How can you passively earn from cryptocurrencies?
We all secretly dream about it: making money while you sleep. An income that works completely passively and you don't have to spend extra time on it. That all sounds very attractive, but how do you get there exactly? In 2017, when the prices of various cryptocurrencies such as bitcoin exploded, investors started to charge richly. Plans to spend the next few years with a cocktail on the beach were made until the whole market suddenly took a different turn. Those who did not get out in time saw their investments evaporate and sooner or later the pension plans were closed. Many were forced to hold on to their purchased cryptocurrencies and were looking for ways to make a profit. May this be possible, even in a market that does not immediately look very favourable. With different possibilities an investor has the possibility to earn money from the purchased cryptocurrencies. Plus, most of these options are completely passive!
One of the most popular options is 'strike', the phenomenon where you make your coins available to the network to use as an authentication method. It is linked to a 'Proof-Of-Stake' consensus protocol on a blockchain. Popular projects such as Tron, Stellar and Neo have been using the protocol for some time now, but a project may go on strike. Ethereum has announced plans to switch from a 'Proof-Of-Work' consensus protocol to a 'Proof-Of-Stake' protocol in a new version of the protocol. This would mean that your Ethereum will allow you to earn passively. A question you might have is how exactly strike works, that's actually very simple.
When you want to strike, it is necessary to meet the requirements drawn up by the project itself. These differ quite a bit but in general the following things are important to think about:
You have to have a certain amount of the token before you can strike
You need to install a certain wallet that allows you to strike
e must fix the tokens for a certain period of time
It sounds more complicated than it might be. In practice, simply by keeping the tokens of a certain project on an exchange like Binance, you can already start quitting. Every month you will receive a reward for making your tokens available.
An alternative to strike is to set up your own node. A node is part of the blockchain network of the project in question. Nodes are available for different projects and are similar to mining. To run a node you need to run your own server with the protocol installed on it. With a node you make computing power and tokens available for the network to validate. Nodes can often be divided into different scales, from light nodes to master nodes based on the investment needed to get started. However, it is a way that often requires a large investment on two fronts. First, you need to own a large amount of tokens from the project, with DASH that is currently 1000 DASH which in dollars is more than 100,000. Second, you need to buy a server. This can be either virtual or physical, but it is another expense that should not be forgotten. It has to be said that a node can be very interesting. A master node from DASH currently costs $550 per month. On an annual basis, this is a 6% return, a very neat alternative to the 0% of the banks.
One possibility that is becoming increasingly popular is making your cryptocurrencies available for loans. People all over the world need loans for a variety of reasons. It may be that somebody is not financially broad and really needs it, or somebody sees an opportunity that the financial means are not available at that moment. If you are in a position to keep your cryptocurrencies for a long time and want to use them well, you can lend them to others. Then there are two options;
- Peer-to-peer loans
Through various platforms such as Nexo, you can make your cryptocurrencies available for loan to individuals. This is more reliable for one party than the other, but there are established parties who insure your deposit. The interest rate can be as high as 8% a year. This is one of the simplest options as it is nothing more than creating an account and depositing your currencies on the platform.
- Leverage loans
Another way of lending out your cryptocurrencies is by means of a loan with a trade fair. On platforms such as Binance, Bitfinex and Bitmex, you can trade with leverage, which allows traders to trade with a larger deposit than what they own. In order to keep this process fair, this additional deposit is made available by persons who lend out their currencies. Lending is also no more than creating an account and depositing your currencies and is completely passive. The interest rate depends on the currency, but as an example, bitcoin allows you to receive 2.8% interest per year at Bitfinex.
Trading cryptocurrencies is an option that can be very profitable, but the rule shows that the vast majority of traders lose their bets. The possibility to completely put emotions aside and to be able to think rationally independent of the situation, is not available to everyone. But, someone who can, is a robot. Today, almost all orders on traditional stock markets are executed by smart algorithms that trade based on rules, not emotions. In the cryptocurrency world this is no different, there are a wide range of available trading bots you can start with today. One of them is more aggressive than the other and consequently one of them is more profitable than the other. Every robot uses a different strategy based on different indicators. In short, there's a lot of choice.
It can be difficult to choose which robot to work with, which is why RevenYOUher has come up with a solution. RevenYOU has collected a collection of trading bots and makes it available to investors. With a mobile application, investors can switch a robot on and off within a few clicks to find out which robot suits them best. The robots trade on the cryptocurrency market, but the depositing is done by means of euros. There are currently four robots available, but this number is constantly growing. In order to create an image of what the robots could yield in terms of return;
- The robot 'CBS by Altrady' has yielded an average return of 25% since December 2019.
Investing is for everyone
Everyone should be able to invest. And now they can. With BOTS. Together we are going to make the world of investment fairer and more transparent. Are you interested, but your question hasn't been answered yet? Take a look at the FAQs on our site. Or contact us, we will be happy to explain it to you in person.
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There is no such thing as risk-free trading. It is possible to lose (part of) your stake.