Best ways of earning passive income crypto in 2019
In this guide we will uncover the best and most trusted ways of earning passive income crypto – these steps could potentially change the way you earn money in the future.
Back in December 2017 we were all “making” money in our sleep when our portfolios doubled in days. Obviously that wasn’t meant to last. And eventually the bubble bursted. And now we were all losing money in our sleep. So now Go Cryptowise have spent some time researching looking into what are the best ways of earning passive income from cryptocurrencies in 2019.
Before we jump into the best options for earning passive income with cryptocurrencies, we want to make sure you do your research first. There’s been a lot of unfortunate cases where people have been scammed by people in the crypto space. Mainly it’s been when people have sought quick profits and taking ill-advised risks. Known examples of this is Bitconnect and OneCoin. They were literally just scams similar to ponzi schemes, aiming to get investors money in and everyone was making profits from the next guy. Until it imploded. Because there are so many people looking for ways of earning passive income today. So we at Go Cryptowise want to help you find the genuine and best ways of earning passive income crypto. So do your research before you send your funds anywhere. Read our guide on how to be safe with crypto if you want to find out some good tips on avoiding scams and hacks.
These are the best ways of earning passive income from crypto
Basically there are just a few genuine ways of how you can earn passive income using cryptocurrencies today. And these below methods are our favourite ideas for earning passive income:
- Lending: You lend out your cryptocurrencies and you get paid in return, easy difficulty and good returns, one of the easier ways of earning passive from crypto
- Margin funding: Here you also ‘lend’ out your funds for margin traders. Similar to lending as an easy option of getting started with passive income crypto
- Staking: Using this methods you ‘stake’ your cryptocurrencies and you get a smaller portion of cryptocurrencies back in return. Bit more difficult but lucrative way of earning passive income
- Masternodes: Similar to staking but you run a node which supports the blocchain network, and you get a higher return from this compared to staking. More complex but with higher returns, great option for passive income
- Brave browser – earn BAT as a everyday user just browsing the internet. One of the easier ways of earning passive income crypto
- Brave browser – earn BAT as a published owning a website, blog, Youtube or Twitch channel. Easy to setup and could potentially be one of the better ways of earning high returns from passive income
The best ways of earning passive income with crypto today!
The days when you could simply mine Bitcoin using your old computer at home are long gone. So if you are looking into alternatives where you can earn money from cryptocurrencies besides trying your luck with daytrading then we have created this guide for you. So traditionally PoW (Proof of Work) has been the standard method where people could earn cryptocurrencies. With PoW the miners secure the network by solving mathematical puzzles to confirm transactions to the network. And these miners then gets rewarded by their effort.
This is how Bitcoin and many other cryptocurrencies works. And today for the regular cryptocurrency holder Bitcoin and their Proof of Work is not the best way of earning passive income from cryptocurrencies. So we in this article will be looking at some alternative ways for earning passive income from cryptocurrencies.
So if you already have some cryptocurrencies. Maybe they are stored on a wallet somewhere safe? That’s smart. But what might interest you is lending those cryptocurrencies out to others and in return you get paid from the interest. Two great options of earning passive income from crypto and lending is BlockFi and ETHLEND (read our interview with the Director of Marketing Brad from BlockFi here).
This is how it works – Lending with BlockFi and ETHLend
- Sign up on their websites. For both BlockFi and ETHLend you go to their website and sign up. What lending means is that you ‘lend’ your cryptocurrencies to others. So you need to send them to a designated wallet from for example BlockFi or ETHLend.
- Send your coins to a designated wallet, make sure you’ve read the terms and conditions and that you feel ok with it. Then the processes differs but you essentially lend out your coins to others as alternative funding method for businesses usually.
- Now you are pretty much done and you can start earning passive income from crypto
“BlockFi Interest Account users can deposit their Bitcoin or Ether and earn up to 6% interest annually. Paid out on at the beginning of every month, the interest earned by account holders compounds, increasing the annual yield for our clients to 6.2%. This is an easy way for crypto investors to earn bitcoin while they HODL.”
