Per a report from the Cambridge Center for Alternative Finance (CCAF), fossil fuels have been the primary energy source for BTC mining since the start of the year. The CCAF recently updated its Cambridge Bitcoin Electricity Consumption Index (CBECI). Its study claims that 62% of all the energy the leading token has consumed so far consists of coal-based energy. BTC’s Energy-Intensive Mining Bitcoin employs the proof-of-work consensus mechanism to create new tokens and validate transactions on the blockchain. The PoW…
Cryptocurrencies are by far the best financial technology inventions of the 21st century, threatening to replace fiat as a medium of exchange and gold as a store of value. These platforms offer digital solutions to all transactions, allowing users to conduct business transparently, without exchanging physical cash. There are also other technologies like Defi, where the users have full control over their financial transactions, thus eliminating banks’ need.
These assets also give some of the best investment opportunities in the world today, others whose volatility is a blessing to risk ready investors. Additionally, there are many ways crypto users can earn a living effortlessly in the crypto world. Here are 7 common methods of earning passive income in the crypto world.
Staking is one of the best ways of earning in the crypto world. It involves an investor collateralizing some amount of crypto assets for some duration of time and earning interest.
After holding the coins, the investor participates in the validation of transactions, leading to new blockchain blocks. This technique has similar results to mining, whereby the product is the release of new blocks.
The amount of rewards an investor gets often depends on their staking value and their stake duration. However, there is no fixed period set for staking; thus, investors can withdraw their stake and rewards whenever they please.
The rise of peer to peer lending in the crypto world has also brought a world of earning opportunities for investors. Different P2P lending platforms allow investors to lock-up funds, which are lent to others for a fixed period.
Upon maturity of the set period, the lending party collects the loan plus interest payments. Some platforms have fixed interest rates charged to the borrowers. However, other platforms allow the investor to adjust the interest rates to ensure they get the best returns for their lent out funds.
Since these systems are often autonomous, the AI-supported systems compute everything and ensure the loan’s completion plus interest once the investor locks up the funds.
Additionally, most lending platforms in the crypto space use a technique dubbed over-collateralization to ensure the borrower pays the full amount owed. Therefore, investing in crypto lending platforms guarantees investors the security of their funds and great future returns.
Affiliate marketing involves the compensation of a third party for introducing people to new product service. The affiliates get rewards in commissions for recommending a product to someone who later purchases the product.
Some crypto platforms offer a code that the affiliates can give third parties to use when joining the platform. The affiliate gets rewards based on the number of people who use their code to join the platform.
Since affiliate programs are useful advertising tools, most crypto platforms offer this kind of service, and anyone can benefit and maximize incomes.
Bounties are small campaigns run by crypto platforms and projects where the users get rewards for completing small tasks. For example, bug bounty programs are a tool used by most platforms to test the efficiency of their website, blockchain, or application.
Persons identifying bugs in these periods get rewards in coins, fiat, or even other goodies. Therefore, a bug bounty is an excellent way of maximizing incomes in the crypto world since there are many different tasks to complete for bonuses.
A masternode is primarily a computer that hubs a blockchain ledger of crypto assets and performs different functions to support the blockchain. Masternodes operate like staking, but they communicate with other nodes in transaction confirmation and protect users’ top functionally.
When running masternodes, the users earn block rewards for completing transactions. Additionally, charging transaction fees earns the masternode runner some income. Unlike mining networks that require vast amounts of electricity and computing power, masternodes require relatively less cost but significant profits.
Airdrops are programs run by blockchain-based platforms where they send some little amounts of the virtual currency to wallet addresses. In return, the wallet owner spreads awareness about the crypto project to increase its adoption.
The account holder has to have a percentage of the asset already stashed in their wallet to qualify for gifts. They can also participate in social media, post campaigns about the crypto asset, write blog posts, and review the project.
A lightning network is a second layer option instituted by third parties to boost scalability in the blockchain. The transactions in lightning networks are often faster than the transactions going through the blockchain, especially in bitcoin, which has millions of transactions.
Fees charged in running lighting nodes are relatively cheaper, but since the networks are in high demand, the lighting network runners earn good incomes using these technologies. As the number of users of the lightning network increases, so does the income.
Earning in the Crypto world is not especially easy for beginner crypto users. However, with the increasing numbers of autonomous ways instituted in the crypto world, it’s easy to earn without putting much effort. For instance, in staking, the investor only needs to collateralize some amount of crypto assets, participate in transaction validation, and receive rewards.
Lending platforms in the crypto world are also a good source of income through interest. There are affiliate programs where the user earns from just recommending a crypto platform to others. Airdrops and bounties are good options since users earn from completing minimal tasks for the new project. There is also the option of running autonomous masternodes and lighting networks and earn rewards and transaction fees. Although the crypto world is just ten years old, it provides a world of earning opportunities.