## Terra (LUNA) - What Caused the Collapse?

At the beginning of May 2022, the crypto market drastically fell. In a week Bitcoin lost more than 1/3 of its value, and the price dropped from $39 000 to $26 000 — the lowest level since July 2021. All other coins also dropped. Many investors lost their savings; many companies faced asset inflation.

Of course, there are fundamental factors behind this fall — the global crisis, slower economic growth, and a fall in the main stock indices. However, on May 8th one more factor added to the global fall — a collapse of algorithmic stable coin UST and high-capitalized token LUNA. Almost nobody expected LUNA to be a scam. Together with their assets and investments, people lost confidence in stable coins.

## Terra (LUNA) - What Has Happened?

Cryptocurrencies are high-risk assets. High crypto market volatility can crash the price of almost any token in some days or even hours. To limit the volatility and attract investors, the crypto market offered stable coins. With stable coins, investors can have digital money outside the traditional financial system but with all the benefits of crypto money.

_Stable coins are digital money pegged to fiat money, commodities, or another cryptocurrency._

Terra ecosystem, a product of South Korean-based Terraform Labs, was launched in 2019. As a platform, Terra issued several stable coins pegged to various fiat currencies, including USD (the coin name is UST). A native Terra cryptocurrency LUNA should guarantee stability to the system: by selling LUNA, Terra attracted funds into the system to support stable coins and prevent depegging.

Just before the collapse, Terra won second place by TVL, just after Ethereum. 

_TVL - Total Value Locked, a measure that shows the cost of cryptocurrency locked in smart contracts, is a way to measure a DeFi platform capitalization._

Anchor protocol, a flagman project for Terra blockchain, was in third place in the DeFi Llama rating. Simply, the protocol offered rewards for the investments. It functioned as a bank deposit but offered higher interests because of its decentralized Terra nature.

In one week in May, the situation changed: UST lost its peg to USD, and related token Luna lost 99.9% of its value and was delisted and then stopped.

## Terra Dragged Down Bitcoin and the Whole Crypto Market

At the beginning of May, the Anchor protocol decreased the interest rate to 18% from 20%. When the interest rate decreased, many users started to withdraw funds. In one day, from the 7th to the 8th of May, the deposit volume in Anchor decreased by 16%, from 14 to 11.7 billion UST.

On 8th May, when the UST price was $0,98, representatives of Polygon and Curve Finance reported on the unusual moves. Terraform Labs withdrew 150 million UST from Curve. Then the unknown user transferred over 84 million UST to the Ethereum network and sold it, which resulted in a market panic. Finally, Terraform Labs took over an additional 100 million UST from Curve. 

To support the liquidity of UST, Luna Foundation Guard (LFG) provided two loans - $750 million in Bitcoin and $750 million in a stable coin. Unfortunately, these moves were not praised by the market. Following the crash of UST, the crypto market moved down. BTC tested the support level at $30 000. Most altcoins have fallen even faster. The market was in a panic.

Several organizations that supported the Terra ecosystem provided more funds — up to $2 billion — to support UST. LFG also tried to attract additional funds for system stabilization but failed. As a result, on May 10 UST price fell to $0.62, and the next day it reached $0.23.

On May 11 Do Kwon, Terraform Labs’ CEO, released the revival plan for UST. All UST holders can change it to 1:$1 in Luna and the issue of the LUNA token should be increased to meet the demand. After that the price of LUNA dropped below $0.50, UST continued moving down, and Anchor token, related to the Anchor project, also collapsed. 

At this point, the crypto exchange service started delisting LUNA. No supporting measures could help. Investors continued money withdrawal from the Terra ecosystem, and the price of LUNA crashed.

## LUNA Crash - a Scam, an Error, or the Result of an Attack?

It would be a mistake to say that no one expected a surprise from LUNA and UST. For example, FreddieRaynolds in the last months of 2021 wrote a series of tweets about the vulnerability of Terra to well-planned attacks with the use of significant capital.

[FreddieRaynolds](https://twitter.com/FreddieRaynolds) is a Twitter user who writes about crypto. 

Now FreddieRaynolds celebrates he is right and asks for apologies from Do Kwon, who keeps silent.

Let us discuss some hypotheses about the possible reasons for the LUNA crash.

### LUNA scam: a new type of Ponzi scheme

One of the crypto users with the nickname Hase mentioned that Terra is a Ponzi scheme worse than BitConnect.

BitConnect was an open-source cryptocurrency that appeared to be a Ponzi scheme. 

Skeptics noticed that the principles of Anchor protocol looked like a Ponzi scheme — a high-yield investment project which pays interest to early clients with money of second-wave clients. The end of the Ponzi scheme is always the same: the benefiter(s) takes funds away and disappears. However, the evangelists of Anchor protocol claimed it was not a fraudulent scheme but the power of the DeFi system.

A Ponzi scheme does not require using reserve funds and other stabilizing measures. Moreover, the founders of Ponzi schemes usually disappear with all their money. Do Kwon stays home and tries to find solutions and compensate for the losses to the community.

### An Error in the Algorithm?

Perhaps FreddieRaynolds is really right and the Terra system is vulnerable to well-planned attacks. UST was close to depeg before, but the system survived the first attempt to hack it. The attackers probably accumulated more funds to break it. Let us remind you of the story of George Soros, a billionaire, philanthropist, and market maker.

### George Soros Attack

One day George Soros hacked the bank system of the United Kingdom. He started the rumor among the market players that the British pound will collapse soon. Then he started selling large volumes of GBP.

The price of GBP moved down and many investors started to panic because they decided it was a collapse. They started selling GBP, too, and Soros could buy GBP for a low price. Then the British government intervened in the market and made the pound restore its value with a loss of 15%. George Soros earned more than 1 billion in a day. 

Since that time this type of market attack has been called by the name of Soros.

### Did Luna Fall Victim to a Soros-Type Attack? 

It is possible that Luna really fell victim to a Soros-type attack. We mentioned the suspicious funds' withdrawal from the Terra ecosystem to Ethereum. Do Kwon had to clarify these moves to the community, especially after the questions from Mudit Gupta, Polygon Chief Security Officer.

Do Kown confirmed that the company withdrew 150 million UST from Curve and then withdrew 100 million UST more to reduce the imbalance. However, he rejected Terraform Labs as being responsible for 84 million UST transactions to the Ethereum system.

Our step-by-step analysis of the LUNA collapse proves that panic played a significant role in LUNA collapse. So, the interest rate of the Anchor protocol decreased, then the panic started, and funds’ withdrawal and stabilizing measures pushed the panic up. Looks like a classic Soros-type attack!

