Money! What would we do without money? That smartphone you own won’t be yours without good old money. That apartment you love to brag to your friends won’t pay for itself now would it? Don’t let us even get started with food. Oh, Good Lord! Food… In the end, money is a major part of humanity and will not be going away anytime soon.
The easy part is making money, the hard part is keeping and multiplying it. The blockchain world offers interesting ways for you to make money outside the mainstream channels like trading and holding.
The bad news? You’ve probably been sleeping on some of these channels. The good news? By the end of this newsletter, you’ll discover some of the amazing outlets from which you can make extra income with crypto.
Earning interest from crypto savings
Just like how we save money in the bank for interests, you can earn passive income from crypto savings. There are several platforms such as Nexo, Binance and Crypto.com that offer crypto savings accounts — they generally use your funds to provide loans to institutions in exchange for a percentage of interests generated.
All that is required is to deposit your crypto to the savings platform and receive interests of between 2% — 5% annually — depending on the cryptocurrency. Crypto saving is arguably the simplest and easiest way to earn passive yield on your cryptocurrency since you require little to no in-depth knowledge to get started.
Lending and Borrowing Crypto
Crypto bigwigs who have amassed a huge portfolio of currencies can start to lend these tokens and make a profit via interest. Crypto lending basically involves a borrower and a lender, and an agreement between the two.
In essence, a cryptocurrency loan consists of a borrower who stakes his personal crypto holdings as collateral, and a lender who accepts the terms of the borrower and supplies either cash or another cryptocurrency.
To protect both parties an agreement is made using a smart contract that ensures that the loan is repaid with interest.
Mining, which is an important part of cryptocurrencies, is the process by which tokens are created.
Cryptocurrencies like Bitcoin and Ethereum use mining to protect their blockchain network. To help keep a crypto network safe, miners use their computers to verify transaction records. Once successful, they receive newly created crypto and transaction fees as rewards.
Although this is a sure way to make money through the blockchain network, it demands a host of hardware investments that might break the bank.
Luckily, if you don’t have the computing power to become a miner on your own, you can join a mining pool where miners from around the world combine resources to mine tokens like Bitcoin.
Dividends are payouts made to shareholders of a company. In summary, if a project turns a profit, the organization splits this profit and pays them to people who have some form of “ownership” in the company (shareholders).
Despite this sounding like an amazing cash cow, it is important to note that the only way dividends is profitable is if you have a large crypto balance.
As usual, you have to do your own research to see what portfolios pay dividends and if they are worth it.
Although trading and investing sound like the same thing, they differ in reality. Traders are more prone to quicker profits unlike investors who have to hold their tokens. However, trading can be another way to make money with cryptocurrency.
Just like stocks or other securities, daily traders buy and sell assets daily with the aim of making instant profit. Granted, this is a very risky scheme considering the volatility of cryptos but alas, is anything guaranteed?
There are still a lot of other ways to earn money with your cryptocurrency but these methods are some of the easiest to come to mind. Remember though, no matter how enticing an investment might seem, you must do due diligence by investigating and researching before staking your hard earned coins.
Now that you’ve learnt all about making money, the next time someone tells you trading is the only way to make money in crypto, send them this article or its variant.
Also don’t forget to join the Breach community to learn more about crypto and its uses. Remember that learning is better with crypto-curious friends.