If you are looking for more ways to potentially improve your cryptocurrency earnings, then this article is for you. As cryptocurrency is proliferated throughout the digital sphere, now more than ever there are many ways outside of mining and holding currencies to earn passive income from your investments.
So if you are interested in more than just holding onto your tokens, and you want to see your investments grow, then keep reading. There are a few options available, so I am sure you will find one that fits your crypto-needs and matches your investing aptitude.
This article looks at a few ways to grow your crypto earnings from leveraging your current holdings to making savvy investments in the hardware that support the distributed networks your currencies operate on. Let’s face it, mining is not a viable option for most of us. However, there are several less capital heavy and time-intensive ways to increase your crypto wealth.
Here you will get the basic information you need to understand how to grow your holdings. This is the right place to get an excellent start before you do further research into what the right method for you and your investment capacities are.
This article goes through the following ways that you can potentially passively increase your crypto-earnings.
- Run a Lightning Node: for the tech savvy
- Coin Lending: margin trading and coin lending
- Airdrops, Forks, and Buybacks
- EOS Systems
- EOS dApp
- Ethereum dApps
- Staking cryptocurrencies and Proof of Stake
- Masternodes cryptocurrencies
Passive v. Sorta-passive
The focus of this article is passive ways to earn income in the crypto world, particularly, the various ways you can earn interest on your current holdings. Most of which includes your participation in powering the decentralized network, or by staking your own tokens and earning interest on your current holdings.
Some of these investment strategies definitely require more of a commitment than others. Whatever you decide, make the decision based on your current comfort level and what suits your budget.
Remember, the greater the risk, the greater your potential rewards. Still, I am always an advocate for doing your homework, and knowing what kind of options are out there.
Here are 7 viable ways to potentially grow your earnings while you HODL (that’s – Hold On to your coins for Dear Life).
Running a Lighting Node
Layer 1 & Layer 2
In Blockchain Basics, Daniel Drescher describes blockchain as a software system that is made up of two layers; application and implementation:
- Layer 1 is the application layer. This layer is responsible for all of the user-facing components. These are the things you use when you interact with your cryptocurrencies.
- Layer 2 of the implementation layer is the physical technology and design that makes the application work; these are things such as the protocols and code that run the program.
The Lightning Network concerns the “Layer 2” payment protocol. This network operates on top of a blockchain-based cryptocurrency (like Bitcoin). So in a way, it is an addition to the blockchain. And by using lightning networks transactions are made much faster.
Lightning networks allow for crypto micropayments to operate on a bidirectional payment channel. To contrast this, typical transactions are one-directional; when Alice sends Bitcoin to Bob, this means that Bob cannot use the same channel to send or receive funds from Alice.
But here is the catch, in order for bidirectional channels to work, our hypothetical users, Alice and Bob must agree to the settlement before the transaction is confirmed. So when the open a transaction, they both must confirm how many Bitcoins each will deposit into the same channel.
Enter the Lightning Network
Lightning Networks use a soft fork, such as Segregated Witness, or SegWit. A SegWit soft fork is used to provide flexible transactions. SegWit is used in the Layer 1 blockchain of Bitcoin, which is a soft fork change in the transaction format of the cryptocurrency bitcoin.
A soft fork splits the transaction into two segments, in doing so the signature is removed, or more specifically the unlocking signature (or the “witness data”). This effectively makes two separate transactions, where the original portion is separated from the end of the script structure.
By doing this, the original section contains the sender and receiver data, and the new “witness” structure contains the scripts and signatures. The “witness” segment is counted as a quarter of the real size, while the original data segment is counted normally. And so the transaction can move faster because it is actually moved in pieces.
Lower Fees with Lightning
So why is this a good way to make passive income? Because it is a partial answer to scalability issues and fluctuating transaction fees. The lightning holder makes money by processing transactions; lots of transactions, quickly.
Not only do these make transactions faster, but over time, Lightning Network fees should also bring down Bitcoin transaction fees. This is because when transactions are faster, easier and cheaper, it solves some of the current scalability issues distributed networks face.
Transaction fees are proportional to the time that funds are held and how long they take to process on a particular route of the network. Fees are also affected by high traffic on the network. But Lightning technology allows many transactions to be settled on one single blockchain transaction.
Moreover, as it stands, it is not financially feasible to send micro payments of Bitcoin. With cheaper fees and faster transactions however, the scalability of micropayments will alleviate some of the bulk of the system.
