What is passive income in crypto?

Earning passive income generally means utilizing your assets, without active involvement, to generate additional dollars, and it can be done in the crypto space. The concept is the same as compounding interest or reinvesting dividends in the traditional financial world or earning rent on investment properties.

Is crypto a good investment?

Like many other investments, crypto presents the opportunity to not only earn a return through trading cryptocurrency, but also by putting your investment to work to earn passive income. Earning passive income generally means utilizing your assets, without active involvement, to generate additional dollars, and it can be done in the crypto space.

Is hodling crypto a passive income generator?

By comparison, with a custodial wallet, a third party controls your private keys. However, simply buying and holding a crypto asset for any length of time does not guarantee you will make a profit. In fact, it’s very possible you could lose money. As such, exclusively HODLing crypto cannot be considered a truly passive income generator.

How do cryptocurrencies make money?

Some of the backers of these projects can receive up to 30% per year in dividends based on the amount invested. Most cryptocurrencies promise something akin to a passive income. In exchange, users offer their financial support. The income can come in the form of price appreciation of the token or investment opportunities.