Are you looking for the best opportunities for Bitcoin passive income?
Well, you have come to the right place.
Read about how you get 12% on your CRO holdings with Crypto.com, up to 12% on your USD holdings with Nexo, or 25% on your Defi holdings with staking on Binance!
This is a guide on how to invest Bitcoin to earn passive income on your Bitcoin and crypto holdings.
However, if you dont have any Bitcoin or crypto you must first buy some.
Introduction - Bitcoin Passive Income
There are several ways to earn adequate money from bitcoin passive income channels.
In this article, we go over platforms where you can earn even while sleeping.
Apart from direct purchase and sale, you can earn Bitcoin passive income through:
- Bitcoin Interest Accounts
- Bitcoin Lending
- Bitcoin Cloud Mining
Read on to get ideas on how to make money out of Bitcoin without a huge capital at your disposal.
Get a Bitcoin Interest Account
We would highly recommend investors to get Bitcoin interest account if they want to earn while sleeping.
All you have to do is to locate reputable platform, deposit money, and make income without any effort.
Granted, returns might be a bit lower than with lending and cloud mining but savings accounts are fail-free source of income.
Platforms that we go through in this review are:
The table below provides the overlook of the Bitcoin interest you can earn from different interest accounts.
Crypto.com Bitcoin Interest Account
Crypto.com has a feature called Earn in their mobile app which is a Bitcoin and crypto interest account. Here you can deposit your crypto in a flexible account or lock it for 1 or 3 months.
You can stake CRO in the app and get 10+2% interest on your CRO holdings. The CRO staking in the Crypto.com app is only for getting a CRO Visa card with better rewards.
You can get a $25 bonus when you sign up with the Crypto.com app with our Crypto.com referral code. You need to deposit and stake 2.500 to release the bonus.
Crypto.com also have a desktop version where they offer somewhat different features. Here, you can stake your CRO for a passive income or deposit to Crypto.com Supercharger which you can read more about in our dedicated article.
For the CRO staking in the exchange you have to lock you CRO for 6 months and you will earn 10% interest with daily payments. For this, you will get lower trading fees and more rewards which you can see in the screenshot below.
You can get a $50 bonus when you sign up with the Crypto.com exchange with our Crypto.com referral code. You will need to stake 5.000 CRO to release the bonus.
– Flexible contract lengths (Also, lock for 1 month or 3 months in the app)
– Interest account for many different cryptocurrencies (in the app)
– Supercharger feature (in the desktop version)
– You can only earn passive income in the app
– Low interest rates (even if you stake 250.000 CRO)
Crypto.com Referral Code: mcmk7qgbhh
Celsius Bitcoin Interest Account
Special promo: Get $20 FREE. Sign up as a new user and deposit at least $200 worth of crypto and hold it for 30 days.
Investors can earn Bitcoin through Celsius Bitcoin interest account, paid on a weekly basis.
Celsius Network has a loyalty plan where you will earn more interest if you hold more in the CEL token. The loyalty level is calculated as a ratio between your total holdings and your CEL holdings.
Plans are completely flexible, while interest rate stands between 3% and 14%, depending on whether you wish to earn in CEL token.
However, you do not have a minimum deposit limitation and can start earning immediately after the registration.
– No minimum deposit limitations
– Downloadable app
– 20$ bonus
– Great interest rates
– Great reward an loyalty program
– Free withdrawals
– No desktop version
– No exchange feature
– You can not buy, or sell, CEL tokens in the app
In the screenshot above, you can only see a portion of all cryptocurrencies available on Celsius to earn interest on.
Blockfi Bitcoin Interest Account
Blockfi Bitcoin interest account can help you earn up to 6.2% on your crypto deposits.
The platform employs tiers on their programs, depending on how many BTCs you wish to deposit.
So, between 0.5 and 10 BTC will get you 6.2% while more than 10 BTC will get you 2.2% of the interest rate.
Additionally, 0.5 BTC (around $5,500) is a minimum deposit amount. Payments of interest are made at the beginning of each month.
Read more about BlockFi in our BlockFi Review.
– Flexible deposit
– Exchange/Trading feature
– You can choose what cryptocurrency you want your payments in
– Few cryptocurrencies
– Payment once every month
– Only 1 free withdraw per month
Nexo Bitcoin Interest Account
Nexo Bitcoin interest account is quite attractive in terms of deposit requirements. You do not have a minimum amount of cryptos that need to be deposited nor do you have any timeline limitations. Thus, you can deposit, earn daily, and withdraw at your leisure. Interest rate is 8% annually, higher than with other platforms. Read our full Nexo io review 2020 to see all interest rates.
