A passive income in bitcoin (BTC) without the effort… and even BTC itself! Discovering the Masternode method
No matter what your financial strategy is, you should seriously consider making sure you have some so-called ‘passive income’ streams. This is also the case when setting a strategy for investing in Bitcoin and other cryptocurrencies. Specifically with Bitcoin, if your means do not allow you to invest regularly in the king of digital currencies, it is therefore essential that you find a way to grow the assets in your possession. If you do so, you can increase your wealth with the lowest possible exposure to risk.
Obviously, such a plan is easier to read than to put into practice!
So today we would like to take this opportunity to explain how, in a few very simple steps and thanks to the tools made available by the reliable French outfit Feel Mining, you will be able to benefit from passive income in BTC. Surprisingly, you won’t even need a single satoshi to get started!
Today you will discover:
- Why it is essential to understand the importance of passive income for your current and, especially, future wealth
- To what extent subscribing to masternodes will allow you to accumulate bitcoins
- How to ensure that you benefit from this passive income every month, every week (or even every day for the most determined)!
Better yet, you will see that you can achieve this with an investment of less than £50!
If that is not enough, why don’t you take advantage of a 5% discount on any order (machines included!) placed on Feel Mining using the code TCT.
This article is brought to you in partnership with Feel Mining. Crypto investments are risky by nature, so always do your own research and due diligence investing only within your financial means. This article does not constitute investment advice.
Passive income: the secret weapon of the active investor
If you are fond of important financial maxims, the kind that adorn the pages of bestsellers that pave the way to financial freedom, or those of your Facebook newsfeed that sometimes sneak under your nose, you probably have seen a phrase along these lines:
“You will never make a fortune if you do not find a way to earn money while you are sleeping.”
It is an elegant way to summarise the fact that, even if you are a workaholic and you manage to accumulate a respectable amount of capital, through very hard work, nothing will ever be as effective as the implementation of investment tools and strategies that, unlike you, will never sleep.
In other words, it is essential that you set up a strategy as soon as possible, so that your investments will start bringing you a passive income.
“What were you saying about passive Bitcoin income again?”
Defining passive income
We can better understand what passive income is by referring above all to what ‘active income’ is.
Active income is your main financial source, also known as your job. In other words, your remuneration, which is generally received monthly, that is, the remuneration of typically eight to ten hours a day, five days a week of your labour.
This income is by its very definition limited in time (you cannot work 24/7) and also by the fact that you must devote most of your energy to it to produce its principle effect: your salary.
If you stop working, your active income disappears.
In crypto terms, your work and salary are, in the global context of the labour market, components of a ‘proof-of-work’ system. Your time and energy are compensated by a certain amount of money.
Conversely, passive income consists of a return of an investment, the nature of which can be very variable:
- Savings accounts, life insurance schemes
- Stock market investments, regular investment plans, collective investment schemes
- Rental income from property
- Life annuities
Passive income can also be the lasting effect of a significant specific effort (i.e. royalties from a book that took you a year to write) originating from an initial investment.
Note that as retirement or unemployment benefits are clearly a direct consequence of your professional efforts, they do not fall into the category of passive income.
In addition, a trader who trades on the stock market and makes a gain is not building passive income (even if he buys and sells the same stocks as those in your life insurance scheme). It is the product of his work as a trader that provides him with an income not the other way round.
Thus, a true passive income must meet certain criteria to merit your attention:
- It must be permanent, that is to say earning 24/7, however small the gains
- It must be perpetual, or to put it more realistically, very resistant over time – passive income is only effective over years and decades
The products or investments that will offer you real passive income are rare and difficult to find (and majority of the most enticing opportunities turn out to be outright scams)
Luckily for you, however, this young industry that is cryptocurrency offers opportunities to set up passive income plans that are future proof!
From dividends to staking, make time work for you
Whether you call them dividends, interest, capital gains or to follow the crypto rhetoric of ‘staking rewards’ or ‘compounding’, the principle remains basically the same: make sure time works for you, if possible without risk or at the very least, with an acceptable share of risk.
Having trouble figuring out what the notion of ‘acceptable risk’ refers to? Take a look at our dedicated article ‘Follow these 13 rules when investing in Bitcoin and cryptocurrency’, which explains how to determine your level of risk aversion (mine will be different to yours or your neighbour’s).
The big advantages of a passive income strategy
- It only requires a little initial effort to set up, then works its magic without any other involvement
- Passive income is not correlated to your performance (by nature fluctuating). Whether you have a bad day, or make bad decisions every day, your passive income remains stable and identical
- You will sleep better, trust me you will. If you have ever dabbled in a bit of trading you will have had that movement where you woke up at 2am and thought… “crap… did I put that stop loss on?!”
The real traders will be able to sympathise
- You will be able to devote your energy to otherwise more strategic tasks such as managing your wealth, or choosing the colour of your Bentley’s leather interior…
The best time is now
As you can see, implementing a passive income generation strategy should be at the top of any investor’s to-do list.
And to make things very clear… I am not talking about the select few of the super rich!
Investing, and the implementation of a long-term wealth strategy, is within the reach of even the most modest individual – it can begin for less than the price of a nice pair of trainers as you will discover a little later.
