Many suggest that the best way to earn passive income is by purchasing a property and renting it out. Other suggestions would be to invest in stocks that pay you dividends. These strategies can work for many but can also seem complex, require you to have big capital to invest or force you to use Stock Brokers.

Earning Income Through Staking

Blockchain technology is starting to enable various ways for regular people to earn passive income on the side. What is making it possible? Staking!

Staking means to lock-up your cryptocurrency in a specific wallet and to be paid out rewards for doing that, similar to having a savings account. The difference is that the money does not leave your account, many exchanges or wallets offer this service without having you relinquish possession of your crypto. It is locked in your wallet, which only you have access to. 

On the technological side, staking is a system that allows participants in a Blockchain to validate transactions. Similar to Proof of Work consensus systems, best known from Computers ‘mining’ for Bitcoin, Proof of Stake (PoS) allows users to help find consensus on a state, such as the total balance of all coins in the system, within a Blockchain.

Instead of committing valuable computer power, the user commits his coins and therefore has, through his ‘stake’, skin-in-the-game which the algorithms behind the respective Blockchains that rely on PoS systems use for finding consensus. Just like Bitcoin miners receive a reward in Bitcoins for validating new blocks in the chain, PoS ‘Stakers’ get a reward by simply holding a certain amount of coins. Good examples for PoS Blockchains are EOS, Tezos, Neo, Zilliqa and soon also Ethereum as part of their move to Eth 2.0.

The easiest way to stake

You can stake your coins on several websites and exchanges. In most cases, you’ll be able to stake your coins directly from your crypto wallet. Alternatively, many exchanges offer staking services to their users. Binance Staking lets you earn rewards in a simple way, all you have to do is hold your coins on the exchange. Staking on exchanges has its advantages, you can accumulate and stake at the same time with no added transactions, you do not have to go through a DeFi application and create a separate account to stake, you can simply do this on your exchange.

Not all exchanges offer this feature, however, exchanges such as Binance and Okex do. This list presents the coins that you can easily stake on Binance.

Every coin could grant you a different reward for staking, this largely depends on the project itself and the rewards that they give out in return for staking. The process is quite easy, but Coinrule makes it even easier!

Staking With Coinrule

There is an array of rules that are provided that can help you accumulate coins that can be staked. This is mainly taking conventional rules and theories and applying them to coins that can be staked in return for passive income. 

The main goal that you should have when trying to earn passive income with cryptocurrencies is increasing the number of coins you hold that can be staked. To do this you can either purchase more coins, or you can run rules on Coinrule that allow you to accumulate coins during dips. 

Accumulate Crypto with Coinrule

The rule below attempts to accumulate Kyber Network (KNC) during dips. The concept behind this is that when the price of the coin drops, you can benefit from a rule that sells it to buy it back at a lower level. This strategy seeks to increase the number of tokens.

To avoid missing out an early reversal of the trend, the second part of the strategy buys back the coins whether the price increases or decreases according to the set thresholds. The two conditions following the “And Then” operator work basically as take profit and stop loss on the trade.

This approach tries to accumulate KNC with an attempt to mitigate risk and continue to grow the value of the portfolio. 

As the amount of KNC you hold increases, the staking rewards you receive increase as well. However, it is important to keep in mind that staking requires you to have the coins on the exchange and not move them. Thus, it is beneficial to run this specific rule only with a portion of your KNC funds to continue receiving staking rewards on the other coins. As you can see below, the graph indicates the points in time at which the rule will execute trades, both buy and sell, to take advantage of price dips, and increase your holding in a specific coin.

What if you don’t own any staking crypto yet?

If you do not hold coins that are stackable, another approach is to purchase cryptos and accumulate them over time. The most efficient way to do this would be to use the Dollar Cost Averaging (DCA) method. DCA involves you purchasing small amounts of crypto on a regular basis, where you are unaffected by the changes in price because any price rise or dip will cancel each other out eventually. On top of that, you will receive staking incentives for holding the coin, and they increase as the amount you hold increases.

Here is an example of how you can change the timing and amount to suit your needs.

At the end of the day, regardless of the approach you use, earning passive income with cryptocurrencies can add significant value to your assets in this day and age. Making your money work for you is the first step to increasing your wealth and Cryptocurrencies have facilitated this in a unique way.

DISCLAIMER

I am not an analyst or investment advisor and nothing in this article constitutes investment advice. Everything that I provide here is purely for guidance, informational and educational purposes. All information contained in my post should be independently verified and confirmed. I can’t be found accountable for any loss or damage whatsoever caused in reliance upon such information. Please be aware of the risks involved with trading cryptocurrencies.

The post Earning Passive Income with Cryptocurrencies appeared first on Coinrule.