## Who Was the Attacker?

So, if Terra and LUNA were not a scam but a victim of an attack, who was behind it? The first thought was the founder. However, Do Kwon and other top managers of Terraform Labs are available; they have not disappeared with the money. Besides, they invested more than $10B into the system and launched a new one to restore the business.

Another option is a classic: the attack was planned by competitors. Market competition is severe in the crypto world, so if your competitors know about the vulnerability of your project, it will die. FreddieRaynolds may not have been the only person who noticed the vulnerability of the Terra ecosystem. Once the attackers checked the system and almost got it, but the second try was successful.

Some experts suppose a governmental institution was involved in the attack. Some governments are not interested in crypto investments because crypto assets suck funds from traditional assets.

## The Hype over Decentralized Finance May Be Slowing

The market capitalization of the Terra coin was over $18 billion before the crash. Its sudden collapse became a black swan for the whole crypto market. The investor confidence was broken. 

All stable coins became cheaper. Moreover, TVL for all DeFi segments lost part of its value, from $190 billion at the beginning of May, just before the collapse, to [$108 billion at the beginning of June](https://defillama.com) , one month later.

The collapse of the Terra ecosystem attracted the attention of market regulators and politicians. [Treasury Secretary Janet Yellen commented](https://www.bloomberg.com/news/articles/2022-05-10/yellen-cites-usd-breakdown-while-calling-for-stablecoin-rules?sref=AACmJ2tc) on the situation and claimed the segment of stable coins requires better regulations to reduce volatility and support financial stability. It is likely that new regulations will appear this year. 

LUNA also caused some problems in Chainlink, a decentralized network of crypto oracles. It could not process the prices below $0.01, so it could not provide the forecasts for all pairs with LUNA.

In general, the LUNA crash changed the market confidence in all stable coins. The investors understood that the safety of stable coins was overestimated.

## Concluding Thoughts 

The collapse of LUNA and UST is one of the most remarkable events in the history of the crypto industry. No DeFi project reached such a large size before it crashed. All saving measures could only speed up LUNA hyperinflation. 

Terra was relaunched as Terra Classic, with a new token Luna Classic (LUNC). Its start price was $17.80, but in the first hours of trading, it lost 67% of its value. The optimistic forecast for it is to reach $10 by 2023. However, there are not many optimists for LUNC.

Terra has to solve two main problems. First, without the Anchor protocol, there is no use case behind the token. Investors just have no idea why they should buy LUNC, except for the trust in the project.

And here is the second problem. Do Kwon and his project lost the trust of the market. The idea of the LUNA scam will spoil all their further activities. So, the way to resurrection for LUNC is hard and may be impossible. The problem is not the link with fiat currency or technical components but the confidence of the crypto community.


Terra (LUNA) - What Caused the Collapse?

What caused the UST depeg and the LUNA collapse? Read more in the article.

## Monero Price Predictions
	
Security issues, possible tracking of financial transactions, and excessive control by banks and the state have meant that more and more people pay attention to the blockchain. A high degree of privacy, anonymity and decentralization have made Monero a favorite cryptocurrency in the blockchain industry. 

Monero (XMR) attracts not only those who want to have anonymity but also traders who are looking for tokens with the potential for growth and development. It falls into the sphere of interest of both novice and experienced investors. In this article we will talk about blockchain developments, the latest news, and price forecasts. Let's take a closer look at the history of XMR and Monero price prediction.

## What Is XMR Cryptocurrency?	

Monero (XMR) is an open-source cryptocurrency. The launch of Monero (formerly BitMonero) took place in April 2014.Its protocol is based on the CryptoNote project code and implements unique methods of anonymization of transactions, namely hidden addresses and ‘ring’ confidential transactions. On the Monero network, only the transaction participants know the sent and received amount and the wallet addresses. Ring signatures were introduced in January 2017 as a must for all transactions. 

Privacy-focused creators of Monero are working on the introduction of state-of-the-art technologies and solutions that could make a revolution in the crypto world. Such innovations mainly concern increasing the speed of token transfers and swaps and ensuring security while maintaining increased confidentiality of transactions.

For a better understanding of the advantages of the network, let's compare Monero with the key asset of the market - Bitcoin. On the Bitcoin network, transactions are processed sequentially, that is, one transaction follows another. Monero developers have implemented a system of dynamic blocks. It allows users to quickly confirm their transactions and keep the network fees low. The system is developed in such a way that it avoids queues of transactions, which increases their processing speed. 

## How to Buy Monero Coins?

To buy Monero, you do not need to take any unusual or complex actions. Monero can be purchased on any cryptocurrency exchange that supports it and is available in your region. This can be done in just a few steps:

1. Open your trading account if you don't yet have one. To buy and sell crypto assets, you need to register on the crypto platform, exchange or an online broker.

2. Deposit money into your account. You need to choose a sum that you’d like to invest.

3. Choose Monero (XMR) in the list of available cryptocurrencies.
4. Place your “Buy” order.

5. Select a storage method for your XMR coins. To use Monero, you’ll need a wallet.

Transactions on modern popular exchanges, such as Binance, KuCoin, or Kraken take place in a couple of seconds and with minimal fees. Choose the one you like and buy your first Monero coins easily. 

## Monero Price History	

In most cases, to understand the further movement of the price of a crypto asset, you need to refer to past data. Looking at the currency price history, you can approximately tell whether it is successful and what the trend (bullish or bearish) is now. Analysts consider in what price range the coin has been recently and determine the most promising entry or exit points. Hence, we can understand if Monero is a good investment today.

On May 21, 2014, Monero entered the market at a price of $2.10 according to CoinMarketCap. Cryptocurrency quickly gained value, but unfortunately, the price fell throughout 2014, closing the year at $0.4658.

The downward trend continued in 2015, setting the record low price of Monero at $0.213. Then traders witnessed a series of short-term increases, up to a significant jump that occurred from August - to early September 2016. The price reached $13.96.

2017 was the best year in the history of Monero's ascent. The market was in a bullish trend for a long time, and assets were bought off incredibly quickly, which increased their value. The peak price of $469.20 on December 19 was an incredible success in Monero's history. 

The price of Monero has been falling throughout 2018, and even despite the prospect of recovery at the end of the year and the beginning of 2019, the coin spent most of the time two years below the $100 level.

Starting from September 2020, the coin was rapidly recovering its value - the end of the year and the beginning of 2021 were bullish. As a result, Monero pleased investors when it set its current all-time high on May 7, 2021, at $517.62.

