There are several ways to earn money with cryptocurrencies without spending time or being an investment expert. It is enough to know what are the market options that provide passive income and choose the one that best suits personal preferences.
Passive income is income that is obtained on a regular basis without devoting time, work, effort and attention. That is, they are produced by themselves through an investment. It basically consists of putting money to work instead of stagnating savings. In this way, they can be increased.
For this reason, many people take advantage of this possibility to generate profits while carrying out other activities in their lives. In the cryptocurrency market, there is a wide variety of investment options that generate passive income for experts and beginners alike.
Although it should be noted that no investment is risk free. Therefore, it is essential to thoroughly investigate the operation and possible results of any method before carrying it out.
Trade without trading
One of the best known ways to make money with cryptocurrencies is trading. But this technique is unworkable for those who don’t have the time or knowledge, as it requires looking at the market 24/7 and understanding its indicators. That is why many platforms have tools to perform this activity automatically.
Trading is an activity that allows you to earn money by speculating on the value of different assets. In applications, such as the KuCoin or Binance exchange, this is something that can be automated so that it does itself completely on its own. You just have to choose which cryptocurrencies you want and define at what price you are willing to buy and sell them to make a profit with the price difference.
Thus, a bot or “robot” will do the work for you generating passive income, even while you are sleeping. Each application calls this tool differently, but you can easily find it if you investigate its settings. For example, in KuCoin, it is called «Spot or Futures Grid Trading«.
Another automation alternative offered by applications such as the aforementioned exchange is make systematic purchases of cryptocurrencies on pre-established days without selling later. That is, only as long-term savings and then you can sell manually when you consider. This is something called “DCA” (dollar-cost averaging or dollar cost average).
The DCA is an investment mechanism that many people make with bitcoin (BTC), due to its appreciation over time. This technique is followed by famous traders like Juan Rodríguez, who on his social networks routinely shows his more than 200,000 followers the profits he makes doing this.
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In the case of being carried out with several cryptocurrencies at the same time, the DCA can be combined with another call «smart rebalancing or smart rebalancing” to get more out of it. This mechanism automatically redistributes the money among the cryptocurrencies in your investment portfolio that are increasing in price the most.
Lend your cryptocurrencies for profit
A simple option to earn money with cryptocurrencies without doing anything is to be a lender. There are different exchanges that allow anyone to give peer-to-peer loans in exchange for receiving interest. In this way, passive income is obtained during the duration of the credit.
In the event that the applicant fails to pay it, the borrowed amount will be reincorporated in the same way. This is because the sender must deposit an amount greater than the amount he will receive as collateral. In this way, the lender ensures that he will have his money back along with interest.
Another way to “lend” money is to make stake via proof-of-stake (proof of participation), an activity that allows you to lock your cryptocurrencies to contribute to the mining process. In exchange for this, you can get rewards.
You don’t have to be a mining expert to take advantage of this investment technique. It is only important to know the terms and conditions of your process. The blocking time is predefined before starting, either flexible or for a certain fixed term. And it can be done with different cryptocurrencies and variable amounts, depending on the exchange.
Take advantage of bonuses from your cryptocurrency exchange
There are some exchanges that provide significant trading fee discounts when using their token. That is why it is advisable to find out how their bonuses work to take advantage of them at your convenience. For example, KCS in the case of KuCoin, as well as BNB in Binance. In turn, these assets increase in value if their demand grows, so you can generate passive income.
Another way to earn money without doing practically anything is to take advantage of the affiliate plan offered by the exchange you use. You can find a special link or code in its settings that will allow you to send each person you recommend the app to. In this way, every time someone registers on the platform with your reference, you can get compensation as a thank you. Some give up to USD 50 in bitcoin for each person, while others apply discounts on fees.
Choose an investment carefully that is to your liking
In summary, Earning money with cryptocurrencies without doing practically anything is a possible reality. It just depends on taking action. There is a wide variety of investment techniques that allow you to generate passive income and there is no one that is better than another. The ideal will depend on the possibilities and personal preferences of each person.
To find out which one is best for you, it is essential to thoroughly investigate everything about investing with cryptocurrencies that catches your attention. In this way, you will be able to choose the one that is right for you safely and not have surprises later or encounter unwanted situations.