💰Passive income

What is passive income?

In the blockchain industry, trading or investing in projects is one way of making money. However, it typically requires thorough research and a significant investment of time, which still does not guarantee a reliable source of income.

Even the best investors can experience prolonged periods of losses, and alternative sources of income are one way to survive such cases.

There are other methods besides trading and investing that can help you grow your cryptocurrency holdings. These methods can provide a steady income similar to interest income, require little effort to set up, and almost none to maintain. You can, therefore, have access to multiple income streams that can add up to a substantial amount of money.

What are the risks of passive income generation in the crypto world?

• Buying a poor quality asset: artificially inflated or misleading rates of return may tempt investors to buy tokens/NFTs that are of otherwise low value. Some staking networks use a multiple-token system where rewards are paid out in a second token, putting the reward token under constant selling pressure and causing it to deflate in a short period of time.

• User error: as the blockchain industry is still in its infancy, acquiring and maintaining such revenue streams requires technical knowledge and an inquisitive mindset. For some owners, the best solution may be to use services that take a more user-friendly form or to use only those that require minimal technical expertise.

• Lock-up periods: some lending or staking methods require you to lock up your assets for a set period of time. This effectively ties up your token holdings for this period, leaving you vulnerable to any event that could have a negative impact on the asset's price.

• Risk of error: the locking of tokens in a stake wallet or smart contract always carries the potential for error. There are usually several options to choose from, representing different degrees of quality. It is essential to examine these options before deciding on one of them. Open-source software can be a good starting point, as such options are at least community-controlled.

Concluding thoughts

The passive ways of earning money in the blockchain industry are becoming increasingly popular, and there is a growing demand for this type of project. These are perhaps the best-known methods to put your cryptocurrencies to work, even when you are in HODL mode. Of course, risk is never a negligible factor, but those who are immersed in the world of crypto are probably already more tolerant of higher levels of risk, as this can be accompanied by higher profits in a lucky scenario.

Unfortunately, there have been huge scandals and scams in the crypto media recently, and the bear market of 2022 has proven that most crypto companies offering these services do not yet have a long-term sustainable solution to passive ways of earning income.

In our experience, sustainable companies that can provide valuable passive income in the digital world should also be sought among those providing the infrastructure and platform.

WastePowerFinance has created a solution for the passive income generation market that provides a sustainable, ongoing, long-term return for our investors by providing one of the cornerstones of our digital infrastructure, namely green energy. We are confident that our solution will become an ongoing source of revenue for a wide audience.