Ethlend is a decentralised p2p lending platform that uses Ethereum smart contracts to connect lenders and borrowers. Securing a loan within minutes using blockchain technology. You as the lender set your own terms so interest is dependent on your agreed upon terms. Another option is Salt Lending.
Another option that you’ve got is the ‘margin funding’ feature from exchanges like Bitfinex, Bitmex, Poloniex. You basically fund (or lend) your cryptos out for margin traders to use when opening long or short positions while margin trading. Make sure you do your research before.
This is how it works – margin funding via OKEx
- Users who wants to margin trade on OKEx uses funds from a margin funding pool – call them margin traders
- Users who wants to earn profit and passive income from their funds sitting on an exchange allocates their funds to that margin funding pool and get paid in return call them margin funders
- The margin traders then uses the funds to open a long or short position and uses funds from the pool. When they close their position the funds are returned to the margin funders
- Another fairly easy way of earning passive income from crypto
The funds kept in your exchange wallet can be used by other traders when traders open long and short positions when margin trading. Margin trading basically means that a trader borrows money to speculate on the future price change of an assets like Bitcoin. They can speculate that the price will go down (short position) or go up (long position). Traders who opens long/short positions uses real funds to ‘bet’ on that trade going their way. And you ‘lend’ out your funds and in return you get paid interest. According to us another easy way of earning passive income from crypto.
- If a trader borrows USD to long BTC, the trader pays the funding cost to the funding provider in the equivalent value of USD at the agreed upon USD funding rate.
- If a trader borrows BTC to short BTC, the trader pays the funding cost to the funding provider in the equivalent value of BTC at the agreed upon BTC funding rate (find out more what margin trading is here)
Find out more information about margin funding at OKEx
As an alternative to PoW (Proof of Work) there is staking and PoS (Proof of Stake). It is what sounds like. You ‘stake’ your coins in a designated wallet. And those coins then secures the network and keeps it going. Staking is a bit easier than running a full Masternode. But there is some work to it. And you need to have your wallet with your cryptocurrencies connected to the internet and the blockchain at all times for it to work. A bit more complex setup but longterm this is one of our favourite ways of earning passive income from crypto.
This is how it works
With PoS you stake your cryptocurrencies in a designated wallet connected to the blockchain. In most cases that means that this wallet needs to be connected to the internet 24/7 in order for it to work. Without it you wouldn’t help to validate transactions on the blockchain and thus not get your rewards.
But there are new features in place for some PoS blockchain which is known as ‘cold staking’ and that means your wallet can be offline and not connected to the internet but you would still get your rewards.
In the Proof of Stake systems creators of new blocks are created in a “pseudo-random way, depending on the user’s wealth, also defined as ‘stake’” (Hackernoon guide on Proof of Stake blockchains).
This is how you can get started with Proof of Stake
- First you need to decide on which coin you want to stake. We have compiled a list below of our favourite cryptocurrencies with staking available. There are more PoS cryptocurrencies, but these have been researched by us. Find more cryptocurrencies with staking option here.
- Then you need to find out what the requirements are? Usually there’s a minimum requirement of how much you need to have in order to be able to stake.
- If using a computer: Traditionally for most PoS coins you need a computer with a wallet connected to the blockchain all at times. So if you have a spare computer laying around this could work perfectly for that. Another option is to buy a Raspberry Pi or similar which costs about $50-70 and use that for staking. There are several guides on how to get started on the internet for that (guide here).
- If using a Virtual Private Server or VPS: If you don’t have a spare computer lying around, or concerned about the electricity costs then running a virtual server is another option. There many services where you can run a private server on the cloud. Allowing you to setup a wallet on that private server and have it running 24/7 without a computer needed for you at home. This might be a bit tricker to get started but there are guides on the internet available.
- Done, with the setup and your wallet connected to the Internet you are ready to get your returns and use staking for earning passive income from crypto
- (Only for some coins) Using a simple designated wallet. Some PoS or PoA (Proof of Authority) coins let you stake by holding the cryptocurrencies in a simple dedicated wallet and that’s it (maybe you need to click yes to staking or similar). Both Neo and VeChain allows you to do this for example.
