Tuesday, June 28, 2022

How To Make Passive Income In Crypto

Choose Your Token And Protocol

Crypto.com | How to Earn Passive Income Through Cryptocurrency

Most DeFi protocols will require you to deposit an Ethereum token to earn an APY. This could be Ethereumâs native currency, Ether , or â more commonly â a stablecoin like DAI or USDT since you donât need to worry about market volatility. There is also an Ethereum version of Bitcoin, wBTC, whose price is pegged to the biggest cryptocurrency. To find out which coin or token you want to deposit, you might first take a look at the different returns being offered for different assets.

The growth of DeFi over the past year has led to a proliferation of protocols, and it can be difficult to know which to choose. DeFi Pulseâs âEarn Incomeâ tool allows users to search platforms by asset, so that would be a good place to start. Once youâve decided which token you want to deposit, you can buy and trade on a centralized or decentralized exchange. There are now a number of aggregators that can help you find the best swap rate for your cryptocurrency, such as 1inch.

Lending To Margin Traders

If peer-to-peer loans are a little too risky for your personal risk preference, you could also lend cryptocurrency to margin traders on leading digital asset exchanges such as Bitfinex and Poloniex.

On Bitfinex, for example, you can lend both fiat and cryptocurrency to margin traders who are borrowing to fund their leveraged trades. In exchange for lending to margin traders, you will earn daily interest. The average daily funding rate for BTC, for example, stood at 0.003537 percent at the time of writing. Accumulated over several weeks, this compounds to a substantial annualized yield for lenders.

Lending to margin lenders on exchanges is, therefore, an excellent way to earn passive income using cryptocurrency. However, it is important to note that there is a risk of storing crypto assets on exchanges as they are prime targets for hackers, which Bitfinexs hack in 2016, for example, has taught us. Hence, lending to margin traders is by all means not risk-free.

Why Is It So Important To Earn Interest On Crypto Holdings

Over the past several years, many cryptocurrency investors have seen large run-ups in the value of their tokens. Back in 2011, Bitcoin was worth less than a dollar. Today, the value is over $47,000 per coin. With the massive upswing in values, it may seem like buy and hold is the best way to gain value in digital currencies.However, one Bitcoin in 2011 is still worth one Bitcoin today. While the value in fiat has grown exponentially, the underlying asset remains the same. In this sense, digital currencies dont grow in value the same way that most conventional investments grow. All the conventional investments have some element of compounding growth . Unless a digital token earns interest, the value of the token is determined entirely by demand. Since 2011, demand for digital tokens has increased at an exponential rate. But there is no guarantee that the rate of growth will continue. Earning interest on digital currencies ensures that the underlying value of the asset continues to grow over time. For example, if you have 1 Bitcoin earning interest at Hodlnaut today, 1 year from now you can expect to have 1.06 Bitcoin. By earning interest, youre increasing the underlying value of your investment. Regardless of the current trading price for Bitcoin, you own more of it when you earn interest on the token.

Read Also: How To Flip Bitcoin For Profit

A $270 Billion Sector Plagued By Complexity

Since spring this year, the DeFi sector has been overshadowed by the boom in non-fungible tokens, the rise of play-to-earn gaming, and metaverse-linked tokens.

But the growth of DeFi has shown no signs of slowing. The total value locked across all DeFi platforms has surged from around $22 billion at the beginning of this year to about $276 billion as of Thursday afternoon in New York, according to analytics platform DeFi Llama.

To be sure, TVL is not a perfect measure of the total capital deployed in DeFi as different protocols could measure it differently. Nevertheless, it is one of the most popular metrics used by crypto analysts.

For Samaroo, while the Cambrian explosion in DeFi is a boon for savvy traders, the level of complexity involved in using many of the applications is so high that the average consumer doesn’t have “a realistic opportunity” to use it.

“That’s counter to the reason for this technology, which is to lower barriers and to make access fair and inclusive,” he said. “If DeFi stays in the hands of crypto traders and experts, then you are going to just create a new 1%.”

