Yes, It’s Possible! How To Make $100 Per Day With Cryptocurrency (Passive Income)

What’s up my personal friends it’s Adventago, back at it again with that super-hot content!

I haven’t given this topic much attention, so I think I’m doing it a disservice, in this blog post I’m going to be going over passive income, but not as you normally know it, this is going to be a little different…

Most of us already know how to make passive income with stocks, dividends, REITs real estate, or creating a business, 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.

Well then! Let’s go over a few of the ways that you can begin earning passive income with cryptocurrency as a complete beginner.

We all know that the cryptocurrency space has a bunch of sketchy people.

I have no reason to give you terrible crypto advice since it robs me of my credibility and the whole community, I get no financial kickback from any of these companies I am offering to you, please do your own research, this is not financial advice.

So, without any more delay here is everything that I have learned along the way that’s helped me.

All I ask for in return is if you liked this post, and want to see more like this then, do me a tiny favor and follow me on whichever platform is best for you.

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For PC click the GREEN bar at the bottom, and for MOBILE click the BLUE button at the bottom of your screen to get immediate notifications from your browser.

Make sure to follow my good friend Paul Democritou

He is the Host of The Crypto Factor Podcast | Co-Founder of Bitbullz.io | Author | Blockchain & NFT Consultant | Cancer Survivor & Marvel Fan. #Bitcoin

The first and most straightforward way of making passive income with cryptocurrencies is through what’s called an…

1. Interest Bearing Account

This is likely the quickest way anyone can get started, just like you can go to the bank, deposit your money and get a very low-interest rate.

You can deposit your cryptocurrency throughout several exchanges earn a pre-set return depending on the amount you hold and believe it or not the return is very good.

Here are a few examples BlockFi pays 4.5% on Bitcoin, 5% Ethereum, and 9% on USDC.

Celsius Network pays more, up to 8% on Bitcoin, 7% on Ethereum, and nearly 11% 10 USDC

Voyager pays the same interest rate regardless of how much you hold on to the platform.

For myself, my thought is that if I’m planning to hold on to the underlying cryptocurrency anyway.

I may as well earn some interest in the process, otherwise, I’m leaving money on the table for what probably amounts to just a few minutes’ worth of work.

It would be kind of like choosing to keep your money in cash tin cans and then burying it in your grandma’s backyard, instead of moving it over to a bank to get paid interest.

The concept is the same but the money you make is drastically different, usually, at this point, the go-to question is.

How are they able to pay out such high-interest rates when banks are barely able to pay out anything???

Good question and here’s how, when you deposit money in one of these platforms, they’re going to take that money and then loan it to retail and institutional investors at a higher interest rate than they pay you.

It’s no different than me saying “Give me your money I’ll pay you a 5% interest rate, and then I can lend that money to somebody else at 8% while I profit the difference”

As for why stable coins pay significantly more than the rest, it’s because there’s a universal demand for a stable coin that’s pegged one to one to the U.S. Dollar, they’re a lot less volatile, and in a way, they could be riskier.

For example, most exchanges pay a little bit more if you stake Tether, likely that’s because it’s not audited and guaranteed to be backed by real a currency and there’s a chance it’s all fake money being printed out of thin air.

There’s also the risk that with stable coins they’re not as strictly regulated or backed by FDIC insurance, and there’s very little transparency about the inner workings of each token so in the event something happens there’s a chance your money could all be gone.

There’s also a chance that the entire cryptocurrency market could collapse, or you become too reliant on an exchange that could halt transactions and withdrawals with no advance notice whatsoever, and then your money is stuck until you reach customer service, and that probably won’t help you at all.

This is a risk you’re going to have to accept if you want to get into this, so I would recommend you invest an amount you are ok with losing.

But with risk comes reward, and when you see these places offering you 2 to 14% interest annually just for moving your money onto the platform and then doing absolutely nothing it’s going to work quite well as long as nothing goes wrong.

Most platforms are relatively safe, but nothing is risk-free and that’s a factor you must remember even though it could be a great way to earn passive income through cryptocurrency that you are planning to hold anyway.

