The crypto industry has offered people a new investment perspective, and the technology behind every cryptocurrency out there is indeed surprising and extremely valuable.
These days, blockchain technology is not used solely for crypto-related purposes. There are increasingly more industries that implement blockchain technology in their processes.
Take the health sector, for instance. Blockchain technology can innovate the industry in a surprising way, as patients’ records would be stored on a blockchain and would be easily accessible from anywhere, at any time.
And this is just one example of many available. Retail, identity management, media, real estate, such industries can take advantage of blockchain technology in no time.
But let’s get back to crypto. Besides being built in an innovative way, cryptocurrencies proved to be pretty profitable. Just think that a pizza place now holds (or used to hold) 10,000 BTC for 2 pizzas. At the time of writing, 10,000 BTC equals over $260 million. Wouldn’t every pizza place wish that it would have sold pizzas for Bitcoin?
And when facing such examples, many crypto enthusiasts may have one question: can crypto become a way of saving money? Furthermore, can users increase their income through crypto?
In this article, we will talk about some of the most popular and straightforward ways of earning and saving money through crypto. But first, what is crypto?
Crypto at a Glance
Cryptocurrencies are digital currencies that are secured through cryptography. This way, crypto is extremely safe and secure. Besides, cryptography makes crypto pretty hard to counterfeit or double-spend.
Crypto is about safety and security. And this is why so many users decide to invest in crypto. By using cryptocurrencies, users can safely transfer or exchange assets online, without worries about where their coins are going or whether they will be lost on the way to their destination.
Can Crypto Bring You Passive Income?
Basically, yes. Crypto is a pretty effective choice for passive income. However, it is extremely important how a user decides to earn passive income through crypto. Thus, let’s discuss some options.
Staking may be one of the options that can work for a long time and can bring users surprising amounts of crypto. Simply put, crypto staking is available for all cryptocurrencies that work based on a Proof-of Stake (PoS) consensus mechanism.
When a user aims to stake crypto, they have to participate in a network’s consensus process. As you probably know, cryptocurrencies are decentralized, meaning that there is no central authority that controls a coin or a token. So, the decision-making process involves multiple network participants.
Crypto enthusiasts who start staking can receive transaction fees for the work they do in a cryptocurrency ecosystem. Currently, there are many platforms that allow users to stake crypto automatically, as long as they hold a cryptocurrency that is available for staking.
In some ways, mining is a bit similar to staking. However, crypto mining is available for all cryptocurrencies that work based on a Proof-of-Work (PoW) consensus mechanism. Unfortunately, mining requires specialized hardware and tremendous amounts of energy, and this is why some users may not consider this option profitable.
Still, mining can have a pretty positive outcome once you purchase the hardware you need. With performant hardware, energy consumption will be significantly lower, and financial results will not be late to the party.
Some platforms allow users to earn crypto by participating in the lending process. This practice is called yield-farming, and it has become increasingly popular during the past years.
To get involved in yield-farming, an investor is required to connect their crypto wallet to a platform and offer a part of their digital assets to a pool where other investors do the same. The pool is used to lend crypto to other users, and the lenders can earn crypto through interest and fees.
If you are looking for a more intriguing way of earning crypto, P2E (Play-to-Earn) games are an option worth considering. Play-to-Earn games are online games developed on a blockchain. In a P2E game, users can earn crypto by completing various activities, depending on the game.
Usually, crypto airdrops are giveaways or special events organized by crypto projects. During such events, a company aims to reward users who complete various tasks, such as following the project on social media or creating an account on the platform.
While there is little to no possibility of winning Bitcoin through crypto airdrops, there are many projects that offer significant rewards. In time, such rewards might increase your winnings. How? Well, it is not news that crypto is extremely volatile. And while sometimes this fact can have negative outcomes, other situations may lead to a user gaining thousands of dollars once a cryptocurrency’s price increases.
Are Users Considering Crypto as a Way of Saving or Earning Money?
Usually, stats do not lie. And once we check some charts, we can learn that there are hundreds of millions of crypto users worldwide.
Take the UK, for instance. Currently, it is estimated that 4.2 million people in the United Kingdom are cryptocurrency owners. This means that 6.2% of the UK population holds at least one cryptocurrency. This is pretty impressive, considering that crypto is still new to the table. In time, increasingly more people will decide to invest in crypto, and they might not be wrong when doing so.
Indeed, there still are users who believe that crypto will gradually disappear, but the fact that 6.2% of a country’s population has already invested in at least one cryptocurrency can be an argument worth considering when thinking whether this is a profitable practice.
Just think that ever since 2009, when Bitcoin was launched, there are almost 5 million UK citizens that found crypto intriguing, profitable, and safe enough to put a part of their money into it. Imagine that there is at least one user who bought multiple BTC for around $0.00010 (one of Bitcoin’s first monetary values). And now multiply it by $26,000 (at the moment of writing). This might leave a user with some savings after all.
Crypto has become extremely popular over the past years. Being surprisingly innovative and helpful, the crypto industry gathers many enthusiasts around it. For instance, 4.2 million UK citizens own crypto, meaning that 6.2% of the UK population holds at least one cryptocurrency.
Now, some of the best ways of earning passive income through crypto are mining, staking, yield-farming, P2E (Play-to-Earn) games, and crypto airdrops.
Crypto can be an effective way of saving and earning money, as all cryptocurrencies can increase their prices, and this can lead to crypto users increasing their winnings.