Many of us in the Bitcoin market began lending our coins to make a passive income during the previous few years. Why shouldn't we, after all? There were two possibilities available to us. Either keep your BTC in cold storage or leave it on an exchange. Alternatively, you might rent it out to third-party services to earn a great passive income. Most of us who believe in Bitcoin understand that the goal is to amass as much BTC as possible, and this was a terrific approach to do it. The lending market was at its pinnacle. It was extremely simple to locate "recognized services at the time" that offered 6-7% for Bitcoin loans.
The procedure was also really simple. You only needed to deposit your coins to start earning. Simply setting it and forgetting about it. All the while passively generating Bitcoin. Crypto market influencers were virtually usually sponsored by one of the providers. Lending out your Bitcoin had become commonplace. Newcomers to the sector hoped that it would allow them to acquire considerably faster and help them turn their life around financially. Other people who had been involved in cryptocurrency for a few years hoped that it would ultimately develop large enough to augment their normal income.
We grew addicted to it after that. We had forgotten about all of the dangers. Many consumers even believed that these services were fully secure.
In Bitcoin, we had forgotten the golden rule. "Not your Bitcoin, not your keys." Some lessons are difficult to learn, but they are frequently the most important lessons you will ever learn. For many of us, this was a reminder of an important lesson.
The potential to earn a passive income using Bitcoin vanished in what felt like an instant. Unlike Ethereum, where passive revenue is now built into the protocol through the ability to stake and safeguard the network. There are no passive income sources built into the Bitcoin system. That is why crypto financing first became popular. People wanted to find ways to profit from the Bitcoin assets they already owned.
It should be noted that there are various ways to earn Bitcoin passive income. The first of these is mining. Unfortunately, most people cannot afford this due to the high cost of mining ASICs and the energy required to mine. Other options include providing liquidity for dex's, puts, and call options. However, these, too, carry dangers that could result in you losing your Bitcoin or selling at a price you did not want to pay. You could build up your own Lightning channel node, but it would make very little money right now. To summarize, nothing was more user-friendly than Bitcoin lending.
Making a good passive income is one of the things that many people enjoy about investing in cryptocurrencies. Banks that pay interest rates above 1% are hard to come by. Meanwhile, rates in the cryptocurrency market are frequently 10% or higher. Many of us thought it was a no-brainer. Despite the fact that Bitcoin is the king of crypto and the one that started it all. Because there is no way to earn money passively, these people may lose interest in Bitcoin. Instead, they may begin to invest in other crypto assets.