Because lightning Networks work as a soft fork they create more malleability than a Bitcoin transaction has. Bitcoin script was intentionally designed with the original limitations in place. These limitations work to prevent unintentional transaction malleability.
Invest in Lightning
Although Lightning Networks nodes are not offering large immediate returns, they do offer fees for transactions. And, it stands to reason that there will be a greater market need for them in the very near future.
Here is a summary of a few of the challenges that Lightning Networks are helping to improve, outlined by Poon and Dryja:
- Nearly instant transactions make paying for small purchases with Bitcoin feasible and non-revocable.
- Reduce the need for cold storage wallets (off-line storage) by making it possible to large size payments on and off exchanges quickly. This could also potentially reduce the risk of theft and the third party intervention of the exchanges.
- Third-party custodians would no longer be necessary for micropayments. Presently, Bitcoin’s blockchain fees are far too high to accept micropayments.
- Move time-sensitive and large size computations off-chain to improve the rate of Financial Smart Contracts and Escrow.
Coin-lending is a totally passive way to earn crypto-funds and to grow your investments. Likely the best way to participate in coin-lending is to set up automated lending on an exchange platform. Coinlend offers a totally automated system, where AI manages and coordinates the lending of all currencies on that exchange.
Letting the system run the loans for you is easily the most efficient and effective way to lend. The more funds you have available on the exchange for lending, the more your automated system will work for you, and thus the more passive income you will earn. But this also means keeping a large amount of crypto on an exchange, which you must also consider when assessing your risk appetite.
While the bots do the hard work, the user is in control of the parameters of lending. So, you can set up the length and amount of your loans. Loans can range between a few days and several months and also in size; it all depends on what form your passive income is.
Bots for Rent
How do your coins make money?
Automated crypto exchanges make it possible for you to optimize margin trading. Margin trading means using borrowed funds from a broker (or exchange) to trade your cryptocurrency. The funds are used as collateral from the exchange. Coins are then lent to the leveraged traders through interfaces of exchanges like Bitfinex and Poloniex.
While there are many variables to consider, including which coins to lend, the duration of the loan and the amount, it is possible to earn up to 2% a day lending coins. Higher lending rates occur during airdrops or forks because an unusually high number of traders want to short the asset.
The following stat from Crypto Briefing states that it is possible to earn around 7% a year coin-lending:
“On Bitfinex alone there are 24 different assets you can lend, including BTC, EOS, LTC, ETH, USDT, NEO and DASH. At present, the best rates are about 0.02% per day, which works out to about 7% a year! The catch is that these opportunities are often for short periods of time, because few traders will lock in a short position for more than 30 days.”
Airdrops, Forks, Burns, and Buybacks:
Taking advantage of airdrops, forks, burns, and buybacks are probably the most passive of all the ways to earn on your investments.
While there are some real perks that come from these opportunities, they require a bit more luck for the investor than real savvy. But, you can increase the odds of benefiting from these. To do so you definitely need to follow the activity in the crypto world and watch your stocks. If you get wind of an airdrop it is a good way to increase earnings in a very short period of time.
If you are willing to do some homework, this is an easy way to profit from being in the right place at the right time. Here’s how they work; projects that are building apps on the protocol (second) level are more prone to offering airdrops. As this is the case, you’ll find more airdrops coming out of protocol-level cryptocurrencies like Ethereum, EOS, and Stellar.
What exactly are all of these? And how can you take advantage of these opportunities?
An airdrop is a widespread distribution of a cryptocurrency token or coin, which typically offers current holders of the currency a windfall straight into their wallet. These are primarily used to gain attention and new followers. The amount one can potentially receive is typically directly proportional to one’s current holdings.
But if you get wind of the drop ahead of time you may have a chance to benefit from the drop. This is part of the point of an airdrop; to get attention and to encourage others to adopt a native token. These acquisitions come for free, so long as you already hold the currency.
However, airdrops are not something you can rely on regularly to increase your earnings.
Bitcoin Cash, which is a fork off of the original Bitcoin blockchain, held one of the most noteworthy airdrops of all time. This occurred in August 2017 and resulted in the owners of the original Bitcoins owning the same sum in both Bitcoins and Bitcoin Cash. Both have lasted and Bitcoin Cash is one of the most traded currencies on exchanges.
