DeutschLarge investors in the market buy during times of low prices and sell again in high phases. This method is called the buy low & sell high method. However, this is only one way to generate profits with cryptocurrencies. In this sense, it doesn’t matter that there is no guarantee of returns in the crypto world, because there are still ways to generate a passive income with cryptocurrencies. More on this below.
A Passive Income with Cryptocurrencies via Masternodes
If you want to achieve higher payouts, operating a masternode is an alternative to staking. In contrast to staking, the masternode also takes on administrative tasks. Examples include checking private/instant transactions or voting for software updates. With staking, on the other hand, you function more as a provider.
A masternode is a full node on which a copy of the entire ledger of the underlying coin is stored and made available in real time. This supports the network.
To operate a masternode, you must meet certain criteria. For example, the computer on which the node is operated must be online and connected to the network 24 hours a day, seven days a week. A certain amount of coins is also a prerequisite to be able to participate.
The top 15 project DASH is a popular coin that offers the operation of masternodes. 6.45 percent return per year is distributed to the operators. However, the prerequisite is to have over 1000 DASH available, which at a current price of 99.75 dollars corresponds to an investment sum of 99,750 US dollars.
Bottom line: the payout for operating a masternode is higher than with staking, but the investment is also much larger.
PoS – Proof-of-Stake – Staking with Cryptocurrencies
Users can stake their coins for a certain period of time. This means: locking away and thereby generating a passive income. This is the so-called Proof-of-Stake consensus mechanism. There are also variations of this, but they function in a similar way.
By locking away the coins, users contribute to network security and receive a certain return for it. How high this is and how often it is paid, as well as the type of currency, depends on the respective projects and is accordingly different. The selection of these projects is quite large, so it should be easy to find the right one.
The difference to mining is that with Proof-of-Stake, new blocks are generated by holding coins in a staking wallet. With mining, on the other hand, the coins are generated by providing hardware and computing power.
With Proof-of-Stake, coins are sent to the wallet and you choose how many coins you want to deposit. The amount of deposited coins determines the corresponding reward and also the chance to receive a block reward.
More terms from the crypto world in the A-Z glossary.
Affiliate Programs
If you haven’t found the right thing yet, you can orient yourself towards affiliate programs. Crypto exchanges like Bitpanda, Coinbase or Binance offer affiliate programs. Every customer gets the opportunity to bring more customers to the respective platform. For this, he receives a kind of commission from the operator. The sums that come out of this are not huge, but still an additional income for the normal user. For people with a large reach on their social media channels, such a program can be extremely lucrative. Operators of small blogs and websites can also benefit from it. CoinPro.ch also partially finances the operation of the website with it.
More about the purchase and trade of Bitcoin
