How do you use BTC to generate passive income like ERC20 tokens?

[Viscore]

We can't deny that most people come into crypto and invest bitcoin because of that kind of mindset to earn money and consider this as a passive income. Actually, some did it but it didn't work for the majority. And we ask why? the price doesn't just keep moving high nor we see it where it goes after a while. Do we think that if we buy now can we make a profit by tomorrow? yes, it could possible but not really it works always. because it can also be possible that after we bought Bitcoin, dumps will follow and I don't think we have to sell it but rather to wait until the price goes back high again.

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[AakZaki]

Investing your money in crypto like bitcoin will not promise you the passive income you need. Some cryptos do manage to generate passive income, but it's hard for bitcoin. Buying Bitcoin today might be profitable, but it will take a long time to see its movement. You also have to have money that you don't use for other purposes. Price fluctuations will be very high, so adjust the target you want. I just trade every day and set the targeted profit every day, that would be good passive income in my opinion.

[maxreish]

Its different when you choose bitcoin. Unlike some other erc20 token that you can stake, etc. I would rather stick with holding my bitcoin, keeping it until it boomed. I doubt that passive income you are pertaining will gonna lasts. Choose crypto coins where you can keep it and worthy to hold which will eventually give you huge profits at the end and not with unsure earnings.

[mk4]

Gaining Bitcoin to buy some Alternate Coins can always be beneficial since you can gain Bitcoin in a lot of ways. Though directly gaining ERC20 tokens is much more preferred since all you can do to gain ERC20 tokens by using Bitcoin is by buying them. There are lots of campaigns that hands out ERC20 tokens or Airdrops that give them away for free but when we use Bitcoin to gain Alternate Coins, I guess that is already trading.

You could definitely make money by doing trading(assuming you're actually making the right trades and not lose money), but none of these are really "passive" income though, especially those "airdrops". Not even in the slightest.

[Maus0728]

What a timely thread! I recently watched one of the episodes of the Q and A episode hosted by Andreas Antonoplous in his youtube channel. Fortunately, it tackes the same query regarding on how to generate bitcoin passive income.

Actually, most of the replies here are somehow similar to what Andreas said in his vlogs. Other than holding, some of which he recommends is to go into a centralised platform where you can lend your bitcoin using the DeFi ecosystem or just establish a stablecoin savings accounts. However, it is always important to take note that all of these money making vehicle are completely not secured and has a lot of underlying risks of losing though.
[1] https://youtu.be/OgZBFqQj624

[pooya87]

is to go into a centralised platform where you can lend your bitcoin using the DeFi ecosystem or just establish a stablecoin savings accounts.

these methods can't be categorized under "passive income" though. these are considered investment and highly risky ones at that specially the DeFi scheme. there is a high chance of losing bitcoin in all of these whereas a passive income is where you don't do anything and take no risks but receive money like putting your money in a bank.

[yhiaali3]

In fact, I do not consider this passive income an advantage anyway, what will you gain from freezing your coins for a year, for example, and then gain 5 or 10% of that ?! For example, if you freeze 1000 coins for a year, your profit will be 50 or 100 coins only !! Of course, this is if there is no drop in the coin rate during this period !! You can earn a lot more by trading.
The only case that you can profit from, according to my opinion, is when you freeze the coin, and during this time you are lucky and the price of the coin rises greatly, then you can achieve high profits. Otherwise, I think trading is much better.

[Wind_FURY]

Another way to earn some coins is to be a liquidity-provider/market-maker in JoinMarket, https://joinmarket.me/, https://en.bitcoin.it/wiki/JoinMarket#Yield_generator

I have not tried it myself though, I am scared. I am not a very technical person, I'm just a pleb. Hahaha.

[Harlot]

Just with Bitcoin itself you won't see any kind of passive income as Bitcoin wasn't build that way. There are other services such as wallets and lending websites where you can earn passively from there. Bitcoin being the most popular crypto and the most used one has a lot of available services accepting Bitcoin so you won't have any problems finding one. Try looking for Bitbonds and Abra because this is the ones I know personally on what you are trying to look for.

[Wind_FURY]

Just with Bitcoin itself you won't see any kind of passive income as Bitcoin wasn't build that way. There are other services such as wallets and lending websites where you can earn passively from there. Bitcoin being the most popular crypto and the most used one has a lot of available services accepting Bitcoin so you won't have any problems finding one. Try looking for Bitbonds and Abra because this is the ones I know personally on what you are trying to look for.

For having small passive income, and also actually helping the network altruistically, if you have the technical ability, why not run a Lightning node to collect routing fees, OR be a market-maker in JoinMarket?