## Recent Monero Price History	

![Recent Monero Price History](https://blog.exolix.com/uploads/Recent_Monero_Price_History_ee4b2ad157.png)


Actual quotes and Monero price history you can find on the CoinMarketCap. 

During the previous year (2021-2022), the price fluctuated from the highest point of $339.54 in September to the lowest point of $119.30 in May. For now, Monero's average price is between $200 and $220.

Let’s take a closer look at Monero's price history (January 2021 - June 2022). The data is taken from Investing.com.

![Monero price history](https://blog.exolix.com/uploads/Monero_price_history_f93fa6de3b.png)

## Monero (XMR) Forecast for the Long-Term

Technical indicators, technical and fundamental analyses, and consideration of trends and figures help to analyze cryptocurrencies. Traders tend to take into account the main patterns on which the price moves for forecasting. Let's see what analysts say about the prospects of the Monero price movement for the future. 

Based on technical and fundamental indicators, as well as previous achievements of the cryptocurrency, analysts express hope for the growth of the currency by the end of 2022. In addition, significant market capitalization and reliable technologies play an important role in making the currency one of the most traded. Overall, most forecasts are positive, they do not indicate a possible loss in price in the near future. According to some price predictions, the Monero cryptocurrency may even hit $1000 by the end of 2025. 				

## XMR Crypto Price Prediction for 2022	

In the Government Capital Monero price prediction 2022 we see that it may increase by more than 70% by the end of the year and reach $350. 

According to the WalletInvestor Forecast System, Monero's price may remain at its current level for a substantial period of time. XMR is expected to reach a maximum of $360 by mid-2022. However, XMR is a promising long-term (1-year) investment. Based on their experts’ opinions and technical analyses, a long-term rise is expected. 

The forecast by TradingBeasts is also promising, they expect a growth of about 110% from the current point over the next three years. TradingBeasts experts expect the coin to reach $360 by the end of 2022 and $500 by the end of 2023. 

In accordance with the technical analysis of Monero made by Changelly, the prices expected in 2022 are the following:

* Monero's minimum cost will be $175.32. 

* Monero's maximum cost will be $201.14. 

* The average price is expected around $180.87.

## XMR Price Prediction for 2025		

If the near future is very favorable for Monero, then traders and investors become interested in forecasts for the distant future. Is it possible that the asset price will show a sharp negative trend and will not satisfy buyers? Let’s take a look at the XMR price prediction 2025.

The WalletInvestor experts have a positive outlook on the future of Monero. The price forecast for the year 2027 is $529.420. With an investment for five years, the revenue is expected to be around +226.27%.	

By the experts in the field of cryptocurrencies, it is assumed that in 2025:

* The minimum XMR price may drop to $578.90,

* The maximum XMR price could reach $688.13.

* The average trading cost will be around $599.54.

## Monero Price Prediction for 2030	

The further into the future we want to look, the less transparent it seems to us. After the analysis of the Monero prices in previous years, the XMR price prediction 2030 is as follows:

* The most conservative forecast says that the price of Monero will be approximately $630-663 by the end of 2027. There is a hope that it will grow up to $821 by the year 2030.

* There are also a large number of extremely optimistic forecasts in which the price for a token exceeds $1,000, and sometimes even $5,000 by 2030. Overall, you can choose which Monero price prediction 2030 you trust.	

## Should You Invest in Monero?

We are not entitled to make individual financial or investment recommendations. This forecast is not a call for investing in any cryptocurrency. We have made it for informational purposes only. Based on the above information and XMR price prediction, you can conclude whether Monero is suitable for your investments and your goals. We consider it necessary to weigh the pros and cons, compare the asset described in the article with other currencies, assess the market situation at the moment and keep up to date with the news. Please remember that the crypto world is always associated with risk, so you need to do your own research.

## Does Monero Have a Future?

Monero uses the CryptoNote protocol to make the blockchain completely anonymous. Now it continues the trend towards development and the introduction of new products. Both technical and fundamental analyses of many crypto and blockchain experts say about the profitability of Monroe in the future. Forecasts look good both for this year and for the next 5-7 years. We can conclude that Monero XMR does have a future.

## Disclaimer			

The content of this webpage is not investment advice and does not constitute an offer or recommendation for any investment product. Activities related to operations with tokens are associated with a high level of risk of complete loss of funds and other investments transferred in exchange for tokens. The legal regulation of transactions with tokens does not have a uniform approach, and the consequences of such transactions may have different legal assessments in different states. No information on the site is an exhaustive or complete statement of the issues discussed or related laws. DYOR.

Monero (XMR) Price Predictions

 Monero price prediction for 2022-2030. Read our Monero price prediction to have a fair idea about whether it will continue the current momentum or reach new highs in the upcoming years.

Monero (XMR) Price Predictions: 2022, 2025, 2030

## Cold Wallets

Digitalization affects all aspects of life, including finance. If banking applications and access to credit and debit cards through apps are familiar to everyone, the situation with the world of cryptocurrencies is more complicated. Decentralization and a lack of strict regulation encourage users to pay more attention to the security of their assets. So now, crypto wallets have come to their aid.

Hot and cold wallets are used to protect and safeguard your cryptocurrency funds because without these anybody can hack your computer, you can get a virus, or somebody can snatch your phone, so then you just lose control of everything. We would analyze both software and hardware wallets to keep your funds safe and help you to pick the best cold wallet to take advantage of the opportunities offered by different types of them.

## Importance of a Crypto Cold Wallet	

From a security standpoint what a cold storage wallet does is that it puts your security key, or your private recovery phrase, onto the hardware device and it keeps it there.

So anytime that you need to write a signature or sign up for a transaction it will encrypt that signature and send it to your computer. The passphrase always stays on the device, and even if your computer is hacked with malware, there will never be any secret passphrase on your computer. It will be impossible to intercept or steal. It is safer than keeping your private keys on an internet-connected device like a phone or browser extension. 
What is more, the producers make the hardware wallet packaging tamper-proof, so you have to essentially rip through the packaging because it’s a part of the precautions that these companies take. Some packages or devices inside it have hologram seals on the side, so you can be sure that it has not yet been opened. 

## Hot Wallet vs Cold Wallet	

What you essentially need to know is that there are two types of crypto wallets. Online or hot wallets and hardware or cold wallets. Both of them work as the storage for your cryptocurrencies but include various specific features. Let's see how they differ from each other.

