We all know that we won’t get rich only by working hard. We need to make passive income so we’re earning while we sleep, and there are many passive income hacks in the fiat world, but what can we do to earn a passive income with cryptocurrencies?
Investing is an excellent way of creating wealth for the future, if you invest in the right thing. Cryptocurrencies are promising, but if you invest and hold (hodl) you have to ride the volatility and although your cryptocurrency value remains the same, it’s not easy to watch your dollar value extinguish itself during the volatile bear markets.
Not everyone, in fact not may can trade, especially cryptocurrencies. So for those that can’t read the market trends, here’s 5 ways you can put your money to use to earn a passive income, cryptocurrency style.
Crypto Savings Accounts
Crypto savings accounts are aplenty. They act like banks but the interest they pay out is much higher. Blockfi is my favourite and the only one I would recommend. There are other crypto savings accounts that pay out more interest, but they’re unregulated. What’s more, Blockfi seems to be doing everything by the book and has backing from Coinbase, Fidelity, Morgan Creek Digital, and many other huge venture capital funds. Blockfi also uses Gemini exchange as its custodian.
I’m not saying the other crypto savings accounts aren’t to be trusted, but with Blockfi using Gemini as its custodian, the funds are as safe as can be for a third party custody solution.
You can HODL and earn interest with BTC, ETH, LTC and stablecoin GUSD, and you can also be paid out in the cryptocurrency of your choice. For example, if you hold a few of each crypto in there but you prefer to be paid out in GUSD or all in BTC, then you can choose that option.
While the saying goes: Not your keys, not your Bitcoin. Of course that is true, but personally I trust Blockfi and Gemini. They have huge institutional investment, and they’re as insured as can be for a cryptocurrency company. Personally, I wouldn’t store all my cryptocurrency in there, but it is nice to see my sats being stacked every month. Read More...