
You can download it completely free of charge here: download Brave browser.
All you have to do is use this browser, register for the reward program, view ads and you will start receiving your BATs.
The best passive income: trading by copying the best traders:
We end up with a passive income that I find very interesting and that only requires a financial investment.
The market leader for trading copy is Etoro.
On this platform, you have the possibility to trade crypto contracts (CFDs) (and many other assets) yourself or either to copy professional traders. But what does it mean to “copy a trader”?
Copying a trader means that each purchase or sale position taken by the copied trader will be opened simultaneously and automatically on your account.
To this end, Etoro only asks you to allocate a part of your balance for the copy of the chosen trader.
Of course, I recommend that you copy the best ones. To choose them, you can search for the best traders according to several criteria such as the degree of risk, trading frequency, profit, etc.
Once the trader has been chosen and the amount allocated, all you have to do is wait for the capital gains generated by the pro trader. He works for you!
Please note that CFD trading should be reserved for experienced traders who are aware of the risks associated.
Most passive income solutions will only ask you to invest a sum of money and sometimes a more or less time consuming investment. Be aware that it may take you some time to achieve a positive return on investment.
I hope that my advices will give you a little or even a huge financial bonus.
Thanks for reading.
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