The Holy Grail of Passive Income – 1. Interest
The lure of having a steady stream of money flowing to your bank account without you having to do much is just too powerful for most of us mere mortals. Passive Income, as it’s called, has been instrumental in making many personal fortunes.
But just as they say THERE IS NO FREE LUNCH, real 100% do-nothing-for-it passive income doesn’t exist, there is always something you have to do to generate that “Passive” Income. But in some cases the extra effort required to get this income is minimal, so we call it this way, as is the case with the interest earned on the money kept on a savings account.
But beware! The internet is full of scams promising to make you rich on passive income. You must do your research before sending any money (or crypto) on one of these passive income methods. Just like the interest on a bank account, most true passive income sources will not get you astronomical rates of return.
The first Passive Income method I will show you is interest just as with a bank account in the real world. There are a few sites where you can earn interest on your crypto holdings. The interest you earn is paid in crypto.
Some faucet sites will pay interest if your account goes over a certain minimum balance, that way you could use your microwallet account in those sites as a savings account.
Freebitco.in pays 4.08% annually for bitcoin holdings over 0.003 BTC, the interest is paid out daily. I have been using this site since November 2019, and have made deposits and withdrawals without a hitch.
Cointiply also pays out interest on their site-specific coin, for those balances over 35,000 coins. The Cointiply coin is pegged to the US Dollar, at a rate of 10K coins to 1 USD, and the current interest rate is 5% annually.
Now, instead of going to a faucet site working like a bank you could also go to a Decentralized Financial (DeFi) site. These sites are the crypto equivalent of a traditional bank, collecting deposits and extending loans.
BlockFi pays interest on Bitcoin, Ethereum, Litecoin and some stablecoins (USDT, GUSD, PAX).
Celsius Network handles many different cryptocurrencies.
Crypto.com has multiple features, including exchange, wallet and lender
Nexo is a full service DeFi that pays interest on stablecoins and USD, EUR or British Pounds.
The interest rates you can earn on these sites range from 4% up to 10%.
Another way of getting passive income thru crypto assets is with staking and mining. I will explore a few resources for doing that in our next article.
It must be noted that even though all the sites mentioned in this article have been proven to be reliable, there is always risk associated with dealing in cryptocurrencies. This is an unregulated market, so care must be exercised to contrast the information provided in this article before you commit any funds. This article is not intended as financial advice.