You work hard for your money; and your mining rig works hard for your coins. Shouldn’t your coins work hard for you as well? If you put your money in the bank, you usually expect some interest, as pitifully small as that interest is. If you put your money into crypto, you expect the value to rise, but it is not guaranteed in the slightest. Shouldn’t your crypto give you some additional value, and serve a function beyond just a way to exchange value? Some people out there agree. There are several projects that have a feature called “staking”, where you lock up your coins for a predetermined amount of time, and you are given a percentage back for a reward (just like a CD fund), and there are also projects that pay out dividends, like dividend stocks.
Staking Rewards
First up are projects that hold your coins in a “state of staking” within the wallet. You have to keep the wallet open on your computer, which doesn’t use an exuberant amount of resources, unless you have a qBundle-based wallet on an old computer. Examples of projects include: NavCoin, BridgeCoin, VeriCoin, Omni
Direct Dividend
Some projects will issue a share of their revenue, anywhere from 5%-50% and pay out weekly, monthly, or quarterly. You will need to research each project’s current status, as this is always subject to change, and be sure to hold your coins in the appropriate location (for example, holding COSS coins on HitBTC will not give you a dividend; HitBTC will keep it for themselves). Examples of projects include: Aurora DAO, COSS, KuCoin Shares, SIFT, TenX
Indirect Dividend
These coins do not pay out dividends, but instead the company will buy coins back and burn them, or burn part of the transaction fees, to reduce supply and raise the value of the remaining coins. Examples of projects include: Binance Coin, Quantum Project, Cobinhood, SkyCoin, Komodo
Master Nodes
While not every project offers rewards for helping support the network infrastructure (if you can believe that), most projects will give a percentage of all transaction fees to their network node operators. Some require a certain amount of coins to be owned by that node (to ensure seriousness of the node operator), while others do not require any coins to be owned at all, and anyone can run a node to earn coins.
- Examples of projects that offer rewards for network nodes, no stake required: Cardano, Electroneum, Bitcore
- Examples of projects that offer rewards for network nodes, large stake required: Graft, Siacoin, ZenCash, Waltonchain, DASH, NEM
- Examples of projects that offer NO rewards, besides being part of their cool project: IOTA, Stellar
There are plenty of different ways to earn passive income from cryptocurrencies, some requiring you to participate and contribute to the projects network, others requiring an initial investment before starting to generate passive income. Nevertheless, there are many ways to earn some additional income in the vast cryptoworld.