However, the company works only with stablecoins (USDT, TUSD, USDC, PAX, and DAI). Thus, you need to swap your Bitcoins with stablecoins and then use Nexo savings services.
– No minimum deposit requirements
– Interest paid on daily basis
– Interest for fiat currencies (No other platform offers this)
– No exchange feature
– Not possible to buy Nexo tokens on the platform (or it is possible but expensive)
How to earn Bitcoin Passive Income via BTC Lending?
We start by how to earn Bitcoin passive income via Bitcoin lending markets. Using blockchain, Bitcoin lending is a safe investment and is a growing market. In this article we present two different ways on how to earn passive income by lending out your Bitcoins:
- Bitcoin and Altcoin Margin Lending
- Bitcoin Peer-to-Business Lending
Below is a summary table of major factors Bitcoin investors should keep in mind when choosing their markets.
Bitcoin Passive Income via Margin Lending
You can become a trader in one of the peer-to-peer platforms and earn bitcoin passive income via margin lending. This particular investment would require BTCs in your wallet as you need to lend them out to other traders. In that way, borrowers can conduct leverage trading while you earn through interest payments.
Top platforms where you can start bitcoin margin lending right now are:
Bitfinex Margin Lending
It is quite easy to engage in Bitfinex margin lending, even if you are a Bitcoin beginner. Bitfinex has been the best margin lending exchange for Bitcoin, altcoins, and fiat passive income for several years.
Now, Binance is set to challenge that position and perhaps push Bitfiniex to work out new passive income programs in the near future.
The platform offers a peer-to-peer marketplace where traders that need leveraged assets would borrow funds from others.
You provide that liquidity by lending out Bitcoins at the interest rate of your choice. However, to increase market efficiency, Bitfinex offers market stats, stating the average interest rate you should charge while providing BTCs.
At the time of this writing, overall daily lending market sized up to 21,483 BTC (approximately $21.7 million).
Thus, Bitfinex is one of the largest marketplaces to lend your coins out. You should also account for fees, taken from the interest earned. If your lending offer is public, the order carries 15% of interest charged. If you opt for a hidden offer, then you pay 18%.
– High supply and demand for lending offers
– Interest rates can change on a daily basis
– Fiat lending requires full account verification
Poloniex Margin Lending
If you want to earn passive income without ID verification, Poloniex margin lending is the place to go to.
However, it works only if you are providing BTCs and accepts cryptos as interest payments in return.
The platform operates much the same as Bitfinex, whereas peers work with peers. You create a lending offer and wait for borrowers to pick the ad up. Borrowers can then engage in leverage trading through the use of your Bitcoins.
You also get to set the interest margin. Currently, the website average stands at 0.0043% as daily rate and 1.5% as an annual rate. On the side of fees, bitcoin lenders pay 15% of interests earned.
– Good, stable platform with an active market
– Possibility to engage in Bitcoin lending without full verification
– US investors are restricted for margin and lending markets
– Fiat transactions require verified account
Peer-to-Business Bitcoin Lending
One of the sure ways to make money online is to engage in peer-to-business Bitcoin lending. P2B crypto lending is still relatively a new Bitcoin passive income channel due to heavy regulation and low crypto adoption. However, new platforms seek to change that and make Bitcoin lending available for businesses as well. These include:
Bitbond – Bitcoin Peer-to-Business Lending
Apart from regular crypto marketplaces, Bitcoin peer-to-business lending at Bitbond is a good alternative for BTC passive income.
The platform is the greatest and oldest platform for Bitcoin P2B lending. In there, you lend out bitcoins to small businesses, all of which ass through strict verification process.
The company itself acquired a BaFin license in October 2016 and uses Bitbond blockchain system for bitcoin lending marketplace.
On the side of fees, Bitbond is naturally more expensive than P2P platforms. Below are percentages that company charges lenders of the total repayment (principal + interest):
Verification is a must, though it lasts for an hour only. You go through video call, showing off your documents. Thus, it is a much easier process than with other companies that employ strict KYC/AML policies.
– Safe and stable marketplace to earn passive income from Bitcoin lending
– Investment automation is available
– Identity verification is a must
– Somewhat high fees for Bitcoin lending
BTCpop Peer-to-Business Lending
If you are tired of scorecards, you may want to try out BTCpop peer-to-business lending.
You work with borrowers that have a good reputation and earn it yourself. Thus, as time passes, your score would get higher and earn you right to perhaps even charge larger interest rates. Verification is necessary for both lenders and borrowers.
You pay 1% as a listing fee for loans you provide to the market, which is in line with the BTCpop’s biggest competitor, Bitbond.
