The biggest investors known to man today and in the past have always stressed the importance of finding ways to make passive income. These investors have gone on to build billion-dollar businesses either through the stock market, real estate or through the building of billion-dollar businesses. One of the most admired billionaires of our time, Warren Buffet, once made this quote in reference to passive income “if you do not find a way to make money while you sleep, you will work until you die”. That quote stresses the need to get going when it comes to finding ways to make passive income.
There are ways to set up a passive income stream when it comes to crypto as well. Some of the popular ways is staking as well as also being a master node. Staking is regarded as one of the safest ways to generate an income since block rewards are fixed unless there is a hard fork. Master nodes are very similar but they require fixed collateral of about 10000 coins before you can receive block rewards. It may also be necessary to rent a server to host your master node, which is another expense to keep in mind.
Master nodes and staking have their pros and cons. Setting up master nodes takes quite some doing which may be out of reach for most people. Master node collateral is quite costly, for instance, Dash Master Nodes need DASH worth 260,000 dollars. Being a master node, however, means you get to participate in voting or get more voting rights as well as increased block rewards in hybrid proof of stake master node chains. On the other hand, staking requires zero collateral the catch is that the block rewards for staking are far less than those given to master nodes. It is always advisable to research a coin before deciding to buy it, whether the coin has master nodes in it or not shouldn’t be a factor.
A lot of crappy coins will use the fact that they have master nodes as a selling point, but this shouldn’t be enough to sway you. Trading bots are used by some of the top firms when trading in traditional finance and crypto is no different. A trading bot can help you create some passive income in crypto as well. You can create a bot if you have programming experience, or pay someone to make it for you if you lack the experience. You can also go for open source bots online but be careful when giving out your API keys. You can have your bot make some good change by making it trade simple stuff like EMA crosses as well as indicators.
Copy trading is another way of generating some income as well. This is, however, a high-risk method which can be quite disastrous if it goes south. Copy trading entails one automatically copying a trader when they make a trade, and minting some good change if the trader makes a profit. If you are a trader, you can make passive income from copycats after you allow them to copy your moves. 1Broker is a crypto-based exchange that permits copy trading. The choice of copy trades is up to the traders, those that want steady growth can have it, and those that want high-risk rewards can have them as well. You do not have to work till you drop dead, embrace some of these passive income techniques and change your lifestyle.
I am a crypto enthusiast based in Nairobi Kenya, who loves investing, research writing, reading, fitness, African food, and soccer.
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