Making profit while sleeping is a dream that everyone strives for. Today I will list 9 ways in which you can make money from cryptocurrencies while enjoying your sleep without the need for active trading or managing your portfolio on a daily basis.
It is also a proven way for HODLERS to accumulate more cryptocurrencies during bear markets and leverage them in bull markets.
1. Storage (Staking)
Also known as Proof-of-Stake, it is a process in which you lock a certain amount of digital currencies to participate in maintaining the operations of the blockchain network, and in return you will receive daily rewards of the same currency.
2. Mining (Mining)
Also known as proof-of-work, it is a process that uses dedicated hardware such as graphics cards (GPUs) or ASIC devices to secure the network, verify transactions on the blockchain, and receive cryptocurrencies as a reward.
3. Lending (Lending)
Lend your cryptocurrencies to borrowers who need them and earn interest on the loan. This is usually done on lending platforms that connect lenders with borrowers.
4. Masternodes (Masternodes)
Running a full node in a cryptocurrency network performs additional functions beyond verifying transactions, such as governance and network maintenance. It also requires a certain amount of cryptocurrencies as collateral to participate and earn stream income.
5. Yield Farming
By providing liquidity in the Liquidity Pool and helping maintain the operations of decentralized finance (DeFi) platforms and enabling users to trade. In exchange for your contribution, you will receive rewards in the form of more coins used in the liquidity pool.
6. Airdrops
Airdrop can be used to increase brand awareness, reward loyal users or motivate new users to try a new currency project by keeping a certain amount of coins in your wallet or completing certain tasks, such as following social media accounts, joining a Telegram group, or trying out the beta network. In return, You will get the currency for free when the project launches.
7. Dividend-paying cryptos
Also known as dividend coins, they offer regular payments to you as the holder of the coin, similar to traditional stocks. Payments are usually a portion of the profits generated by the currency project and are distributed to holders in proportions equal to their stakes.
8. Cloud Mining (Cloud Mining)
It is a process through which you rent computing power (Hash rate) from cloud mining service providers to mine Bitcoin. It also allows you to avoid the initial costs and technical expertise required to set up and manage your own mining facility.
9. Affiliate Programs (Affiliate Programs)
Affiliate programs have been an important part of companies' marketing strategies for a long time, and most digital currency platforms have adopted the affiliate program model (affiliate marketing). Whenever you refer new users to the platforms, you can earn income in cryptocurrencies.
Advantages and disadvantages
Advantages:
It can be a simple process with little supervision on your part.
There are many platforms to choose from.
You can diversify your investments using multiple methods.
You can significantly increase your cryptocurrency wealth.
Defects:
Some cryptocurrency projects require that your coins be locked in storage for a specific period, which means that you cannot benefit from the rapid increase in price at that time.
There are many projects that exist solely to scam and steal their users, so you should do extensive research before investing in any digital currency project.
Decentralized projects rely on their protocols to automate processes such as lending or yield generation. Any errors or weaknesses can lead to hackers exploiting the system and stealing your money and data.
Projects can fail and become unable to pay their clients
Conclusion
Obviously there are many ways to make money in the cryptocurrency market, but they come with many risks. Make sure you have an investment strategy, do extensive research and only invest what you can afford to lose.