[fiulpro]

I do believe that there are the following things that you can try:

1. Reliable Lending services
2. Holding for the long term

But you do need to understand that to do any of this you would be entrusting your coins to a third party service which would not only need a lot of prior research but at the same time there is this possibility of getting scammed.

- find some reliable websites for lending if you really want to
- keep your keys and your Bitcoins with you till the time the price doubles of whatever rate you brought in

*_*

Just with Bitcoin itself you won't see any kind of passive income as Bitcoin wasn't build that way. There are other services such as wallets and lending websites where you can earn passively from there. Bitcoin being the most popular crypto and the most used one has a lot of available services accepting Bitcoin so you won't have any problems finding one. Try looking for Bitbonds and Abra because this is the ones I know personally on what you are trying to look for.

For having small passive income, and also actually helping the network altruistically, if you have the technical ability, why not run a Lightning node to collect routing fees, OR be a market-maker in JoinMarket?

I do believe that would actually need the active involvement of the person himself.

[todiefor17]

The best passive income today is sending your bitcoins to crypto exchanges like Binance or Huobi. They have a Saving function and it helps you earn 3% income per year.
Currently, not only ERC20 perform staking but also Tezos, Cosmos, Binance chain ... the list is quite rich.

[masphie]

I think thats not passive income, but they still work for the profit. Except they do staking program. But, I'm not sure the staking program will survive for long time.

[ethereumhunter]

ETH and other ERC20 tokens can generate passive income by yield farming, staking, lending without losing their custodial.
Is there anyway for bitcoin to do any of those? As a bitcoin hodler, I'm just really jealous now that ETH and its token can do all the passive income generating things without give their own private keys to others. 

The only way you generate passive income with bitcoin is by lending your bitcoin in exchange. You can check on poloniex to find out more, but the rate will follow with the price, and I think that can be your way to make more money. You can check binance too because I heard that in binance, you could do almost the same in the poloniex. I don't know if there is a website that you can use for staking your bitcoin amount, but you can search by yourself.

[dadach]

Only hold in HW wallet. As soon as you transfer your btc where you don't own the keys, it is as good as gone. For gambling in ERC20 or DeFi world, just use your regular gambling money, not BTC.

[akram143]

ETH and other ERC20 tokens can generate passive income by yield farming, staking, lending without losing their custodial.
Is there anyway for bitcoin to do any of those? As a bitcoin hodler, I'm just really jealous now that ETH and its token can do all the passive income generating things without give their own private keys to others. 

The only way you generate passive income with bitcoin is by lending your bitcoin in exchange. You can check on poloniex to find out more, but the rate will follow with the price, and I think that can be your way to make more money. You can check binance too because I heard that in binance, you could do almost the same in the poloniex. I don't know if there is a website that you can use for staking your bitcoin amount, but you can search by yourself.

TBH I don't trust my money on Poloniex for longer term because it one of the exchange faced major bitcoin hack in the history and in the recent as well they got hacked so you need to be very careful even if you are going to use it for very short term.Blockfolio seems the only legit platforms offers staking bitcoin.

But in reality we no need to stake them just hold it and make profits later.

[Lizzie_Girl]

I don't think you can do that with bitcoin. You still want control of your privatekeys and the only way I know to do this is with nodes. Though you will be transfring your bitcoin into the coin the node uses.
I know that is not exactly what you want but it is the only thing I can think of that doesn't including losing access to the coins you own. People here have mentions lending it out but that means you don't own the coins.

[verita1]

I have also felt a bit jealous to see that there are projects that offer passive income through yield farming, staking, lending without losing their custodial as you mention and there are few offers for Bitcoin.

If you choose centralized platforms for this purpose, it would be the lowest return compared to other cryptos.

I think it's time to develop a program like this for Bitcoin holders in order to earn returns and encourage people to have more bitcoins.

[imstillthebest]

 you dont need to be jelous because you can move on to eth anytime  . why not convert your btc to eth or to its tokens so that you can start gaining all those benefits  . staking and lending is an old way to earn passive income but that yield farming is new to me  . i dont know if how does it work , i didnt researched it because im still not going to do it anyway . im already contented earning passive income with my bitcoins and i can do this without giving my keys to others  but seriously , some require keys before you get started ? lol thats a clear scam  .  when you give your keys it was like you give all your coins and the whole process of earning passive income becomes non sense .

[grabpopcorn536]

Earnings are possible but certainly less profitable than locking other tokens.
Centralized exchanges are having a saving function to receive BTC annually at 3-6% interest.
Decentralized exchanges are using WBTC to staking the project's tokens. WBTC lockers receive interest and sell bonus tokens.