Let’s take this even further: having a plan, a long-term investment strategy, should be part of any healthy lifestyle, whoever you are, however young, regardless of your ambition (becoming financially free, a pension boost, leaving something for your children to inherit…).
Passive income: accessible to all
Even small investments, as long as they are arbitrated and put in place as soon as possible, can make incredible gains in just a few years.
While this may not be the topic of today’s article (we will come back to this however), it should be noted that the so-called reinvestment strategy of compound interest beats every single type of perceived profitable investment in the long term (stock market, gold, etc).
Comparing S&P 500 performance with and without dividend reinvestment
This is moreover often one of the deep convictions of crypto investors who qualify as ‘holders’: patience and time (a lot of it) are often much better vectors of enrichment than vain attempts to venture into the lands of day-trading, for example (outside of your professional remit).
Passive income in BTC from masternodes
If you are familiar with the crypto sector, this title will surely have got your mouth watering.
You are aware of the fact that even if Bitcoin works well with masternodes, it does not however reap a particularly interesting yield. It’s only reward perhaps is that you can be proud of being part of the adventure that participates in the robustness and resilience of the network.
If, on the other hand, you are not sure what I am on about, let me enlighten you: you need not operate a Bitcoin masternode to obtain BTC!
Proof-of-stake: a crypto investor’s secret weapon
However, as a regular reader of our modest pages, you are probably aware that blockchains operating under a protocol called proof-of-stake (PoS) offer a radically different approach.
Therefore, in some PoS ecosystems, any user is free and able to operate a masternode, just like on the Bitcoin network.
However, the big difference is that in return for collateral (a form of deposit) of a variable amount of a network‘s cryptocurrency, the operator becomes eligible for ‘rewards’ (dividends).
Hundreds of altcoins (the name given to any cryptocurrency other than Bitcoin – it keeps things simple) operate on masternode systems whose mechanics, governance, and reward levels vary vastly.
However, some carefully selected masternodes offer a perfect synthesis between the seriousness of a project and solid performance. This is the moment when your little investor heart has the right to get carried away.
Feel Mining offers you the best of both worlds
In addition to its hosted Bitcoin mining services in Canada, otherwise known as cloud mining, Feel Mining offers another pretty incredible and ergonomic option.
In a few clicks, you will see the disconcerting ease with which it is possible to subscribe to a masternode, but also how simple it is to proceed at your own pace, generate passive and recurrent income in Bitcoin!
Convert your masternode rewards into bitcoin in three simple steps
If you are already familiar with Feel Mining‘s masternode services, it will be a breeze (remember to keep yourself up-to-date by reading ‘Profitable bitcoin and cryptocurrency mining for all: let Feel Mining hold your hand!’. If not, teach yourself how by reading below.
Step one: subscribe to one or more masternodes
Signing up for a masternode service on Feel Mining only takes a few minutes. You will be able to pay via the conventional methods of Visa or Mastercard, but also PayPal. Payments in crypto are obviously welcome too!
Remember that Feel Mining offers you the chance to sign up to a share of or whole masternode, this depends how much you have got to invest.
It is currently possible to start investing in masternodes from less than £50 – Bitgreen, Polis and Zelcash to name but a few.
The hardest part is choosing which one. What comes after is the easy bit.
Your masternodes generate dividends immediately after payment. You’ll be able to see this updated every few minutes on your dashboard.
It’s up to you to choose which one of the dozen projects that Feel Mining promotes. The interest rates (ROIs) possible are up to 60%, NRG offering the top ROI.
Step two: collect your dividends and convert them straight away in BTC
In this example from my screen, four masternodes earned me rewards over the last few weeks and now it’s time to convert them into BTC.
Good to know: this is one strategy among many. You might be happy to just keep the cryptocurrencies you received the dividends in, hoping that their price will go up.
Sinovate, E-Sport Betting Coin, Zelcash and Energi – all ready for harvest!
Normally, and by operating your masternode yourself, you would have been forced to send each token to an exchange where it is supported to then convert into BTC for, of course, a fee.
One of the most comfortable options from Feel Mining is the possibility to convert your various rewards into BTC, directly on the homepage! In order to do this you need to head to the bottom of the site.
My Wallet> Convert> Choose currency> Total balance> Validate
Converting 26,000 SIN into BTC
The process is completely guided, preventing any error.
It took less than two minutes to convert the four selected currencies. To see the transaction appear on your dashboard, you will also need to wait Bitcoin’s typical blockchain validation time.
The ‘REWARD24H’ that you see in the second column corresponds to a cloud mining contract that pays me a daily income.
It will then be up to you to transfer your BTC to a wallet (whether hot or cold).
So we have come to the end of this masternode income to BTC presentation. Remember that you can either carry out the conversion at the end of each month (the option I have chosen), or as you wish. In any case, you will have a solid passive income in BTC! We will see in the coming weeks how you can reinvest these dividends, so you can generate interest… on interest!
In the meantime, don’t forget to take advantage of 5% off any order (mining machines included!)placed on Feel Mining’s website using the code TCT.
A consultant since 2013 for a important advisory cabinet, I wanted to specialise in emerging tech… crypto found me!