### What Is a Hot Wallet

Hot storage is considered hot because it can be accessed instantly from any device with an internet connection. They allow you to instantly buy or sell coins and tokens without the need to perform additional actions. Your funds can be stored on the desktop or mobile online wallets and in mobile applications. Hot wallets are convenient for the constant use of financial assets, as they speed up the processing of transactions. The most popular online wallets are Trust Wallet, Huobi Pro, Metamask and Exodus. Since hot wallets are connected to the internet, there is a risk of hacking and theft. This happens regardless of the level of protection, so there are always security vulnerabilities.

### What Is a Cold Wallet	

Cold storage wallets are used for the long-term storage of your cryptocurrency assets. They are less convenient for making active regular operations with tokens, but they are much more reliable in terms of security. Hardware wallets are basically small USB sticks or cards that keep your password and recovery phrase offline.

Consequently, neither hackers nor malware have access to your finances. The most well-known cold wallets include Ledger, Trezor, CoolWallet and Safepal.	

## The Best Cold Wallets You Should Know About	

So now that you have decided on your type of wallet you would like, let's look at them in more detail.	

### Ledger Nano X 

The Ledger series wallets support decentralized finance, as well as multiple wallets and PINs. Ledger Nano X supports Bluetooth, so you can connect it to your computer or use the app and interact with your phone. The wallet contains a 100mAh battery. Another feature is that it has more memory, so if you wish, you can install applications to interact with a large number of blockchains. Ledger Nano X also supports a USB-c port, whereas the Ledger Nano S uses a micro USB.

Other peculiarities include the ability to restore the wallet in case of loss or destruction, two secure chips (ST33J2M0; STM32WB55), and CC EAL5 certification level. It is compatible with smartphones based on iOS 9+ and Android 7+ and computers based on Mac OS 10.8+, Windows 7+, Linux, and Chrome OS. Ledger Nano X has included a Ledger Live software wallet, which is useful to manage your funds.

It is important to note that the Ledger series wallets interact with the Metamask wallet, so you can connect them to your computer and then use them to approve transactions, send funds, interact with contracts, and so on. Hence, you'll be able to take advantage of all of the decentralized finance tools and platforms for earning yield, staking, etc. 

### Ledger Nano S

Ledger Nano S is believed to be perfect for beginners. It is cheaper than its elder brother Nano X, but it supports the same number of tokens as Ledger Nano X, namely, 30+ cryptocurrencies and 1250+ tokens of the ERC20 standard. The list of supported crypto assets is constantly updated. 

Using the Ledger Nano S you will be able to interact with everything that Metamask supports like Binance, Ethereum, Polygon Magic, Phantom, Moonriver, etc. Additionally, it has enough memory for one or two additional applications to support, for example, Bitcoin or Cardano.

 Ledger Nano S does not support Bluetooth, that is, with the model S, you'll have to plug it into your laptop. The wallet is equipped with a small OLED display, as well as buttons for personal physical confirmation of each operation. It has a nice metal case, which additionally protects the screen from scratches and other damage. The crypto hardware wallet has a dual architecture of ST 31/STM32 chips, which provides the highest protection of private keys.

### Trezor Model T
	
The other leader in hardware wallets is Trezor. It’s one of the most secure hardware wallets for cryptocurrency, developed by Satoshi Labs. There are two models of Trezor Wallets. Trezor One has a small monochrome screen with two-way navigation buttons, meanwhile, Trezor Model T has a larger touchscreen.

The sticker seal for the Trezor T is attached to the device itself, which provides an additional level of security against tampering before delivery. Model T gives a 12-word recovery phrase, which is enough for qualitative protection.

If you want to use your coins with DApps, you can link your Trezor up to Metamask or Exodus software wallets. As a result, you can get the benefit of a hardware wallet for more security, but also spend your coins and swap them, if you want. So, you have access to the DeFi features that enable online wallets. 

### CoolWallet Pro	

CoolWallet Pro is a second-generation hardware wallet from the manufacturer CoolBitX. It is made in the form of a credit card, is very compact, and weighs only six grams. It does not have a user interface (except for the power button). To interact with the wallet, you need a smartphone with the CoolWallet application.

CoolWallet offers an encrypted Bluetooth connection for iOS and Android devices. The security element protecting the private keys of the Pro complies with the EAL 6+ standard.

CoolWallet Pro supports Tron, Cosmos, Polkadot, Bitcoin, Ether, Litecoin, Ripple, Stellar, BNB, USD, ERC20, BEP20, and TRC20 tokens, as well as DeFi protocols, NFT collectibles, and DApps.

### Safepal S1	

Safepal S1 is the only wallet invested in by Binance, the largest exchange in the world. It has totally integrated its app within the Safepal app, so the user interface is more complex. The company uses it to help you set up a Binance account so that you can transfer funds back and forth between the hardware wallet and your exchange wallet, and then make trades and interact with the Binance ecosystem.

The Safepal S1 hardware wallet has a camera on the back. This camera is used to scan barcodes which are displayed on your phone as the process for approval. It is entirely AirGaped, so it doesn't have Bluetooth or a wire connection. It just uses the camera to make the connections, and your secret passphrase always remains on the hardware device and never leaves it.

Safepal S1 combines a standard microcontroller for routine operations, a secure EAL 5+ chip for storing private keys, and a built-in AIS31 random number generator. The device works through the Safepal App available for iOS and Android devices.

## Which Is the Best Cold Wallet?

Ledger Nano X is the #1 Top Pick, it is considered the best cold crypto wallet 2022.  It provides support for a huge number of digital assets (5,500+ cryptocurrencies), the device is pretty easy to use, mobile and computer friendly, and reliable. According to modern experts, Ledger Nano X is the most secure hardware wallet.

Trezor Model T is the second most popular hardware wallet, which uses network-isolated authentication methods and offers an extremely secure offline storage. It can store more than 1,800 different cryptocurrencies. The only criticism against Trezor T is the small touch screen, which makes it difficult to type on.

## Takeaway

A cold, or hardware, wallet for storing cryptocurrencies is a small physical device on which your password and recovery phrase are kept. With the help of such a device, you get access to your funds, which are stored in the blockchain. Since the passphrases are offline, the risk of hacking and data loss is minimized. As long as your private keys are kept private and stored on your device, then no one is able to steal your coins or reload your wallet using your information.

Ledger Nano X is estimated to be the best hardware wallet, however, you can always compare the devices and their availability in your region and choose the one that suits your goals best. Your choice may depend on whether your wallets support decentralized finance and whether you need tools for interaction, for example, with Metamask or Binance.

## F.A.Q.

### What Is a Hardware Wallet?

Hardware wallets are small devices that keep your password and recovery phrases offline. They are also known as cold storage wallets and are used for the long-term and highly-protected storage of your cryptocurrency assets.

