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How can you generate passive income with cryptocurrencies in 2022?

 


The year 2022 is just around the corner and you have probably set yourself big goals in the new year. A dream of many people is to earn a passive income alongside their job and possibly even get off the hamster wheel. With cryptocurrencies, you have a good opportunity to start your passive income in 2022. We'll give you a few tips.

Earn passive income with cryptocurrencies

The idea of ​​passive income is to stop trading your time for money. You make money from doing other activities because your money works for you. There are numerous methods for passive income, of which investing in cryptocurrencies is a particularly attractive option. 

In the field of cryptocurrencies, you can go different ways to start your passive income. You can earn money just through price gains. You can build a fortune through staking, earn money through lending or build your own income through NFTs. It's best to combine different methods for the best possible results. In the following, we explain the individual methods.

Investing money in cryptocurrencies

The easiest and most popular way is to invest in cryptocurrencies. You can get high returns with an investment in Bitcoin, Ethereum, XRP, and Co. The strategy is similar to investing in the stock market. On average, cryptocurrencies offer significantly higher returns. In contrast, the risk with cryptocurrencies is much higher.

Whether you can build up a regular passive income with investments in cryptocurrencies also depends on the market situation. In bullish phases you make high returns, in the bear market it becomes much more difficult. Furthermore, regular income (e.g. monthly) is not guaranteed.

Passive Income Using Cryptocurrencies: Staking

If you're looking for a regular source of income, staking could help. Proof-of-stake is a possibility for consensus on certain blockchain networks. It is considered a more efficient method of achieving consensus on the blockchain than the classic proof-of-work that Bitcoin uses. With staking, small investors can take part in this consensus process and thus earn interest.

Staking is an excellent way to earn passive income with cryptocurrencies. The interest mentioned here are called staking awards and are paid out to you as rewards in the form of the corresponding coins. This only works with certain cryptocurrencies. We recently put together an extensive list of staking coins.

Lending

Crypto lending is also a way to earn passive income with cryptocurrencies. You lend your cryptos to other parties and get them back with corresponding interest. However, it is important to do good research here, because the risk of loss is higher with crypto lending than with staking.

NFTs 

A better alternative to making money from cryptocurrencies could be NFTs. NFT stands for "Non-fungible Token", a digital, unique, non-reproducible work. Most importantly, NFTs revolutionized the art market in 2021. There are now an extremely large number of NFT collections of digital works of art that you can buy, sell and trade on platforms such as OpenSea.

With a little initial effort, you could create your own NFTs and then offer them for sale on NFT platforms. The platforms mentioned are suitable for this. Just Raible is designed as a platform NFT particular attention to the artist. In the meantime, individual NFTs have already brought in six-figure amounts.

Play-to-earn im Metaversum

The metaverse was the big topic in the crypto market in the fourth quarter. It describes a virtual space in which individuals can exchange ideas and interact with one another. There are now numerous metaverses based on the blockchain. In these metaverses you can earn rewards in the form of cryptocurrencies or NFTs using the play-to-earn principle.

Some of the most famous examples include Axie Infinity, where you can raise and even fight digital creatures (Axies), and Decentraland, where you can purchase digital land and real estate. Digital land in particular can secure a passive income for you in the future.

Conclusion: earn passive income with cryptocurrencies

Building a passive income with cryptocurrencies is not that difficult. You have to be aware that it will take some time and that your passive income will be rather small in the beginning. Furthermore, there is always a certain risk associated with cryptocurrencies.

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