Are female investors in crypto increasing?
The number of women investing in cryptocurrency is rising at a fast rate, with one out of every ten women now taking part in the industry, according to a 2022 survey.
The digital era and the adoption of a new working and life model were accelerated during the pandemic, offering people the ability to work remotely. A work-from-home concept is advantageous for women who usually undertake multiple tasks across family, career, home and child care.
Cryptocurrency investment might put women off; however, it may add several passive income streams, sometimes with minimal effort and from the comfort of their homes, maximizing returns on their crypto holdings. Finance and technology have traditionally been associated with men’s interests and careers, but this is changing rapidly due to the arrival of cryptocurrency.
Owning cryptocurrency may be a perfect way to invest in the long term depending on the risk-return profile of the investor. Women who’d like to invest in cryptocurrency for passive income have several options, depending on whether they have the time to learn technical skills or are ready to take risks.
Learning about the marketplace or a crypto provider’s reputation before investing is always safe, as this will make a major difference in the overall performance of the strategy adopted. This article highlights a few home-based ideas for women to put their assets to work and add extra income to their monthly earnings.
How can women gain rewards for holding crypto via the staking mechanism?
Cryptocurrencies that operate through proof-of-stake mining offer users the opportunity to lock up one’s crypto holdings in a wallet for a certain timeframe to gain rewards or earn interest.
The mechanism discussed above is referred to as crypto staking, which helps a network become more robust and efficient because it helps validate transactions in the blockchain, ensuring that all transactions achieve consensus, are honest and follow the protocol’s rules.
No detailed know-how is needed to stake crypto, and some exchanges enable cryptocurrencies to be staked automatically by users who hold eligible tokens in their accounts. Another way of staking is by keeping the cryptocurrency in a compatible wallet that allows users to take part in the networks’ consensus processes. In a nutshell, stakers approve and verify transactions on the blockchain and are rewarded for doing so.
How can women extend their revenue stream through affiliate marketing?
Affiliate marketing in the crypto industry can be a way for women to broaden their revenue stream by promoting crypto-related products or services to their followers or audience.
Many companies that provide cryptocurrency-related products or services have affiliate programs that allow individuals to earn commissions for endorsing their products. Women can select to promote products or services related to cryptocurrencies, such as hardware wallets, exchanges, trading platforms or educational resources.
The advantages of affiliate marketing include the possibility of using an existing audience to increase sales, the flexibility to work from anywhere and the ability to make passive income through commissions.
However, the potential for fraudulent or deceptive items, the risk of damaging one’s reputation by endorsing substandard projects, and the risk of losing credibility with one’s audience if they perceive the promotion as spammy or insincere are all risks involved with affiliate marketing.
Can women earn passive income via cloud mining?
Crypto cloud mining is a type of crypto mining that allows investors to earn Bitcoin and other cryptocurrencies without buying, installing or maintaining any specific hardware or software equipment.
To start cloud mining, the investor must open an account with a legitimate mining farm, deposit digital or fiat currency funds, and purchase a certain amount of hashing power from the service provider. In exchange, the mining farm will reward participants with incentives based on the amount of hashing power they purchase.
No deep knowledge or technical skills are required. However, it is essential to avoid serious mistakes that can be costly, such as choosing a fraudulent platform or overlooking the fine print, which may include extra costs making the investment not worthwhile.
Regardless, with cloud mining, participants do not have to worry about machinery noise, temperature, resource management or energy costs.
How can women yield passive income through yield farming?
Yield farming or liquidity mining is a decentralized finance (DeFi) application requiring investors to lend crypto to others in exchange for some interest and other rewards.
Yield farming was created to incentivize liquidity providers (LPs) to stake or lock up their crypto assets in a liquidity pool based on a smart contract. They receive rewards in the form of network fees, loan interest payments, or native digital token rewards. The lock-up time the investor needs depends on the platform, and the interest earned is calculated in annual percentage yield (APY).
The next step after selecting a platform and cryptocurrency is to add liquidity by making a deposit into the platform. Users are rewarded with extra tokens or fees in return for providing liquidity. Likewise, it is crucial to monitor your rewards from yield farming and to stay informed of any adjustments made to the platform’s reward system.
While some platforms reward users more for supplying liquidity in a particular cryptocurrency, others reward users more for making longer-term investments. However, there are risks associated with yield farming, such as the potential loss of money due to changes in the market or flaws in the DeFi protocol. Women should use caution when investing and only risk money they can afford to lose.
How can women earn passive income via crypto savings accounts?
A woman with an account in a crypto exchange can earn interest on the cryptocurrency she holds on the platform through a crypto savings account.
Similar to a savings account that customers own with a traditional bank, a crypto savings account provider will lend, invest or stake crypto on behalf of the investor in exchange for a share of the profits in the form of regular interest payments.
The investor who agrees to lock up her crypto for extended periods may benefit from more favorable rates. Also, various crypto platforms encourage customers to hold their native tokens by offering higher interest rates.
However, there are risks involved, such as the volatility of cryptocurrency prices, hacking risks and platform-specific risks. Women should carefully research and assess the risks involved before investing in a crypto savings account and only invest after proper due diligence of projects under consideration.
