8 Profitable Ways to Earn Passive Income with Cryptocurrency in 2024

The world of cryptocurrency is constantly changing, bringing with it many new opportunities for passive income. While some are just starting to receive payments in crypto through NOWPayments , others already have an impressive portfolio of assets and are looking for ways to multiply them through passive income.

If you're looking to make a profit from crypto, it's important to understand the different strategies you can use. In 2024, there are a few methods that really stand out as profitable. Here's a simple guide to how you can earn passive income with crypto, from betting to joining a cryptocurrency affiliate program.

1. Staking: Earning Rewards by Supporting the Network

Staking has become one of the most popular and accessible ways to generate passive income with cryptocurrency. By staking your crypto, you’re essentially locking it in a wallet to help maintain and secure a blockchain network. In return, you earn rewards, much like earning interest on a traditional savings account—but with a twist.

Unlike standard savings, staking often offers significantly higher rewards. Getting started is simple: pick a trusted staking platform or use your wallet to join in directly. While the exact returns depend on the cryptocurrency you choose, annual yields typically range from 5% to 20%, making staking an attractive option for those looking to grow their crypto holdings.

ETH, SOL and ATOM remain some of the best coins to stake with, and you can accept crypto payments or donations in any of them with NOWPayments .

Key Benefit: Staking is a low-risk and simple method to earn passive income through cryptocurrency. This is the best options for all the beginners, who don’t feel too confident navigating the crypto market just yet but want to make money from cryptocurrency.

2. Yield Farming: Maximizing Returns in DeFi Protocols

If you are feeling more confident in your knowledge, yield farming is another option to earn passive income in the world of decentralized finance (DeFi). Yield farming means lending or staking crypto assets you already own in a DeFi protocol to earn interest or rewards. All you have to do is to move your assets across various platforms to maximize returns via high-interest rates or incentive programs.

The obvious benefit of this method of earning passive income in cryptocurrency is the fact that it can be highly profitable. However, that’s what makes it a much riskier option as well. If you still want to multiply your cryptocurrency savings through yield farming, you can try out such platforms as Uniswap, Aave, and Compound.

Key Benefit: Yield farming may lead much higher than 20% of annual return, depending on your skill and the risk involved.

3. Crypto Lending: Earning Interest From Borrowers

Those who look for straightforward and secure ways to earn passive income with cryptocurrency may be interested in crypto lending. All you need to do is to find a secure platform to lend your assets to borrowers. The list of such platforms includes, but is not limited to, BlockFi, Celsius, and Nexo, and you can choose the one you prefer the most after checking their benefits and rules.

Generally speaking, this method is less profitable but way more secure. Depending on the platform of choice and the amount you’re ready to lend out, your annual interest rate may vary from 5% to 15%.

Key Benefit: While crypto lending might not be the highest-earning method for passive income, it stands out for its reliability and the protection offered by the platform you choose. It's a secure and straightforward option, perfect for those who want to grow their assets without dedicating too much time to managing them.

4. Running a Masternode: Maintain Network for a Reward

Running a masternode may seem like an attractive way of making profit off of cryptocurrency, but it comes with its disadvantages. While you are getting a hefty reward for helping to maintain the network’s stability and security, this option requires a significant upfront investment in a particular cryptocurrency. Besides, in order to set up and maintain the node, you should already possess a specific set of technical skills.

If you are ready to run a masternode, your best choice are cryptocurrencies like Dash, Zcoin, and PIVX, all of which are available on NOWPayments. The ongoing rewards will recoup the costs of the initial setup and will provide a steady stream of passive income.

Key Benefit: For those who possess all the needed knowledge, running a masternode may offer a secure and stable passive income with up to 20% of annual interest.

5. Airdrops: Earn from Free Tokens

One of the methods which won’t require much effort from you is participating in Airdrops. Already explored as a great marketing strategy by new or existing cryptocurrency projects, airdrop is a way to distribute tokens to users, often as part of a promotional campaign. All you usually need to participate is to hold a specific asset in your wallet or perform one or several simple tasks.

Companies may ask you to sign up for a newsletter or follow their social media accounts. In return, airdrops provide free tokens which may grow in value over time. This method of earning passive income through cryptocurrency is not consistent, but if you are lucky you may end up with some pretty valuable tokens.

Key Benefit: Airdrops don’t require any specific knowledge or much effort. While there is no guarantee that the tokens you get will grow in value, there is a good chance that they will bring you some passive income over time.

6. Investing in Dividend-Paying Cryptocurrencies

Similar to traditional dividend-paying stocks, some cryptocurrencies are designed to pay dividends to their holders. These cryptocurrencies distribute a portion of their profits or transaction fees to their token holders. This is usually in the form of additional tokens or another cryptocurrency.

Nexo and KuCoin Shares (KCS) are examples of dividend cryptocurrencies, so owning these tokens gives you regular payouts, providing a steady passive income stream.

Key Benefit: Dividend-paying cryptocurrencies offer a reliable way to earn passive income, with payouts often tied to the performance of the platform. This method may also be the best one for those investors who already have an experience in fiat markets.

7. Royalties Through NFTs: And Endless Earning Stream

On certain NFT platforms, creators can earn a royalty every time their NFT is resold. Basically, when artists or authors mint and sell their NFTs, they can set it up so that they get a cut of the profits from future sales. It's like getting paid over and over again for the same piece of work!

While this method primarily benefits creators, investors can also generate passive income by buying NFTs that are likely to increase in value over time and eventually reselling them. NOWPayments is the perfect crypto payments gateway to ensure each transaction is as fast and secure as possible.

Key Benefit: NFT royalties provide a way for creators to earn an ongoing income from their work, while investors can benefit from the appreciation of valuable NFTs.

8. Crypto Platform Affiliate Programs: Earn by Sharing

Earning passive income through an affiliate programme is an easy and rewarding strategy. By promoting various cryptocurrency platforms and services, you can earn a reward for every sale or lead generated through your referral links.

Once you set up a website, blog or social media page and start sharing your affiliate links, the profits can roll in without much ongoing effort. The key is to choose quality products that match the interests of your audience. NOWPayments , for example, has an affiliate programme that offers you 25% of the NOWPayments service fee for every transaction that someone you refer makes.

Over time, as traffic and sales grow, you can enjoy a steady stream of passive income while letting your content do the work for you.

Conclusion

As the cryptocurrency market grows stronger and matures, the holders are finding more and more ways to earn passive income with their assets. No matter how experienced you are, or how much time you’re ready to spend to increase your profit, there is a way to earn for everyone.

So, be sure you are aware of all the risks and know what steps to follow, and start making profit from your crypto assets today. By strategically choosing the right methods, you can build a diversified portfolio that generates consistent passive income in 2024 and beyond.

To start making profit in crypto through the affiliate program, or receive any transaction in 300+ cryptocurrencies, check out NOWPayments today.