3 Ways to Earn Massive Passive Income

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19 Jan 2024

There are a multitude of ways for people to earn passive income. Many are already aware of the stock market and real estate as sources of passive income earning. However, the same is also true for cryptocurrencies such as Bitcoin, Solana, and Rebellion Protocol, which offer their own variety.
Despite cryptocurrencies being a source of passive income, they have demonstrated the potential to fundamentally change how financial systems operate in the future. With each passing day, cryptocurrencies are attracting an increasing number of investors that see not only their value as an investment but also the utility that the technology they are based around provides. With that, here are some ways that cryptocurrencies offer as a means of earning passive income.

Staking Cryptocurrencies

Staking can be an amazing way for users to earn passive income as it requires little effort. Simply explained, staking is a process by which users “lock” their funds in a digital wallet for a certain period of time. This is done so that users can help sustain a blockchain’s operations. To be more specific, by lending their tokens, users maintain blockchains by validating blocks inside the networks for transactional confirmations. By doing so, users help protect networks and are rewarded with more coins for it. Consequently, users are chosen at random and then elevated to validators. To be a validator by staking tokens, users must first create staking wallets for their tokens to be “staked” in. Once staked, users’ tokens are frozen so that those tokens are then properly utilized for the validation of transactional data within blocks. Users then receive a reward that is proportionate to the number of tokens they have staked; in that they receive a predetermined percentage of their staked tokens. Only cryptocurrencies that utilize the proof-of-stake model for payment processes can be staked.

Rebellion Protocol

There can be many ways in which networks can reward staking. To give the Rebellion Protocol as an example, holders are awarded NFTs that determine their governance rights alongside a cut of the amount collected in transaction fees. There is a total of 9% on every transaction within the Rebellion Protocol, 3% of which is used to reward holders. This holder reflection seeks to compensate for the inadequacies of farming incentives as well as the possibility of temporary losses. Furthermore, it tries to alleviate worries about the limitations of staking and un-staking periods. It is also akin to depositing cash in a savings bank account where people can earn interest. Consequently, users are rewarded with more tokens ($REBL) that are proportionate to the number of tokens they hold. This approach, in fact, addresses a number of investment-related issues while also providing additional benefits such as compounding effects and lowering price volatility.

Lending Your Cryptocurrency to Others

As stated, using this method entails lending out your cryptocurrency to others who want to borrow it for a certain period of time. Like the method before, you can receive interest payments in return. Peer-to-peer, centralized, decentralized, or margin lending are four ways that can be used to lend crypto. With decentralized lending, or DeFi, users can directly lend their cryptocurrencies to others on exchanges. On the other hand, in peer-to-peer, centralized, and margin lending contracts, users’ cryptocurrencies are lent out through intermediaries. Here, exchanges are the middle parties between lenders and borrowers. Users lend their cryptocurrencies to exchanges that then distribute the specified amounts to borrowers. This method may be preferred for investments if users want to hold their coins for the long term. Using a lending platform is quite straightforward. Users must first register for an account and then deposit the amount of cryptocurrency they wish to lend into it. Users can also select the type of coin they want to lend, and after doing all that, they will be able to begin earning interest on their cryptocurrencies.

Cryptocurrency Mining

To put it in simple terms, crypto mining is integral to blockchain functionality, in that it is essential for running blockchains. To go into more detail, mining is the process by which the network is protected through the verification of cryptocurrency transactions. Once verified, these transactions are then added to blockchains, and miners who carry out this whole process are then rewarded for it. However, to be a part of the mining process, users should have a mining rig, which is a computer that is specifically designed for the process. What sets mining rigs apart from regular laptops or PCs is that several graphic processing units are connected to the motherboard. Once users have acquired a mining rig, they can run complex algorithms used in verification processes by connecting their rigs to mining pools. Furthermore, these complex algorithms involve solving complex mathematical problems pertaining to cryptographic hash functions, which are used in verifying the transactional data within blocks. In other words, mining processes verify the legitimacy of the information before adding the transaction to the blockchain, and it is this exact process that is carried out every time a cryptocurrency transaction is made. Mining can be quite a profitable venture, but that is dependent on the type of cryptocurrency that is being mined. Moreover, users should also keep in mind the expense of the necessary equipment and software. What’s worth mentioning is that, depending on the type of GPU, crypto mining can also consume a lot of electricity.

Final Thoughts

In comparison to traditional banking, cryptocurrencies offer more ways to earn passive income, i.e., they come with a lot of investment opportunities. This is made even more apparent by the sheer number of businesses and individuals looking to invest in cryptocurrencies. However, such investments do not come without risks, which arise from price volatility. These risks also take into account the mainly unregulated nature of the cryptocurrency market. This means that fluctuations in value deter price stability and that investments should only come with funds that users are prepared to lose. That said, it is likely that a lot of such things could change as cryptocurrencies see more regulation, acceptance, and utility in the future.

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