The second option for earning passive income with cryptocurrency is what’s known as…

2. Staking

It’s important to mention that with cryptocurrency since there’s no central authority overseeing all the activity, these transactions are processed in 2 ways, one is proof of work, and the second is proof of stake.

Proof of work relies on computing powers to solve complex algorithmic problems that reward users with cryptocurrency, these are typically the intensive mining rigs you see set up in large warehouses or people’s basements.

People could make a lot of money doing this depending on the price increases, the cost of energy, and the country they live in.

Although the problem with proof of work is that it’s energy-intensive, it could take a lot of money to start up, and as algorithms get more and more difficult to solve it could take longer and longer to get paid.

This takes us to the second passive income solution and that would be proof of stake.

Like I said 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.

As a way for no one person to have central authority over the entire system, users can stake their cryptocurrency and receive rewards without having to do the computing power to mine the cryptocurrency itself.

By doing this, transactions are validated by users who deposit their cryptocurrency on the network, and in a way, the amount you stake translates into the number of votes you have on the blockchain.

When the majority of those votes all move in the same direction the transaction is confirmed, and those who stake their coins get the reward.

In this case, the more money you stake the higher the chances of validating the next transaction and the higher the chances you’ll get paid.

You can also join what’s called a staking pool which combines forces and then shares the collective reward by placing more money within the network.

In the simplest form imagine staking as though you’re putting money in a CD for 1 to 24 months and in return, you get a slightly higher yield.

The easiest way for most beginners to get started is by signing up for a reputable exchange like FTX, Coinbase, or Binance.

Compare the differences between the interest rates, lock-up period, and the amount you want to invest, and then follow their instructions.

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 to the blockchain.

However, doing this usually requires much more money to be invested and you must run your internet 24/7, so for beginners, it’s usually a little bit more advanced but the pay-outs are higher.

The downside is that there are risks namely that you’ll tie your money in the blockchain for quite a while during which the market could fall and you’re unable to sell.

Overall, it could be a great way to earn passive income with cryptocurrency that you were planning to hold for the long term anyway as long as you don’t need to sell anytime soon.

After that, we have a third way of making passive income and that would be by…

3. Lending

Under this business model, you would lend your cryptocurrency to someone else who pays you back with interest over a set period of time.

But unlike other loans that are unsecured and the borrower risks nothing in the event they don’t pay it back besides ruining their credit score.

Cryptocurrency lending is sometimes backed by the borrower’s cryptocurrency, so in the event, they fall behind you can get some or all of your money back.

It would be no different than me wanting to borrow a few thousand dollars from you but as a cause in the agreement, to do that I need to lock a few thousand dollars away of my own Bitcoin just in case something goes wrong, and you need to get your money.

Even better because these loans are built around smart contracts the blockchain takes care of all the terms for you, so the process is entirely automated, and you never have to worry about trying to track somebody down for payment.

Aave is a very popular platform that matches borrowers and lenders together in 1 place and then pays users back in interest with the Aave cryptocurrency.

As a borrower, you’ll be able to take out a loan that is equivalent to the amount of money that you hold on to the platform.

For example, if you have $100 of Bitcoin you would be able to borrow a maximum of $82.50.

If your $100 worth of Bitcoin drops below the value of $85 that position will automatically be sold off to pay back the lender and reduce the risk of default.

But as an investor, you’ll be able to issue a collateralized loan paying an interest rate that constantly fluctuates by supply and demand.

In this case the more supply there is, and the more people want to lend out their cryptocurrency the lower the interest rate you’ll get paid.

Or the less supply there is, and the more people want to borrow cryptocurrency the higher the interest rate you will get paid.

The risk however is that borrowing, and leverage only works so well until it doesn’t, and in the event of a market crash things can go bad quickly.

Also, as far as I’m aware there’s nothing stopping anybody from doing what’s called the infinite leverage loop.

Where they deposit $1000 and Bitcoin borough $800 with the Ethereum convert that into Bitcoin put that back on the platform then borrow another $640 of Ethereum and then repeat this process a dozen times until eventually, they have $5000 worth of the purchasing power with a deposit of only $1000.

