How To Earn Passive Income With Cryptocurrency

Summary

This video is a beginner-friendly guide to earning passive income with cryptocurrency in 2021. It covers various methods like mining, staking, and lending crypto. The creator explains how mining Bitcoin, while possible, may not be feasible for most due to high costs and energy consumption. Staking, on the other hand, is a simpler method to earn passive income, as demonstrated through the Crypto.com app. Lastly, the video highlights crypto lending platforms like BlockFi, which offer low-risk ways to earn interest on crypto holdings, making it one of the easiest forms of passive income.

Takeaways

• 💻 Crypto mining is an older method to earn passive income, but it requires significant computer power and energy consumption, especially for Bitcoin.
• ⚡ Mining Bitcoin can be very resource-intensive and may not be feasible for average users due to high electricity costs and hardware needs.
• 📉 Although mining can generate passive income, the profit margins are slim for many, especially when considering equipment and electricity costs.
• 🔐 Staking cryptocurrency is a more accessible way to earn passive income by locking up crypto assets for a set period, with interest rates that depend on the length of the term.
• 📱 Using apps like Crypto.com, users can easily stake various cryptocurrencies, such as Bitcoin or Ethereum, with flexible terms and interest rates.
• 💳 Crypto.com also offers a Visa card that allows users to make purchases directly using their staked cryptocurrencies, which converts to USD for transactions.
• 📈 Interest rates for staking vary based on the crypto asset and the length of the staking period, with some coins offering up to 12% annual return.
• 🛡 Lending out crypto through platforms like Ledger or BlockFi is another passive income option, allowing users to earn interest by loaning their assets to trusted institutions.
• 🏦 BlockFi offers up to 8.6% APY with minimal commitment, allowing users to deposit their crypto and passively earn interest without staking or lock-up periods.
• 🚀 The video encourages viewers to use referral codes for platforms like BlockFi and Crypto.com to receive bonuses when signing up, making these services more enticing.

Q & A

What is cryptocurrency mining, and how does it work?

Cryptocurrency mining involves validating new blocks on the blockchain using a computer and an internet connection. Miners are rewarded in the cryptocurrency they are mining, such as Bitcoin or Ethereum.

Is cryptocurrency mining a feasible way for regular people to earn passive income?

Mining can provide passive income, but the profits are generally slim. It requires significant computer power and electricity, making it less feasible for many regular users due to high costs.

What is the environmental impact of Bitcoin mining?

Bitcoin mining consumes a large amount of energy. Studies have shown that it uses more electricity than Argentina and that mining a single block consumes enough energy to power 28 homes in the U.S. for a day.

What is staking in cryptocurrency?

Staking is the process of locking up a certain amount of cryptocurrency for a specified time to earn rewards. Unlike mining, staking is simpler and can be done via apps with just a few clicks.

How can someone start staking cryptocurrency using the Crypto.com app?

To start staking on Crypto.com, users can select the 'Earn' option, choose the cryptocurrency they wish to stake, and commit to a flexible, one-month, or three-month term. The longer the term, the higher the potential rewards.

What is the Crypto.com Visa card, and how does it work?

The Crypto.com Visa card allows users to make purchases using cryptocurrency, which is converted to USD. For example, someone could use Bitcoin to buy products like food at Chipotle.

What is the potential return on staking different cryptocurrencies on Crypto.com?

The returns vary based on the cryptocurrency. For example, staking Bitcoin offers a 6.5% return, Ethereum offers 5.5%, and USD Coin offers 12%.

What is the difference between staking and lending cryptocurrency?

Staking involves locking up cryptocurrency for a set period to earn rewards, while lending involves giving your crypto to others (usually institutions) to earn interest. Lending is often considered lower-risk than staking.

What platform is recommended for lending cryptocurrency, and why?

BlockFi is recommended for lending crypto because it allows users to earn up to 8.6% APY without hidden fees or long-term commitments. BlockFi lends to reliable institutions, making it a safer option.

What are the potential benefits of using BlockFi over traditional savings accounts?

BlockFi offers significantly higher interest rates (up to 8.6% APY) compared to traditional savings accounts, which often offer less than 1%. There are no hidden fees or minimum balances, making it a more attractive option for earning passive income.