In the spirit of pushing for greater adoption, accessibility, and inclusion of DeFi, Samaroo co-founded WonderFi. It’s an app that allows investors to earn yields on their deposits, trade or lend their digital assets, and invest in DeFi index funds with just a few clicks.

Who This Course Is For:

5 Coins To Make Passive Income Staking Crypto
  • You are Excited about the Upcoming Financial Markets Powered by Blockchain Technologies.
  • You are Looking for Quality Information Relating to the Crypto Assets and Crypto Industry
  • You Bought Into ‘Shit Coins’ Before and Wants to Avoid Them at All Costs Moving Forward.
  • You are Looking for an Actionable Plan to Own a Portfolio of Cryptocurrencies Which Generate a Source of Passive Income Stream
  • You Want to Base Every of Your Buy/Sell Decisions With Data and Not Based on Hot Tips or Gut Feeling
  • You are Looking for a Quick, Highly Effective and a Simple Way to Get Started With Cryptocurrencies
  • You Want to Own Crypto Assets for the Long Term But Don’t Know How
  • You are Feeling Overwhelmed By the Number of Cryptocurrencies Out There and Want a Simple Way to Identify Good Cryptos From the Rest
  • You Want to Follow a Set of Time-Tested and Simple to Follow Blueprint for the Crypto Assets Industry.
  • You Understand that Knowing Which Crypto to Own is not Rocket Science, Traditional Financial Wisdom and Rules Still apply.
  • 4.1 Instructor Rating
  • 76 Students
  • 1 Course

Crypto Assets for Passive Income Book is available for sale on Amazon Kindle. Physical Copies can be ordered via TokenClan website directly. The book is shipped worldwide.

The author is interviewed and featured on Singapore national broadcasting authority Mediacorp Channel 8 titled ‘Money Smart Program’.

He still codes and is heavily involved from the coding of his fintech web applications to driving the business at TokenClan.

Read Also: How To Pay With Cryptocurrency

Play Complete Tasks Shop Or Stake On Stormx

Storm Play, now rebranded StormX is a sort of crypto Swagbucks. You earn cryptocurrency rewards in Bitcoin, Ethereum, Dai, Litecoin, and Storm Token, completing different tasks, which include playing games and reaching a certain level or score, answering surveys and shopping online.

As you successfully finish each task, you will earn a commission in one of the aforementioned cryptocurrencies. Then, your earnings will go to a linked personal wallet such as Coinbase.

StormX works through an app you can download on your phone or as a browser extension for your PC or Mac. Besides giving you access to the games and surveys, the app also lets you earn crypto back on your purchases, much like a cash back credit card gives you cash back rewards on your spending.

Finally, another way StormX lets you earn cryptos is by staking. This means that you put some of your cryptos to work by using them to help verify transactions in the blockchain, and, in return, you receive a certain amount of coins as a form of fee.

Have Your Cake And Eat It Too With The Passive Income Generated From This Crypto

Crypto-enthusiast Chris MacDonald and Fool.com Editor Eric Bleeker discuss why Pancakeswap provides a passive income opportunity that may be too good to ignore, on this episode of “The Crypto Show” from Backstage Pass, recorded on Nov. 10.

Eric Bleeker: Let’s get into the last one we’re going to cover today which is PancakeSwap.

This is the 44th largest crypto, it’s got a $4.7 billion market cap at the decentralized exchange, built on finance smart chain instead of Ethereum. It’s up about 30 fold since the beginning of the year. That’s a lot of momentum.

What’s interesting about PancakeSwap and what’s leading to all this momentum?

Chris MacDonald: I think we’re definitely seeing a lot of interest flowing into the DeFi space, decentralized finance space. One of the big components of that are decentralized exchanges.

PancakeSwap is similar to a lot of other decentralized exchanges, such as Uniswap or SushiSwap that I know we’ve covered in the past. The difference is it’s, like you mentioned, based on the Binance Smart Chain, and so that provides some unique advantages.

There are some drawbacks as well. Binance itself is not without issues. There is a probe by the Department of Justice into Binance in general. There are some risks with it, but the advantages probably outweigh the risks.

