Crypto is not only a new investment asset but it can also be a passive income stream.
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There are numerous ways to earn passive income in crypto.
You can get this passive income either in the form of crypto, a native token of a particular blockchain or protocol or in the form of fiat currency depending on the type of method you choose.
Some methods require a deep understanding of blockchain technology while some just need basic information to start earning passive income.
Some of these methods are fun to be a part of and some don’t require much effort from your side.
Here are 6 fresh ways to earn passive income in Web3:-
Node
As the trend of crypto is increasing, node projects like FLUX and Pocket Network are also increasing.
Nodes are the backbone of Proof of Work mechanism-based blockchains. However, they are used in another mechanism as well.
A node is a type of digital or cloud-based computer system or space that provides the infrastructure for web3 to perform a variety of activities such as data streaming and data processing.
This process is also called cloud mining.
In this way, it has become a new way to earn passive income.
It costs only a one-time setup of the system in which you have to buy tokens of that web3 crypto project.
Crypto Investing Rewards
Many crypto projects work on coin generation and coin burning.
On these crypto networks, when transactions are added to the block, new coins are generated from them. Along with this, some coins are also burnt by staking or otherwise, that is, they are out of supply, if you say in the language, they are finished.
Whenever new coins are created and exhausted in this way, a reward is given to the holders of that coin because they have trusted the network and in a way, they are the shareholders of the network.
In this way, depending on the investment, you get crypto or tokens in your investing account or wallet.
One can invest in these projects directly by going to the network which is a decentralized method or one can also do it through any crypto exchange.
Whatever your reward is, you will continue to get it. And of course, more investment will get more rewards.
Social Apps
One big example of such a program is Brave Browser, which is built on a blockchain. It does not contain advertisements, but by doing that you can earn Brave Tokens.
One such blockchain-based social media platform is Tip Me a Coffee, in which you get a crypto token reward for posting and sharing content.
There are new D-apps or apps based on Blockchain, which give their users tokens or crypto rewards on the platform, which later you can convert to dollars or rupees by visiting crypto exchanges or lending them.
One can earn interest by lending these tokens.
Defi Lending
Decentralized Finance or De-Fi is such a platform in which all the activities of finance like lending, borrowing, etc. are decentralized without any interference from banks or the government.
This is done through crypto and various tokens.
Through these De-Fi platforms, you can lend your crypto and earn huge interest either in crypto or in dollars.
Apart from this, you can earn passive income by locking in your token or crypto liquidity pool as well.
For lending, you can use any trusted De-Fi platform like AAVE, Compound, etc. However, before using any platform your research is compulsory as these platforms are vulnerable to fraud.
Because these platforms work based on smart contracts, there is no work of intermediaries in them.
Staking
In the staking method, the crypto network rewards investors who lock their assets such as a particular currency related to the network. And needless to say, stakers get rewarded in interest during the locking period.
Many blockchains are now taking the route of Proof of Stake from other mechanisms including Ethereum. Ethereum recently went from proof of work to proof of stake on 15th September 2022.
The PoS method brings passive income streams. PoS blockchains rely on users who stake assets because miners no longer secure the network by confirming transactions.
Typically, networks compensate users that lock assets for extended periods with bigger payouts and customized lockup durations.
The reasoning behind this is that use the more assets a network secures, the less likely it is that bad actors will launch a 51% attack.
These blockchain networks’ decentralized exchanges impose a lockup period to make sure staked assets can’t leave the network and affect its stability.
Crypto Affiliate programs
The best way to earn passive income from crypto is through the crypto affiliate program.
Because this crypto project is still new, then they give affiliates for marketing.
If you don’t want to be a part of any blockchain directly, you can just promote their products.
However to do that you need to know about affiliate marketing and blockchain network.
You can promote these crypto products like – Courses, Crypto exchanges, P2E games, NFT, Defi protocols, etc. through various methods such as Videos, Blogs, Ebook, etc.
By doing affiliate promotion on these platforms, you can easily earn passive income through affiliate marketing.
In this, you can do many types of promotions such as crypto exchange, De-Fi, or even any D-app.
Final Thoughts
Where blockchain technology has brought new solutions to traditional problems such as internet privacy and security. It has opened several doors for passive income.
As it is still in its early stage, so by starting your journey now you can earn decent passive income in coming years and can get the benefit of early adopters.
