How to Earn from Crypto Without Active Trading

For many people, cryptocurrency is no longer a new topic. Whether you've heard success stories of those who've built substantial wealth through crypto investments, or cautionary tales from those nursing losses, one thing is clear: like any venture, cryptocurrency involves both gains and losses. What makes crypto investing particularly interesting is that there are multiple ways to generate income beyond just buying and selling on exchanges.

You'll often see crypto traders glued to their charts, watching for the next hot trading opportunity. But not everyone has the time or inclination to analyze market trends and execute trades at optimal moments. This doesn't necessarily exclude these people from participating in crypto investments. Currently, there are numerous ways to invest in cryptocurrency, and new opportunities continue to emerge over time. Simply put, cryptocurrencies open up a sea of possibilities for people looking to generate returns.

Mixed Expectations Around Crypto Investing and Trading

One of the main reasons people venture into cryptocurrency is to make money. Unfortunately, only some succeed. Many either give up before they reach the core of crypto investing, or simply fall victim to the increasingly common cases of hacking and fraud. Additionally, most people think the only way to earn money through crypto is active trading. This isn't the case.

To be honest, many traders already in the business can confirm that beyond popular trading, there are numerous legitimate methods to earn money with cryptocurrencies. In this guide, I'll help you understand several ways to potentially make money with cryptocurrency without constantly watching the markets. Let's dive in.

Buy and Hold Cryptocurrency (HODLing)

Buying and HODLing is one of the most common ways to earn from cryptocurrency. This is arguably the best choice for beginners on our list. It simply refers to the process of purchasing cryptos and ultimately holding onto the tokens. Ideally, this method is similar to the approach used in stock markets, which involves buying shares and holding them for several years without trading them.

Most investors purchase cryptocurrencies like Bitcoin, Ethereum, Ripple, Litecoin and others, waiting for their values to rise again. They then sell them at a profit.

If you want to use this strategy to make money with crypto without trading, it's important to consider a few steps. In particular, consider identifying both stable and more volatile assets that can change value more quickly to generate more profit for you. We recommend Bitcoin and Ethereum due to their regular fluctuations.

For this reason, these two should be considered safe investments. However, feel free to explore other crypto assets that you feel might be good for you. Managing your crypto portfolio effectively becomes crucial when you're holding multiple assets, which is where 👉 tools like CoinLedger can help you track your holdings and calculate potential tax implications as your investments grow over time. In this case, all you need to do is invest first before HODLing any coins.

Earning Cryptocurrency Dividends

Another way to earn with cryptocurrency without active trading is earning dividends. It's actually perfectly possible to buy and hold cryptos for dividend returns. Simply put, a dividend is a small amount of cash that an invested company issues to stakeholders.

While you might not see massive dividend waves hitting your account, the total amount of cash will surely grow in your balance. Some examples of dividend-paying cryptos include Bitcoin, COSS, NEO, Komodo, NAVcoin and KUCOIN.

Keep in mind that not every coin is suitable for your crypto portfolio. Therefore, I recommend doing some research to find out which coins pay dividends and whether these dividends are sufficient to make the investment worthwhile.

Staking Cryptocurrency

If you want to earn some profit without participating in actual trading, then staking is another method I recommend. When you stake your crypto holdings, you're simply putting them to work. Ideally, this is a mechanism for earning passive income on digital assets. You should know this is similar to a savings account that earns interest over a specified period.

Remember that you can also use your cryptos to help prevent blockchain-related errors when you stake them. Although some believed that staking was a daunting activity involving validating transactions yourself, this isn't the case. You can easily perform the transaction through user-friendly platforms offered by most exchanges.

However, staking also has several disadvantages, so you should always be prepared for them. You probably won't have access to your money once it's staked. These will be locked for a certain period, preventing you from trading with them during the earning period. Note that staking isn't permitted during Bitcoin trading. You can also try Ethereum 2.0 and Solana.

When you're earning passive income through staking or dividends, keeping accurate records becomes essential for tax purposes, especially as your earnings compound. 👉 CoinLedger offers comprehensive crypto tax tracking that automatically calculates your gains from staking rewards, making tax season significantly less stressful.

Crypto Lending

You should try crypto lending if you want to earn additional money with cryptocurrencies at all. Crypto lending simply involves two parties: the lender and the borrower. An agreement between the two is also a prerequisite. Platforms that enable this type of strategy include Celsius, Oasis, SALT Lending and Nexo, among others.

Specifically, you can offer your currencies as collateral to a lender who accepts the prerequisites, which can be in the form of cash or other crypto. Either way, this is a profitable way to earn some extra money beyond trading. If possible, lend out your crypto assets and subsequently acquire additional assets. Explore this method as it might suit you.

Cryptocurrency Mining

I hope this isn't the first time you've heard about mining when investing in cryptocurrencies. Mining is another strategy to gain additional income from your investment. This refers to the process of connecting specialized hardware to a desktop device, which further connects to the blockchain of a particular cryptocurrency.

As a miner, you use the available processing power to solve some complex equations to create a new block on the blockchain. As a result, you receive new tokens and rewards. There's an option to join a Bitcoin Mining pool, which consists of numerous miners who combine their resources for Bitcoin mining.

Don't hesitate to explore this method. You should now be able to generate passive income. Give it a try.

Working for Cryptocurrency Companies

This is a popular way to earn income from the sector. You can work for cryptocurrency companies in any capacity. You can be a content creator, digital marketer, web developer and designer, backend engineer and much more. The only thing you'll need here is the right qualifications and meeting their requirements.

There are numerous advantages here. You can work flexibly and remotely in your own freedom. Remember that most cryptocurrency companies offer highly competitive packages. As such, seize opportunities as they arise.

Our Conclusion on Earning Income from Crypto

Still asking yourself, "So can I make money with cryptocurrency with something other than trading?" Well, now you have the answer. As you can see, I've provided information on six common methods. You can try the ones you feel might work for you and regularly evaluate their impact on your returns.