OKB is a utility token created by the OK Blockchain Foundation and adopted by OKEx. It is an ERC-20 token, currently 33rd largest by Market Cap according to Coinmarketcap, and is mainly traded on the OKEx exchange. OKB volume tops $100 million on a daily basis, some of the most common trading pairs are USDT, BTC, and ETH. 40 different exchanges already list OKB, these include BitMax, BKex, and Coinall.

Interestingly, OKEx provides a number of special features specifically for OKB Holders such as Trading Fee Discounts.

What is OKEx?

OKEx is a leading Cryptocurrency Exchange that provides a vast number of tokens and Futures trading pairs. It is the 3rd largest exchange by volume, trading approximately $3.43bn daily. The exchange uses blockchain technology to provide advanced financial services to traders globally. Among the many features OKEx provides, the most interesting ones are its customer-to-customer trading feature, spot margin trading, and index tracking options.

How can Coinrule users benefit from OKB?

OKEx is introducing a new feature for OKB in collaboration with Coinrule. As a Coinrule user, if you purchase OKB and hold it for 30 days you will receive 1.67% interest. (20% interest on an Annual Rate)

How does it work? 

1. You must be a Coinrule user. If you aren’t one yet, what are you waiting for? Click here to sign up!
2. To be eligible, you must complete the KYC Level-2 verification on OKEx and have not held OKB in the past 30 days. 
3. Buy OKB and hold for 30 days.
4. Finally, no further actions required, being a Coinrule user the interest is calculated automatically after 30 days.

Conditions

• Minimum eligible amount is 20 OKB.
• Maximum eligible amount is 100 OKB.
• Each user is allowed to participate once in this activity.
• You must hold OKB in a secure wallet on OKEx.
• OKEx will distribute the payout monthly.

How to do this with Coinrule? 

1. Go to OKEx.
2. If you already have an account on the exchange, make sure to complete the KYC Level-2 verification. If you don’t, please create an account and complete the KYC Level-2 verification.
3. Link your OKEx account to Coinrule, instructions on how to do so can be found here. 
4. An efficient way to start buying OKB through Coinrule would be to set up an accumulation rule. See below for examples of different types of rules.

Time-based Dollar Cost Averaging of OKB

Price-based Dollar Cost Averaging of OKB

Reminder: If you set up a rule like the above, remember to define how often you want to execute a buy order to avoid over-trading!

Find more information about Dollar-Cost Averaging here.

Passive income on OKB

Dollar-Cost Averaging or DCA is a common long-term strategy that consists of buying a certain amount of a coin for an extended period, without worrying about the short-term price volatility. That represents a relatively conservative investment method that focuses on the big picture and long-term potential returns.

Thanks to Coinrule’s partnership with OKEx, you could add an additional passive return on your OKB holdings!

Signup on Coinrule and start earning passive income on your OKB coins now!

The post Earn Passive Income On OKB Tokens With Coinrule appeared first on Coinrule.

Cryptocurrencies are likely to represent the asset class with the best risk/reward profile for investors. No wonder, since cryptocurrency trading can be so appealing in terms of potential returns. But how to make money with crypto?

Long Strategies

In the trading terminology, a long strategy means to have a position that benefits in case of a price increase of the underlying asset. When you buy a coin, you are establishing a long position, expecting that the price will go up from there. You can place a single buy order and keep those coins as a long term investment. You are HODLing no matter how the price will move because you believe that in the future, the price will be significantly higher. In this case, you may want to store your coins safely in a dedicated wallet. Nowadays there are plenty of options, depending on your needs. As a long-term Hodler, here you will find a list of the best ways to store your coins.

Another option is to place different buy orders at different times. In this way, you are managing the volatility of the price. If you spread your buy orders across a sufficiently long period, you can get a lower average price because you take advantage of the times when the price goes down. This approach is known as DCA, Dollar-Cost Averaging.

A way to optimise such a strategy is to buy more in periods when the price is drifting lower, so you will lower even more your average buy price.

A trading bot is more efficient than a trader doing this because an automated trading system has no feelings, so it’s not scared of buying in times of drawdown. And these are exactly the times when the best opportunities come!

Do you want to optimise this strategy even more? While you accumulate your favourite coin, at the same time you can also take profit on a part of your holdings. In this way, you can sell back your coins to your base currency, and you will have more allocation to run your strategy longer.

Long/Short Strategies

If you adopt a long-only strategy, you should be prepared to withstand the volatility of the market. Maybe you are not sensitive to the daily price swings and the news related to the market going down for a few days don’t affect you. If they do, on the other hand, you could evaluate the option of also profiting from the market downturns. This is the best strategies to manage your crypto if you are an active trader.

