Passive income is a way of earning money by collecting profits over time without seemingly doing much to attain said funds. CoinDepo offers several ways to earn passive income with crypto – either through depositing cryptocurrencies and stablecoins in Compound Interest Accounts, or through small, simple, and secure loans that require no collateral account.
Earning money passively isn’t really a go-to approach in the crypto world. Instead, a lot of people prefer to make sudden, big moves to catch short-term profits. Long-term investments aren’t uncommon. It’s actually been one of the primary ways to make money a few years ago when Bitcoin was still on the continuous rise.
CoinDepo offers an alternative way to make money long-term, which is a rather unique occurrence in the world of decentralized finance, at least in this form.
Earning Passively with CoinDepo
There are several ways to earn passive income in cryptocurrency and stablecoins::
- Long-term investments;
- Shorting;
- Staking;
- Earnings from interest.
The first and last are rather common occurrences in the crypto market, even though it’s more about short-term investments nowadays. Others are less common as they require specialized knowledge and are among the relatively new DeFi solutions.
So, let’s break these down one at a time.
Passive Income on Borrowed Funds
CoinDepo doesn’t have a brokerage function, it’s not an exchange. So, you can’t exchange digital assets through it. Instead, what you can do is take a simple instant loan from this place and use it on the market. The obvious advantage is that you use someone else’s money to risk during trading, but it’s also not as risky as the usual margin trading we all know.
The loans here are typically smaller, but do not require a collateral account and have a negative effective interest rate. They are secure and comfortable.
So, what can you realistically do with borrowed funds to get passive income?
Long-Term Investments
Long-term investments are also a valid way to earn money, although it’s looked down on right now. It’s all the more reason to borrow funds to do it instead of risking your own money. You can borrow USDT, sell it for USD, invest it into a growing crypto project, and just count your revenue.
You can borrow USDT, invest it in a growing crypto project and simply calculate your income.
The only problem is actually figuring out what projects are going to invest in. Investing into BTC isn’t that alluring, although it has lately entered a period of growth. Regardless, you can borrow some money and pump that money into a promising project of your choice. It’s a good way to passively earn some funds.
Shorting
Shorting isn’t really as much of a passive type of income, but it’s still important to point it out because CoinDepo allows this opportunity, and it’s one of the few decent suppliers of means for shorting – the loaned funds. There aren’t that many crypto platforms willing to loan crypto under acceptable conditions.
Shorting is a way to make money off the decreasing value of an asset. In this context, it means that you can profit from the price difference that a cryptocurrency experienced after a period of shrinking. It’s only possible if you borrow the asset you want to short, hence why we bring it up.
This is how it works:
- You notice that BTC is entering a period of decreasing value;
- You borrow an X amount of BTC;
- You immediately sell it for USD (or other fiat money);
- BTC falls in price by, say, $100;
- You buy back that BTC for $100 less;
- You repay your debt.
What you have in the end is $100, a repaid debt, and no one suffered in the process. That is, this will happen if you manage to score a good hit. If you do it multiple times, it qualifies as a sort of passive income, so here you go.
Staking
You can also stake currencies and receive a certain amount back. It mostly just works with tokens. It’s not the same as mining them, but it’s similar. Staking tokens means that you basically deposit them into their native network, freeze them, and start receiving a portion of their value back. That’s how you stake tokens.
You can stake USDT or USDC, which are stablecoins that you can borrow on CoinDepo. An additional benefit is that these currencies don’t really fall in value because everything valuable in the crypto world is represented in USD. So, you’ll just collect small sums of money now and again without any risk.
Earning Interest
Earning interest is another big feature of CoinDepo, besides receiving loans. In fact, these are crypto savings accounts that regular physical banks have, except for crypto. Since it operates with crypto, you can benefit from the same crypto-related advantages, including transparency, privacy, and freedom.
Moreover, the annual interest rates on CoinDepo are much higher than what you get from regular banks. It’s a maximum of 24% on CoinDepo against the average of <5% in the United States. You just deposit digital assets here and collect interest. It is, admittedly, a long-term solution that allows you to earn a risk-free regular passive income from your funds on a daily basis.
Summary
Which of these methods suits you best is entirely your choice. There is a lot you can do, a lot of possible sources of revenue that vary in style and approach. Passive income, however, is an incredibly lucrative endeavor, and a lot of people in crypto ignore it in favor of short-term miracles.
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