– Ability to loan our huge number of cryptos and swap them with BTC
– Investment in IPOs and small businesses
– Verification might take time to complete
– Somewhat high fees
Crypto Staking as Passive Income
How to stake with Coinbase or Kraken?
Similar to Binance, both Kraken and Coinbase offer their customer to stake certain proof-of-stake coins. At Coinbase you can stake Cosmos and Tezos.
At Kraken you can stake Polkadot, Tezos, Cosmos, and Flow.
Read more about how to stake crypto at Coinbase or Kraken.
How to stake with Binance?
By staking you cryptocurrencies you can earn passive income just by hold them. In addition, you will earn extra if the cryptocurrency increase in price while you stake them.
Not all cryptocurrencies are possible to stake but the the hash algorithm, Proof-of-stake gains in popularity and we will see more of this phenomena.
Many exchange now offers different staking opportunities. Binance is definitely the best place for staking and they have most different options for flexible staking, locked staking or defi staking.
You can earn anything from 1% up to 25% on Binance, dependent on what cryptocurrency you choose to stake.
Read more about Binance in our Binance review.
Cloud Mining as a Source for Bitcoin Passive Income
There is a lot to gain from cloud mining as a source for Bitcoin passive income. It is a very popular alternative to earn bitcoin passive income. However, it involves certain risks an investor must be aware of. Moreover, cloud mining has high risks but high returns as well, when compared to lending.
Thus, we present Bitcoin passive income channels through cloud mining that you can take up right now. Websites that we go through are:
- Genesis Mining
- Hotel Honey
Below is a table with important details regarding platforms’ cloud mining markets.
Genesis Mining Cloud Mining
Investors can buy Genesis Mining cloud mining plans, since the platform is the biggest crypto cloud mining company in the market. So far, about 2 million people purchased and earned through the platform, which offers three distinctive plans. The cheapest starts at $139 for 3 TH/s of hash power, with the contract length fixed at 18 months.
Investors should account for $0.15 per day, per TH/s. Verification of an account is not necessary, as you purchase plans for a considerable future. In our Genesis Mining review you will get full information regarding profitability, payouts, and purchase methods.
– Biggest cloud mining company with huge BTC mining farms
– Customized plans are available for up to 1,000 TH/s
-Contracts last for 18 months
– Somewhat high maintenance fees
Hotel Honey Cloud Mining
If you are looking for mining through GPU/CPU, Honeyminer’s Hotel honey cloud mining contracts offer safe Bitcoin investment.
You can purchase plans with Bitcoin and mine Ethash with your own computer, without price-heavy mining rigs. Contracts span between 25 MH/s and 2,500 MH/s, with prices ranging $66 to $12,210, depending on the chosen contract length. Users can opt for three or six-month contracts, without any sort of maintenance costs.
In our Honeyminer review you can read both about the free software to download and Hotel Honey where you can buy cloud mining contracts.
– No maintenance costs
– Ability to mine with regular GPU/CPU
– BTC contract purchases have discounts (5% to 7.5%)
– Small-scale investments only
– Ethereum mining only
Bitdeer Cloud Mining
Apart from Genesis Mining, you can also get a Bitdeer cloud mining gig, another giant in the market. The China-based company came about as a result of a governmental crackdown in the country, positioning itself as a globally available cloud mining service provider. You can purchase 50 TH/s that range in terms of contract length. Currently, a 360-day plan is available, while shorter plans (from 120 to 240 days) are in the out-of-stock status.
Maintenance fees are fixed at $0.0970, per TH/s, per day.
– Competitive maintenance fees
– Powerful Antminer mining gig purchase
– Lack of hash power variety
– Short-term plans currently out of stock
Hashing24 Cloud Mining
Investors can also gain Bitcoin passive income at Hashing24 cloud mining. The company is an old player in the cloud mining sphere and offers fully customizable plans. You get to choose how many TH/s you wish to purchase. Currently, you can get between 1 TH/s to 1,000 TH/s, durable for a 24-month period. Price stands at $68.40, per TH/s. Maintenance fees stand at $0.15 per day, per TH/s.
– Contracts are rarely out of stock
– Fully customizable plans in terms of hashing power.
– longer plans than most cloud mining players
– Fees are on the higher end of the spectrum
Bitcoin Passive Income VS Ethereum Interest accounts
In this article, we focused on presenting all available ways to earn passive income on Bitcoin.
However, if you are interested in an Ethereum interest account you might want to know where you can get the highest return on investment.
In our article about the best Ethereum interest accounts we have compared how much Ethereum you can earn from Celsius, Nexo, YouHodler, Crypto com, and BlockFi.