### How to Use a Hardware Wallet?

The use of a cold wallet depends on your model. According to the general rules, sometimes you need to connect the device to the computer with a wire, sometimes through a wireless Bluetooth connection and QR-codes scanning. For example, Safepal S1 or CoolWalllet will require a smartphone app. Overall, instructions are necessarily attached to each of the options.

### How to Transfer Crypto to Hardware Wallet?

There are several steps you need to take to transfer crypto to the hardware wallet for the first time:

* Purchase a hardware wallet 

* Run the software on your device, mind the instructions to your model of the wallet

* Set a PIN code for your cold wallet

* Get an application that will allow you to access your funds and the history of transactions

* Try whether it works by sending or receiving crypto assets. 

### What Happens If You Lose Your Hardware Wallet?

Don't worry about it. The beauty of the blockchain is that your funds are stored in a decentralized manner anyway, and the wallet gives access to them. As long as you have a recovery phrase, nothing will happen to your funds. If you have lost or broken your device, you will need to buy or install a hot or cold wallet compatible with the previous one and input your recovery seed. This way you will get access to your assets.



The Best Cold Wallets

Best Crypto Cold Wallets: Ledger Nano X ✔️ Ledger Nano S ✔️ Trezor Model T ✔️ CoolWallet Pro ✔️ Safepal S1 and more. All the information you need is here.

## Crypto Mining

Cryptocurrency mining profitability has taken the world by storm in recent years, as graphics cards have become the currency of choice for most home mining operations. So how can you find out if it’s worth getting into crypto mining? 

In this article, we’ll look at some of the benefits of mining cryptocurrency, explore some of the most popular cryptocurrencies to mine, and look at what kind of hardware you’ll need to get started with cryptocurrency mining in 2022. 

## What Is Crypto Mining?

Before we dive into cryptocurrency mining and whether or not it is profitable, let’s first discuss what it is. Mining is fundamental to most cryptocurrencies. It’s also one of many factors that contribute to cryptocurrency prices.
 
Since mining offers coins as an incentive for people to verify transactions and secure a blockchain network, miners play a key role in creating an innovative ecosystem. With that in mind, let’s take a look at how you can determine your crypto-mining profitability. 

First, you’ll need to figure out if mining is right for you. Ask yourselves the following questions: 

* What hardware do you need? Then, what software? 

* What will be your total cost (including hardware and electricity)? 
* How much money can you make with each coin? 

* Is there a risk of earning less than if you had simply bought coins outright? 

These are all important questions that will help inform your decision. So before jumping in, consider everything from start to finish—and weigh all options before making any decisions. 

For example, if your total cost of mining exceeds the amount of money you expect to make by just buying the coin, then mining may not be the answer. 

## Ways to Make Money from Crypto Mining

If you’re a novice in cryptocurrency mining and don’t have a lot of money to spend on a high-end rig, you can still make mine and make considerable profits. Here are the two ways in which you can make money from crypto mining, explained in detail: 

## Self-Mining

When you mine cryptocurrency, you’re essentially spending computing power on solving math problems to verify crypto transactions. You don’t need a huge amount of computing power to make money doing it, but it does take up a lot of energy. 

Instead of having your computer do all that work for you (and cost you a lot of money in electricity), consider self-mining and earning rewards without paying fees. 

There are lots of options out there for free or low-cost software—such as NiceHash—that will let you run a miner on your own computer. The only downside is that they’ll eat up some processing power and can slow down your machine while they run. 

However, if you have an old laptop lying around or an unused PC sitting at home, it could be worth setting them up as miners to start earning cryptocurrency passively.

## Pool Mining

You can also join a <a href="https://www.investopedia.com/tech/how-do-mining-pools-work" rel="nofollow">mining pool</a> —essentially a network of computers working together to solve complex math problems. Mining pools allow you to join a group of miners and share their hashing power. 



The mining pool divides their found blocks into payouts, which are then shared out based on how much work each miner has contributed to obtaining those blocks. 

For example, if one miner in a mining pool contributes half of all hashing power for that day, they’ll receive half of that day’s payout (minus fees). If multiple miners contribute an equal amount of hashing power, they’ll be paid equally. 

This is known as proportional or pay-per-share mining. 

In addition to giving more frequent rewards, proportional pools also reduce your risk by reducing variance—you get more consistent returns when you don’t have to worry about whether or not you might hit a lucky streak and get paid extra for it. 

When considering which mining pool to join, make sure you understand what kind of payment method they use: PPS pays per round and will cost you less in transaction fees than PPLNS does.

## How to Start Crypto Mining

If you’re wondering how crypto mining works, it’s not as complicated as it may seem. To start mining crypto, follow these simple steps: 

1. Select a cryptocurrency to mine. You’ll want to choose a currency that has value and isn’t going away anytime soon. The top five most profitable cryptocurrencies right now are: 
-Bitcoin (BTC)
-Ethereum (ETH)
-Litecoin (LTC)
-Ripple (XRP) 
-EOS

2. Set up a crypto wallet and get yourself a computer capable of running multiple graphics cards (or GPU)

3. Once your hardware is set up, download free cryptocurrency mining software such as Claymore

4. Start hashing

When it comes to mining cryptocurrencies like Ethereum or Zcash, you need to decide if you’re going solo or pool mining. Each has its pros and cons. 

Solo mining means you’re essentially competing against other miners in an attempt to solve blocks on your own—but if you win, you receive 100% of the block reward. 

Pooled mining involves joining forces with other miners and sharing rewards based on how much work each miner contributed.

## Is It Profitable to Mine on a Processor?

There are many factors to consider when calculating crypto mining profitability, including electricity costs and hardware setup. 

Given that bitcoin has shot up in value in recent months, it may seem like an easy call to plug in your system specs and start earning digital currency. 

But while it is possible to turn a profit by mining bitcoin on a home computer, you’d probably be better off putting your time and money into a more conventional asset or investment. Here’s why. 

One of those factors is whether or not it makes financial sense to mine for cryptocurrency—which depends greatly on where you live. 

Cryptocurrency mining can potentially create short-term profits as long as market prices remain stable, but these cash flows could quickly vanish if virtual currency rates begin to dip again—as they have done over and over again throughout history.

## Is It Profitable to Buy ASIC?

ASIC stands for Application-Specific Integrated Circuit, they’re chips created to do one thing and one thing only (in your case, mine cryptocurrency). ASIC miners were built with two advantages in mind: speed and power efficiency. 

When using an ASIC miner, you can be certain that you’ll get a certain hash rate for a certain amount of power. You can calculate your expected earnings based on that information alone.

