Good day everyone today I am going to discuss passive income possibilities with cryptocurrencies. As discussed last post Overcoming Fear of Cryptocurrency Investments I was afraid of this industry. Once I had gotten over this, I started to look into passive income generating options. In keeping with why I started this blog to talk about investing and finance this fits right in. So far what I have researched and read about there are a few ways to generate passive income with cryptocurrency. What I find intriguing about this stream to generate income is it is relatively new. And I also wonder what other options will develop in this industry to make passive income.
So let’s breakdown how we can gain passive income from cryptocurrency. The options I will discuss are what I have encountered so far. So there well maybe other ways as well and if so I would love to hear from you about them.
- You can hold certain cryptocurrency types and stake them and you get a certain percentage of interest by doing so.
- Also one can invest in a mining rig and then earn cryptocurrency for your rig doing work on the blockchain.
- Additionally just like stocks you can buy cryptocurrencies then sell at a higher price but this is not so passive.
So to describe these options more in detail. The first one is like dividends or interest rates in a bank account. You hold a certain cryptocurrency and earn more of it by doing so. The next way buying a mining rig is more involved and takes more effort and capital to see returns. But is passive at this point. The last way listed not so passive and requires one to be active and checking markets just like stocks.
The idea of mining I found intriguing, and by researching I found a less complicated way to get involved. And start to experience this way of generating income from the cryptocurrency industry. This will be the focus point of the next post. I will describe in more specific detail this way and how I went about it.
Till next round cheers 🙂
GWF