The Best Proof of Stake coins of 2019
Here below we have listed some of the most popular coins which you can use for staking for earning passive income from crypto. Do your research into each coin and select the one you like the most. Ask yourself again why this is a good coin to invest in. You can find out where you can get hold of these coins in using Coinmarketcap and find a suitable exchange where to buy them here. Here we have listed the Best Proof of Stake coins of 2019.
- AV (NavCoin) 5% annual ROI. Useful links – Medium article to get started, Nav Reddit – Buy at NAV at Binance
- NEO – 5% annual ROI Similarly like VeChain by staking NEO you in return receive GAS another coin used on the NEO blockchain. Useful links – NEO to GAS profit – Buy NEO at Binance, OKEx, eToro, Kucoin, Bit-Z
- ICX (ICON) up to 12% annual ROI. Useful links – ICON toolbox with several guides – Buy ICX at Binance, OKEx,
- VET (VeChain) and VTHO. It’s actually a PoA (Proof of Authority) but it works similarly like other PoS coins. By staking your VET you receive in return VTHO which works like gas. VTHO is required to pay for transactions on the VeChain blockchain. Useful links – VeChain website, VeChain subreddit (lots of tips) VeChain block explorer, VeChain staking calculator – Buy VET at Binance, Kucoin
- PIVX 0.4–0.5% annual ROI. PIVX website, PIVX staking calculator – Buy PIVX at Binance
- ARK 10% annual ROI. Useful links – ARK staking calculator, ARK Reddit – Buy ARK at Binance, Bit-Z, OKEx
- LSK (Lisk) 4% annual ROI. Useful links – Lisk website, Lisk Reddit – Buy LSK at Binance, Bit-Z, OKEx, Kucoin
- NEBL (Neblio) 11% annual ROI. Useful links – Neblio website, staking explained – Buy NBL at Binance, Kucoin
- ONT (Ontology) 3.79% annual ROI. Useful links – ROI rewards, How to guide for staking – Buy ONT at Binance, Kucoin, OKEx, Bit-Z
- KMD (Komodo) 5% annual ROI. Useful links – ROI rewards, stats, guide – – Buy KMD at Binance
- STRAT (Stratis) 1.46 annual ROI. Useful links – Stratis website with guides, Statis cold staking – Buy STRAT at Binance
- And in the future Ethereum will move from PoW to PoS. Useful links – Ethereum article on Constantinople (the major change to the Ethereum blockchain) – Buy ETH at Binance, OKEx, eToro, Kucoin, Bit-Z
Another great option is running a Masternode. Which is a full node that secures the blockchain network. Kinda works like a traditional computer that needs to be running at all time to secure transactions and in return you earn a higher amount of coins/tokens as a reward than traditional non-node staking. Masternodes are more difficult to set up compared to staking. And you for example need your node to be up and running at all time, in order connect to the blockchain and earning passive income from crypto.
This is how it works
- Decide on which coin you want to run a Masternode for (you can use this guide to compare rates and types). It’s of course important to choose a coin that you like and believe in. You can ask yourself: Which one is going to be around in 12 months time? And the secondly: Why is this coin going to valuable in 12 months time? So do your research on the coin and people behind it first.
- Download the wallet to either a VPS or local computer, or Raspberry Pi for example. Exactly like the staking process. When this wallet is synced to the blockchain then you’re ready to start. Full guides on how to get started can be found on the internet, example guide here.
Which coins should I run a Masternode with?
Here below we have listed some of the most popular coins which you can run a Masternode with. Do your research into each coin and select the one you like the most. Ask yourself again why this is a good coin to invest in. Find a full list of coins here. Masternodes is more complex, requires more investment but is one of ways you can get higher returns and earning passive income from crypto.
DASH – 7.6% annual ROI.
One of the most well known options is DASH. Where you can earn up to 7% annually. The only problem is that you need to hold at least 1000 DASH coins, which costs about $82k. Find more information here Buy DASH at Binance, OKEx, eToro, Kucoin, Bit-Z
ZCoin – 17% annual ROI.