But is it profitable?

Well, that depends on what type of return you want to see from your investment. If you want a high return on investment within a short period of time, then ASIC mining might not be right for you—it will take some time before those initial investments pay off.

However, if you have more patience and are willing to wait out long periods of time before seeing returns from your investment, then ASIC mining could be right up your alley!

## Is It Profitable to Mine on a Video Card?

Mining on a video card can potentially be profitable, but it all depends on your electricity cost and what cryptocurrency you are planning to mine.  
It is not recommended to go out and purchase a bunch of video cards and attempt to mine unless you already have free power (which is extremely rare).

If you have free power and you want to learn more about cryptocurrency, it might be worth setting up a small rig just for fun. However, if you are looking to make money from crypto mining, it’s best to buy an ASIC miner like Antminer S9 or Dragonmint T1.

These miners are specifically designed for one purpose: mining cryptocurrencies like Bitcoin and Ethereum as efficiently as possible.

## Other Methods of Mining

There’s a variety of ways you can do crypto mining, many of which have been listed in this guide. If you’re still looking for other ways, consider cloud mining.

Cloud mining is a procedure in which you pay someone (usually a large organisation) a set amount of money to "rent out" their mining machine, known as a "rig," as well as the mining process itself.

This rent is for a set length of time, during which time all of the profits generated by the rig (less electricity and maintenance costs) are paid to your cryptocurrency wallet.

The businesses that provide these cloud mining services usually have large mining facilities at their disposal, with several farms (tens or hundreds of rigs stacked and functioning simultaneously), and are well-versed in bitcoin mining.

Cloud mining has grown in popularity due to several factors, the most common being that it requires the least effort as compared to other methods. It’s perfect for miners who don’t want their own rig.  
Out of all the 4 options: CPU, GPU, cloud, and ASIC, the best option is one that most suits your needs. 

This can be determined by a few essential factors: are you willing to invest some money upfront? If so, how much? Do you want to be the owner of a rig? Do you even want to use a rig?

The answer to these will help you figure out which method of crypto mining is ideal for you.

## Efficiency Crypto Mining

Efficiency is key for cryptocurrency miners. If you want to save on your crypto mining costs, it’s best to buy efficient crypto mining computer equipment and free cryptocurrency mining software that works efficiently. 

Cryptocurrency miners use powerful computers called ASIC (application-specific integrated circuit) to mine certain cryptocurrencies, like Bitcoin. 

Most ASICs are good at solving cryptographic problems, but they are not very efficient when it comes to other processes—like video editing or number crunching. So if you don’t need a supercomputer for anything else, then buying an ASIC miner can be a waste of money.

Instead, go with more general-purpose GPU hardware and GPU-based crypto mining software; these are typically much more efficient than their ASIC counterparts. However, GPU mining isn’t as effective as ASIC mining when it comes to mining some currencies.

## Risks and Potential Problems with Crypto Mining

Before you start crypto mining, there are several things to consider

1. It can be expensive—and risky—to buy a whole new rig and set up shop in your basement

2. Cryptocurrency doesn’t come with consumer protections, like chargebacks or fraud protection. If your digital wallet gets hacked or there’s a mishap with your rig, you can lose everything

3. If you want to mine Bitcoin Cash, Ethereum Classic, Zcash, Monero, or Dash (or any other coin), you should know how each of these cryptocurrencies works before getting started. This way, you won’t find yourself at a loss if something goes wrong when mining.

If you do decide to dive into crypto mining, start small to make sure your setup is profitable. Crypto mining farms often consist of hundreds or thousands of high-powered machines working together.

In fact, one company—KnCMiner—sold $8 million worth of rigs in 2013 alone. But because most miners join forces rather than going solo, small-time miners might not have access to such powerful setups.

## Factors Affecting the Profitability of Crypto Mining

Whether or not crypto mining will be profitable for you depends on a number of factors including:

* Your monthly electricity cost

* Crypto prices

* Crypto difficulty

To determine your annual profit and return on investment (ROI), use a cryptocurrency mining calculator like CryptoCompare’s Mining Profitability Calculator. 

You’ll need to enter some basic information like your miner’s hash rate, power consumption, and cost per KW/h in order to compute a realistic estimation of your yearly profit. If you are using a cloud mining service, then most of these numbers will be provided by them. 

Just make sure that they are trustworthy before signing up. Also, remember that there is no such thing as guaranteed profits when it comes to crypto mining! 

Even if everything goes according to plan, there are still risks involved with investing in cryptocurrencies – so never invest more than you can afford to lose!



Crypto Mining Profitability

Get insight into the crypto mining market. Find out if it&#39;s profitable to mine Bitcoin, Ethereum, Litecoin, Ripple, or EOS.

## Crypto Trading Strategies

Are you wondering which is the best cryptocurrency to trade? This question comes up all the time among online investment communities, and the answer isn’t always simple to determine. 

Since there are so many different cryptocurrencies available on the market today, not to mention numerous exchanges through which you can purchase them, finding the right one for your portfolio can be a challenge. 

Here’s an overview of some popular cryptocurrencies you might want to consider investing in, along with some helpful tips on how to pick them based on your personal needs and goals.

## How to Trade Cryptocurrency for Beginners

To learn how to trade cryptocurrency, we need first to understand how it’s exchanged and what cryptocurrency is. Cryptocurrency is not just a regular currency like dollars, euros, or pounds. 

It’s a digital currency that can be used in different kinds of trading operations with other currencies, products, or services.

If you’re an absolute beginner, it may be smart to start with a fiat-based exchange. Many fiat exchanges allow you to buy and sell Bitcoin, Ethereum, and other cryptocurrencies directly with USD. 

These exchanges offer more convenient fee structures than trading crypto pairs directly (although they charge higher fees). For example, Coinbase offers a 1.49% fee on credit card purchases and 2.99% on bank account purchases. 

You can also use these exchanges to trade between different cryptocurrencies. This is another way of avoiding fees—if you want to diversify your portfolio but don’t want to use multiple wallets or 
accounts.

## How to Select the Best Cryptocurrency to Trade

Consider the following questions before you select which crypto to invest in: 

* How much you’re willing to spend 
* How frequently do you plan to trade 
* Whether you want to trade in large amounts of crypto (more than $500) or small amounts ($20)  
The good news is that it doesn’t take long to set up an account on most crypto trading platforms—and once your digital wallet is established, it will only take minutes before you can start trading. 

Once you’ve opened an account, connect it to your bank account via wire transfer or credit card payments. Once that’s done, use the platform’s app or website to buy crypto using one of the given exchange options. 