Outlines

00:00

💡 Introduction to Earning Passive Income with Cryptocurrency

The first paragraph introduces the video as a beginner-friendly guide on how to earn passive income with cryptocurrency in 2021. It stresses the importance of watching until the end to avoid missing out on valuable methods and hints that viewers might have overlooked opportunities to earn thousands of dollars. The video aims to educate on various passive income methods and encourages viewers to engage with the content by liking the video for more recommendations.

05:02

⛏️ Mining: The Oldest Method for Crypto Passive Income

This section delves into cryptocurrency mining, likening it to the California Gold Rush. It explains how miners validate transactions on the blockchain, using the example of mining Bitcoin and Ethereum. The narrator notes that mining can be very resource-intensive, requiring powerful computers and substantial energy consumption. While mining could be profitable, the narrator suggests that, for many, the costs of electricity and equipment outweigh the benefits, making mining less feasible for the average person in 2021.

📉 Mining in 2021: Diminishing Returns for Regular Users

This paragraph continues the discussion of mining, highlighting the increasing difficulty and diminishing profitability of mining in 2021. The narrator shares a personal anecdote of friends who still mine Bitcoin successfully but acknowledges that the cost and complexity of the process make it less accessible for many. While mining was once a viable option for passive income, the narrator suggests there are easier, safer, and more profitable options available today.

🔒 Staking: An Easier Way to Earn Passive Income

The concept of staking is introduced as an easier, more accessible alternative to mining. Unlike mining, staking involves locking up a cryptocurrency investment for a set period to earn passive income based on market fluctuations. The process is described as user-friendly, with the narrator demonstrating how to stake cryptocurrencies using the Crypto.com app, emphasizing how simple it is to start earning weekly returns.

📱 Using Crypto.com for Staking

The narrator provides a step-by-step guide on staking cryptocurrency through the Crypto.com app, detailing the user experience and its benefits. They highlight various staking options, including flexible, one-month, and three-month terms. The narrator praises Crypto.com's simplicity and mentions the rewards for staking, such as 6% PA for their native coin and higher returns for other cryptocurrencies like Bitcoin and Ethereum. They also mention the app’s Visa card, which allows users to spend cryptocurrency on real-world purchases.

📊 Example: Staking VeChain for Passive Income

In this paragraph, the narrator demonstrates how to stake VeChain using Crypto.com, walking viewers through the process step by step. They explain how to choose the staking term and confirm the deposit, showcasing an example of staking 62,500 VeChain. The narrator emphasizes how easy it is to start earning interest on the staked amount, mentioning that they've personally experienced significant gains since investing. They encourage viewers to follow along to make the most out of their cryptocurrency holdings.

💸 Lending Crypto: Another Way to Earn Passive Income

The final method discussed is lending cryptocurrency. The narrator explains how they use a Ledger Nano X cold storage wallet to lend out assets and earn interest. They compare this process to staking but note some differences in how it works on the back end. For those who prefer not to lend out crypto directly, the narrator recommends BlockFi, a platform that handles lending to institutions and offers up to 8.6% APY, presenting it as a safe and passive way to earn income with minimal effort.

📈 Maximizing Interest with BlockFi

In this closing section, the narrator elaborates on BlockFi’s benefits, emphasizing its simplicity and higher returns compared to traditional savings accounts. They point out that BlockFi has no hidden fees, minimum balances, or lock-up requirements, making it the easiest form of passive income from cryptocurrency. The narrator underscores the potential for significant gains due to market price volatility and mentions that BlockFi’s offering is relatively new, adding excitement to the opportunity.

🔗 Final Thoughts and Partnerships

The video concludes with a call to action, encouraging viewers to subscribe to the channel and comment with the word 'lasers' if they made it to the end. The narrator mentions their partnerships with BlockFi and Crypto.com, offering viewers the chance to earn bonuses when signing up through the provided links. They close by thanking viewers and wishing them a great day, reinforcing the positive, supportive tone of the video.

