The bear market has lingered longer than anyone first imagined. We have the SEC, the collapse of Voyager, Terra, FTX, and a couple of other factors to thank for that. People are not just looking for the next big thing to invest in but also avenues to earn passive income.
So, there are several ways you can earn passive income in crypto despite the bear market. And that’s what we are going to show you. The standard way to earn in crypto is to buy a token and hold it in hopes that it will increase in value. This is known as HODLing in crypto.
But HODLing a token in a bear market isn’t going to bring in immediate cash. This is because prices are highly volatile during a bear market. So even the most trustworthy cryptocurrencies, such as Bitcoin and Ethereum, might not yield immediate returns. So we have to explore other alternatives. Let’s look at some passive income options.
1) Staking
Staking is one of the easiest and most popular ways to earn passive income in the crypto space. It refers to locking your funds on a proof-of-stake (PoS) blockchain platform to validate transaction blocks. Also, staking your funds helps protect the network against security breaches and threats. The POS blockchain will reward you with their native currency, e.g., ETH, In exchange for staking your funds. These crypto rewards are your passive income.
Source: Twitter
It’s best to go for PoS blockchains that allow you to delegate your stakes to other participants who are willing to take on the technical constraints of staking. This is because transaction validation could be technically challenging. However, validators get to receive a somewhat greater reward than delegators. Here are some PoS blockchains to consider:
- Ethereum 2.0.
- Cardano.
- Solana.
- Polkadot.
2) Mining
Blockchain is the technology behind cryptocurrencies, and it requires multiple computers operating in parallel to build a reliable and decentralized chain. So, the proof-of-work (PoW) algorithm is the brains behind many of the most well-known currencies, including Bitcoin and Litecoin.
In the PoW mechanism, users known as miners compete against one another to figure out the block’s encrypted solution. The individual who wins receives a reward in Bitcoin for BTC miners.
You can join a mining pool and convert an idle personal computer at home into a miner. However, you need a graphics processing unit (GPU), basic computer and programming experience, and familiarity with setting up a client application to connect to a hosted one.
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Mining is quite energy-intensive. And some states consider this a challenge, especially given its environmental risks. But money-wise, miners make a decent living. Bitcoin miners receive up to 6.25 bitcoins as rewards. However, this figure splits in half every 210,000 blocks or roughly every four years. For example, if Bitcoin trades at $24,300, then the value of 6.25 bitcoins would be $152,000.
3) Affiliate Programs
Affiliate programs have been one of the most effective marketing strategies of the past few decades. And most crypto companies have adopted it. You can make crypto money by sending users to these websites and platforms that offer affiliate marketing programs in return for rewards.
So, projects want users and visibility. As an affiliate marketer, your task is simple. Get A or B to sign up for Platform Z. In return, Platform Z gives you their cryptocurrency.
Source: Twitter
Crypto affiliate schemes are profitable for generating passive income if you run a blog with a significant following. Secondly, if you are a social media influencer, you can find this really profitable. Some of the companies providing affiliate marketing services include:
- Binance.
- Bybit.
- Paxful.
- CoinLedger.
4) Yield Farming
DeFi platforms work like regular, traditional banks. They provide you with the chance to directly participate in the lending process and make money from it. The process is simple and requires nothing special. All you have to do is connect your crypto wallets and commit your tokens to a pool with others. Tokens from this pool are used to lend to other users, who in return pay fees and interest.
Source: Twitter
So, you can be paid for participating in the lending process. Furthermore, other platforms pay you interest based on the amount you stake or hold. Interestingly, the length of the loan, the amount of the loan, and the interest rate are the three variables that determine how much money is made via crypto lending.
5) Airdrop
We all love freebies, and crypto has plenty of room for freebies. And one of them is called an airdrop. This occurs when projects decide to give out a specific number of tokens to users who fulfill certain conditions. For example, Arbitrum’s ARB airdrop was the talk of the town a few months ago.
So an airdrop is all about getting free tokens. However, there are scam airdrops. So you should be careful. Ensure the project is trustworthy. And also, make sure you get your source right. Not to worry, we sometimes provide details of upcoming airdrops when we catch news of any. So be sure to visit our site for frequent updates.
Which of these five steps seems like your next earning option?
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