While these can be lucrative, forks are also a much less reliable way to earn passive income than coin-lending or running Lightning Networks. Forks can be thought of as a bank error in your favor. Here’s what happens; if a blockchain forks off of the main chain, sometimes this new fork will create an opportunity for a holder to get a commensurate (or comparable) to their holdings on the new fork of the blockchain.
Again forks are great when they work for you in your favor, but you cannot count on them as a stable way to passively grow an investment portfolio.
Burns and Buybacks
Burns and buybacks, like airdrops, are pretty variable. But again, you may luck out and we would be remiss to admit that in any investment, a little luck never hurt. Burns and buybacks can sometimes mean that the creator of a cryptocurrency buys back their native token.
Buybacks are often organized in order to burn some of the currency. This is when a company collects a certain amount of its currency. The creators then send this currency to an address with no private key, this means that no one can access the currency. It is metaphorically referred to as “burning” as the currency is eliminated artificially in an effort to control inflation.
Burning is done to create scarcity, as it eliminates some of the currency in circulation in an effort to increase the value of the remaining currency. This can a successful move, as it eliminates the problems of over-circulation and deflation. And overall, the value of the cryptocurrency you hold should increase.
Again, you will need to hold the cryptocurrency in your own personal or cold-storage wallet to be the full recipient of the advantage of forks and airdrops. If your funds are held on an exchange, the exchange itself will likely get the funds instead. So be sure to read the fine print.
As I mentioned earlier, these are not the best ways to earn passive income, just because they are more like windfalls, rather than actually involving a whole lot of strategy. But what you can do is stay on top of the ongoings of your investments; which frankly is good advice for all of us. And if you can take advantage of an airdrop or a buyback, then why not strike while the iron is hot!
Participating in EOS dApps
It is also possible to earn passive income on the Ethereum platform just by staking your own tokens. By doing so, you make it possible for other users to use the various Ethernet apps. And with you staking your own tokens, are able to earn some interest.
What exactly is going on here, you might be wondering. Let’s take a closer look at how EOS dApps or Ethereum backed decentralized applications work, and why you might want to stake your tokens for EOS dApps.
What are EOS dApps
EOS is shorthand for Ethereum operating applications or Ethereum Operating Systems. These dApps are built on Ethereum’s blockchain and operate on the decentralized network. They are more malleable apps and therefore do not suffer from the same transaction scalability that other blockchains and decentralized network platforms like Bitcoin do.
Ethereum is known more for its decentralized apps, rather than the value of its native token. Still, Ethereum is still the second most valuable cryptocurrency on the market presently. And, Ethereum’s Initial Coin Offering is to date the most successful ICO of all time. Over $4.1 billion was raised between June 2017 and June 2018.
In order to run dApps on the EOS platform, you need its native token, Ether. Using EOS’s open platform technology developers can build their own decentralized applications, known as dApps. These dApps run using smart contracts, which are simply automated contracts that have been written in a compatible programming language.
EOSDivdends shows you the dApps that you can currently earn EOS dividends with.
EOS and Passive Earning
This method of passive income requires an investment in your hardware, as you will not necessarily be able to use your personal computer. In order to participate in staking your tokens on EOS dApps, you will need a CPU and RAM.
You also need to own EOS tokens to run the programs. Staking your tokens is a great way to earn passive income, as it allows you to earn interest. This is because staking your tokens make it possible for others to use dApps. The most popular dApps that need staking are for game players such as poker and gambling.
Again, the interest you earn will depend on how many tokens you own and how broad your lending reach is. However, it is possible to earn daily interest on your tokens.
But to take full advantage of earning interest, you will need to purchase the native token of the dApps, as they all do not necessarily run on Ether only. Investing in new native tokens is always a bit of a risk, so it is best to do some research and see which tokens have been able to maintain their value over a reasonable period of time.
If you would like to know more, read about Ethereum Dapps here.
Participating in Ethereum dApps
Ethereum dApps like Golem, MakerDao and Augur each allows investors to earn tokens by supporting the network. Ethereum dApps specifically have fewer active users. However, these dApps are a growing concern, and so may become even more profitable in the future.
Also, if you are already holding Ether, then participating in these lower yielding interest dApps is just gravy. Most importantly, the system relies on Ether for the dApps to run at all.
MakerDao provides a unique incentive to act as a Keeper, which is necessary to maintain the peg of the DAI token. The process can be entirely automated for you. The bots then look for crypto arbitrage opportunities, which will both maintain the peg of the DAI and expedites the liquidation when the price of ETH drops.