Keywords

💡Cryptocurrency

Cryptocurrency refers to a type of digital or virtual currency that uses cryptography for security. In the video, the speaker introduces cryptocurrency as the foundation for earning passive income and mentions various currencies like Bitcoin and Ethereum. The video’s focus is on how cryptocurrency can generate income through methods such as mining, staking, and lending.

💡Passive Income

Passive income is income that requires minimal effort to earn and maintain. The video is centered around teaching viewers how to generate passive income using cryptocurrency, through methods like mining, staking, and lending. These activities allow users to earn without constant involvement, making it a key theme of the guide.

💡Mining

Mining is the process by which transactions for various forms of cryptocurrency are verified and added to the blockchain. Miners are rewarded with cryptocurrency for their work. The speaker uses mining as the oldest method of generating passive income in crypto, likening it to the California gold rush of the 1800s, but also explains that in 2021, it is less profitable for average users due to the high energy and resource requirements.

💡Blockchain

A blockchain is a decentralized digital ledger that records transactions across many computers. The video explains that miners are essential to maintaining this network by validating transactions and receiving cryptocurrency as a reward. It emphasizes how mining plays a role in the blockchain, especially in Bitcoin and Ethereum, to generate income.

💡Staking

Staking is the process of locking up cryptocurrency to support the operations of a blockchain network. In return, stakers earn rewards in the form of cryptocurrency. The video describes staking as a simpler, more accessible way to earn passive income compared to mining. Users can stake their crypto assets for a set period, earning returns based on market price fluctuations.

💡Crypto.com

Crypto.com is a popular cryptocurrency platform that allows users to buy, sell, and stake cryptocurrencies. The speaker highlights it as one of the easiest apps to use for staking and managing crypto assets. The platform also offers a Visa card that allows users to spend cryptocurrency like regular money, connecting the idea of digital assets to real-world use.

💡Bitcoin

Bitcoin is the first and most well-known cryptocurrency. In the video, Bitcoin is used as an example when discussing mining and staking as ways to generate passive income. Bitcoin miners validate transactions and are rewarded in Bitcoin, but the speaker notes that mining has become less profitable due to high energy costs and competition.

💡Ethereum

Ethereum is a popular cryptocurrency and decentralized platform that supports smart contracts. Like Bitcoin, Ethereum is mentioned in the video as an option for both mining and staking. The speaker uses it as an example of how cryptocurrency mining can be profitable, but also resource-intensive, while staking is presented as a simpler alternative for earning passive income.

💡Lending

Lending in cryptocurrency involves allowing others to borrow your assets in exchange for interest. The video explains that lending can be done either directly through platforms like Ledger or via services like BlockFi, which handles the lending process for users. This is presented as another form of passive income, similar to staking, but with different risks and rewards.

💡BlockFi

BlockFi is a financial services company that allows users to earn interest by lending out their cryptocurrency. The video introduces BlockFi as an easy and safe way to earn passive income, with the platform taking care of the lending process. Users can earn up to 8.6% annual yield with no hidden fees, making it a low-commitment option for passive income.

Highlights

This guide focuses on earning passive income with cryptocurrency for beginners in 2021.

Mining is one of the oldest methods to earn passive income in cryptocurrency, but it is resource-intensive.

Mining cryptocurrency like Bitcoin requires powerful computers and significant electricity, making it less feasible for average users.

Bitcoin mining consumes more electricity than Argentina, making it an energy-intensive method.

Staking is presented as a simpler alternative to mining, where users lock up their crypto for a set period to earn returns.

Staking can be done through user-friendly apps like Crypto.com, making it more accessible for beginners.

Crypto.com offers a Visa card allowing users to spend their cryptocurrency in real-world purchases.

By using the Crypto.com app, users can stake their crypto assets and earn up to 12% price action on their holdings.

The app offers flexible staking terms, ranging from one month to three months, allowing users to choose their commitment period.

Staking provides higher returns on certain cryptocurrencies, such as 6.5% on Bitcoin and 12% on USD Coin.

BlockFi is introduced as a way to lend out cryptocurrency to institutions, offering up to 8.6% APY without hidden fees or lock-up requirements.

BlockFi’s lending service is compared to staking but involves lending to institutions for reduced risk and passive income.

