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7 methods for women to use cryptocurrencies to generate passive income


Are women participants in crypto increasing?

The number of women investing in cryptocurrency continues to grow rapidly every year, with one in 10 women participating in the industry, according to a 2022 survey. 

The digital era and the adoption of a new working and life model were accelerated during the pandemic, offering people the opportunity to work remotely. A work-from-home concept benefits women who traditionally undertake multiple tasks across family, career, home and child care.

Cryptocurrency investment may send women shivers down their spines; however, it may add several passive income streams, sometimes with little effort and in the comfort of their homes, maximizing returns on their crypto holdings. Finance and technology have traditionally been aligned with men’s interests and careers, but this is changing rapidly thanks to the advent of cryptocurrency.

Owning cryptocurrency may be an ideal way to invest in the long term depending on the risk-return profile of the investor. Women who’d like to invest in cryptocurrency for passive income have several options, depending on whether they have the time to learn technical skills or are ready to take risks. 

Learning about the marketplace or a crypto provider’s reputation before investing is always safe, as that will make a massive difference in the overall performance of the strategy adopted. This article highlights a few work-from-home ideas for women to put their assets to work and add extra revenue to their monthly earnings.

7 ways women can earn passive income through cryptocurrency

How can women earn rewards for holding crypto via the staking mechanism?

Cryptocurrencies that operate through proof-of-stake mining offer users the opportunity to lock up one’s crypto holdings in a wallet for a certain period to obtain rewards or earn interest. 

The mechanism discussed above is called crypto staking, which helps a network become more robust and efficient because it helps validate transactions in the blockchain, confirming that all transactions achieve consensus, are honest and follow the protocol’s rules.

There’s no need for deep know-how to stake crypto, and some exchanges enable cryptocurrencies to be staked automatically by users who hold eligible tokens in their accounts. Another way of staking is by keeping the cryptocurrency in a compatible wallet that allows users to participate in the networks’ consensus processes. In short, stakers approve and verify transactions on the blockchain and are rewarded for doing so.

How can women extend their revenue stream through affiliate marketing?

Affiliate marketing in the crypto industry can be a way for women to extend their revenue stream by promoting crypto-related products or services to their followers or audience. 

Many companies that offer crypto-related products or services have affiliate programs that allow individuals to earn commissions for promoting their products. Women can choose to promote products or services related to cryptocurrencies, such as hardware wallets, exchanges, trading platforms or educational resources.

The advantages of affiliate marketing include the possibility of using an existing audience to increase sales, the flexibility to work from anywhere and the ability to make passive income through commissions.

However, the potential for fraudulent or deceptive items, the risk of harming one’s reputation by endorsing inferior projects, and the risk of losing credibility with one’s audience if they perceive the promotion as spammy or insincere are all hazards involved with affiliate marketing.

Can women earn passive income via cloud mining?

Crypto cloud mining is a type of crypto mining that allows investors to earn Bitcoin and other cryptocurrencies without buying, installing or maintaining any specific hardware or software equipment. 

To start cloud mining, the investor must open an account with a legitimate mining farm, deposit digital or fiat currency funds, and purchase a certain amount of hashing power from the service provider. In exchange, the mining farm will reward participants with incentives based on the amount of hashing power they purchase.

There is no need for deep know-how or technical skills. However, it is essential to avoid severe mistakes that can be costly, such as choosing a fraudulent platform or neglecting the fine print, which may include extra costs making the investment not worthwhile. 

Regardless, with cloud mining, participants do not have to worry about machinery noise, temperature, resource management or energy costs.

How can women yield passive income through yield farming?

Yield farming or liquidity mining is a decentralized finance (DeFi) application requiring investors to lend crypto to others in exchange for some interest and other rewards. 

Yield farming was created to incentivize liquidity providers (LPs) to stake or lock up their crypto assets in a liquidity pool based on a smart contract. They receive rewards in the form of network fees, loan interest payments, or native digital token rewards. The lock-up time the investor requires depends on the platform, and the interest earned is calculated in annual percentage yield (APY).

The next step after selecting a platform and cryptocurrency is to add liquidity by making a deposit into the platform. Users are rewarded with extra tokens or fees in return for supplying liquidity. Likewise, it is critical to monitor your rewards from yield farming and to stay informed of any adjustments made to the platform’s reward system. 

While some platforms reward users more for supplying liquidity in a particular cryptocurrency, others reward users more for making longer-term investments. However, there are risks associated with yield farming, such as the potential loss of money due to changes in the market or flaws in the DeFi protocol. Women should use caution when investing and only risk money they can afford to lose.

How can women earn passive income via crypto savings accounts?

A woman with an account in a crypto exchange can earn interest on the cryptocurrency she holds on the platform through a crypto savings account.

Similar to a savings account that customers own with a traditional bank, a crypto savings account provider will lend, invest or stake crypto on behalf of the investor in exchange for a share of the profits in the form of regular interest payments.

The investor who agrees to lock up her crypto for extended periods may benefit from more favorable rates. Also, various crypto platforms encourage customers to hold their native tokens by offering higher interest rates.

However, there are risks involved, such as the volatility of cryptocurrency prices, hacking risks and platform-specific risks. Women should carefully research and assess the risks involved before investing in a crypto savings account and only invest after proper due diligence of projects under consideration.

How can women make passive income from crypto lending?

Many crypto platforms offer investors the opportunity to lend the deposited crypto assets to borrowers in exchange for regular interest payments.

The interest can be paid daily, weekly or monthly in the cryptocurrency deposited for lending, and often, compound interest is provided, which includes the initial investments and the accumulated interest from the previous terms. 

Both centralized and decentralized cryptocurrency providers may offer high-interest rates, sometimes as high as 20% APY, and require the borrower to deposit collateral to secure the crypto loan. Women who are considering crypto lending should be aware of the high risks of such investments, as high rewards may disguise a broken business model. 

Platforms like Celsius or FTX used to offer high interest to their customers but went bankrupt in 2022 due to their high-risk leverage strategies.

How can women earn passive income by running a masternode?

One of the oldest and most effective ways to earn a crypto passive income is by running masternodes, contributing the computer power necessary to drive a blockchain.

A masternode is a type of full node in a blockchain network that performs additional functions beyond simply validating transactions. Masternodes typically require a significant amount of collateral in the form of the blockchain’s native cryptocurrency in order to operate, which incentivizes their owners to act in the best interest of the network.

That said, by operating a masternode, the investor will be rewarded with the blockchain’s native currency. In contrast with regular nodes, masternodes don’t add new blocks of transactions to the blockchain. Still, they verify new blocks and have unique roles in the blockchain’s governance, such as voting on changes to the ecosystem and running protocol operations.

Running a masternode requires some expertise but also a significant collateral investment. Investors should be prepared to buy a substantial stake in the native cryptocurrency, purchase more expensive computer hardware than the average laptop, and consider the running costs. 

For this reason, masternodes can be seen as a long-term investment. Running a masternode may require a substantial initial commitment, but little effort is needed to keep it running once it is in use. 

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