Cryptocurrencies are an attractive option for people looking for additional ways to earn money due to their potential for high returns, availability, and anonymity. These methods are easy to understand and do not require extensive knowledge or expertise, making them accessible to anyone who wants to make the most of their assets.
What Does a Passive Income Mean?
The term passive income refers to earnings that require little to no active involvement from the person, such as rental income, dividends from stocks, different ways to earn interest, etc.
Can You Earn Passive Income Through Crypto?
Yes. Despite being volatile, the crypto market provides various opportunities to make passive income with crypto. However, the level of ease and profitability can vary greatly, depending on what coin or token you use, your capital, and your chosen method of earning passive income.
How Can You Make Money in the Crypto Market?
Disclaimer: This is for informational purposes only and should not be considered financial advice. Investing in cryptocurrency involves risks, and it's important to conduct your own research or consult with a financial advisor before making any investment decisions.
Some of the common (passive and active) ways to make money in the crypto market include:
1. Staking tokens
Staking is one of the common ways to earn passive income in the cryptocurrency market, as it requires minimal involvement once the tokens are staked.
When staking tokens, you help verify transactions and create new blocks in a blockchain network by simply holding or locking up crypto assets for a certain amount of time. The blockchain network usually rewards those who stake their tokens in the form of APY or a percentage of the transaction fees generated on the network.
In our app, you can lock up KASTA tokens for several months, earn up to 8% APY, and also enjoy lower swap fees for token swap transactions, crypto conversions, and more.
2. Crypto referral program
A crypto referral program is a marketing strategy that helps crypto companies encourage people to invite others to use their platform, buy assets, join a project, sign up for an event, etc. Some crypto companies reward people who successfully invite friends by giving out crypto assets, freebies, or other exclusive perks.
To make a passive income through a crypto referral program, you must choose a platform that provides cryptocurrencies as a reward just like the Ka.app. Our referral process usually starts by signing up in the app and sending your referral link to a friend. If they successfully sign up, both of you will receive tokens as a reward.
3. Lending
Lending involves depositing crypto into a platform or service that allows users to lend out their digital assets to borrowers and earn interest on the loan. The lender receives a portion of that interest as earnings for lending their cryptocurrency.
Interest rates may vary depending on the lending platform or service you use.
4. Dividends
Some cryptocurrencies offer dividends or profit-sharing mechanisms to holders. To earn dividends, you need to purchase and hold the cryptocurrency in a wallet or on an exchange that supports the dividend distribution. The amount of dividend or profit-sharing will depend on the project's performance and the number of tokens you hold.
5. Airdrops
You can make a passive income from crypto airdrops by receiving free tokens or coins from a cryptocurrency project or exchange. Airdrops are usually distributed to users who hold a certain amount of a specific cryptocurrency or who meet other criteria set by the project.
To participate in an airdrop, you usually need to sign up for the project's email list or follow their social media channels. Once you have met the criteria, you will receive the airdropped tokens in your crypto wallet or on the exchange.
6. Mining
With crypto mining, you can earn crypto rewards by using computational power to validate transactions on a blockchain network. To start mining, you need specialized hardware and software that can perform the necessary calculations to validate transactions. You can join a mining pool or mine solo, depending on your preference.
Please be aware that mining involves high electricity consumption, hardware and maintenance costs, and the difficulty of the mining process can increase over time. However, if you have the necessary resources and expertise, mining can provide a passive income stream if the crypto’s value remains stable or increases over time.
7. Masternodes
Masternodes require you to hold a certain amount of the crypto to participate, and in exchange for supporting the network, masternode operators receive rewards in the form of cryptocurrency.
To set up a masternode, you need to meet the cryptocurrency's requirements, such as holding a specific amount of assets, and have the technical expertise to set up and run the node. Once the masternode is set up, it can generate a passive income stream if your chosen coin or token’s value doesn’t drop.
It's important to note that running a masternode carries risks, such as the cost of hardware and maintenance, security risks, and the possibility of network outages or technical issues.
8. Affiliate marketing
With affiliate marketing, you can earn additional crypto by promoting a cryptocurrency project or exchange and earning a commission for each new user or customer you refer through a so-called affiliate link.
To start affiliate marketing, you need to join an affiliate program offered by a crypto project or platform. Once you have joined the program, you will receive a unique affiliate link that you can share with your audience through your website, social media, or other marketing channels.
Each time someone clicks on your affiliate link and completes a desired action, such as signing up for an exchange or purchasing a cryptocurrency, you will earn a commission based on the program's terms and conditions.
9. Trading
Trading cryptocurrency involves actively buying and selling cryptocurrencies to make a profit. This requires regular monitoring of market trends and making informed decisions quickly. And while trading can be profitable, it is generally considered an active form of income rather than a passive one.
10. Arbitrage
Arbitrage involves buying a cryptocurrency on one exchange where the price is lower and selling it on another exchange where the price is higher so you can profit from the price difference.
To conduct crypto arbitrage, you need to monitor the prices of the same cryptocurrency on different exchanges and identify when there’s a price discrepancy. Once you have identified a profitable opportunity, you need to quickly buy the asset on the lower-priced exchange and sell it on the higher-priced exchange.
What’s the Best Way to Make Passive Income with Crypto?
Many users consider staking the best way to make a passive income in the crypto space as it is less risky, you're not actively trading or speculating on the market, and it requires minimal effort once you've set up your staking account.
However, the best way to make passive income with crypto could still vary per individual. In fact, it depends on your risk tolerance, what you’re willing to do, and how much you want to earn.
What’s the Best Crypto for Passive Income?
Just like the last point, the best crypto for passive income is the one that aligns with your investment goals and risk tolerance. Some popular options for staking and earning passive income include Ethereum (ETH) and Cardano (ADA).
Meanwhile, KASTA, the native cryptocurrency of our crypto app for beginners, is available for lock-ups. As mentioned, this allows you to earn up to 8% APY, and enjoy discounted swap fees in the app.
Final Thoughts
Using cryptocurrency to generate passive income can be a potentially lucrative but also risky venture. Sure, some individuals have made significant profits through crypto, but it’s also best to remember that the market is highly volatile and can experience sudden and significant drops in value.
That said, it’s necessary to conduct thorough research and carefully consider the risks before finalizing your decisions. You must also use a reputable crypto exchange or platform, and be proactive in securing your digital assets.
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FAQ
Where can I lock up KASTA tokens?
You can lock up KASTA tokens in Ka.app. It’s a crypto payment platform that allows you to send Bitcoin and other crypto for free to other users when they receive the payment in the same currency. It also allows you to swap crypto, and receive payments in your preferred currency through the Easy Swap Engine.
How can I lock up KASTA tokens?
To lock up KASTA tokens, log in to the Ka.app, go to the Ka.app Earn screen, and choose the tier you want to enter. Each tier requires a minimum number of tokens and offers different APYs and benefits. Your tokens will be locked up for six months before you’ll be able to get your earnings.
What is the maximum number of KASTA tokens I can earn APY on?
You can earn APY on up to 50,000 KASTA tokens.
