Passive income is a popular topic among millennials. They have more investment options than previous generations. And this situation is fully justified: the creation of additional sources of income is, rather, a necessity in a growing economic unstable situation.
Fortunately, the introduction of cryptocurrencies has created new opportunities for passive income with a low barrier to entry. So participants do not need to have a large capital for investment.
Below are the most common options that will help you generate additional sources of income.
Every PoW-based cryptocurrency can be mined using specialized hardware. You can choose from different types of miners, ranging from cheap used ones to powerful and expensive ones. There are coins that do not require special equipment at all and can be mined using a smartphone.
As with most things, you will most likely need to invest a significant amount before you can start earning passive income. In the case of altcoin mining, the initial amount you need to invest can fluctuate a lot. Mining hardware prices tend to fluctuate depending on the market.
Once you break even (which usually takes 4 to 8 months under positive market conditions), altcoin mining can be a great way to make money.
Staking is one of the most popular and easiest ways to earn passive income from cryptocurrencies. You “block” your coins on an exchange or wallet for a while and as a result receive interest. This option is great for investors and traders who hold a medium to large amount of crypto.
Other than that, you will need to research which coins offer additional rewards:
- Some cryptocurrencies, such as NEO and VET, pay rewards for staking (storage of cryptocurrency) in another token (GAS and VTHO, respectively). All you have to do is store your coins in a wallet or on an exchange that offers rewards. This option is considered more secure as the coins remain in your possession and therefore under your control.
- Alternatively, you can choose popular trading platforms (Binance, Crypto.com, Phemex, etc.) to participate in bonus programs. This process means that the platform you are using will be able to temporarily access your funds and use them for their own needs (for example, for margin trading, loans, etc.).
3. High Yielding Savings Account
Another common way to generate passive income is through high-yield savings accounts. This option is probably the easiest. Since it is already widely used in the traditional financial field cryptocurrency .
Many cryptocurrency exchanges and money management platforms offer savings accounts for many coins. This option is great for individuals. Especially if they want to generate profits with a large portfolio that they don’t use for trading.
But which crypto exchange should you choose to receive passive income? The answer is simple – Phemex. This exchange provides all of the above opportunities for passive income, the site has been time-tested and has already won the trust of many crypto users. Let’s consider it in more detail.
Phemex.com was founded in 2019 by experienced Wall Street investors Jack Tao and his team. Phemex was created for people all over the world with the goal of simplifying and making trading tools more accessible. It is a reliable platform for trading cryptocurrencies and using financial instruments.