The ability to earn a passive income with your cryptocurrency holdings has been around a while now.
I have dabbled in most of them, but in almost all cases the rewards can be insignificant and the associated cost and effort can far outweigh the benefit. Some of the current methods include:
- Staking with and without Masternodes: Staking allows you to earn additional tokens for holding cryptocurrency in a wallet using the Proof of State consensus method. Most cryptocurrencies require that the wallet is open and active in order to receive rewards. Masternodes also stake but are dedicated resources providing additional processing power which feed token rewards back to a wallet. Masternodes also remove the need to leave the desktop wallet open and active on a desktop computer.
- Exchange Tokens: Exchanges such as Kucoin offer shares which distribute a share of fees collected by the exchange back to the share/token holder.
- Dividend Coins: Some cryptocurrencies use ‘network fees’ whilst they remain the equity in the network. For example, NEO generates Gas and Vechain generates Thor. Both Gas and Thor are distributed to those who hold NEO and Vechain.
A new form passive incoming will soon be with us and it involves security tokens.
I recently wrote about security tokens in a previous article.
The latest news is exciting and offers us the opportunity to earn a passive income from holding tokens in the up and coming security token platform, DESICO.
A recent article advises that all DESI token holders will receive 12.5% payout per quarter from any DESICO business revenue. You can read more about this here.
I have written about DESICO previously, and although I am actively searching and reviewing similar projects, I have yet to find one as comprehensive. There are other security token platforms such as Polymath, but these tend to concentrate on the creation of tokens by companies wishing to diversify from traditional investment revenue streams. DESICO appears to be the only platform that has an all-encompassing array of features for both companies and investors, with their own exchange, easy to use platform and community.
As a retail investor myself, I am interested in how Polymath progresses, as they could be the platform that many of the companies I will consider investing in may use, but my main interaction with security tokens will be through a platform similar to DESICO.
DESICO have just announced that their own sale will now be an STO as opposed to an ICO now they have acquired all the necessary permits and licenses. They will be able to showcase the entire process and features of their platform by being the first project to become part of it.
As with all things in cryptocurrency, I remain cautiously optimistic, but there is always risk, as well as opportunity. Always tread carefully and do your own research; not just in any of the platforms mentioned in this article but in cryptocurrency and security tokens as a whole.
This article is based purely on my opinion. I do not endorse any of the companies or branding that I write about. I use them for demonstration purposes only, to make a point or as an example. This is not financial or any other form of advice.