Takeaways
- A quick and easy guide on how you can get your crypto to work for you.
- Earning a passive income through crypto
In a world full of mayhem, earning a passive income is a dream for most people. The idea of having money work for itself is not a new venture, but the crypto revolution has facilitated the process and created new alternatives that might be the first dip into a Crypto career.
But how to decide which way is best for you? With our helpful quick guide, you’ll be able to learn the qualities and issues of the most popular methods of earning passive income in crypto.
Mining
The classic, most basic form of income generation is through mining. An exclusive feature for cryptocurrencies. Despite the name, you won’t have to buy a pickaxe and venture through a mine shaft. As crypto mining is a much safer operation than that.
By using your computer power to solve parts of the blockchain encryption to validate transactions, miners are rewarded small fractions of the crypto they are mining. This process is a fundamental part of the ecosystem. However, it is important to point out that the latest developments in blockchain technology tend to demand more energy consumption to mine cryptocurrencies. Depending on your setup, the operation might waste and not earn money.
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Liquidity Provider
All the rage during 2020, liquidity providers operate by creating markets through smart contracts. By entering one of those transactions, you will be steadily agreeing to buy or sell specific tokens in order to keep the market constant. DeFI is an excellent example of an Automated market maker (AMM) that operates this way.
By using DeFi, users agree to keep ETH tokes flowing, and when DeFi goes up, profits arrive.
Trading
Trading can also be done passively if that is your preference. Through setting clear stop losses and being patient, you can let cryptos valorize.
There are also automatic algorithms that can be used to fully automate the process. But, as with anything else, this is a double-edged sword – while auto trading can be profitable, nothing beats a human analyzing data and make conscient decisions. You might not be as effective passively trading as it would be joining the markets.
Affiliate network
One of the biggest drives behind passive net income is creating and nurturing an affiliate network. The process might take longer and you have to provide the reasoning behind having traders attached to your network, but with insights and experience, many traders are shifting away from day trading onto a mentorship role.
If you think that is an opportunity for you, remember to help your Affiliates as they should help you. Together, both will be benefited from this relationship. At Envi FX our Affiliate Program is designed to help you earn big.