Metaverse Rewards
There are a number of ways to earn passive income with cryptocurrencies. In this article, we first cover how to earn rewards on Proptee and then we also go into some other ways you can make passive income with crypto outside the Proptee app.
Earning passive income on Proptee
Staking
With cryptocurrencies that use the proof-of-stake model, staking is how new transactions are added to the blockchain.
First, participants pledge their coins to the cryptocurrency protocol. From those participants, the protocol chooses validators to confirm blocks of transactions. The more coins you pledge, the more likely you are to be chosen as a validator.
Every time a block is added to the blockchain, new cryptocurrency coins are minted and distributed as staking rewards to that block's validator. In most cases, the rewards are the same type of cryptocurrency that participants are staking.
To put it simply, you can “stake” some of your holdings and earn a percentage-rate reward over time.
We have the goal to bring you as many income-producing investment opportunities as we safely can. This means that we list many Metaverse coins that produce an income from Staking.
We do the hard work for you and Steak your cryptos in different staking pools, so that you can just sit back and earn the high APYs.
What happens in the background?
When you buy your Metaverse coin on Proptee, we automatically Stake your coin into a staking pool. This starts to earn passive income right away. We claim these rewards every week and distribute them back to you after fees.
When you sell Metaverse coins, we automatically remove them from the Staking pool.
If you are interested in learning more about Staking, here's our deep dive:
Other ways to earn passive income with Crypto
Mining
Mining is very similar to Staking, it's just used to secure a different type of blockchain. Essentially, it means using computing power to secure a network to receive a reward. Although it does not require you to have cryptocurrency holdings, it is the oldest method of earning passive income in the cryptocurrency space.
In the early days of Bitcoin, mining on an everyday Central Processing Unit (CPU) was a viable solution. As the network hash rate increased, most of the miners shifted to using more powerful Graphics Processing Units (GPUs). As the competition increased even more, it has almost exclusively become the playing field of Application-Specific Integrated Circuits (ASICs) - electronics that use mining chips tailor-made for this specific purpose.
The ASIC industry is very competitive and dominated by corporations with significant resources available to deploy on research and development. By the time these chips arrive on the retail market, they are likely already outdated and would take a considerable amount of mining time to break-even.
As such, Bitcoin mining has mostly become a corporate business rather than a viable source of passive income for an average individual.
On the other hand, mining lower hash rate Proof of Work coins can still be a profitable venture for some. On these networks, using GPUs can still be viable. Mining lesser-known coins carries a higher potential reward, but comes with higher risk. The mined coins might become worthless overnight, carry little liquidity, experience a bug, or see themselves hindered by many other factors.
It is worth noting that setting up and maintaining mining equipment requires an initial investment and some technical expertise.
Lending
Lending is a completely passive way to earn interest in your cryptocurrency holdings. There are many peer-to-peer (P2P) lending platforms that allow you to lock up your funds for a period of time to later collect interest payments. The interest rate can either be fixed (set by the platform) or set by you based on the current market rate.
Some exchanges with margin trading have this feature implemented natively on their platform.
This method is ideal for long-term holders who want to increase their holdings with little effort required. It is worth noting that locking funds in a smart contract always carries the risk of bugs.
Affiliate programs
Some crypto businesses will reward you for getting more users onto their platform. These include affiliate links, referrals, or some other discount offered to new users that are introduced to the platform by you.
If you have a larger social media following, affiliate programs can be an excellent way to earn some side income. However, to avoid spreading the word on low-quality projects, it is always worth doing some research on the services beforehand.
If you are interested in earning passive income with Proptee, start inviting your friends and get rewarded when you introduce the world to Proptee!
Forks and airdrops
Taking advantage of a hard fork is a relatively straightforward tactic for investors. It merely requires holding the forked coins at the date of the hard fork (usually determined by block height). If there are two or more competing chains after the fork, the holder will have a token balance on each one.
Airdrops are similar to forks, in that they only require ownership of a wallet address at the time of the airdrop. Some exchanges will do airdrops for their users.
Blockchain-based content creation platforms
The advent of distributed ledger technologies has enabled many new types of content platforms. These allow content creators to monetize their content in several unique ways and without the inclusion of intrusive ads.
In such a system, content creators maintain ownership of their creations and usually monetize attention in some way. This can require a lot of work initially but can provide a steady source of income once a more substantial backlog of content is ready.