Passive income is defined as earning money with making minimum daily effort. There are three ways for passive income which will be explained shortly.
Holding substantial amount of cryptocurrency can help people to make passive income by interest. The way is just like in traditional banking world. Some companies may offer some interest for your cryptocurrency per annum. However, enough research must be done to get different offers and interests and decide.
Loaning out cryptocurrency is another way for passive income. Shortly, you give your cryptocurrency to a third-party for a free or percentage, then he invests to make profit for himself. There are trustworthy online platforms in which cryptomoney holders can lend their coins with an interest. However, the holders cannot touch their funds until the lending time expires. Doing that way, people can earn up to 12-15% rate of interest per annum. For instance, lending 2 BTC for 6 months can lead to earn 0.24 to 0.30 BTC doing nothing.
Staking is the last way for passive income. It can be defined as holding funds in a cryptocurrency wallet to support a blockchain network. Holding a coin helps to validate a new transaction on the platform. It is the same idea with bank deposit account through which people earn money with a fixed interest. So, the more coins people stakes, the higher power to validate a transaction and the more money to earn.
- Easier source for earning cryptomoney,
- No need for expensive mining equipments,
- Less consumption of electricity.
- Staked coins are not sold for a period of time,
- Market trend can affect the value (rising price increases the value and vice versa).
Passive Income is briefly explained here. If you have any further questions, please feel free to ask.