I’m not saying someone will go through all the hassle of doing this, but it is something that can happen.

Although I think the cryptocurrency leverage is going to be an issue at some point especially if the market sees a large sell-off that sparks all these leveraged positions to be sold off and that causes the price to drop even further.

You can do the fourth thing which is called…

4. Liquidity

At any given point there’s an unusual amount of buyers and sellers out there willing to exchange or trade their cryptocurrency for another cryptocurrency or sometimes sell it for cash.

But the issue is that there’s not always a ready and willing buyer at the precise time that you want, or even worse this gets significantly more difficult if you want to exchange one coin for another.

As a solution a liquidity pool is used, this allows investors to buy, sell, or exchange, different pairings of cryptocurrencies at any day, anytime at a moment’s notice, no matter what the price is, without having to wait for a buyer or seller to appear.

For example, you could provide liquidity by depositing $400 worth of Bitcoin and $300 worth of Ripple into one platform, allowing other investors to easily exchange their cryptocurrency between pairings and paying a small fee to do so.

Hmmm, that sounds cool Adventgao but where does the fee go?

Good question, since you were the one who provided the liquidity between the pairings that fee goes to you constantly, depending on how many people use it.

With Uniswap Protocol they’ll charge a 0.3% fee on each trade which is proportionally distributed amongst liquidity holders and can add up to a significantly high return.

However, the downside is that by becoming a liquidity provider there is the risk of what’s called an impermanent loss.

This is where you would have made less money by investing in a liquidity pool than you would have made by simply holding on to the cryptocurrency, to begin with.

For example, let’s say you invested Cardano and Ripple into a liquidity pool, but during that same time, the price of Ripple tripled, your money would have been worth a lot more if you had held onto it normally.

The same could also be said if the value of either currency falls in relation to the other thereby costing you more money.

As usual, there’s no completely risk-free way of making passive income but through websites like Uniswap Protocol.

You can get liquidity fees passively, but the more people that do this the less money you’ll end up making, and there is a chance you could lose money, but the reward might be worth it.

5. NFT’S

People are making passive income through NFT’S for example, ReNFT offers a protocol where NFT owners can lend their NFT’S to someone else for a set period of time and price with the assurance that after that time frame is up the person gets their asset back.

But Adventago, why would anyone do this? Simple people like to show off the cool things they have to other people, also people rent out gaming NFT’S to different players as a way to level up their character.

There’s also the chance to earn NFT royalties any time it changes hands in the secondary market.

For example, if you make some digital artwork the original creator might receive 5% of the sale price every time their artwork is resold.

The process is entirely automated and if you’re in the business of minting NFT’S it could be quite profitable.

However, just like with anything the bigger the reward the bigger the risk, and arguably NFT’S are much more difficult to liquidate in the event you need the money quickly, or in the event, the market drops.

Overall, I think these strategies are worth exploring but for most people simply staking or holding your coins in an interest-bearing account would be the easiest approach while maximizing the amount of work and minimizing the risk involved.

Of course, nothing is risk-free and there’s always a chance you could lose money although to lessen those odds it’s always a good idea to use multiple exchanges, spread your money throughout as many different places as possible, and insulate yourself from the chance that something happens to 1 of them.

But as a way to earn a little bit more money without being actively involved all of these are definitely worth looking into.

If you’re interested in becoming the change you want to see in the world, love what you do, become seen and trusted in your niche, have the income to do what you love, and the power to say no to whatever you don’t like, then click here to follow me …

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And

Click here now to grab a copy of my brand-new book Skills. Scale. Sustainability. “The invisible key to recession proofing your business and how you can massively thrive even during a terrible economy”

For PC click the GREEN bar at the bottom, and for MOBILE click the BLUE button at the bottom of your screen to get immediate notifications from your browser.

Make sure to follow my good friend Paul Democritou

He is the Host of The Crypto Factor Podcast | Co-Founder of Bitbullz.io | Author | Blockchain & NFT Consultant | Cancer Survivor & Marvel Fan. #Bitcoin

Thank you so much for spending some time with me, and until next time this has been Adventago, bye for now.

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