List: 15 Best ways for Bitcoin Passive Income

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 Lending
  • Bitcoin Cloud Mining
  • Bitcoin Interest Accounts
  • Shortselling
  • And many other ways as well

Read on to get ideas on how to make money out of Bitcoin without a huge capital at your disposal.

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 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:

  • Binance
  • Bitfinex
  • Poloniex
  • Liquid

Binance Margin Lending

Since August 26th, 2019, traders are now able to earn Bitcoin passive income through Binance margin lending. The newest (and the biggest to be honest) entrant in the Bitcoin lending market, Binance, already has a good reputation and crypto knowledge.

The lending service is a rather simple holding strategy, whereas traders put coins into the exchange and hold them for the contract duration. In a sense, investors act as lenders and Binance itself as a borrower. Binance marketplace is quite large already, meaning that company will not have liquidity issues even at the beginning.

However, Bitcoin lenders should account for Level 2 Verification, which entails personal documents. After the KYC issues in 2019, the crypto giant aims to create a safe environment for everyone from the get-go. For now, there are no fees for lending out coins but you do need to swap BTCs with BNB (Binance’s own coin).

Pros

– Binance is one of the largest crypto exchanges in the world

– No fees for both lenders and borrowers

Cons

– Verification level 2 (identity documents) is necessary

– Indirect BTC lending since swapping with BNB is required (for now)

– US citizens are restricted

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%.

Pros

– High supply and demand for lending offers

– Interest rates can change on a daily basis

Cons

– 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.

Pros

– Good, stable platform with an active market

– Possibility to engage in Bitcoin lending without full verification

Cons

– US investors are restricted for margin and lending markets

– Fiat transactions require verified account

Liquid Margin Lending

Liquid is another platform that makes it possible to earn crypto or fiat passive income via margin lending. The platform is owned by Quoine, which opened up for business in 2014. Since then, the company gradually grew in transaction and volume size. Liquid came to be in 2018 and is drawing a lot of attention due to its growing community.

At Liquid, you can lend out Bitcoins without verifying an account if fiats are not involved. Thus, if you lend BTCs and receive interests paid in crypto, you can register an account and dig into the market immediately. Currently, Liquid charges 50% fees on all interests gained, which is considerably higher than fees at Poloniex and Bitfinex.

Pros

– Ability to lend and borrow BTC without verification

– Flexible Interest rates on a daily basis

Cons

– High 50% fees on all interest rates

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
  • BTCpop

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.

Pros

– Safe and stable marketplace to earn passive income from Bitcoin lending

– Investment automation is available

Cons

– 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.

Pros

– Ability to loan our huge number of cryptos and swap them with BTC

– Investment in IPOs and small businesses

Cons

– Verification might take time to complete

– Somewhat high fees

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
  • Bitdeer
  • Hashing24

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. Credit cards are available as a purchase method.

Pros

– 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

Cons

– 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.

Pros

– No maintenance costs

– Ability to mine with regular GPU/CPU

– BTC contract purchases have discounts (5% to 7.5%)

Cons

– 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.

Pros

– Competitive maintenance fees

– Powerful Antminer mining gig purchase

Cons

– 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.

Pros

– Contracts are rarely out of stock

– Fully customizable plans in terms of hashing power.

– longer plans than most cloud mining players

Cons

– Fees are on the higher end of the spectrum

Get 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:

  • com
  • Celsius
  • Blockfi
  • Uphold
  • Nexo

The table below provides the overlook of plan lengths and returns that investors can expect.

Crypto.com Bitcoin Interest Account

To earn bitcoins from BTC deposits, one should open a Crypto.com Bitcoin interest account. The platform keeps it quite simple in terms of passive income. You transfer cryptos, keep them there for a fixed amount of time and earn interest per day.

The interest rate depends on the chosen period, ranging from 2% to 8%. However, if you wish to earn a bit more, you can opt for MCO sake, crypto owned by the company. In that way, about 30% more earnings would be on your way. However, you need to exchange them back to BTCs later on. The minimum deposit is 0.05 BTC ($525).

Pros

– Flexible contract lengths

– Mobile App wallet and earnings available

Cons

– Identity verification required

Celsius Bitcoin Interest Account

Investors can earn Bitcoin through Celsius Bitcoin interest account, paid on a weekly basis. The platform does not offer flexible lengths like at Crypto.com as it has few choices only available. Plans range from 6 to 48 months, while interest rate stands between 3% and 4%, 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.

Pros

– No minimum deposit limitations

– Downloadable app and no verification

Cons

– Inflexible contract lengths

– Residents of New York and Washington cannot earn through Celsius

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.

Pros

– Flexible deposit timetable and contract length

Cons

– Full identity checkup at registration

Uphold Bitcoin Interest Account

This particular site started out as crypto exchange but now you can hold and earn through Uphold Bitcoin interest account. By depositing Bitcoin, you are paid interest with rates ranging between 3% and 10%. The minimum deposit period is 6 months and users are required to undergo complete identity verification to be eligible for the program. The program CredEarn does not have minimum deposit limitations while interest payment happens every three months.

Pros

– No deposit limitations

– Somewhat flexible contract lengths

Cons

– Payments every three months

– Verified users only can participate

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.

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.

Pros

– No minimum deposit requirements

– Interest paid on daily basis

Cons

– Verification through identity document is necessary

– Investors need to swap BTC with stablecoins

Earn Bitcoin Passive Income by Shortselling at BitMEX

Apart from cloud mining, savings account, and lending, you can also earn Bitcoin passive Income by short selling at BitMEX. The platform offers crypto-to-crypto trading services and employs a system where it is possible to earn on a daily basis by short trading.

You open a swap XBTUSD short order and keep it active. You earn if the USD rate is greater than Bitcoin’s, withdrawable at any moment. You can check out our complete guide on how to lend at BitMEX for more information.

Bitcoin Passive Income - More Options

There are more options to earn Bitcoin passive income apart from those we mentioned so far. However, they carry a certain risk since many platforms turned out to be fraudsters. Additionally, some generate a very small income, even if you employ multiple accounts across different sites. These sources are:

·         Bitcoin Faucets

·         Delegated Proof-of-Stake (DPoS) awards

·         Mining & Liquidity Pools

·         Accept payments in Bitcoin

·         Participate in Airdrops & Forks then swap with BTC (if possible)

·         Dividends in Bitcoin/Altcoins

 

It is essential to choose a good platform from the start. Due to many scams, investors lost their BTC savings in the past. Additionally, if you have read somewhere that it is possible to get rich overnight – it is unrealistic. About 8% to 15% of annual return is within a domain of possible. Using large savings, it is possible to earn a good amount of additional funds from your Bitcoins.

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