Get to know what passive income is and its relationship to crypto

Bittime - About finance and investment, Passive Income is something that is commonly discussed. Because Passive Income is something that we get when we invest. 

So, how is passive income related to purchasing crypto? Is this discussion still an interesting subject to offer various opportunities to earn Passive Income?

Let's discuss it together in this article. Watch until the end to find out more about what Passive Income is, how it correlates with crypto, and why this is a topic that attracts the attention of many people.

What is Passive Income?

Passive Income is income earned without having to do active work continuously. This means that this income can be earned even when a person is sleeping or on vacation. 

Examples of Passive Income include dividends from shares, rent from property, royalties from artistic or intellectual works, and also income from crypto investments .

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Correlation between Passive Income and Crypto

In the crypto world, there are several ways to get Passive Income, namely:

1. Staking

Staking is the process of holding a number of crypto coins in a wallet that supports a blockchain network, to support the network's operations. In exchanges, staking certain cryptocurrencies can provide rewards in the form of additional coins as a reward for our contribution to maintaining network security and stability.

2. Liquidity Mining

Liquidity mining is the practice of providing liquidity to a DeFi (Decentralized Finance) protocol by depositing funds into a liquidity pool, and earning rewards in the form of crypto tokens in exchange for our liquidity contributions.

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3. Lending and Borrowing

Crypto lending and borrowing platforms allow users to lend their crypto to borrowers in exchange for interest paid. This provides an opportunity to earn Passive Income by utilizing the crypto you own.

4. Crypto Dividends

Some crypto tokens provide dividends or rewards to their holders in the form of additional tokens as part of their economic model. This can provide Passive Income to token holders.

Why is Passive Income from Crypto Interesting to Discuss?

Passive income from crypto is attractive to many people for the following reasons.

1. High Income Potential

Crypto is an asset that tends to provide high returns compared to traditional financial instruments.

2. Flexibility

Crypto allows us to earn Passive Income in various ways, according to our preferences and desired risk.

3. Decentralization

Passive Income from crypto often occurs in a decentralized ecosystem, without the involvement of third parties or central authorities.

4. Innovation

The crypto world continues to develop and innovate, opening up new opportunities to earn Passive Income with various new products and services emerging.

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Conclusion

Passive Income from crypto is a phenomenon that is attracting the attention of many people, because it offers the opportunity to earn additional income without having to do active work continuously. 

With various methods such as staking, liquidity mining, and lending, crypto offers flexibility and the potential for high returns for investors. However, it is important to understand the risks associated with crypto investments and conduct thorough research before deciding to invest. 

With good understanding and the right strategy, Passive Income from crypto can be a valuable addition to one's investment portfolio.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via  Bittime.  Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on  Bittime,  make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into  your wallet . For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn  Complete Guide How to Buy Crypto on Bittime.

Monitor price chart movements  for Bitcoin (BTC),  Ethereum (ETH ),  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.

Read Also:

What is AMLD5 and its Function in the Crypto World

What is a Bearwhale and Its Effect on the Crypto Market

Liquidity and its Important Role in the Crypto Market

DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.