If you have a portfolio of cryptocurrencies, it could be profitable to open a position that profits from the price going down. You would hedge your portfolio, reducing your risk and the volatility of your returns. 

Nowadays, there are many options to make money in crypto, whether the price goes up or down. Years ago the only reliable option was to open an account on Bitmex. With time, other competitors came into the spotlights. Bybit is now one of the best exchanges where you can trade the most liquid cryptocurrencies using derivatives. 

In 2019, all the major crypto exchanges added the possibility to short Bitcoin or other coins using different options. Kraken is one of the oldest exchanges and among the most secure ones. They recently released the option of trading crypto derivatives. The interface is user-friendly, and you are allowed to trade with low leverage. Perfect if you are looking for an exchange to learn how to trade with these kinds of instruments.

Making money with these products can be more difficult and involves investing time in learning and analysing the market daily. Here you can find some trading tips that can be useful. 

Passive Income

If you prefer a less active approach, this could be the best strategies to manage your crypto wallet with little or no effort. You can increase your assets in the long-term HODLing your coins and earning interest from them. There are two similar approaches you could adopt.

Crypto Interest

You can lend your assets into platforms that will reward you with a periodic interest rate. It works exactly like a bank account that accrues interest on your deposits. This solution is quite simple and it doesn’t require much effort on your side. 

The main decision you should make is whether you want to use a decentralised or centralised entity. When choosing a centralised/custodial company to handle your funds, you should trust that company. Hacking is a widespread issue in the crypto business, and it’s a risk that you should assess very carefully. Celsius and Blockfi are among the major companies offering interests on a relatively broad range of cryptocurrencies.

Some of the most recognised exchanges are also adding interest among the offered services. If you already hold your coins on exchanges like Binance, Bitfinex or Liquid you may want to choose to lend your coins within the exchange for convenience reasons.

On the other hand, when depositing your coins into a decentralised protocol, your trust goes to the smart-contract that handles your funds. Generally, this is a more secure way to store your assets, but bear in mind to verify that the smart-contract has been audited or certified by a third-party company. A non-audited smart contract could be hacked just like a centralised company. The most well-know protocols you can use to deposit ERC-20 token and earn interest are dYdX, Maker, Compound and Fulcrum. 

Not all coins are eligible to earn interest. Usually, the centralised platforms accept only the most liquid cryptocurrencies while the decentralised platforms only allow deposits in Ethereum-based coins.

Staking

If you hold a coin based on a Proof-of-Stake consensus algorithm, you have the chance to stake your coins and earn interest as well. You can read more about the difference between PoS and Proof-of-Work coins here. 
In some cases, you can easily set up your node on the blockchain ready for staking and earning the return directly into your wallet. Some other times, setting up a node is not so easy, or you would need a minimum amount of coins to start validating the transactions (and getting the rewards from the blocks mined). In these cases, platforms like StakingLabs will stake the coins for you. As always, do your own research before depositing your coins on third-party applications. There is an increasing demand for this option, and recently, major exchanges like Binance, Kucoin and Okex have started adding staking options.

Mining 

Are you a tech-geek and you are really interested in having more skin in the game of crypto? Then you could evaluate the option of mining cryptocurrencies. Most of the cryptocurrencies which highest usage are based on PoW protocols. That means that you need dedicated hardware to perform a very complex mathematical calculation to mine a block. The process of mining blocks is what makes PoW cryptocurrencies work. Each transaction to be validated must be included in a sequence of blocks. The first that mines a block gets the transaction fees included in that block plus new coins minted. This is how Bitcoin or Ethereum work.

As we said, you need specific hardware to mine cryptocurrencies and to make more money from mining you need to optimise the settings so that the performance of your rig will improve. On top of that, each cryptocurrency has its specific algorithm, so the decision of what coin you want to mine has a direct impact on the hardware you will need. 

Pros & Cons

Mining cryptocurrencies is generally risky. On one side, the cost of setting up and running your equipment is typically paid in fiat currency. On the other hand, the return you earn is denominated in cryptocurrency. The price volatility can make mining cryptocurrencies an unprofitable business for prolonged periods. Nevertheless, if you consider the mining cost as an investment, in the long term, the coins you accumulated could bear significant profits if the price increases.

You can also use an automated system to sell periodically part of the coins rewarded via mining. For example, you can deposit your coins on your preferred exchange and then sell them when market conditions are more favourable. That would be quite a smart way of mining!

All the best strategies to manage your crypto could have pros and cons. You can choose the one that fits your preferences better, or you can also choose a blended approach, assigning part of your investment allocation to some of these strategies to find the perfect combination for your needs. 

The post How To Manage Your Crypto Assets – The Best Strategies To Increase Your Returns appeared first on Coinrule.