Making money in your sleep is the dream everyone wants and today I will list down 9 ways you can make money from crypto while your enjoying your sleep and without actively trading or managing your portfolio.
It's also a proven method for HODLERS to accumulate more coins and tokens during the bear markets.
1. Staking
Also known as Proof-of-Stake (PoS) it's a process in which you lock up a certain amount of your crypto to participate in maintaining the operations of the blockchain network and in return, you will receive rewards in the form of more crypto.
2. Mining
Also known as Proof-of-Work (PoW) it's a process in which you using specialized hardware like GPUs or ASICs to verify transactions on the blockchain and earning cryptos as a reward.
3. Lending
Lending your crypto to borrowers who need it and earning interest on the loan. Usually it takes place on lending platforms that match lenders with borrowers.
4. Masternodes
Running a full node in the crypto network that performs additional functions beyond transaction validation, such as governing and maintaining the network. It also required a certain amount of crypto as collateral to participate and earn passive income.
5. Yield farming
By providing liquidity, you help maintain the decentralized finance (DeFi) platform's operations and enable other users to trade. In return for your contribution, you will receive rewards in the form of more crypto or the DeFi platforms tokens.
6. Airdrops
Airdrops can be used to increase brand awareness, reward loyal users, or incentivize new users to try a new crypto project. By holding a certain amount of a cryptos in your wallet or complete certain tasks, such as following social media accounts or joining a Telegram group you will receive free crypto
7. Dividend-paying cryptos
Dividend-paying cryptos, also known as dividend coins, offers regular payments to you as a holders, similar to traditional stocks. The payments are typically a portion of the profits generated by the cryptocurrency project and are distributed to holders in proportion to their holdings.
8. Cloud mining
It's process in which you can rent computing power (Hash rate) from cloud mining service providers to mine BTC, it also allows you to avoid the upfront costs and technical expertise required for setting up and maintaining their own mining facility.
9. Affiliate programs
Affiliate programs have been an important part of companies’ marketing strategies for decades, and have received a significant boost with the arrival of the internet. Now, a variety of websites and crypto platforms have adopted the affiliate marketing model based on crypto. Whenever you refer a user to these websites and platforms, you can earn some crypto income.
If you run a blog with a good number of regular visitors, or if you’re a social media influencer in your niche, crypto affiliate programs might be a great way to earn passive income. Some of the most popular crypto affiliate programs in the industry are offered by Bybit, Paxful and CoinLedger.
The advantages and disadvantages of earning passive income from Crypto
Advantages
It can be a simple process with very little oversight on your part.
There are many platforms to choose from.
You can diversify your investments using multiple methods.
You can grow your crypto wealth mostly in an autopilot mode
Disadvantages
Some Crypto projects requires you to lock your coins for a specific time meaning you cannot take advantage of a rapid increase in the price of a token at that time.
There are many projects that exist only to scams and rug pulls their users. Do your own research before invest into a crypto project.
Decentralized projects rely on their protocols to automate processes like lending or yield generation. Any bugs or vulnerabilities can lead to hackers exploiting the system and stealing your funds or data.
Project failures and liquidations. With a high volatile industry projects can go insolvent and unable to pay back their customers’ funds overnight.
Final thought
It's clear that there is many ways to earn passive income with Crypto however it comes with many risks so make sure that you have investment strategy. do a very intense research and invest what you can afford to lose