How to make $100 per Day with cryptocurrency? Most of you already know how to make passive income with stocks, dividends, REITs, and real estate but very few people realize that they can make passive income with cryptocurrency and even fewer people realize just how much money they can make.
So let’s go over a few of the ways that a total beginner can start making passive income with cryptocurrencies today, and even better, because let’s be honest, it’s possible. The entire crypto space is full of sketchy characters it took me a long time to figure all this out on my own, so I hope my efforts here help save you time and money.
Interest-Bearing account
First, the easiest and most straightforward way to make passive income with cryptocurrencies is through what’s called an interest-bearing account this is likely the quickest way anyone can get started just like you could go to the bank deposit your money, and get half a percent interest. You could deposit your cryptocurrency throughout several exchanges and earn a preset return depending on how much you hold and believe it or not the return is actually pretty good. For example, BlockFi pays as high as 4.5% on bitcoin about 5% on Ethereum and 9% on USDC celsius pays even more up to 8% on bitcoin 7% on Ethereum and nearly 11% on USDC and voyager pays the same interest rate.
How to make $100 per day with cryptocurrency? For myself I think that if I’m going to hold on to underlying cryptocurrency anyway I may as well earn some interest in the process, Otherwise, it would be similar to keeping your cash under your mattress rather than moving it to a bank where you would earn interest.
The concept is the same the money you make is different usually at this point people ask how can these platforms pay out such high-interest rates when banks are barely able to pay off anything. My answer is that when you deposit money in one of these platforms they’re going to take that money and lend it to retail and institutional investors at a higher interest rate than they pay you. It’s no different than me saying if you give me your money I’ll pay you a 5% interest rate and then I can lend that money to somebody else at 8% profit the difference between the two interest rates.
How is this any different from stablecoins?
Well there are two main differences first stablecoins are pegged one-to-one with the u.s dollar second they’re less volatile than other cryptocurrencies and since they’re strictly regulated and backed by FDIC insurance they’re safer than other cryptocurrencies. Cryptocurrencies are extremely risky and volatile you might lose your money if you don’t play by the rules or if you don’t do proper research and even if you do everything right there’s still a chance that the entire market could collapse. If that happens your money is lost forever. I’ve decided to take this risk with less than 8% of my net worth but when you see these platforms offering you two to 14% interest annually just moving your money around on their site and doing nothing else, well it’s tempting the only way to be completely safe from risk is not to invest at all but then again there’s a lot of reward potential there too.
Personally, I think most platforms are safe enough as long as you don’t play stupid games or disregard the risk involved but nothing is entirely risk-free. Even though it’s a great way to earn passive income through cryptocurrency you have to remember that there are other factors that could affect the price of your currency. One thing you have to be aware of is proof of stake.
Proof of stake
Proof of stake relies on computing power to solve complex algorithmic problems that reward users with cryptocurrency. And it’s important to mention that with cryptocurrency since there is no central authority overseeing all activity transactions are processed in two ways proof of work and proof of stake.
Some people have issues with the fact that proof of work is energy intensive it could also be expensive to start up and the algorithms get harder to solve. It could take longer and longer to get paid so what’s the second passive income solution that would be proof of stake?
Since there’s no central authority overseeing every transaction there needs to be checks and balances in place to make sure everything is working as it should and as a way for no one person to have central authority over the entire system users can stake their cryptocurrency to receive rewards without having to do any computing power themselves, by doing this transaction are validated by users who deposit cryptocurrency on the network and in a way the amount you stake translates into how many votes you have on the blockchain. The chances of the next transaction being validated and of you being paid increase with the amount of money you stake.
Staking Pools
You can also join what’s called a staking pool which combines forces and then shares the collective reward of placing more money within the network. Just think of staking as putting money in a cd for 1 to 24 months and receiving a slightly higher yield in return. Most newcomers find that simply signing up for an established exchange like FTX, Coinbase, or Binance is the simplest way to get started. For a variety of other options compare the differences between interest rates and lock a period of different coins and then just follow their instructions.
Related: Crypto Mining Vs Staking: Which one is Best?
Validator
If you want to take this a step further you can also become what’s called a validator which is where you stake your coins directly on the blockchain. But in order to do this, you typically need to invest much more money and maintain a 24-hour internet connection. So for beginners, it’s usually a little bit more advanced but the payouts are higher.
The downside though is that there are risks namely that you’ll type your money in the blockchain for sometimes an indefinite period of time during which the market could fall and you’ll be unable to sell, overall though it could be a great way to earn passive income with cryptocurrency that you were planning to hold for long term. Anyways as long as you don’t need to sell anytime soon after that we have a third-way making passive income and that would be lending under this business model.
Lending
You lend someone your cryptocurrency, and they repay you with interest over a predetermined time frame. Unlike other loan types, cryptocurrency lending is not secured by anything you own, so if you fail to repay the loan, you have nothing to lose. Cryptocurrency loans are sometimes secured by a borrower’s own cryptocurrency so in the event, they fall behind you could get some or all of your money back. It would be no different than me wanting to borrow ten thousand dollars from you but as a cause, in our agreement, I need to lock away 10,000 of my own bitcoin just in case something goes wrong, but because these loans are built around smart contracts which are self-executing contracts stored on the blockchain the process is entirely automated and you won’t ever have to stress about trying to find someone to pay you.
If you make digital artwork and sell it online the original creator might earn 5% of the sale price every time someone resells that artwork this process is entirely automated, so it could be a profitable way to sell your artwork. However, there’s also some risk involved in selling your artwork this way. If you need the money quickly or if the market drops it may be hard to sell all your artwork at once overall these strategies are worth exploring for most people but holding or staking your coins in an interest-bearing account would probably be the easiest approach for most people.
Related: Easiest Way To Start Investing In Crypto
Of course, nothing is risk-free and there’s always a chance you could lose money. However, to lessen the risk it’s always a good idea to use multiple exchanges and Spread your money as widely as you can in different locations. By diversifying your investments, you can also protect yourself against the possibility that something might happen to one of them. As a way to earn a little bit more money without being actively involved yourself all of these are at least worth looking into that’s how I’ve been able to make an extra $65 a day every single day just for holding on to my cryptocurrency and staying invested.
A broad term used to describe passive income opportunities generated by lending money to trading platforms, exchanges, protocols, or other cryptocurrency users is “crypto lending.” You can generate passive income in the form of interest by lending these parties your cryptocurrency funds.
Like with stocks or other securities, day trading can be another way to profit from cryptocurrencies. Day traders buy and sell different types of assets on the same day in an effort to make a quick profit.
You can easily make $100 a day from cryptocurrency if you follow our guide properly.
The main advantage of staking is that you can earn more cryptocurrency. You may occasionally be able to make more than 10% or 20% annually. It has the potential to be a very profitable investment. The only cryptocurrency you require is one that employs the proof-of-stake model like Ethereum, BNB, Polkadot, Ada, etc.
1- The risk of the market is higher when investing in cryptocurrencies.
2- Staking may be connected to lockup periods in some cryptocurrency projects.
3- Your stake rewards may also be lowered by mistakes and fees.
4- If your crypto is locked while staking if the project fails due to any cause you will lose your crypto.
