7 Best Ways to Earn Passive Income with Cryptocurrency

Are you wondering how to increase your passive income streams through Bitcoin and cryptocurrency?

Want to know how to grow your cryptocurrency earnings with minimal effort?

Trading is one way to make money in the cryptocurrency industry.

However, making profits from buying low and selling high is definitely not a wise strategy for amateur investors like you and me.

Despite spending countless hours learning the ins and outs of trading cryptocurrencies, keeping up with everything that happens in the rapidly evolving crypto market, there’s no guarantee you’re going to make a healthy return.

The truth is no one can predict short term price movements, not even the best investors in the world.

Fortunately, as cryptocurrency is becoming more mainstream, it also opens opportunities for passive income.

The idea of creating passive income with cryptocurrency is to make money 24/7 without you actively involved in the process.

Instead of taking unnecessary trading risks, spending time doing menial tasks, or letting your Bitcoin sitting there and not earning a thing, you can now put your coins to work for you for as long as you want.

Time to slice into the meat and potatoes of this blog post, 7 best ways to generate passive income from your crypto holdings.

Spend some time to set it up. Once they’re in place, they will continue to generate on-going incomes for you with little or no effort from your part.

You can combine a few methods to build multiple automatically-recurring revenue streams.

To get you started, here are some of the possible ways to create crypto-powered passive income-earning opportunities.

Want to earn free Bitcoin in your spare time? Check out these 10+ Legit Ways to Earn Free Bitcoin (#3 is My Favorite)

How to earn passive income with cryptocurrency

1. Yield Farming: Stake Your Crypto Earn APY

Setup: Easy
Time commitment: Short
Money required: Low
How: Online platform

Introducing Flynt Finance – the revolutionary new way to earn passive income and secure your financial future.

If you already own some popular cryptocurrencies such as Bitcoin and Ethereum, you can lend them out and receive attractive interest in returns.

Lending out your cryptocurrency for interest is completely passive.

It’s suitable for long-term investors who’re committed to holding their crypto and want to increase their crypto holdings without extra effort.

There are many crypto lending platforms that allow you to deposit your crypto funds into their interest-bearing accounts for a predetermined amount of time to enjoy better interest (than a traditional bank).

With Flynt, you can effortlessly earn market-leading yields of up to 80% on your Bitcoin and Ethereum.

Flynt Finance is a great way to grow your Bitcoin, Ethereum, and USDC by earning interest every week! Turn your digital assets into a steady income stream with their fully tested and audited asset management strategies.

Simply deposit your cryptocurrency into Flynt and watch your money grow. You can test it out with as little as 0.001BTC (~$25USD) as your first bitcoin investment.

Here’s how it works:

You create a free Flynt Finance Account and complete KYC (Know Your Customer) verification.
Deposit crypto into your Flynt wallet.
Get paid weekly in cryptocurrency.

However, do note that when you put your money to earn interest, you’re temporarily transferring your crypto ownership to the lending site. In other words, you have to trust them that they’ll keep your coins safe for you.

You can dig deeper into the platform by reading our Flynt Finance Review: 2023

Sign up here and deposit your First 0.1 BTC to earn 0.001 BTC

Get 10% discount on performance fees

Also, read: 7 Best Bitcoin Lending Sites to Earn Bitcoin Interest

2. Staking: HODL in an online wallet to Earn Rewards

Setup: Easy
Time commitment: Short
Money required: Low
How: Online platform

Staking is a straightforward and simple way to earn rewards. Simply hold the cryptocurrency in your wallet and you’ll be rewarded for doing it.

If you don’t already know, Staking is a process of storing funds in a crypto wallet to support the operation and maintain the security of a blockchain network.

Staking networks use Proof of Stake as their consensus algorithm. By staking your coins, you help to secure the network. And thus you’ll receive periodic rewards for holding your crypto funds.

On the contrary, Bitcoin network uses Proof of Work. Instead of staking, bitcoin miners use mining hardware and electricity to secure the Bitcoin network (I’ll talk about it later).

