How To Earn Passive Income With Cryptocurrency
Summary
TLDRThis 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
💡 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.
⛏️ 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.
Mindmap
Keywords
💡Cryptocurrency
💡Passive Income
💡Mining
💡Blockchain
💡Staking
💡Crypto.com
💡Bitcoin
💡Ethereum
💡Lending
💡BlockFi
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
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