Another option is the privacy coin ZCoin. Where you can host your own node if you have the latest Zcoin wallet and you have already obtained your 1000 XZC. Find more information website and on their ZCoin guide – Buy ZCoin at Binance
Find the right exchange to buy staking and Masternode cryptocurrencies here
- OKEx – OKEx is the second biggest exchange for cryptocurrencies when comparing trade volume (24h). OKEx offers fiat-to-crypto and crypto-to-crypto trading on more than 100 digital currencies.
- Binance – Binance is right now the leading exchange if calculated by volume (via Coinmarketcap). Binance offers perhaps the biggest selection of coins and one of our favourite exchanges
- Bit-Z – Bit-Z is one of the worlds biggest exchanges when it comes to trading volume and amount of supported coins, after Binance. Bit-Z founded in 2016 in Hong Kong. Bit-Z has established branches in 10 countries and regions including Singapore, Japan and South Korea.
- Kucoin – Kucoin launched in 2017 and fairly quickly made a name for itself in the crypto world due to its early adoption of certain altcoins and their own coin called Kucoin Shares (KCS) which is a passive income coin, where you as a hodler of KCS gets a percentage of the trading fees from the Kucoin exchange.
- eToro – eToro is very much part of the new wave of global Fintech companies that has helped to change the scene of finance, banking and much more. It is the world’s leading social trading network, with millions of registered users and an array of innovative trading and investment tools. And they have taken the tools, the users and methods to crypto as well.
Passive income alternative #5 Earn BAT as a browser with Brave browser
“Users can earn $224 dollars per year using the Brave Browser” – Brendan Eich CEO of Brave (Reddit AMA).
If you haven’t heard of the Brave browser and the cryptocurrency running on the network known as the BAT token, then we urge you to check it out. What Brendan and the team has done is definitely putting crypto on the map. And providing a real use case. Imagine that over 500 million people use ad blocking softwares today on their mobile and desktop devices. This is of course creating problems for the advertisers, and it shows the genuine issue that people have with the advertising landscape. It’s everywhere, overexposed and we’re getting nothing out from it.
The solution to this is Brave browser. It allows you to earn money while browsing the internet as you normally do, but instead of the advertisers money going only to the publishers you earn as well. According to us one of the easier ways of earning passive income from crypto.
This is how it works
Basically it means that while using the browser you go on browsing the web as you normally do, but when you view the infrequent ads from time to time you earn BAT in reward. Obviously Brave team gets their chunk from the pie, but you the consumer gets rewarded too.
It’s faster too
Another benefit to the Brave Browser is that it’s fast. Really fast, and that’s thanks to the limited number of ads running on the websites. No more need for the ad blockers too to slow you down. Helping you both increase speed and reduce the drainage to your battery, allows your devices to run for longer as well. It’s still a crypto startup so this feature hasn’t been released yet so keep a close eye on the Brave website for any news. But it’s still a very good browser that we bet you’re gonna love.
Another option you have to earn money with the Brave browser is by signing up as a publisher. If you today run a website, Youtube or Twitch channel then you can easily sign up as a publisher and start earning income via Brave. That means when a Brave user visits your website or channel you’ll earn rewards in return.
So if you already today have a website or channel running this might be an option for you to start earning income with Brave. A great way of you have good traffic to your website or channels of earning passive income from crypto.
This is how it works
- Go to publisher.basicattentiontoken.org and sign up as a publisher.
- Verify the email that gets sent to you
- Set up your channel and verify it using one of the different options (depending on website or channel there are different options)
- Connect Uphold Important! So that you can receive and withdraw your rewards. If you don’t already have an account with Uphold you can easily do it via the Brave website using just a few clicks.
- You’re done and good to go!
Those are some of the best ways of earning passive income from cryptocurrencies that you can do right now. Check our Guides section for the best tips on crypto!
We hope that you found this guide earning passive income with cryptocurrencies helpful. Please share it if you did. If you have questions or comment please feel free to leave them here below and we will try and answer them as soon as possible. In the meantime good luck and be safe.
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Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that wants to see better and smarter products and services that makes our lives better and easier