Generally, here’s how staking works:

Determine which cryptocurrency you want to stake.
Set up a staking wallet with access to the Internet in a 24/7 mode to hold your coins
Earn rewards after staking for a specific amount of time

You’ll need to make sure your wallet is connected to the internet most of the time in order to earn the staking reward.

The rewards you can earn vary depending on the number of coins you’re staking and the length of time you’ve been staking.

Also, different cryptocurrencies offer different staking rewards. For example, you can earn up to 6% with Komodo staking, while EOS staking offers 1-3% annual yield.

While setting up your own staking wallet may require some technical skills, crypto exchanges like Binance take care of the technicality and make it easy for everyone to start earning staking rewards.

All you need to do is create a free Binance account (if you’re a new user) and deposit the coins on Binance. And you can start staking to increase your crypto holdings without having to worry about technical implementation, maintenance of setting up and running a validating node.

Some of the widely-traded and popular staking coins are:

Dash
Komodo
EOS
NEO
VeChain

However, not all staking projects are created equal. Before you stake, check out whether the rewards are being paid in the same crypto you’re staking. Because some will reward you with a secondary token, which is less valuable than the native coin.

3. Running Masternode: Host a Dedicated Server to Earn Rewards

Setup: Hard
Time commitment: Medium
Money required: High ($10,000+)
How: Own Dedicated Server

If you’re a techie who’s serious about staking, you may consider running masternodes of cryptocurrencies.

Masternode is basically a cryptocurrency full node or computer wallet that stores the entire copy of the blockchain’s ledger in real-time.

By keeping your wallet up and running 24/7 to maintain network stability and perform tasks, you’ll receive crypto as a reward.

Running a masternode can be a very lucrative investment, you can expect to earn up to 10% interest annually.

However, it’s harder to get started compared to staking. It requires a substantial upfront investment and some technical ability and knowledge to set it up correctly.

Plus, you’ll need to have larger crypto holdings that worth thousands, or even tens of thousands of dollars just to get started with masternode.

For instance, to run a masternode on Dash network you need a minimum of 1,000 DASH (that’s $79,000 as of current price).

You can learn more about masternode here.

4. Mining

Setup: Hard
Time commitment: Short
Money required: High ($5,000+)
How: Cloud mining or own hardware

Unlike staking, mining doesn’t require you to have cryptocurrency holdings.

By mining, you can earn Bitcoin and other cryptocurrencies that use a proof-of-work system -without having to put down money for it.

As a miner, you will receive Bitcoin as a reward for verifying transactions on the blockchain.

However, mining is an expensive process, which requires a lot of electricity and special hardware.

There’s a time when you can do mining by using your personal computer or using a graphics card (GPU-mining).

But, bitcoin mining nowadays requires you to buy specifically designed equipment, so-called ASIC (Application-Specific Integrated Circuits) miner.

Considering the high setup cost, monthly electricity bills and low rewards, it’s no longer a viable source of passive income for individuals to mine bitcoin at home.

Most of the miners choose to join cloud mining services like Genesis mining. Instead of running your own mining rigs at home, you’re purchasing a package that guarantees you a fixed return in bitcoin.

However, there’re lots of fraudulent and scam companies in the space of cloud mining. Do your own thorough research before investing any contract for lucrative promises.

If you choose to start mining, check out these guides:

5. Affiliate Programs: Get Paid to Refer a Friend

Setup: Easy
Time commitment: Short
Money required: Free
How: Online platform

There are many crypto affiliate programs that pay you for referring new users onto their platform.

Affiliate programs are free to join.

Once you create an account, you’ll be given a special unique link. You can start sharing the link however you‘d like on social media, website, blog, forums. Whenever a person signs up or makes a purchase using your link, you will receive a commission.

The biggest advantage is that it’s quick to start and begin earning money. Plus, money would keep coming in days, weeks and months, even years after you put in all that effort.

If you already run a blog or website, or have a huge following on social media, affiliate programs can be a great way to make some good passive income!

Remember, don’t go overboard with affiliate links, ads, discount, banners etc. And only promote high-quality products as an affiliate.

