In today’s world, no matter where on this planet you call home, money plays an important, frankly critical role in every human beings survival.
Moreover, money, or rather having enough of it, plays a significant role in leading a peaceful and fulfilling life.
Let’s face it… with the cost of living increasing at such an alarming rate, in many parts of the world, one cannot even survive by having just a single source of income.
The question then becomes… how can you get more money?
Ahhh… the age old question… let’s take a look at our options…
The obvious answer… having multiple income sources is not only very useful but in many situations, a necessity.
Generally speaking, there are only a few legal options at our disposal…
Work Multiple Jobs
Working multiple jobs, essentially selling your time for money, is the most common answer. While this choice is arguably the easiest option, it has its limitations.
Obviously, there are only so many hours in a day. Some of those hours need to be spent resting and with family.
So, by maximizing the remaining hours on a regular basis, working as many jobs as possible is not only very stressful but will leave you being exhausted at the end of the day… and, dare we say, it will eventually place your overall health in jeopardy.
Own a Business
Some people reading this will likely argue that owning your own business is nothing more that working a job, you just usually have to work more hours and make a lot less money. While this may be true of a lot of businesses, some do “make it big” and are fortunate enough to grow.
This growth is often the catalyst to an ever increasing and sometimes insurmountable level of stress which will frequently cause a business to fail.
Proponents will argue that there are definite benefits to owning you own business, and frankly we would agree that these benefits out way the potential stress… and ultimately, it is a better path than working for someone else.
Investments and Multiple Income Sources
Those people who are often referred to as the “top 1%” fall into this category of income generation.
They find optimal and frankly sometimes, quite risky vehicles to invest in.
Couple this with the fact that most affluent people have multiple sources of income in their portfolio.
This helps them to become almost resistant to major market fluctuations. If one industry is up, another is often down… if one business sector is doing well, another may be struggling…
The final jewel in the crown of these income streams is that they are often considered “passive.”
This may not necessarily be due to the lack of time needed to actually manage it, but more so that it generates enough income allowing for the owners to leverage their time.
What Is Passive Income?
This is probably a good point to define passive income and speak to the practicality of its “passivity.”
This is honestly a pretty good definition of exactly what passive income actually is…
Most people who think about passive income opportunities often think that all they have to do is flick some ‘magic switch’, sit back, and enjoy the money as it just rolls in.
In just about every single case, this is the farthest thing from the truth.
While it is true that there are many opportunities which, after some initial effort, can be scaled back and provide a steady stream of income, things can often only be scaled back so far in order to maintain a desired level.
For the purposes of this article, when we speak about passive income in cryptocurrency, we are going to be speaking about investments and opportunities which require small, steady effort on a relatively consistent basis… which if properly cultivated, will result in a steady stream of income which you can then scale to meet your needs.
Regardless, combining these methods is often the most effective way of ensuring you have an income which can sustain you and all those you care about.
If you want to learn more about passive income and more traditional options available to everyone, read our blog post The What and Why of Passive Income.
Passive Income Options in Crypto
It can be difficult to find passive income opportunities with great growth and income potential… something that can provide for the long term, in various economic markets.
We are by no means saying “put all your eggs in one basket.” Again, for a more over arching explanation and examination of passive income, click here.
However, with respect to cryptocurrency, we do believe that there are many choices within the space which certainly warrant further investigation by you as potential passive income opportunities.
Cryptocurrency and blockchain are, as of the writing of this article, still in their infancy. Bitcoin was only introduced to the world 10 years ago.
What does this mean?
This means that there is potential for huge growth and of course, huge money making opportunities. Frankly, with the proper effort, consistency… ok… and maybe a little luck… you can “hit the jackpot” by making use of this space.
The bottom line, crypto offers entrepreneurs and investors a wide range of potential passive income sources.
Enough beating around the bush, let’s take a look at some of the most popular passive income options.
HODL: If you have been in the crypto space for any length of time, you have likely been exposed to the term HODL.
If you want to learn more about the origins of HODL, click here.
In a nutshell, this term means to hold and not sell your cryptocurrency.
By exploiting the law of supply and demand, Cryptos, most of which have a limited supply, over time, by the mere demand for the asset, will increase in price. So, if you purchased the asset at a low price, it should continue to increase in value over time.
And therein lies the ‘secret’ power of HODLing… time is your friend.
Like investing in your retirement plan, small amounts over a longer period of time, compounded, will produce exemplary results.
This is probably about as easy as it gets when speaking about this in the frame of reference that is; passive income.
Make no mistake, it does require an initial investment and if you are employing the dollar cost averaging method of investing, continued investments.
It also requires time and certainly entertains a level of risk. You will need to spend time researching what asset you want to invest in and exactly how to do so. The better your research, the lower your level of risk.
To learn more about various consensus algorithms in the cryptocurrency space, click here.
In the Proof-of-Stake (PoS) algorithm holders of a large number of a particular coin place them in a wallet. The wallet is then left active online. By doing this, the wallet then becomes a part of the network which secures the blockchain and validates transactions.
For a more in depth description of Proof-of-Stake (PoS), click here.