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Become An Instagram Influencer

Upfront time investment :

Upfront financial investment :

Passive income potential:

One million dollars: Thats how much Dwayne The Rock Johnson makes per Instagram post. While you may not have chiseled abs or over 200 million social media followers, you can still earn passive income on Instagram as an influencer.

To become an Instagram influencersomeone who can sway another persons buying decisionsyoull need to build a community of people who enjoy similar topics.

Are you a comics fan? You can create an Instagram account and start posting consistently about the latest Marvel and DC shows. The same applies if your interest is in sports, scuba diving, home decor, or even general culture.

Some influencers like Alex Lange run sponsored posts for brands like Tinder.

If you have an engaged audience, you can find many different ways to make passive income from them. You can partner with large and small businesses to promote their products to your followers. Or you can make money through selling your own merch.

The Wild West Or New Frontier

Crypto.com | How to Earn Passive Income Through Cryptocurrency With USDC

While DeFi promises abundant and lucrative opportunities, it is also an undeniably risky space. So far this year, the overall losses caused by DeFi fraud and hacks have amounted to $12 billion, according to CNBC, citing a report from analytics firm Elliptic.

The fast-moving space, which is often called the “wild west of crypto,” also lacks compliance infrastructure and regulatory clarity.

WonderFi investor Kevin O’Leary explained in a recent interview at the SALT conference that the average investor can’t get into DeFi easily because when they earn interest on stablecoins, for example, they have to report that to the tax regulator and record their tax gains or losses.

“There is no compliance. You have a 1099 form you have to deal with,” he said. “WonderFi is solving for that, it’s going to make it compliant and give you the reporting that allows you to report your taxes, so WonderFi is really for the retail investor.”

Another problem of DeFi that’s harder to solve is the regulators’ call for increasing oversight for the sector.

“I think decentralized finance is a really, really huge sea change in the financial services industry,” O’Leary said. “It’s going to cut cost, increase transparency, and do a lot of wonderful things, but it’s going to have to be after the regulator approves it.”

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Is Making Passive Income Through Crypto Right For You

Decentralized Finance is the predominant trend in cryptocurrency today. Most investors want to keep their tokens safe inside hardware wallets. When you hand over your keys to a CeFi institution, you lose control of the keys. But the risk comes with a fantastic upside. Earning interest on your tokens means that you get to experience the benefits of compounding growth, not just changes in demand.As cryptocurrency becomes more mainstream, it may be worth considering whether a CeFi approach fits with your investment philosophy. Depositing tokens at a trustworthy CeFi institution like Hodlnaut gives you the benefit of investing in blockchain technology and the advantage of a more holistic approach to digital currency management.

How To Earn Passive Income With Crypto Staking In 2022

A lot of people that come to me for advise think the only way to make money in crypto is through trading, and because this seems so complex most of them end up looking elsewhere.

Earning money with Crypto, is super simple and Trading is not the only way. Thats why I decided to offer another view into Crypto Earning through Staking.

I consider Staking as a less risky investment for beginners and something really simple to set up !!

This is probably very good news for you in 2022 since you will be able to get some Passive Incomre through your Crypto Investments.

Recommended Reading: Where Does Crypto Money Go

Introduction To Decentralized Finance

1:32 min read

One of the financial industrys fastest-growing trends is decentralized finance, a.k.a DeFi. Its a revolutionary way of transacting that doesnt rely on centralized intermediaries like brokerages or banks for access to financial services.

The key technology powering DeFi is blockchain: a digital database of transactions or a ledger thats distributed across an entire network of connected computers. Thats why a blockchain is often called a decentralized database: its independently stored on thousands of computers rather than being controlled by a single authority.

How blockchain works

Before we dig into how you can make money from DeFi, its important to be clear about how blockchain works. A blockchain is essentially a digital ledger of transactions thats duplicated and distributed across a connected network of computers. Each block in the chain records a specific set of transactions, like a page in a physical ledger.

