Today we’ll about my favorite crypto passive income strategies for this year, and how to make passive income with crypto this year, even if you are a complete beginner!
I think there are two types of people who can call themselves beginners in crypto.
One type is overly optimistic and may be prone to risk way too much.
Like this famous 33-year-old Dogecoin millionaire who invested his lifetime savings of $250k in the meme coin. He spent years and years saving everything he could while living in a garage. And then one day he just has thrown all his savings at some overhyped Dogecoin. Would you do something like that? I know for sure I wouldn’t!
Another type of beginners in crypto just keep crying that they didn’t get into the market early enough and keep saying that all the insane gains were already harvested by other crypto millionaires. So they always feel it’s too late to start and never actually invest in crypto.
I want to show you in this post how you can be somewhere in the middle in a sense that we don’t want to use any extremely risky ways of making money with crypto, but we also understand that it’s not too late to enter this market because really it’s just entering its best times.
By the end of this article, you will have 5 best ideas on how to invest your money in crypto to actually make some passive income. And it doesn’t matter whether the market is going up or down, and even if you never bought cryptocurrency before – some of these ideas will definitely work for you!
Buy and hold Cryptocurrency for years
The first way to earn crypto passive income is by holding it for years. Probably it’s the easiest but it’s for people who have patience and see crypto as a long-term investment. You can simply buy one of the biggest cryptocurrencies like Bitcoin or Ethereum and hold it for 5 or 10 years. You will see the returns only when you sell the crypto.
If you want to try also some of the altcoins that have higher growth potential, check some of the top-10 or top-20 coins. You can do some research on this site Coinmarketcap to understand which coins have a high market value, and some history, real projects, and teams behind them. All of this information will be listed for each coin right on the coin page under the price history.
Where can you buy cryptocurrencies? On crypto exchanges. One of the biggest and easiest to use is called Coinbase.
Become an Affiliate or Referral for Crypto Platforms
The second way of making money on the crypto market is also very simple and doesn’t cost you anything. You can become an affiliate for the most popular platforms and services like Coinbase, Binance, and many others. I’ve just shown you my referral links above.
When you join Coinbase through my link for example, you get a $10 bonus and I get the same bonus on my account.
As soon as you create your account on Coinbase, just click here on More and you’ll see the button Invite Friends.
This is where you will get your referral link and now you can either send it to your friends and family interested in crypto or if you are an influencer, use your social media platforms to promote the platform.
Binance has a bit different rewards system and almost every platform related to the crypto market will have a referral program available for you as soon as you become a user.
Crypto Trading Bots
The next way to make money with cryptocurrency is very passive – it’s by using crypto bots. I personally have been using it for several months now and it took me about 10 minutes to set each of these bots, and then I might not even check them for weeks.
I use the Bitsgap platform to run these bots, you can start a free trial using my link, anyway you’ll find all the links to the platforms and resources I mentioned today in the description below this video. On Bitsgap, you can set up some demo bots using imaginary money, so you don’t even have to invest your own money right away. You are running these demo bots to learn and test the trading bots.
So how does this method of earning crypto passive income work? I hold several cryptocurrency pairs instead of just one coin. The bot is taking advantage of the volatility of cryptocurrencies. They are going up and doing at price many times a day. And I get passive income every single day from these little transactions that the bot makes every time the coin goes a little bit up or down in price.
Maybe you heard something about day trading. That is a full-time job and it’s not passive at all. With crypto bots, I don’t have to do any work, I just set the bots with certain parameters initially and let them work on their own for many months.
And another great point with these grid bots is that even when the market is going down, you can still make money. For example, in the last few months, since I set the bots, the prices of these cryptocurrencies have been slowly going down.
But in spite of this bear market, the grid bots still managed to make some bot profit and I still was able to earn crypto passive income. You might ask me but what is this red value, isn’t it the loss in value?
Yes, like I said, for several months, we’ve been in what you can call a crypto winter when all cryptocurrencies are going down in price following the Bitcoin price.