## Learn to Trade Cryptocurrency

The best way to trade cryptocurrency is via a platform that allows you to do so. There are several benefits to trading cryptocurrency as well as drawbacks such as volatility, so keep in mind that you may not make a profit on a smaller investment. 

Crypto trading can be risky; there are no guarantees, and it takes time to master. Thus, it is important to learn how to trade cryptocurrency for profit. Check out how below: 

1. Get yourself a good exchange  
It doesn’t matter where you get your cryptocurrencies from, but at some point, they need to end up in an exchange platform. Some exchanges will let you use fiat currency (such as USD) to buy cryptocurrencies or vice versa, while others only deal in crypto-to-crypto transactions. There are plenty of exchanges out there, and new ones are popping up all the time; find one that suits your needs and has low transaction fees. 

2. Use online resources 
Once you have money on an exchange, buying and selling cryptocurrencies is easy enough. But how do you know when to buy it? How much should you invest? And when should you sell? Day trading isn’t easy; fortunately, there are resources available online that can help guide your decisions. For example, Investopedia has a great introductory guide to day trading.

3. Learn technical analysis 
Technical analysis involves studying charts of price movements over time to predict future price trends based on historical data. Most trading apps provide charts to help you make investment decisions, but you will need knowledge of the abovementioned online resources to help you decipher these charts. 

## Short-Term Trading

When traders are looking to make short-term trades (less than a few days), they should look at using their favorite exchange or broker. 

You’ll want to put your money in an exchange or with a broker that has low fees and low spreads, so you can keep as much of your profit as possible. Check out the best ways to trade crypto in the short run: 

### Scalping

Scalping is a trading method that focuses on benefitting from small price movements and reselling for a quick profit. Scalping necessitates a tight exit plan because a single major loss might wipe out the many little gains the trader has worked so hard to achieve.

### Momentum Trading

As an inexperienced trader, you should keep things simple. You can try out a simple momentum trading strategy with only two indicators: RSI and MACD. These indicators show you when to buy or sell cryptocurrency. 

The rules for both are straightforward: When RSI goes above 50, it’s time to buy, and when it goes below 50, it’s time to sell. Similarly, when MACD crosses 0 (zero), it means it’s time to buy, and when it crosses -0 (negative zero), that means it’s time to sell. 

### Medium-term Trading

This strategy involves buying coins and holding onto them for at least a week, but usually much longer. Traders who employ medium-term trading usually aim to buy low and sell high, taking advantage of price volatility in an attempt to generate quick profits. 

Popular medium-term trades include:

* Day trading: Day traders hold positions for anywhere between six hours and a few days before closing out their positions or switching strategies 
* Swing Trading: Swing traders hold positions for several days to several weeks, sometimes even months

### Reverse Trading

Many cryptocurrency exchanges don’t charge a transaction fee for buying and selling. In some cases, you may have to pay a deposit or withdrawal fee when you transfer fiat into or out of your account. 

However, if you set up an account at Binance and then buy some cryptocurrency on another exchange, you can use that other exchange to trade your cryptocurrency for free as long as Binance doesn’t charge a withdrawal fee. 

Thus, reverse trading is the best way to trade cryptocurrency without fees. 

### Range Trading

One of the most efficient and profitable ways to trade cryptocurrency is range trading, which consists of buying coins once they’ve risen in value to a set amount and selling them when they fall back down. 
In other words, you go long on coins that are rising in value, then short-sell them once they’ve fallen again by at least a certain percentage. 
This strategy allows you to profit both from short-term financial market movements (when you buy low and sell high) as well as longer-term gains.

## Long-Term Trading

If you’re wondering how to trade cryptocurrency and make a profit, simply buy, hold, and HODL. The only strategy required for a long-term investment in crypto is to sit back and watch your holdings climb. 

Long-term traders can also play it safe by dollar-cost averaging: purchasing small amounts of cryptocurrency at regular intervals with a fixed budget. This can help protect against random price swings that could hamper profits or lead to major losses if left unchecked.

Here are a few strategies to help you maximize profits if you’re investing in crypto for long term gains: 

### Follow the Trend

The easiest way to make money with crypto is to follow the current trend. There are a few different strategies, but it all comes down to following another trader—and if they turn out to be a good one, you benefit from their knowledge and work. 

The best way to do that is by signing up for an account on one of several crypto-only exchanges, such as Binance or Bitfinex. You can also use technical analysis to see how many traders are buying and selling each cryptocurrency. 

For example, if there is high demand for a cryptocurrency, the price will automatically go up and vice versa. Thus, it is important to follow the trend to understand when to buy and sell. 

### Buy the Dips and Hold

One of the best ways to trade cryptocurrency is to buy coins on dips (or during a downturn). A dip in prices happens when there is bad news that causes investors to sell their holdings. 

This means that you can often buy coins at discounted prices, which translates into better profits if you hold onto them for a longer period.

### Fad Trading

In fad trading, you are predicting that a coin will go up in value because of some news event or other fad, and you buy it at its current price. 

If it goes up by more than you initially thought, you make money on your original investment, but if it does not go up by enough (or just goes down), then you lose money. 

However, this strategy can be very risky and is best suited for experienced traders who have market know-how.

## Conclusion 

There are a lot of options when it comes to trading cryptocurrency, so you need to decide which one is best for you. Before trading, make sure you do your research and know what your end goal is. 

If you are looking to trade Bitcoin but don’t have a lot of money, the best way to trade crypto in the US is to start with an exchange that doesn’t charge transaction fees.

Best Crypto Trading Strategies

With the renewed interest in cryptocurrencies amid growth, trading cryptocurrencies has become more than just an alluring money-making activity. If you want to succeed in the volatile world of crypto trading, you must have ironclad strategies and a sensitive hand.

## Earn Passive Crypto Income

Cryptocurrency has been in the spotlight as of late, thanks to its meteoric rise in popularity and value over the past several years. 

However, it’s important to remember that while crypto can provide you with some pretty impressive returns on your investment, there are still some pitfalls that you’ll want to be aware of before diving in headfirst. 

Whether you’re thinking about using your cryptocurrency to build up passive income or you’re simply looking for something more stable than stock investments, here are some ways to earn passive income with crypto this year and into the future: 

## Staking

There are many different types of staking. Some popular proof-of-stake systems include PIVX, NXT, and PoS/Bitquence. I have been invested in POS systems for a while now, and my income has steadily increased as I am able to stake more and more coins. 

Note that staking can take a very long time – my passive income is derived from NXT, and it took over a year before I was able to reap any real rewards. 