Every time a transaction takes place on the network, its first verified and then grouped with other transactions into a single block. That block is then added to the end of the chain , and everyones version of the blockchain is updated. This collaborative system of recording transactions makes it very difficult to change or cheat the system.

And who verifies those transactions, groups them into blocks, and adds these to the blockchain? The thousands of people whove hooked their computers up to the relevant blockchain network.

Introduction To Yield Farming

Is TimeStope Legit? How to Make a Passive Income with Crypto

1:41 min read

Yield farming takes the concept of staking your cryptocurrencies to a new level. Its riskier and more complicated than staking, which might be why its been dubbed DeFis Wild West.

Similar to staking pools, yield farming involves you contributing cryptocurrency to a liquidity pool which can then earn you additional crypto. Thats important because two of the most popular uses of DeFi today are crypto-based lending/borrowing platforms and decentralized cryptocurrency exchanges. In both cases, yield farmers provide liquidity: the crypto funds necessary for these platforms to function.

A decentralized cryptocurrency exchange, like your local foreign exchange broker, has to be ready to buy and sell a bunch of different currencies whenever a customer comes along and in order to do so, it has to have all of these stocked in its drawers. That same sort of liquidity is what allows a decentralized crypto exchange to act as an instant, automated market maker.

In the crypto exchanges case, this liquidity is provided by yield farmers, who basically deposit their various cryptocurrencies with it. As a reward for doing so, the yield farmers get a cut of the exchanges transaction fees in the form of additional crypto, often paid via smart contracts.

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Efficient Trading At Higher Speed

When it comes to speed and efficiency, a bot can perform much better than humans. These crypto trading bots can carry out millions of transactions across time zones and markets in an instant. This reduces the risk of delays and human errors, and thus makes trading efficient and faster. Moreover, these bots can work 24/7 and constantly monitor your assets as long as it receives data through an API.

If I Can Make $9359 In Passive Income With Crypto Bots So Can You

Once you understand how crypto bots work, you can start making money immediately. I plan on investing $100,000 into crypto bots. That’s how strongly I believe in this investment method.

I wouldn’t be sharing this method with you if it was a scam. Trust me when I say that it’s the real deal. I highly recommend that you check it out!

Do you want to learn how to make passive income with Crypto Bots? and discover the secrets from a crypto expert!

Filed Under: MONEY & FINANCESTagged With: crypto bots, investing, money, passive income

ABOUT STEFAN JAMES

I’m an internet entrepreneur, life and business coach, and philanthropist with a passion for living life to the fullest and fulfilling my potential as a human being.

My mission is to be a powerful and passionate example of the unlimited possibilities that are available for anyone that commits their life to mastery, while sharing my very best ideas and strategies that can make a difference in every area of your life.

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  • ABOUT STEFAN JAMES

    I’m an internet entrepreneur, life and business coach, and philanthropist with a passion for living life to the fullest and fulfilling my potential as a human being.

    My mission is to be a powerful and passionate example of the unlimited possibilities that are available for anyone that commits their life to mastery, while sharing my very best ideas and strategies that can make a difference in every area of your life.Learn More

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    Recommended Reading: How To Learn Blockchain Coding

    What Are The Risks

    So as you can see, DeFiChain would have to stop for rewards to stop. I personally can only see this project getting bigger and has real potential for capital growth as well.

    Learn more here ===> Upside & Risks of an Investment in DeFiChain

    I have studied this project for a while now, and the more I learn, the more I like it. For me, exceptional rewards far out weight the little risk that there is. I personally think that with all the new features DeFiChain is bringing, like Atomic Swaps, Futures and Options, that price will only increase as demand grows.

    DeFiChain is built on top of the Bitcoin blockchain, unlike all the other Ethereum DeFi project. This makes it a lot more secure than its competition. CAKE DeFi is the platform you will be Staking on, so what are the risks at Cake DeFi?

    Watch this short video where U-Zyn, the Co-founder, talks about risks at Cake DeFi

    So there is Minimal risk and Fantastic returns, so now you want to know exactly How to Earn a Passive Income from Crypto The answer is STAKING at Cake DeFi

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