We all know that most of the traders earn from the high price swings of the Cryptocurrency. Buying the Cryptocurrencies at Low price and then selling it at a high price. This method has been common for most of the traders. But what if there is another method to earn from cryptocurrency. There are other forms of Cryptocurrency that can pay ongoing income similar to paying interest. Let’s check out all the possible ways that can let you earn passively with Cryptocurrency.
- Staking Tokens
If you are a holder of any kind of Cryptocurrency, then it is better to hold them for a longer period of time. By doing so, you will be able to accelerate their market value.
Here are the factors that you need to keep in mind while holding Cryptocurrency in your possession.
- It is better to hold on to your Cryptocurrency for as long as you can. This might give you advantages over other traders in manipulating the value of the cryptocurrency.
- You must also consider the costs that you are paying for the business. Such as electricity or equipment (In case of Mining).
- Once you have invested in the Cryptocurrency, there will be a maturity period where you will be asked to invest some amount of your capital to earn profit.
- Remember to get paid in the form of the same Token. There have been cases where the investors have been paid in different token (Having less value than the primary Token).
- The profits that you may gain depends on two factors, that is, how much you are putting on stake and for how long you have been staking for.
- Masternodes Cryptocurrency
If you think that Staking is like working as an employee, then Masternode can be considered to be of manager level.
Here is how Masternode is better than Staking.
- It Pays More
If you are investing in the Masternode Cryptocurrency, then you can be sure of one thing that Masternode will pay you more as compared to Staking.
- It requires Larger Holdings
Usually, in Staking investment you can start with any amount, but when it comes down to Masternode then you need to invest at least thousands of dollars. Sometimes you may also have to pay $10,000 to start the trade.
- Higher overhead costs
If we are talking about the overhead cost, then there is hardly any for the Staking, but for Masternode, overhead costs are higher. As you have to rent or own a dedicated server.
- More difficult process
Staking is designed in such a way that even the new investors can invest in them easily. But on the other hand, Masternode is for professionals who have technical knowledge.
Masternode involves more active engagement where you have to keep tabs on the ever-changing technical values. It is just the opposite of Staking, where you can just set and forget about the investment.
- Exchange Divided Cryptocurrency
There are some systems that reward the traders based on the kind of Cryptocurrency exchanges they are making.
- The rewards are mostly based on the exchange volume.
- If you are trading for your client and exchanging Currency, then there are chances that you might earn minor cashbacks.
- All the exchange toke pays a dividend that adds up to your income.
Risks That Comes with Passive Income
It is possible to earn money from Staking and Masternodes but in the trading market every profit comes with a risk. One of the major risks that comes with Cryptocurrency is that people tend to buy low quality Cryptocurrency just because they have a high dividend rate. You need to be smart while trading with the Cryptocurrency. So, instead of going for a high dividend, go for high quality Cryptocurrency.