Staking and POS
Staking might well be the most straightforward and most passive of all the ways to earn on your crypto-investments. Unlike waiting for a windfall from an airdrop or buyback, this method offers a much more predictable potential return on income. Also, you do not need to invest in any special hardware, all you need to own are the coins that you are staking to help run the network.
What is Staking?
“Staking” therefore means that you stake your coins as part of the consensus of the network in order to add new blocks to the blockchain you are trading on.
Here’s how it works. You can only stake up to the total quantity of coins that you own. Your coins are then used to validate new transactions on the platform. And while you can only stake as many coins as you own, the more coins you stake the more power you have to validate transactions.
How Does PoS Work?
PoS is essentially the opposite of Bitcoin’s PoW or mining. One of the problems with mining is that it is a bit of a gamble as to which node will be successful. With mining, the first node to solve the complex algorithm and meet the hash target is the one to be rewarded with new Bitcoins. So, not only is mining incredibly expensive, both computationally and energetically, but investors in the actual currency do not necessarily have a role to play in mining.
But with the PoS protocol, miners are those who have holdings of the digital coin. So, to stake your coins is to participate in mining as well as consensus. The node simply stakes a certain number of coins in their wallet which creates a new block. The miner is randomly chosen from the selection by other holders of the coin.
The amount that one can stake and mine is directly proportional to their holdings. So, if you have 10% of the total coin in circulation, then your node can mine up to 10% of the transactions of new blocks. In doing so you will earn interest on the coins that you stake. Typically there is also a maturity period. Which means that you will need to stake your tokens for a certain amount of time before you can start earning rewards.
Benefits of Staking Coins
Staking coins has a number of benefits to mining operators over PoW. Here are a few:
- You do not need mining hardware to participate in staking; staking is done from an e-wallet.
- Those who have holdings are responsible for validating transactions. This has the potential to incentivize good behavior, seeing as you have a stake in maintaining the validity of the blockchain and the currency you are invested in.
- PoS does not face the same kind of depreciation that ASIC hardware does, which is the current standard for mining with PoW. The investment is in the currency, and not wasted on the expense of the hardware.
- All in all, PoW is less computationally expensive and therefore does not demand the same amount of energy that Bitcoin’s PoW demands from its pools, which is a huge hurdle that the Bitcoin blockchain has to manage.
- Many advocates of PoS, including the creator of Ethereum, Vitalik Buterin, think that staking is the solution to one of the issues of cryptocurrency usability and scalability.
But most importantly, for this article, staking tokens is a great way to earn potential passive income from your crypto-investments. Essentially, by staking, the holder earns interest on whatever they are holding and willing to stake. It is similar to earning interest on your savings account. Hopefully, it will be more fruitful and you will be paid in the same currency that you are staking.
Using PoS and coin staking is becoming increasingly popular in the crypto world. PoS is being built into more and more of the consensus models of new currencies. Again the interest you earn is not going to be consistent from one coin to the next, or from one e-wallet to the next.
Earnings are based on several factors, including the value of the coin, how much you hold, and how long you have been staking.
Here are just a few cryptocurrencies that you can stake coins with, and should spend time researching if you are interested in staking:
- DASH: or Digital Cash. This was the first currencies to introduce coin staking. It is built on the core of Bitcoin but has made some improvements by adding PrivateSend and InstantSend features.
- NEO: Participants on the platform can stake their coins by binding coins in a NEON wallet.
- OkCash: OkCash was launched in 2014, and is suitable for micro-transactions.
Masternodes: Medium Passive Income
It is a bit of a stretch to add masternodes to the list of “passive income.” But you can make the argument that after the initial work of setting up the masternodes, there is much more passive work that follows.
Masternodes are both expensive and demanding of time. However, if you can coordinate the capital to start your own, there is potential for a significant return on investment.
Masternodes are full nodes and provide an incentive for node operators to perform the fundamental consensus functions necessary for running a blockchain. Masternodes exist as an attempt to solve some of the issues related to running full nodes; primarily cost of equipment and the high demand for energy.
Currently, the management of blockchain networks face the challenges of increasing costs, as well as the technical complexities that are involved in running a full node computer. The result of these difficulties has been a reduction in full nodes computers.
With fewer full nodes, the blockchain is unable to function with maximal efficiency. This is a perennial problem faced by cryptocurrencies and blockchains in general, scalability and energy efficiency have as of yet to be fully optimized.
The bottom line, however, is that running your typical full node and participating in blockchain consensus is not terribly profitable at this point.
