The next great thing in the investment world is the untapped cryptocurrency market and in particular the passive income you can make. If you have been following my blog posts, you know that I have made some early investments in Bitcoin, Ether and Dash which you can read here. (https://steemit.com/cryptocurrencies/@globalrenegade/crypto-coins-with-explosive-growth-potential-10x-your-money.)
Re-occurring income generated from a decentralized system, just thinking about it gets me excited!
Now how does someone get this type of passive income with cryptocurrencies?
First of all, you don't have well versed in writing code or anything like that to get started, there are currently a few ways to get started today with minimal investment or no investment at all. I have broken them down into two categories which I consider them to be either investment or business passive income. To earn passive income you will need to either put money down or contribute some sort of effort to generate re-occurring income.
Investment Passive Income
Here is where I will list the ways to earn passive income with money down and with little or no work afterwards. There are currently four ways to earn investment passive income with cryptocurrencies and will detail each one of them below.
- Masternodes
Depending on the coin, they could be called ubernodes, supernodes etc.. they all mean the same. What they also have all in common is that the network compensates you for having a certain amount of coins you keep in your possession and create a masternode. With some coins, being a masternode holder also give you extra privileges as the ability to vote on future projects for the coin. The coins that I know that have a masternode program are; DASH, PIVX, CHAINCOIN, CROWN, EXECL, TRANSFER, MUE, and many more upcoming. What are the returns for setting up a masternode? depending on the coin, but you can expect a pretty attractive return! Higher than 10% a year and even 30 to 40% a year with some more speculative coins. And most coins pay out either everyday or every couple of days. See live results here: Pivx (http://pivxtv.azurewebsites.net/) Crown (https://stats.crowncentral.net/) Dash (https://dash-stats.firebaseapp.com/). The cost of acquiring a masternode ranges from $80 with Chaincoin to ten's of thousands with Dash. If your on a limited budget you can always go with Chaincoin to start earning investment passive income (http://www.chaincoin.org/)
- Assest Exchange
This works much like receiving dividends from an equity stake in a public listed company on the stock exchange. However, the main difference is that here there is no middle man! Burst's platform allows you to invest in companies listed on their exchange (http://util.burst-team.us:8888/asset) while receiving dividends in return. Be careful here to invest in solid companies. Please due your due diligence before investing! The only ones that are on my radar are Burst Casino (15266167261394017138), Uniburst (6503640249706792397), CCM100 (5255893438014874161). You can also invest in a coin like Taas (http://www.taas.fund/) A cryptocurrency hedge fund where you get paid 50% of the profit every quarter.
- P2P Loans
There are many platforms that are offering these type of p2p crypto currency loans. The ones that I have used in the past are BTC jam (https://btcjam.com/) and BTC pop (https://btcpop.co/home.php). BTC Pop even allows you to get an guaranteed 10% interest rate when you lend them your money as they will lend out your money for short term loans. Considering Bitcoin's rise in price, it made it increasingly difficult for people to pay back their loans on these platforms and as of late. Even most of my A and A+ rating loans are late or defaulting. I would stay away from these services as the risk is simply too high.
- Equity investment in a private business
This is ADVANCED stuff! If you are a silent owner of a private business you can choose to be paid in full or partial payments with cryptocurrency. I will be doing this soon with one of my private businesses and its really not that hard to setup if you already have a business. For example you can use a service called Bitwage (https://www.bitwage.com/) where you send them the money from your payroll and Bitwage will automatically convert the money into bitcoin and send it to your bitcoin wallet. I guess you can set this up as if your an employee as well but that's not really passive income but rather earned income from a job and beyond the scope of this article.
Business Passive Income
Here is where I will list the different ways you can earn passive income without or little capital invested but instead some effort on your part.
- Steemit
Steemit allows one to make a passive income by putting some effort into producing good content. A great way to start earning if you have no money to invest in the ideas above. When you write articles try to focus on a particular niche, make it relevant and unique and tell something to the world that hasn't yet been told. If you make your articles interesting, more and more people will follow you and the more you will make. This will take time and persistence therefore, I really suggest you focus on something you are passionate about as it wont be about the money, especially not so at the beginning.
- Websites that you run that allows crypto payments
This is another great way to make passive income that could be used in conjunction with Steemit and used to get paid in crypto for services that you provide. Essentially, you can build a value added product offering to your audience that will allow you to make in theory limitless results (and money). With a digital product on your website you can scale and grow it into a 6 or 7 figure business with a limited resources.
Should you focus on investment or business income? If you can and have the time, you should do both! Why? Unlike investment income where, if you want to make more passive income, you will need to put in more of your own money. Instead, with business passive income as outlined above using Steemit and your own website you can scale a digital product to literally an infinite number of people allowing you to make A LOT more money.
Building a decentralized passive income stream all starts with a plan, especially if you want this to be your full-time income. How much do you have to invest? What skills do you have? What specialized knowledge do you have to offer the world? These are all questions you need to answer before getting started. Having started a few businesses myself, what I find makes an entrepreneur successful is proper planing and implementing systems very early on into the business. The more you have of planing and systems the more you scale your business to run without you allowing you to receive passive income from multiple sources.
Here is a quote for you to think about.
"I would rather earn 1% off a 100 people's efforts than 100% of my own efforts." John D. Rockefeller
The rich don't work for money. Money works for them. Get used to this idea and the more and more passive income you have the easier it will be to get out of the rat race. In the future, the "nouveau riche" will have decentralized passive income. Allowing them the flexibility and freedom that they want.
Learn as much as you can about this and start now acquiring passive income now!