One of the strategies for accumulating and maintaining wealth is to earn passively.
In other words, you need to have different streams of income in other to build wealth.
If you are looking to build a portfolio of income streams, here are seven ways that you can earn cryptocurrency passively.
HODLing means holding onto your coins rather than selling them and getting the market price at any given time.
The whole idea behind this is that it is less costly, in effort and time, to continue holding your cryptocurrency for longer periods rather than having to monitor the market and try to buy when prices are low or before they go up in order to maximize profits.
It is also very hard to tell if you are going to get the maximum potential gains or losses from a coin since the market can move quickly.
2. Investing in ICOs
In an ICO, you are investing in a new project that may promise the moon but may also fail.
There are no guarantees with ICOs and most will not deliver on their promises. If you invest in an ICO, then you should be prepared for the fact that a project may never deliver on its promise and that it may fail after raising millions of dollars.
An airdrop is just a form of marketing in which tokens are sent to the wallet addresses of active members of the blockchain community to promote or create awareness of a new currency.
You will make money even if you don't have the currency itself.
4. Crypto Mining
If you have a powerful computer in your home, then participating in cryptocurrency mining is an option.
This means solving complex mathematical algorithms that verify transactions on the blockchain and earning new coins.
Bitcoin is a well-esestablished example of a mineable cryptocurrency. Not all currencies are mineable.
5. Get paid to play games
It's possible to earn cryptocurrencies by playing simple games on your phone or computer. You get paid in micro-payments that add up across the day, week, or month.
You can also get paid by watching sponsored ads and answering surveys with these currencies as incentives.
Staking is a simple way to earn passively. It requires buying certain currencies that run on POS (proof of stake).
The market pays you for holding these currencies for a certain period of time. Staking also offers you a potential return on investment, no investment hardware is required as it is with mining.
7. (LP) Liquidity provider
When you are a liquidity provider you will earn interest fees and other rewards, for providing liquidity to lending platforms when you deposite equal USD amount of a trading pair to a smart contract.
When you provide liquidity to a platform, you will receive transaction fees as a reward.