The transcript emphasizes BlockFi’s high returns compared to traditional savings accounts, making it attractive for passive income seekers.

The speaker concludes by encouraging viewers to use referral codes to gain bonuses when signing up for services like BlockFi and Crypto.com.

Overall, the video aims to educate beginners on various methods to earn passive income with cryptocurrency, highlighting mining, staking, and lending as the primary strategies.

Transcripts

so if you're just getting started out

with cryptocurrency and you want to

learn how to make

real passive income with your

investments this is going to be your

full

beginner friendly guide on earning

passive income with cryptocurrency

for the year of 2021. make sure you

watch this video

till the very end because i can

guarantee that some of you

may have been missing out on thousands

of dollars by not knowing that some of

these methods

actually exist and guys if you do learn

anything new at any time go ahead and

hit that like button down below on this

video so youtube recommends

more educational content like this to

your own page so to start this video

let's first talk about the

oldest method here to date and this is

all about mining

so what is crypto mining how do you get

started and how much money

can you actually make by doing this so

miners are essential to the blockchain

network and are rewarded in

cryptocurrency

just think of the california gold rush

in the mid-1800s where miners needed

picks and shovels to extract the gold

but in 2021 it's it's actually like

bitcoin if you're mining bitcoin you get

paid in bitcoin if you're mining

ethereum you get paid in ethereum

bitcoin miners just need a computer and

internet connection to validate

new blocks on the blockchain and then

they receive a reward

now mining any cryptocurrency can be

super computer intensive compared to

your average task

and it can burn out your computer and

fans when it comes to mining bitcoin as

an example

this oftentimes require exponential

resources

due to the volume and intensity of what

bitcoin is

according to a study from cambridge it

was found that the mining of bitcoin

actually uses

more electricity than the whole of

argentina

another study shows that mining a single

block consumes enough energy to power

more than

28 homes in the us for a day to mine

bitcoin it's as easy as downloading a

program off the internet

and pressing go but knowing how mining

works

is this really feasible to regular

people like us after doing a ton of

research

i came to the conclusion mining bitcoin

can be passive income but the profits

are pretty slim

especially when you take into

consideration the cost of electricity

any additional computer gear and it just

may not be worth it

but honestly your miles may vary

depending on where you live and what

type of computer gear you already may

have believe it or not i have some

friends in real life who have a second

computer set

up in a separate room mining bitcoin and

it's paying off the computer they bought

pretty passively now is this the best

way to earn passive income on

cryptocurrency

maybe a decade ago and then you hold on

to those bitcoins and we see what it's

worth now

but in 2021 there are a ton of other

options that are not

just easier and safer but it can also be

way more profitable as well and here's

what we have so for the second way to

earn passive income on your crypto

we're gonna be talking about staking now

to break this down because this method

can sound

very foreign to a lot of new beginners

let me just break it down for you

when staking your crypto you're

essentially just locking up the amount

of crypto that's under your assets

for an agreed upon time and still

earning whatever market price is

fluctuating

or occurring unlike mining bitcoin where

you have to set up programs

staking bitcoin is actually really

simple you can get started by

downloading a few apps and just clicking

a few buttons and you're on your way of

earning

real passive income every single week

okay so

i got my iphone right here and i'll be

showing you how to stake your

cryptocurrency through an

app called crypto.com now i've been

using crypto.com

since i was in college they have over 10

million users one of my personal

favorite apps out of all the different

platforms and exchanges that i use

it's really simple you have a navigation

bar right here

of your home page your account you can

track different coins and then they also

give you something called a crypto.com

visa card which is amazing you can

actually

make purchases directly using crypto so

if i wanted to buy

uh i don't know like some chipotle i

could go ahead and use my crypto.com

visa card and

literally put bitcoin onto that

crypto.com card and it'll pay it out in

usd so technically i'd be paying

chipotle using bitcoin now i don't want

to be like the pizza guy

so i'm definitely not going to do that

but it's just an option that you have

what we're gonna do is go

into the crypto.com logo right in the

middle of the screen

and what we're gonna do next is click

earn so this is really simple

and it's really interesting so as soon

as you click that you'll go into the

crypto earn