To help you get started, here are some of the popular websites that offer good-paying affiliate programs:

Lolli (earn Bitcoin while shopping online)
ChangNOW (Crypto to Crypto)
LocalCoinSwap (Peer to Peer)
Binance (Crypto to Crypto)
Timebucks (answering surveys)
Freecash (answering surveys and complete simple task)
Hardware wallet (best security): Trezor or Ledger Nano S

Want to know more about how to refer people and earn Bitcoin? Check out my step-by-step Bitcoin affiliate marketing guide.

6. Airdrops and Forks: Free Crypto

Setup: Easy
Time commitment: Low
Money required: Low
How: Own crypto wallet

Getting free crypto airdrops and forked coins is a completely passive way of earning income.

Airdrops are free crypto tokens or new cryptocurrencies that you get directly into your wallet based on your current crypto holdings. All you need to do is to hold the cryptocurrency at the time of airdrop and you’ll get new crypto for free.

But why crypto projects giveaway free tokens?

To promote their enterprise
To attract new users, and gain more exposure
To distribute tokens to more users and wallets.
To improve their tokens spread and adoption.
To make you fall in love with their project.

However, most of the airdropped crypto are literally worth nothing, while some valuable coins can generate thousands of dollars a year.

In February 2018, NEO holders were airdropped with free Ontology (ONT) which are now worth $0.59. It’s not bad considering you’re getting something that’s completely free.

Similar to airdrops, you can get free new cryptocurrency while holding the old forked coins in your own wallet.

Bitcoin HODLers automatically get the forked coins -Bitcoin Cash, Bitcoin SV, Bitcoin Gold when the hard fork happened. This means they will receive one new coin for each Bitcoin they hold on their wallets.

To claim your airdrops and new coins, you must have complete control over your private key at the time of a fork or airdrop.

While some exchanges will do airdrops, some will not pass on the airdropped coins to its users.

That’s why I recommend you store your cryptocurrencies on your own hardware wallets like Trezor or Ledger Nano.

This way, you can be sure that you have full access to your crypto funds and free cryptos.

Remember, always keep your private keys safe and secret. Don’t reveal your private keys to anyone.

7. Blogging

Setup: Easy
Time commitment: Medium
Money required: Low ($3/mo for web hosting)
How: Online platform

If you’re looking to build passive income stream that’s consistent month-to-month, make a profit with cryptocurrency and could potentially allow you to quit your 9-5, I recommend you start your own blog.

Blogging is by far the most low-risk, cost-efficient way to earn passive income from cryptocurrency.

Unlike other methods on this list, creating content related to Bitcoin and cryptocurrency is more of a long-term business method. You can’t get any instant return by writing a blog post or article. But once you build a following and get enough traffic, money can come in a lot easier than you think.

It’s easy to create and setup your own blog (you just need to pay for hosting).

The hard part is you’ll have to invest your time, effort into creating valuable content.

As more and more people are getting interested in Bitcoin and cryptocurrency, the readership will continue to grow exponentially.

In fact, my partner, Winson has launched a blog about cryptocurrency, as a channel to express his thoughts about Bitcoin, as well as sharing what he learned (without jargon) to the world, two years ago.

And now this site consistently generates passive income every month.

Earning money from displaying ads, promoting affiliate programs, sponsorships are just a few ways to make money from blogging.

If you’re looking to build a passive income or long term business, starting a blog can be the best investment of your time!

You can’t expect to get return instantly, but it can be extremely rewarding in the long run. And thus I include this money-making idea on this list.

If you’re serious about blogging and eventually make money with it, I’ve written a guide here.

Conclusion

There you’ve it. 7 ways to earn passive income in the crypto space.

Our time is limited, so take advantage of these crypto earnings opportunities to increase your crypto holdings.

Let your cryptocurrencies work for you, earning money while you sleep. Plus, you get to enjoy the massive potential upside when the price appreciation.

Do you know any other ways to make passive income with Bitcoin and cryptocurrency? Tell me in the comments!

Last but not least, if this post was of any help to you, please share it with your friends and families!

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