With the cost of living and essential commodities skyrocketing with time, people are forced to look for additional sources of income in India. Sometimes, investing in alternative avenues can pave way for additional income and the tech-savvy young generation of India is keen on that. While not many people are aware of it, investing in crypto coins and platforms can pave way for extra income. So far, technology-savvy Indians are making such moves but with time the trend is expected to catch up with others too.
Indians switching to Crypto sector for earning extra
Cryptocurrency trading platforms based in India such as CoinSwitch Kuber and WazirX have reported the number of users investing in crypto tokens and services offered by the platforms has gone up. A majority of the crypto investors seeking additional income are in their 20s but slowly people in their 30s and 40-s are also waking up to the income potential offered by the nascent sector. The Supreme Court verdict overturning the 2018 RBI ban on cryptocurrency trading has acted as a catalyst for such growth. The pandemic induced lockdown led to pay cut and job loss across the country and that also acted as a factor behind people choosing the crypto sector for making money.
Ways to earn passive income using Cryptocurrency in India
It is possible to earn by investing in Cryptocurrency, provided you know the ways and pick the right platforms. When you seek specific cryptocurrency platform services, all you need to do is make an investment. The invested money fetches you interest-which qualifies as passive income. It is much like the income you get from keeping money in a savings account in banks but there are some variations.
The ways to make passive income in the crypto sector are:
- Mining- It denotes using computational power to secure networks for obtaining rewards. However, with time mining cryptocurrencies has become a costly proposition in most networks.
- Staking-It is like a version of mining but more resource-conserving. For this, users have to put some funds in a specified wallet and do certain network activities.
- Lending- Some crypto exchanges offer peer-to-peer lending services using which you can lock up funds for a period and then get interest on it. It can be either fixed or variable interest rate.
- Lightning Node- Some Blockchain networks support a secondary layer protocol that runs atop the main layer. The off-chain payment system is deployed for executing quick transactions.
- Affiliate Programs- A few cryptocurrency platforms offer Affiliate programs. You can invite your social media contacts to join the network and if they join and invest, you get rewarded.
The technology used in the cryptocurrency sector is evolving and more ways to earn passive income will be unveiled, say the experts. However, owing to the volatility of the sector, you should proceed with caution.
Example of staking (Using the WazirX platform)
WazirX is among the top Indian-origin crypto platforms with a huge user base. In WazirX, you need to deposit or buy a PoS token to make passive income. Maintain a minimum balance in your account and you can stake it. Trading can be done any time and when the funds lay idle in user accounts, they receive staking rewards. Compared to the bank fixed deposits, your money is not locked in WazirX account. You can trade or get rewards just by holding the funds in your account.
However, each crypto token has to be stored in varying limits in your account to obtain staking benefits. Staking on such crypto exchanges can fetch you an annual return of interest between 2 – 16 percent. It varies on the token and the funds deposited by the user, eventually.