Despite getting trapped in the tight zone of $9,000 to $9,200 for two weeks now, bitcoin remains the best-performed asset of 2020. Many people enter the crypto world hearing the stories of overnight millionaires, but they soon realize that big reward does come with big risk – while you can double your investment in a few days, you can lose them as fast.
For bitcoin, high volatility is the norm and a double-edged sword. When the market is volatile, the risk of losing money increases with the opportunities to make money; when the market is calm, our bitcoins are “wasted” for they do not appreciate. Recently, data showed that bitcoin’s ATR range, which is used to evaluate volatility, has decreased nearly 50% since June, so it seems bitcoin trading will remain dull for the time being.
So… is there anything we can do to earn passive income with bitcoin?
Mining
Mining is the oldest method of earning bitcoin. you don’t need to put up with KYC and could become a part of promoting the bitcoin network.
However, you need to make a large investment at the beginning. First, you will need ASIC hardware and they don’t come cheap. Besides, if you are an independent miner, setting up the equipment requires you to have some basic understanding of blockchain and computers.
Secondly, mining is an energy-consuming activity, not just because it requires you to take good care of your equipment, but also because it is an electricity-intensive process. According to data, the electricity that went into mining in 2018 equaled the total electricity consumption of Bangladesh. We often hear the concept “miner capitulation” that is considered by many a bearish factor. It occurs when mining is no longer profitable and miners have to sell their coins to cover the operational costs.
Margin Lending
With margin trading becoming more popular, more peer-to-peer platforms or crypto exchanges allows traders to lend out their bitcoin. Usually, traders can set their terms (return rate, duration, amount, etc.) and wait for other traders to “take” it. Sometimes, crypto exchanges will set the terms for you. Take Binance as an example, its estimated annual yield for BTC is about 0.75%.
Usually, margin lending is a much safer way to earn passive income but sometimes it will put you into a passive position. For instance, in some exchanges, your deposits will be locked until the borrower closes his positions. Furthermore, in the extreme case when the price of bitcoin fluctuates so violently and causes massive forced liquidation, the losses may have to be shared between margin funding providers. Therefore, if you want to become a fund provider, make sure to start at a well-trusted exchange and check the terms.
Interest-bearing Wallet
Many people confuse interest-bearing wallets with margin lending. Although they both ask you to deposit your bitcoin in the exchanges/platforms, your deposits in the interest-bearing wallet will not be used for other purposes. The interest-bearing wallet merely serves as a safe for you to store your bitcoin. The interest rates vary from platform to platform, and you can withdraw your deposits anytime you want. Compared with other methods, an interest-bearing wallet is a safer and easier way to generate passive income.
Bexplus BTC Wallet – Up to 30% Annualized Interest
As a leading crypto derivatives exchange, Bexplus strives to provide users with profitable and advanced investment opportunities and bridge the gap between beginners and veterans. Its recently launched BTC wallet aims to help users stay profitable while taking a break from the volatile bitcoin market.
Advantages of Bexplus BTC Wallet
High annual interest (APR): Bexplus offers one of the highest interest rates in the industry of up to 30%. It means that if you deposit 10 BTC, your monthly income will be equal to (10*30%/365*30)=0.24 BTC.
No KYC: all registrations on Bexplus are done via email verification. Registration only takes a few minutes and the transaction between the trading account and wallet is instant.
Fast withdrawal and no penalties for early withdrawal: Withdrawal requests will be processed within 1 day with no penalties for early withdrawal. If you withdraw your deposit on the tenth day of the month, you can still receive the interests generated within this period.
Instant transfer: the deposit in the wallet is independent from the trading account. So if traders’ positions get liquidated, their deposits will not be affected. The transfer between the wallet and the trading account is instant and free of charge.
High security: Deposits are encrypted with multi-signature and stored in an offline wallet system. 2FA(provided by Google Auth) is adopted to ensure account security.
Low Minimum Deposit Amount: Traders can start from depositing 0.05 BTC without paying a deposit fee.
Mobile Support: With Bexplus’s best-ranked apps, traders can manage their accounts anytime and anywhere they want. All data and assets are shared across computers, mobile apps, and tablets.
Headquartered in Hong Kong, Bexplus is a leading crypto derivatives exchange offering 100x leverage on the trading of BTC, ETH, LTC, EOS, and XRP. Bexplus is famous for its intuitive interface, trading simulator, low service fee, and attentive customer service.
