In this article, we will show you how to get passive income from cryptocurrencies by reviewing different channels available. These earning methods are reachable by both experts and starters, provided they have the right information about using them.
We go over lending platforms Bitfinex, Poloniex, and Bitbond. We also investigate controversial yet interesting crypto cloud mining in terms of its leaders, Genesis Mining, Hashflare, and Nicehash. We also analyze several Proof of Stake (PoS) websites, as well as liquidity pools in terms of passive income levels. We conclude with cryptocurrency frauds and with a quick proposal on how attractive passive income channels are.
If you have excess coins lying around, it might be a good idea to lend them out. Due to high price volatility, larger volumes would mean larger profits. Thus, many crypto platforms offer a marketplace for the lending services, the most popular being Bitfinex, Poloniex, and Bitbond.
Bitfinex is the largest USD to BTC trade platform in the world, with the suitable lending market. In this exchange, you can provide 2 fiat currencies (EUR and USD) and 17 cryptocurrencies at the daily rate of your choice, as seen below. Bitfinex was the best lending platform for most cryptocurrencies during 2017, including the Best Ethereum Lending 2017.
You pay 15% of the daily interest gathered from funding activities.
At Poloniex, much like with Bitfinex, you get to lend out 12 crypto coins, with duration and interest rate left for you to choose. Since platform does not support fiat money, USD/EUR is not available, as seen below.
Same as Bitfinex, you pay up 15% of the interest earned on daily basis.
Bitbond is more centralized, providing large market but the strictly controlled environment of lenders. You can lend out coins and fiats within 6 weeks, 6 months, a year or three years. You also cannot set your own interest rate but is given to you depending on your ratings and terms of the loan. The fees stand at 1% of the repayment value, making this platform quite expensive to use.
Cloud mining is a perfect passive investment instead of real hardware mining. Many mistakenly believe that you can put up your hardware on “cloud” and join in the mining venture. Truth is more complex, as you do not rent out your equipment but purchase coins at a predetermined price. You have programs and get daily payouts expressed in coins. Platforms that we go over in this article are Genesis Mining, Hashflare, and Nicehash. If you are interested in cloud mining you can also read our speculative article, What will happen to cloud mining 2018?
Bitdeer.com is Bitmain’s cloud mining affiliate. Bitmain has been a well-known player the cryptocurrency space since 2013: they manufacture the popular Antminer series of ASIC Bitcoin miners and they are the largest manufacturer of specialized mining hardware.
Bitdeer began their cloud mining operation in December 2018. Bitdeer’s launch was covered by most major cryptocurrency sites and some mainstream business outlets, and in the month since their launch they have run a few Free Mining Day promotions and they currently also offer 2% of payouts for all referrals that sign up with your referral code, making it a very popular opportunity. Furthermore, their launch-day partnerships with BTC.com and AntPool have made Bitdeer a big player very fast. Bitdeer reported having hit 50,000 daily active users less than a week after their launch.
Genesis Mining is probably the most popular option out there when it comes to Cloud Mining. The platform offers 2-year programs where you purchase plans for bitcoin, DASH, Ethereum, Litecoin, Monero, and Zcash. You have maintenance fees for BTC only, paid out in cryptocurrency. Each program has four plans, varying in the volume of hash rate purchased, as shown below.
Read more about how to invest in cloud mining step-by-step.
Hashflare offers much the same service, as you have BTC (scrypt or SHA-256), Ethereum, Zcash and DASH programs available. Contracts last for a year while maintenance costs are paid for bitcoin plans only. Unlike Genesis Mining where you have limited choice in hash power, Hashflare gives you the opportunity to specify the exact amount.
Proof of Stake (PoS)
For those that want short-term earnings, which could be used later on as investments, PoS coins are what they need. Coins that are built over PoS algorithms provide rewards for those that keep them in wallets. The more coins kept in storage, the bigger chance to get a certain amount of bonus cryptos. The cryptocurrencies mentioned in this article are still quite small and you also might consider investing in other currencies which you can read more about in our guide, Most valuable cryptocurrencies other than Bitcoin.
Offering a hybrid system consisting of PoW and PoS, this coin can be mined and the stored for even more bonuses. It means that you can mine it and then store it to get interest payments expressed in Decred. You can also purchase the coin without mining it from Bittrex, Poloniex, Bleutrade, Cryptopia, YoBit, and Novaexchange.
Using SmartBridge technology, Ark aims to scale its business through flexibility and decentralized marketplace. Just like Decred, you can mine it and store it to receive bonus coins as well. The cryptocurrency can be purchased at Bittrex, Binance, Upbit, OKEx and a few other platforms.
Found in 2014 by Chinese developers, NEO offers smart contracts and PoS as a means of communication. The coin cannot be mined though it can be purchased and then stored for awards. The coin can be bought at Bitfinex, Binance, CoinEgg, Upbit and several other platforms.
Since you have mining pools, so do you have trading liquidity pools as well. Here, you chip in with fiat or crypto money and receive interest for it. The most famous platform for this is Spectre.
Spectre.ai is a decentralized platform that offers a marketplace without intermediary for Forex and crypto trading. There are two types of tokens, the utility token, and the dividend token. The dividend token provides the passive income. You receive interest payments as long as you have the balance, 1% to 5% of the deposit value.
Take Care of Scams
Although cryptocurrency industry became quite famous due to the potentially large profit margins, the saying “too good to be true” also applies. Many platforms offer astounding revenues through passive income and many have turned out to be scams. Thus, you should work only with known providers and, preferably, with those that have user reviews all over the internet.
Companies are there to make money. If you feel that deal, if true, would push them into a negative balance, stay clear away from them.
In this review, we have investigated how to get passive income from cryptocurrencies. In terms of safe earnings, lending provides you the most stable passive income. PoS and cloud mining might give out large ROI but they are also quite risky if you enter at the wrong time. Thus, lending would be best for starters.
Experts might be more interested in liquidity pools and PoS while cloud mining can be used by both types of trades though it holds large risks to it.