History has been made in the realm of Bitcoin and cryptocurrency payments. For example, Bitwage – a cryptocurrency payroll and asset services company – recently processed the world’s first lightning network payroll. In what seems like a growing fusion between Crypto and Sports, the payroll in question belonged to USL professional soccer player Alex Crognale. Powering The Bitcoin Salary BitWage revealed the milestone in a statement to Bitcoin Magazine earlier today. Both Crognale and Bernard Parah – CEO of Bitcoin…
The advent of cryptocurrencies and blockchain technology ushers a new paradigm in the world of passive income. Besides introducing innovative ways of earning, cryptocurrency has also disrupted incumbent models of passive income. Outlined below are some of the most profitable streams of passive income:
Staking and Loaning
Staking and loaning are principally the same things, except for the context in which the money is risked. Staking has been previously identified as a profitable stream wherein users stake their coins and earn interest on them; however, crypto loans are more recent. This recency is due to the near-nascence of the Open Finance movement, aiming to democratize the world of finance through P2P commerce. The innovation with crypto loans is that users who are HODLing can earn extra capital on the coins they HODL by earning interest on loans.
Those who say there is no such thing as free money have clearly never participated in an airdrop. Airdrops occur when projects send free tokens to registered wallet addresses with the aim of building awareness. Usually, the value of airdrops does not exceed 10 USD, but this can compound to a handsome sum over time. This is a particularly useful approach to accumulate crypto for those who do not risk any of their capital.
Forks occur when there is a change to the underlying protocol which needs to be updated in the main chain. This can take the form of a soft fork, where the incumbent main chain continues being the principal chain after the updated; or a hard fork, where the incumbent chain is split in two because the community cannot agree. When the chain splits, the transaction history, addresses, and balances are duplicated into the new chain, resulting in free money!
Minting and Masternodes
It is possible to make money by processing transactions and minting new coins; this is often called mining, like in the Proof-of-Work. Alternatively, one can set up a masternode, a node with more responsibilities than other nodes (e.g., governance). For these extra processes, masternodes earn interest from the network. We have a dedicated page of Staking Pools and Masternode platforms, which are easy to use and suitable for beginners.
Generally speaking, the advantages of mining and masternodes are that they take relatively little maintenance once they are set up and running and are reliable sources of passive income (depending on the coin’s price volatility). But they can be quite expensive to set up, not mention it can require some technical knowledge.
Blockchain-based work tokens are a fantastic innovation in the world of cryptocurrencies. Work tokens are blockchain tokens used as incentive mechanisms to maintain and secure the respective blockchains. There are a variety of ways to earn work tokens, depending on the purpose of each blockchain. From sharing storage and processing power to browsing, users can earn tokens for participating in the network.