#cryptocurrency!!! is a unique financial instrument that enables anyone with an internet connection to participate in a distributed economy. That includes opportunities to earn passive income. There are unique risks associated with investing and earning with cryptocurrency, even though it may seem like a bank account or social lending platform.
â˘â˘â˘KEY TAKEWAYSâ˘â˘â˘
Cryptocurrency can be used to earn interest through the distributed finance economy.
Anyone in the world with the right accounts or technical knowledge can participate.
Cryptocurrency lending and earning platforms feature unique risks and are not insured or backed by any government agency.
â˘â˘â˘Miningâ˘â˘â˘
The backbone of cryptocurrency is blockchain, and it takes many computers working in parallel to create a secure, working chain. Behind many of the most popular currencies, including Bitcoin and Litecoin, is an algorithm called proof-of-work (PoW). Under proof-of-work, participants around the world called miners compete against each other to find the encrypted solution to the block. The winner earns the reward of cryptocurrency.
â˘â˘â˘Stakingâ˘â˘â˘
Proof-of-work isnât the only way of getting new coins. A large competitor is proof-of-stake (PoS). Cryptocurrency owners who stake their coins are allowed to participate in the network's consensus process and receive fees for the work done in return.
â˘â˘â˘Play-to-Earn Gamesâ˘â˘â˘
You can also earn passive income by playing online games. There are many play-to-earn crypto games available today, and each one is unique. Some of the more popular ones are Axie Infinity and Decentraland. In the Philippines, these games became so popular during the pandemic that they became a source of income for those who lost their jobs.