The key here is patience! If you don’t want to wait months or years for your returns, you may want to consider other options.

## Proof of Stake (POS)

Proof of stake is a method by which cryptocurrency investors generate passive income. Under proof of stake, investors must stake their currency for a certain period of time in order to make money off it. 

Your investment has a sort of punishment if you don’t stake it or if you try to move your funds out early. The more coins you have staked and locked up, as they say, the more you can earn passive income with crypto over time. 

And while proof of stake isn’t necessarily better than other methods of earning cryptocurrency passively—for example, through mining—it does have its advantages. 

For one thing, there are far fewer barriers to entry with proof of stake than with mining: all that’s required is some cryptocurrency (and not much at that) and an internet connection. 

In addition, proof of stake doesn’t require any special equipment. If you have a crypto wallet, you can start earning passive income right away.		

## Validating Transactions

If you’re wondering how to earn passive income with cryptocurrency, another way you can do it is by validating transactions on the blockchain. Staking is a type of transaction validation that’s supported by many blockchains, and it rewards users with a small amount of cryptocurrency for verifying network transactions. 

But only certain blockchains support staking, so you must do your research before investing time and energy into something that may not be worthwhile. 

For example, Ethereum currently supports staking for its cryptocurrency Ether, but newer projects like NEO don’t yet have a working implementation. 

There are other ways to earn passive cryptocurrency income as well—you just need to learn which cryptocurrencies are best suited for each method. Sticking with a Proof-of-Work (PoW) currency allows you to mine or purchase those coins using a crypto exchange (if it’s available). 

You can then hold onto those coins in hopes of seeing their value increase over time, though these types of cryptocurrencies generally take longer than others to appreciate in value.

## Earning Rewards

One of cryptocurrency’s great strengths is its ability to reward owners for being hodlers—that is, holding onto their coins. Several coins offer staking and master node rewards, which means that hodlers can earn a profit just by holding their currency of choice. 

Staking and master nodes are often associated with high levels of risk, but recent developments have decreased those risks for many coins. 

For example, PIVX has developed an innovative proof-of-stake algorithm called zPoS that allows users to stake from low-power devices such as smartphones or laptops. This makes it easier than ever before to earn cryptocurrency passive income. 

It also helps ensure that even if you’re not able to contribute much processing power, you can still earn rewards on your holdings. 

Other projects like Groestlcoin and ZenCash offer master node systems where users who own 1,000 coins receive an annual reward of around 10% annually. These types of systems make earning cryptocurrency as a passive income more accessible than ever before.

## Crypto Savings Accounts and Crypto Lending

There are two major passive-income crypto projects: savings accounts (also called staking, master nodes, and proof of stake) and lending platforms. 

Many experts believe that both types of tokens will continue to appreciate throughout 2022; it’s hard to predict which one will perform best. As for deciding between them, here are some quick thoughts: 

1. Savings accounts earn more interest than other methods of earning passive income with cryptocurrency but require users to hold their money for longer periods—in some cases, as long as a year or more.  

2. With crypto lending platforms, investors typically earn between 6% and 20% interest on their money each month by simply investing funds into loans issued by other people or businesses. The downside is that borrowers can default on these loans, so there’s an element of risk involved. For example, you might invest $100 into a loan issued by someone who promises to pay back $110 in 60 days—but what happens if they don’t? You lose your initial investment plus any additional gains.

That said, most crypto lending platforms offer automatic payments so that borrowers repay their debts automatically once they receive new capital from another investor. And while many platforms charge high fees, some charge low ones or even no fees at all. 

So even though crypto lending isn’t guaranteed to be profitable, it can still be worth checking out—especially since there are no minimum investments required. 

If you do decide to give it a shot, make sure you understand exactly how much interest you’ll be paid before committing any funds.

## Liquidity Pools and Yield Farming

One of the most powerful methods for earning passive income in cryptocurrency is staking. This method uses liquidity pools, i.e., groups of coin holders who combine their funds and stake them with a staking pool operator (SPO). 

The SPO keeps track of all users’ holdings and distributes payouts every few days. Yield farmers, as they’re known, earn income by providing capital to join SPOs and by participating in payouts whenever they reach certain thresholds. 

When you combine two tokens into a pool, liquidity tokens are created, which can be farmed to obtain more rewards. The platform's utility token is frequently used to payout rewards.

Certain crypto accounts, particularly new ones, may offer payouts of above 100% APY. That rate may seem appealing, but it comes with a number of risks. The best way to minimize these risks is to invest in selected cryptos that are doing well. 

In essence, yield farming involves using one token to generate another—with little effort on your part. If you have extra tokens sitting around, consider joining an SPO. This could be a good way to increase your passive income stream without much work. 

And best of all, many SPOs even allow you to participate if you don’t own a lot of crypto. For example, here are some good options: 

* Avesta 
* Constellation 
* GoBlock
* IntenseCoin
* StakeUnited
* MintcoinCommunityFund 

As always, do your research before choosing an SPO! There are lots out there that seem trustworthy but turn out not to be so great after all. Some of these platforms also offer services like staking via master nodes. 

Masternodes require a significant investment upfront—usually 100,000 coins or more—but they’re worth considering if you want to maximize your passive income potential while minimizing your time commitment. 

Here are some good masternode options:

1. Dash 
2. EOS
3. NavCoin
4. Particl 

Again, research is key; make sure any master node platform offers enough incentives for its investors. For example, Particl pays 45% of its block rewards to stakers and 10% to masternode owners. 

## Conclusion

The best passive income cryptocurrency is Bitcoin (BTC), followed by NEO and ARK. These networks all have unique strengths but share a common theme—in order to earn passive income on these networks, one must simply hold tokens. 

With BTC and ARK, there’s a secondary benefit—as more nodes pop up on their respective networks, throughput increases, and transaction fees decrease. This is true with any network that uses Delegated Proof-of-Stake (DPoS) or Delegated Byzantine Fault Tolerance (dBFT).

For example, if you stake your tokens on TRON, you can expect an increase in transactions per second as more people stake their coins. This translates into higher network utility and thus better price appreciation over time. 

While it’s too early to tell which token will be most successful from a passive income perspective, it seems clear that only holding is required. 

And while staking may be best suited for investors who want guaranteed returns, it does require some technical knowledge and understanding of how blockchains work. 

If you don’t know what DPoS/dBFT is yet, we recommend learning about it first before attempting to earn crypto passive income through staking.

Ways to Earn Passive Crypto Income in 2022

Earning passive income on the side is one of the most compelling benefits of crypto. These methods can leave you earning in the background.

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