Exodus wallet is a pretty versatile cryptocurrency platform when it comes to new traders or veterans. It offers great value to people who want to store, exchange, stake, and receive crypto.
Today in this blog we will be looking into the ways how you can make passive income a possibility through Exodus.
So let us jump straight into it.
Many people around the globe are thinking about an alternate source of income.
But have you ever thought will it be possible through Exodus wallet?
Yes, apparently there is a way. The only way you can earn passive income through crypto is through something which is called the Proof of Stake (PoS) consensus model. It is an alternative mechanism to the Proof of Work (PoW) model used by Bitcoin (BTC).
In layman’s terms, the mechanism behind a consensus is a process a blockchain uses to approve transactions, puts in place its rules and security, and create more cryptocurrency.
According to the PoS model, it allows users to submit their crypto as collateral for participating in the consensus mechanism. You can pool your resources together in order to validate transactions and in return you are rewarded with newly created crypto. This part is extremely crucial when you stake your crypto.
Each PoS blockchain has its own set of rules and systems for how the system of staking works. Now let us take a look at the different ways of passive income through crypto.
There are multiple ways to make passive income with cryptocurrency:
Staking: Some cryptocurrencies, such as Tezos and Cosmos, allow users to earn rewards for holding and validating transactions on their blockchain. This is called staking.
Masternodes: Some cryptocurrencies, such as Dash and PIVX, offer masternodes which are nodes on the network which perform specific functions and are rewarded for their work with a share of the block reward.
Lending: Some cryptocurrency exchanges and platforms, such as Nexo and NEXO, allow users to lend their cryptocurrency to borrowers and earn interest on their loans.
Dividend-paying tokens: Some cryptocurrency projects, such as Nexo and NEO, issue tokens that pay dividends to token holders.
Cryptocurrency index funds: Some companies offer cryptocurrency index funds that allow users to earn passive income by holding a diverse portfolio of cryptocurrencies.
It's important to note that passive income from cryptocurrency is not guaranteed and can be subject to high volatility. It's always a good idea to do your research and due diligence before investing in cryptocurrency.
So these are some ways you can use the Exodus wallet to path a way for passive income.