Cryptocurrency investment is highly popular now for earning income and building long-term financial security. Generating income via cryptocurrency doesn’t require active buying and selling; several indirect methods are enough. There is no need for continuous labour, energy, or time for maintenance.
The methods involve various risks and rewards. Understand the possible risks and commit to a long-term crypto passive income strategy.
Step-by-step guide to generating passive income with airdrops
Generation of passive income from airdrops is a lucrative attempt. Follow these steps to earn passive income.
Step 1
Follow the instructions to participate in the chosen crypto airdrop and meet any eligibility criteria. Check on the duration of the airdrop event and several other conditions. The duration of the airdrop event refers to the period during which it is active, and participants can claim their tokens.
Step 2
Make sure the wallet is compatible with the blockchain network on which the airdropped tokens will be allocated.
Step 3
Most airdrops have certain requirements that need to be fulfilled. The requirements include social media accounts, creating videos or engaging in discussion in the project’s forum, and retweeting posts. You need to follow the rules established by each airdrop.
Step 4
Some airdrops may require more verification procedures that include the Know Your Customer step. Before proceeding with the personal information, use caution and confirm the project’s validity. You need to copy a wallet address and paste it into the airdrop registration form. Make sure it matches the needed blockchain network to proceed with a wallet address for cryptocurrency airdrops.
Step 5
Stay updated on the dates when tokens will be distributed. Ensure every communication is received from the official source.
Step 6
If you have received a large number of tokens, move to a more secure wallet. You can even consider a hardware wallet.
What are the advantages of earning passive income with crypto?
Earning crypto passive income includes certain advantages such as:
- Can receive higher rates of return than traditional banks.
- Opportunity for diversified investment and income sources.
- Potentially substantial returns, mainly if the value of crypto increases significantly.
The risk involved with the generation of crypto passive income.
Along with several benefits, crypto passive income is associated with certain risk factors such as:
- A major fluctuation in the crypto value.
- Platform bankruptcies.
- Security risks that include personal and platform hacks.
These risks are associated with the speculative and volatility of crypto. Approach crypto with the utmost knowledge. The tolerance and investment goals will determine the right crypto income investment balance of the portfolio.
The most common types of crypto airdrops
It is really important to know the most common types of crypto airdrops. Read the below section.
1. Standard airdrops
Standard airdrops are the simplest type of airdrops where you can receive coins for free by just providing the crypto wallet and basic information. This type of airdrop will have a limited number of tokens and usually, the distribution will be fixed or dependent on the number of participants.
2. Holder airdrops
This airdrop works in a way where the participants are awarded new tokens if they hold a certain amount of tokens in the crypto wallet. Tokens will be awarded depending on the number of coins and the length of time the participants hold them.
3. Exclusive airdrops
As the name suggests, these exclusive airdrops need an invitation from the project team or partners. Invitations will be sent based on the contribution, experience, or reputation. These types of airdrops are usually used to attract new partners or influencers to the project.
4. Bounty airdrops
Free coins will be given upon the completion of certain tasks or actions. Tasks include sharing posts, writing reviews, and following social media accounts. These types of airdrops focus on increasing user engagement with the project.
Final thoughts
Users can earn passive income with cryptocurrency airdrops. This is indeed an opportunity to diversify investments and earnings. You can earn far more from here than from a bank. If you have luck, which means the crypto increases its value, you can receive double interest and investment gains. It is important to keep in mind that, since cryptocurrencies are highly volatile, you should expect some risk too. The decision is upon you whether to take the risk or not.