Wouldn’t it be great to earn money daily by holding Bitcoin? By holding Bitcoin, you earn money as the price rises, but you can also get residual income JUST for holding it.
If you don’t believe me, I can prove it, and I’ll share 3 ways you can do it. The BEST part is that all three ways don’t involve trading, which is very risky.
- You can deposit Bitcoin into a crypto bank that pays interest.
- You can use Bitcoin for liquidity mining and earn money from fees and rewards.
- You can convert Bitcoin into a token and earn staking rewards.
Keep reading, and I’ll share which of the 3 I LOVE the most and why.
I’ll also, share how exactly you can do each of these ideas. I’ll also share my experience with trying all these methods out!
How to Loan Bitcoin!
I do loan a little bit of my Bitcoin because I want my money to work for me.
My money are little soilders and I want them to go out and capture enemy money and bring them back!
I do NOT want my money soldiers to die, by buying stupid stuff.
I only loan out a small portion of Bitcoin because the interest is good, but you can do better. When I mean good, it’s around 5%.
Consider how much money you earn with a bank, 5% is VERY good. Barclays, which is a great bank, only pays 0.40% on a high-yield savings account at the time of this blog post.
What is great about the crypto bank and bank savings account is that the money is liquid. This means you can sell at any time, and your money isn’t locked up.
When it comes to which crypto bank I recommend for loaning your Bitcoin, you could look at this place.
Previously, I worked with another bank, Blockfi, that had some problems due to FTX collapsing. The negative part was that the company was NOT FDIC insured.
Still, I got the money back that I lost after tons of waiting. Wow, crypto is crazy!
Lastly, instead of a savings account, you can also convert your money into stablecoins and earn 7.5% APY. Stablecoins are pegged to the dollar and never go up or down in price.
This could be a great idea if someone is retired and can’t stomach the large price swings of Bitcoin, but still wants to earn good money.
Liquidity Mining
Liquidity Mining is my favorite way to earn money from Bitcoin. You keep the principle but earn a HIGHER APY than loaning your bitcoin out.
To keep things simple, instead of loaning the money to a bank, you become the bank!
When liquidity mining, you provide liquidity when someone makes trades, and this is called DEFI. DEFI stands for decentralized finance, and it’s popular with Ethereum.
The risk with liquidity mining is that if the price of an asset drops, you withdraw.
The reality is, if you own ANY asset, there is a risk that the price will drop! To me, there is no more risk with liquidity mining than holding Bitcoin.
The problem with many DEFI projects being on Ethereum is the high gas fees, and there are more risks involved. The reason there are more risks is that Ethereum is Turing-complete.
Turing complete is a fancy way of saying that it can do everything, and transactions can never stop.
In fact, there was a hack that split Ethereum into 2 years ago, and you can read about it from the link HERE. Oh, and there was another hack recently, you can read about HERE.
The project I use and recommend is this one right HERE. You can use the code 939517 for $30 in free coins if you make a deposit of over $50.
For starters, it’s based on Bitcoin, so there are no gas fees, and it is less risky. Bitcoin is non-Turing complete, so it’s simpler with fewer things that can go wrong.
This reminds me of my golf swing, where I stand like a stiff, but I’m ok at hitting the ball straight. Of course, I haven’t played golf in a super long time.
Oh, and the APY is “good.”
They do have a blockchain you can use for liquidity mining, but there is a learning curve on how to use it.
Staking
The third way to earn money is by converting Bitcoin into a coin and staking it. Bitcoin is mined from something called Proof of Work.
Proof of work is when computers solve complicated math problems to support the network. The problem is that you need a high-end computer to mine for Bitcoins.
Funny story, a long time ago I joined a pool to mine Dogecoin. I had this gaming computer, and I made some Dogecoin just letting the thing run.
Staking is when you take some of your coins and stake them to support the network. When you stake coins, you don’t need any high-tech computers.
You do need money to stake, and you earn interest when you do it.
The problem with staking is that you have to convert your Bitcoin to another coin to do it. If the other coin rises just as much or more than Bitcoin, then this can be EVEN better.
You can also earn some really nice interest depending on the coins you stake.
The highest interest I’ve seen is with this coin HERE. You can use the code 939517 for $30 in free coins if you make a deposit of over $50.
The coin is a DEFI coin that is forked from Bitcoin.
What I like about the project is that I know the creators, and they are very honest. It has a fairly large community and lots of plans for the future.
The key to crypto is that the project should have “real” use cases in the world.
This project has developed and is planning on improving…
- Loans on the blockchain
- Stocks
- Price oracles
- Exchanges
- Asset Tokenization (real estate, equity, and others)
- Distribution of Dividends
- Wrapping of Tokens
I do have some of my money being staked in this project.
Of course, last time I checked, the project was down. Still, in the long run I’m cautiously optimistic. The reason is history.
Banking in the past was brick and mortar stores, then the internet streamlined it and cut down on overhead.
This brought in Paypal that made Elon Musk rich!
Crypto streamlines it EVER more and cuts the overhead, so there is value. Still, it may take some time, and DEFI is one area of crypto that I’m most excited about STILL.
The cool part about staking is that there are other projects that you can stake coins in as well. Every project has its ups and downs, and I have written about “many” of the top crypto projects on this blog.
Staking is a great way to earn residual income from your coins.
Conclusion
I used to think cryptocurrency was stupid.
The problem was I was wrong – I admitted it and changed. Due to my changing my mind and learning, I’ve made some “good” money at it.
Then, of course, I lost a lot due to FTX bringing the whole industry down.
As the saying goes, “if you can’t beat them, join them!”
If you’re wondering how to buy Bitcoin, the first place to start is an exchange.
I recommend this one HERE, because you can earn FREE crypto by just watching a few videos and learning about it.
Oh, and if you put $100 in your account, you get $10 of FREE Bitcoin.
If you sign up with the exchange, you automatically get the pro version, and you can view it from the link HERE. The pro version is where you want to buy Bitcoin because there are fewer fees.
Then you can transfer the Bitcoin anywhere you want to earn residual income with it.
Whatever choice you make, having your money work for you is a “great” idea. Also, crypto is VERY risky. It’s also exciting, new, and strange! It’s not a bad idea to diversify.
One area I’ve always been a fan of is affiliate marketing. You can do it anywhere, anytime, around your schedule, in nearly any niche, and have a TON of fun.
I’ve been doing it for 15 years, and I’m giving away many of the secrets I discovered in a few FREE guides HERE.
I hope this blog post on 3 ways to make money with Bitcoin without trading was helpful to you. Bye for now.