How to earn passive income by lending Bitcoin? - Baltimore Post-ExaminerBaltimore Post-Examiner

How to earn passive income by lending Bitcoin?

Introduction:

Cryptocurrency has been famous for many years among the people within the virtual community. Not only because it is impossible to encrypt or hack, but because of its fast and secure transactions. Moreover, Bitcoin has turned into a great source of passive income. 

Although sometimes the volume or the rate of the Bitcoins get unstable from time to time, it still does not affect the users in any way. So coming back to the main topic is that one can earn a good amount of money through Bitcoin Lending. We shall see as to how it can be possible.

Ways to earn passive income by Lending Bitcoin:

There are several best bitcoin lending sites.  Now bitcoin lending is one of the best ways to have a passive income. In this way, one can actually lead a secure and fun lifestyle. Earning interest from bitcoin or any kind of cryptocurrency has been pretty much easy. It is also secure to lend bitcoin. Now we shall see the ways to earn your passive income by lending Bitcoin.

First of all, to start lending bitcoin to others, you activate the automated lending system. This can be done the bitcoin exchange platform which you are using. But ensure that the platform is safe and insured. When you shall find many automated lending sites, some will also coordinate and go through some thorough search. Those kinds of systems take time but they are safe.

But the faster way of having a passive income is if you can directly let the automated site do the work. In this way, lending will become more effective. 

Secondly, remember that you can earn more income if you have more funds available on your automated exchange sites. The time and amount of your passive income depending on the number of funds you have got for lending. Still, there is a crypto catch. You must have some backup bitcoin in case you have a minimum profit. Sometimes in bitcoin lending, the rate of falling into risk is maximum. 

In the automated lending site, the system shall do all the “paperwork”. But you can totally control as to who to lend and the amount as well. The loan you shall be giving will vary depending on the time-table you have set. It can either take several months or years based on your passive income.

Types of Bitcoin Lending:

Bitcoin Lending offers two types of services. One is the custodial service and the other is the full decentralized service. Let us know a bit about both of them.

1.Custodial Service:

Custodial Service in bitcoin means that the site gives you the interest and the money gets lent by the borrowers. Here all you can do is trust the service for getting the money back on time. The user experience on this service is easy but the problem is there is a high of getting scammed.

2. Full Decentralized Service:

Here you have the full control of your funding. You can store your funding in the Smart Contact and you can access them anytime. You can find this system mostly in the automated exchange sites. Moreover, your borrower must put a collateral up to 150% to get a loan from you. In case they fail to return your money it will help you out.

Conclusion:

Depending on the time on the change of the bitcoin rates and the risk of getting scammed, that you should lend your bitcoin. Never lend anyone your cryptocurrency without researching about them and the marketplace. It shall decide the amount of interest you may get in return. Just stay calm and focused for a passive income.





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