5 Ways You Can Earn a Passive Income with Crypto Trading

Trading Bitcoin (the largest cryptocurrency by market capitalization and dominance) proves to be a better way to earn some income. Many traders make money not just by trading Bitcoin (BTC), but also by trading other Alternative Coins (Altcoins).

However, even the best of traders can have prolonged periods of losses, especially when the bear market is on a rally. This does not only leave your portfolio in the red but can also make you want to quit cryptocurrency trading.

What if there is another way to make money from crypto trading? What if there is a better way to save your time and effort and still profit from the crypto market?

Yes, you can achieve all that. In this article, you will learn about the 5 different ways to earn a passive income from cryptocurrency trading, even if you are not good at Technical Analysis (T.A.).

What is Passive Income?

Passive income is simply an income or money generated without necessarily committing more time and resources.

Essentially, it is an income model that is almost automated, provided you set it up the right way. You can do this with cryptocurrency trading.

How to Earn Passive Income from Cryptocurrency Trading

Here are some of the best ways to grow your cryptocurrency portfolio via passive income:

1.    Staking

Staking is a cryptocurrency passive income model that is based on the Proof of Stake (PoS) consensus algorithm.

Ideally, cryptocurrency investors are expected to stake or hold a certain number of crypto coins in a suitable wallet. They may also be required to lend those crypto coins to the network.

The idea is that lending the crypto coins to the network or holding the same in the wallet helps the network to use those coins to validate the transactions processed over the networks.

In return, staking rewards will be disbursed to those who staked their crypto coins.

Important Notes on Cryptocurrency Staking

Staking your crypto coins to earn passive income is a brilliant idea. However, there are a couple of things you need to know to get it done the right way.

These include:

  • The crypto coin you stake should use or be based on the Proof-of-Stake (PoS) model.
  • Consider vesting/staking more crypto coins so your returns will be higher.
  • The actual profits to be made from crypto staking depends on how long you are vesting or staking the coin.
  • Consider vesting your crypto coins in staking pools that have a decent APY.

2.    Mining

Mining is the oldest and most popular way to earn passive income from crypto. The concept of mining entails that the “miners” will use computational power to verify transactions and solve difficult mathematical problems.

In return, these miners will earn “mining rewards,” which are usually crypto tokens or coins. These rewards are usually disbursed to the fastest miners to verify the transactions and share the “proof of work” model used to do that.

3.    Affiliate Programs

Affiliate marketing is not limited to traditional business ecosystems. It is also possible in the cryptocurrency market.

Some cryptocurrency projects and cryptocurrency trading platforms offer affiliate rewards or commissions to the users.

These rewards are given only when the existing users introduce or bring additional people to invest in the projects or use the cryptocurrency trading platforms.

An example of an affiliate program in this area is the Binance Affiliate Program that rewards existing users for referring new cryptocurrency traders via their referral links.

4.    Participate in Airdrops

Some cryptocurrency projects share freebies, known as airdrops. The conditions for getting these airdrops are usually to participate in certain tasks, such as writing promotional content for the projects and following the projects on social media.

Some cryptocurrency airdrops have been associated with scams. Here are some of the best practices when participating in any crypto airdrop:

  • Make in-depth research about the project behind the airdrop.
  • Create a different crypto wallet for storing your airdrops.
  • Have a dedicated email address for any crypto airdrops, so you don’t compromise your important information.

5.    Lend Your Crypto

Last but not least is to earn passive income with crypto trading by lending your crypto coins.

This is based on the concept of Decentralized Finance (DeFi), which is a Peer-to-Peer (P2P) model used by Bitcoin (BTC) and some other cryptocurrencies.

You can lock up or “lend” your crypto coins for a certain time to help you qualify to earn from ongoing interest rates accruable to the coins you lent.


Trading cryptocurrencies is not just the only way to make money. Passive income opportunities like lending and staking are becoming more popular, as the crypto market continues to thrive.

Always Do Your Own Research (DYOR) on these passive income models to be sure they are worth the risk. Always read more trading news at CoinJournal to stay updated about more passive income opportunities in the crypto-sphere.

Above all, these passive income options may soon become a means of steady income, considering the volatility in the crypto market.