So indeed, the price of these coins went down quite a lot since I set these bots. But because during all these months I’ve been running grid bots, I am actually in a better position compared to people who just bought the crypto and are holding it through the bear market.
I’m in a better position in the sense that part of the losses on the coin price is covered by the bot profits. And I want to make here another point just to clarify something.
When we are talking about losses, we can only consider it a loss IF and WHEN we actually sell the coin at a loss.
If I just hold the coin until the market gets back to the price where I bought the coin, I don’t lose anything. And personally, I am only buying the crypto that I intend to hold long-term. Probably for years.
And in this sense, I really like a comparison with the real estate market. If you bought an investment property, you are renting it and making profits every month. This we can compare to the bot profits which come to your account every day.
If the real estate market crashes, your property can lose market value but you still keep making money by renting it. If you don’t sell the house during the market crash and wait a few years for the market conditions to improve, you will not be at any loss.
I learned about this method and all the settings for these grid bots from Dan Hollings. His program might be open when you are watching this video, it opens only a couple of times per year. So go to anastasiablogger.com/crypto and check if his free training is currently available for you to watch. If not, you’ll have a chance to leave your email on this page and I’ll send you more information about crypto trading bots to your inbox.
Interest Bearing Accounts for Crypto
Another way to make money in crypto passively involves Interest Bearing Accounts.
How do they work? Crypto interest accounts enable you to stake your coins for a period of time to earn interest similar to traditional savings accounts. The difference is that crypto interest rates can be well over 10% per year.
Now, you might tell me that sounds too good to be true! In a way, you have a point because cryptocurrency interest accounts are not covered by FDIC insurance like your traditional savings accounts are covered up to $250,000.
US regulators haven’t been too keen on these account-style products. For example, one of the most known companies in the field, BlockFi was forced to stop offering the accounts to US customers.
Also, another popular platform Crypto.com, for example, isn’t available to New Yorkers. By the way, this video is not sponsored by any of the platforms that I mentioned, I just want to give you a general overview of all the options you can use to maximize your crypto earnings.
You can have a look at the platforms like:
Again, these platforms offer very attractive rates on average about 10% per year.
But can we say there are 0 risks associated with this method? Definitely, there are some risks, if the entire crypto market starts crashing, we don’t know which of these platforms will survive.
But if you understand the risks of cryptocurrencies in general, and you still decided that you want to hold some amount of crypto long-term anyway, I don’t know why you would not take advantage of these interest-bearing accounts.
The next method is Staking cryptocurrencies. It’s often confused with the previous method that we talked about, with interest-bearing accounts or you could call them also crypto savings accounts.
Staking is similar in a way that it also allows you to earn a certain reward, something around 10% annual interest. But staking the process of actively participating in transaction validation (similar to mining) on a proof-of-stake blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn staking rewards.
There are lots of proof-of-stake cryptocurrencies you can consider. Here are a few of the biggest:
- Cardano (ADA)
- Solana (SOL)
- Polkadot (DOT)
- Terra (LUNA)
To start staking a cryptocurrency, you first need to purchase it on one of the exchanges that allow staking. Not all exchanges even offer this option. So should stick to exchanges that give you full control of your crypto. Some of the top options include:
Before buying any particular coin, use the help centers of these platforms to make sure you will be eligible for staking because there are many nuances to it.
For example, on Coinbase staking is available in the US and many other countries, including a lot of European countries but not yet in Portugal where I live, so for me staking on Coinbase isn’t even an option.
Also, you need to have a look at the particular coins available on each exchange for staking before you decide which coin to buy for that matter.
Generally speaking, I found that Binance.com offers a lot more options for staking – there are more coins and more duration of staking options.
You can use my referral links in the description below to get great bonuses when you open an account on these platforms.
So to wrap up this video and the top 5 most passive ways to earn income with crypto, I would say they look really rewarding. But make sure you do proper research before you invest your money in anything. The amount of investment should be tied to your personal risk tolerance but I recommend you to start with smaller amounts first and see how things really work.