Moreover, mining pools require a significant amount of energy alone. The cost of mining has contributed to a decrease in full nodes, and likewise a decrease in the efficiency of the blockchain.
Running a Masternode
Master nodes operate on a proof-of-work system, as they act as full nodes. It is also a collateral-based system, which is devised to incentivize the maintenance of the foundation of the blockchain network. However, running a master node is not really a passive activity
Masternodes are composed of servers that uphold a blockchain’s network. These nodes are responsible for enabling specific services that miners cannot do. Masternodes participate in the proof of work consensus mechanism. The first cryptocurrency to use a masternode as part of its blockchain consensus mechanism was Darkcoin, which was later renamed as DASH.
Therefore, Masternodes also participate in staking. That means that a masternodes uses protocols that are similar to the proof of stake protocols. When ‘staking’ tokens, a certain amount of tokens are locked within its network.
Risks and Rewards
Again, running a masternode may be very profitable. It is possible to earn up to 10% interest annually by running a masternode. However, there are a few caveats and costs that need to be taken seriously. As I am saying this, we can probably label masternode as a medium-passive earning. But, while they are much more expensive to get into, masternodes can be a much more lucrative investment when compared with straight-forward staking.
Masternodes v. Staking
As expected, the potential for greater rewards requires a greater risk as well. Although masternodes are a fairly lucrative investment, and once you’ve got them going as a passive form of income, there are still several important factors to take into account.
If you are thinking seriously about growing your crypto-investments with masternodes or staking, here are some things to think about:
- If you want to participate effectively, you will have to hold a diversified portfolio of coins. Having holdings in a variety of coins may well be a very good thing, but it also opens you up to greater risks. The fact remains that not all of the coins on the market have staying power, so it is a bit of a gamble for everyone.
- In order to participate effectively in a masternode, you will need to have larger holdings in the currencies you are staking. Staking tokens requires only a modest holding, while this is not the case for masternodes.
- Again, staking has very little overhead and a modest return on investment. However, masternodes need a bit more capital to get them going. You will need to have access to a dedicated server and cover the expenditures associated with that.
- Staking is a much less technically difficult and does not require specific hardware. Alternatively, masternodes have a much steeper learning curve and demand much more technical knowledge.
- All in all, staking is a far more passive form of income than a masternode. Masternodes need to be actively maintained and thus require a lot more attention.
By now I hope you realize that there are plenty of ways to participate in the burgeoning world of cryptocurrency and many ways to grow your investments. As should be expected, some methods require are more work than others.
Let’s do a quick overview of some of the passive strategies we talked about:
Run a Lightning Node
- Lightning Networks are a Layer 2 solution. They work as a full node and make transactions faster and easier, and micropayment on the Bitcoin network possible.
- Lightning Networks offer cheaper fees and faster transactions however, the scalability of micropayments will alleviate some of the bulk of the system.
- Although Lightning Networks nodes do not offer large immediate returns, given the value they are adding to cryptocurrency networks it stands to reason that there will be a greater market need for them as they become more popular. As such, the owners of these networks should see increasing returns as their use increases.
Coin Lending: margin trading and coin lending
- This is the easiest way to earn passive income. All that is required is to put your current holdings to use for margin trading and lending.
- The easiest way to participate is to set up automated lending on an exchange platform such as Coinlend. These systems are totally automated, and AI manages and coordinates the lending of all currencies on that exchange.
- Using the automated system is the most efficient and effective way to lend, because of the more funds you have available on the exchange for lending, the more your automated system will work for you.
- So let the bots run and make you money!
Airdrops, Forks and Buybacks
- Airdrops, forks, and buybacks require a little bit of luck and a little bit of savvy. There are obvious benefits to these windfalls, but they require a bit more luck for the investor.
- To benefit from these, follow the ongoings of your tokens and the developments going on within the companies.
- This is a great way to potentially increase earnings within a short period of time that is very easy.
- Second level/protocol apps have more frequent airdrops than others. That means that protocol-level cryptocurrencies like Ethereum, EOS and Stellar tend to offer the airdrops and forks more frequently than others.
- This method of passive income requires an investment and upgrade in your hardware. In order to participate in staking your tokens on EOS dApps, you will need a CPU and RAM computer.
- You also need to own the correct EOS tokens to run the programs, not just Ether, but other native tokens as well.
- Staking your tokens allows you to earn interest by using your tokens to run others dApps. The dApps are typical to game players such as poker and gambling.