menu right here and it says earn up to

12 pa on your crypto assets

pa stands for price action and unlike

putting your money into a savings

account

where you deposit it and then you earn a

whoop

and then you earn just okay let's uh

we'll just keep that over here

okay where was i

so say uh

just got lost alrighty guys so to go

back into the explanation of how staking

works and how you can set it up for

your app you just need to download

crypto.com use my code down below if you

guys want 25

if not completely okay but here on your

phone you'll see that you have flexible

one month and three month terms as well

so based on how long you're able to

commit whatever cryptocurrency you want

to stake

you'll be getting a higher pa for that

amount so you'll see crypto.com which is

crypto.coms coin you're gonna you can

earn up to six percent pa

but if you scroll down you'll see

bitcoin gives you six point five percent

price action you got ethereum at 5.5 uh

you got the usd coin at 12

and back in the day when i used to use

this like four or five years ago you

stake

your coins for a really long time i'm

talking one plus year

i think it was two years at a certain

point too so they did reduce the staking

term i remember

you definitely had at least a six month

term so

i guess due to the volatility and the

nature of

what this is they're always constantly

changing

the offer for it so if you do want to

just easily earn a cryptocurrency

passive income say i wanted to put up

let's do let's do v chain all right i

got some v chain so i'll press

start earning now right here i'll to v

chain

i'll do a three month pa i'll continue

it's so easy i literally just check mark

these boxes

right here continue and then

you just press deposit and you are good

to go i don't want to do this just yet

for my mount

you know what for videos purposes i'll

do it guys

i'll do it so i have

how much v chain i got i got 60 500 v

chain i'ma lock this bad boy up for

three months this is just

for my youtube family so drop a like

down below for this

all right so i deposited 62 500

vets got a little email confirmation

right there

and pretty much with this

i'm now earning interest on that amount

so i wasn't planning on selling this

anytime soon i've been holding this

i bought in at five hundred dollars this

investment went up to five thousand six

hundred dollars

so it's a pretty good return so far i

don't see it slowing down anytime soon

so i'm just gonna have it staked

and from here you can continue to add

your amount you can

see your completed terms but now i have

a three month

obligation in holding this and you'll

see at the zero v

e t in the green that's the amount of

interest i will accrue on this amount so

so as you can see this is just another

easy way to earn real passive income on

the money you already have

invested today now last but not least

you can also lend

your crypto out so i personally use a

ledger nano x as my cold storage for

a majority of my crypto on ledger's

platform

you can find assets to lend out to other

people

and earn interest on it's very similar

to staking but the principles are a

little bit more different on the back

end

this process is as simple though as

buying and trading crypto

now if you don't want to lend out your

crypto individually you can also check

out another resource called blockfy.com

so what blockbuy does is pretty

interesting

imagine lending out your crypto to

someone but a company takes care of it

and they make it easy and safe

all while you start to earn interest on

that amount and instead of just lending

out your crypto to like

i don't know just random people out on

the street they're lending out to

actual viable institutions that have

been around so it really does reduce the

risk

now just like many of you may have a

savings account where you earn

less than one percent in interest block

fi allows you to earn up to 8.6

apy with no hidden fees minimum balances

or lock-up requirements

much of what staking requires block

fire's really nice because you really

don't have to do anything at all you

just have to deposit your crypto into

your account and it has such little

commitment while you earn additional

interest on that price action

where it's the most passive income i

believe you can get

for the amount of money you have

invested just with the way

cryptocurrency works and earning

additional amounts of money due to the

market price and volatility

imagine having a little icing on the

cake where you get up to 8.6

back on that total amount that is

amazing for people like us and i do

believe that this is fairly new that

this hasn't been around for a while

now if you enjoyed this video don't

forget to subscribe to the channel and

comment down below

lasers if you made it to the end right

here don't forget to check out the links

down below in the description i do have

a partnership

with blockfy where my viewers can get up

to 250

back depending on how much money you

deposit and you can get 25

with crypto.com using my code jung when

you sign up for the app

now aside from that thank you guys so

much again for watching i hope you guys

have a great day and until next time

peace out