In a nutshell, during this staking process, holders of the coins, who are validators. earn payments in the native cryptocurrency for allowing their wallet to secure and validate the blockchain. These coins are usually a percentage of the fees charged to the other network users on their blockchain for all other transactions.
As with HODLing, staking requires an initial monetary investment, usually a sizable investment, which ensures a commitment to the network.
The amount of time required is minimal once the wallet set-up is complete, but there is a periodic need to check the wallet status and ensure that it maintains a continual connection to the blockchain.
Blogging: This is an item that we also highlighted in our earlier blog post when we spoke about more traditional passive income opportunities.
However, in the context of this article, the crypto space has some unique options as it relates to blogging and content creation.
While blogging is certainly not completely ‘passive’ it is definitely a great source of income. Blogs can be found all over the internet on just about every conceivable topic. Properly monetized, they can provide a stable source of income year after year.
Now translate that process into the crypto space and you have some interesting options…
Steemit is a popular decentralized blogging platform that has several million users actively blogging. Unlike a traditional blog where your main earning options are to place ads or affiliate links on your blog, Steemit helps you earn money based on the quality of content you share.
As your content gets recognized by many users, you will receive ‘upvotes’ from them. The more ‘upvotes’ your receive, the more cryptocurrency that you can earn.
All your earnings will be in the form of Steem coins which can then be exchanged to other cryptocurrency or fiat on exchanges.
The Brave Browser allows you to become a content publisher. Once an approved publisher, you can earn compensation for your content in the form of Basic Attention Token (BAT). Much like with Steem, BAT can be spent directly, or traded on exchanges for other cryptos or fiat.
As we mentioned at the beginning of this section, blogging does require some consistent effort… and often, the reward for this effort is slow in coming.
However, with the proper monetization, the long term effectiveness of this method can provide steady income.
Automated Trading Bots: Cryptocurrency trading is a great way to earn money quickly in the space.
Now, please realize that trading is certainly something that requires knowledge, skill and time… and quite frankly, an entire training course unto itself.
That is definitely something we are not going to do here…
However, there are some automated options that you can utilize to help limited the amount of time and knowledge you need to create earnings from trading cryptocurrency.
Let’s be honest… the cryptocurrency market is currently the most volatile market on the planet. This volatility provides many opportunities for traders to earn plenty.
Enter automated trading bots…
Now, this type of thing is nothing new. Automated trading bots of all kinds are utilized daily by traders in all financial markets across the globe. But, they are certainly new to the crypto space as the space itself is so young.
There are many different trading bots at your disposal. The pricing for these bots ranges from free to quite expensive monthly subscriptions.
As you might imagine, the versatility of these bots also runs the gambit from bots that require continual updates to some of the latest which can pretty much do it all.
There are also some paid options which are easy for the novice to learn and use. We will be providing posts about some of these in future blog posts…. Stay tuned…
Again, this method of income generation requires initial capital outlay as well as the time and knowledge necessary to set it up. There is definitely risk on a few fronts, not the least of which is being unable to trade an asset you acquire and being stuck with it or having to sell it for a loss.
Further, it also requires you to have accounts on multiple cryptocurrency exchanges as well as money or cryptocurrency on these exchanges for trading purposes.
Rent Unused Computer Space: If you have any familiarity with the internet, you have probably heard about things like cloud storage.
These are often centralized options for people who either need additional storage space or need multiple location access.
The crypto space continues to move centralized solutions to decentralized solutions. Virtual storage space is no exception.
Just think about the number of computers across the world. Most of these computers will never be utilized to their fullest capacity. Thus, there is disk space just left unused.
Why not put that empty space to good use?
Why not earn money for letting people who need additional space?
One of the most popular blockchain options for this service and passive income opportunity is Filecoin.
Another blockchain option similar to Filecoin is Golem.
Frequently emerging cryptocurrency projects will give away free coins associated with their project. This provides some much needed exposure and buzz, while giving people in the space the opportunity for some ‘free money.’
So what’s the downside?
It will take you time to ‘jump through the necessary hoops’ to get your free coins. That generally entails things like registering an email and cryptocurrency wallet address with the project and sharing the airdrop on your social media.
Realize that many times these projects go belly up and the free coins you received are worthless… but not always… we’ve received a few airdrops that have turned into great projects in the space.
You can sign up to get alerts for upcoming airdrops here.
Lending Platforms: One of the passive income options we highlighted in our earlier blog post revolved around lending platforms. Companies like Lending Club for example allowed you to earn money from giving people loans.
Learn more about these traditional lending options here.
So, if you can find these options in the ‘real world,’ why not in the crypto space?
Well, you can… as a matter of fact, we have already told you about one of these possibilities when we highlighted Celsius Network.
There are also other options in the crypto space. The interesting part about these decentralized lending platforms is that the chances of default is greatly reduced because borrowers often have to put up collateral, so this all but ensures your receive repayment.
Once you sign up on these platforms, you can lend out your funds to other users and start earning some dividends.
In order to live your life, you will need to have more than one source of income.
Creating several passive income sources for yourself can be the key.
Using a few of the passive income methods that we have discussed in this article can put you on the path to having the level of income you need to take care of yourself and your loved ones.