- The interest earned depends on how many tokens you own and how broad your lending reach is. However, it is possible to earn daily interest on your tokens.
- To take full advantage of earning interest, you will need the native token of multiple dApps, which means that inevitably some will perform better than others.
- If you would like to know more about which dApps you can participate in, read about Ethereum Dapps here.
Staking cryptocurrencies and Proof of Stake
- By staking, the holder earns interest on whatever they are holding, and are willing to stake. It is similar to earning interest on your savings account, hopefully, it will be more fruitful, and you will be paid in the same currency that you are staking.
- Staking might well be the most straightforward and passive of all the ways to actively earn on your crypto-investments; this method offers a much more predictable return on income. To stake, you do not need to own anything other than the coins that you are staking.
- The owner can stake the number of coins that they own, these coins are used to validate new transactions on the platform. One can only stake as many coins as they own. But the more coins you stake the more power you have to validate transactions.
- Actual earnings are based on several factors; which includes the value of the coin, how much you hold, and how long you have been staking.
Masternodes and Staking
- Master nodes operate on a proof-of-work system, as they act as full nodes. It is also a collateral-based system, so the more you can invest, the more you can earn.
- Masternodes are responsible for enabling specific services that miners cannot do, and can participate in the proof of work consensus mechanism.
- The first cryptocurrency to use a masternode as part of its blockchain consensus mechanism was Darkcoin, which was later renamed as DASH.
- Masternodes participate in staking. ‘Staking’ tokens, means a certain amount of tokens are locked within its network.
- You can earn up to 10% interest annually by running a masternode. Masternodes are a much more lucrative investment when compared with straight-forward staking.
Many Ways of Earning
The bottom line is that if you want to see your investments grow, you need to take a more proactive approach to manage them. However, that is not necessarily bad news for the crypto-enthusiast. And there are quite a few easy ways that are much more passive, rather than active.
Masternodes and Lightning Networks nodes may require a bit more of an investment. But if you are holding a currency on an exchange or platform already, there is no reason that you should not be earning interest by staking your coins, at the very least.
The decision you need to make is how much time you want to invest in increasing your crypto-wealth and what a comfortable level of risk is for you.
If you are looking to take the plunge and get serious with crypto passive income, then I will encourage you to take a closer look at masternodes and the Lightning Networks. As I mentioned, neither of these is proving to have super high yields over a short time. However, both offer a secondary passive income.
More importantly, for now, both are contributing to improving cryptosystems. So you if you have the capital and the savvy, then running a lightning network or purchasing a masternode will have more yields over time, as well as contribute to improving the system.
Now, if you own a good number of quality coins, then it may be in your interest to both coin-lend, and if you are invested in EOS or Ethereum systems, stake your tokens. This is by far the easiest way to put your holdings to use. To participate all you do is set up automated lending on an exchange like Coinlend, and the bots will work to make you money.
Finally, we have the windfalls from airdrops, burns, and buybacks. To best take advantage of these awesome lotteries that can grow your wealth, you need to have a diversified crypto portfolio, a wallet, and to stay on top of your investments.
We have gone over multiple ways to grow your crypto-wealth from the more tech-savvy to the most passive methods. The methods we have discussed range from having low-interest yields to higher interest yields.
Here is a review of the passive income investment methods we have discussed:
- Run Lightning Node; Coin Lending: margin trading and coin lending; Airdrops, Forks, and Buybacks; EOS Systems; Staking cryptocurrencies and Proof of Stake; Masternodes cryptocurrencies
Please remember that this is not meant as investment advice. These are examples of ways that you can grow your wealth. But as I have mentioned, it is crucial to do your homework. Before you invest in any ICO or IEO, make sure you know what is going on under the hood. What works for one investor will not work for another.
All of these passive income methods are in their early stages. That means that there is likely a lot to gain by being an early adopter. However, it also means that we do not really know what will stick. All this is to say that before you go to town building your own mining pool, see what is a reasonable and feasible project for you.
Finally, your earnings are going to range proportionally based on what you are willing and able to invest, which methods and coins you choose, and your trading knowledge. I have left out any strong predictions about what the actual earning potential is for many of these passive methods, simply because it is going to depend on a confluence of factors.
One of the major factors to successful passive income will be on how well you stay informed and keep your cool with the volatility of the crypto-market. This is a gold rush! Some will get rich, and some will find a few nuggets in the sand. But you can’t win if you don’t play!