Disclaimer: This is not financial advice. I am not paid directly to write this article from anyone. Some of the links below are affiliate links. While this article is published; I may hold coins mentioned below, what this means is that I may have a bias towards these coins. I do not short any coins mentioned in this article. There is no guarantee that the information below is accurate. Do not trust whatever you read on the internet. DO YOUR OWN RESEARCH.
Passive Income from cryptocurrency Exchanges is a relatively passive way to generate a crypto income. Most exchanges offer you two ways to generate an income;
- Owning the exchanges coin could entitle you to a share of the fees generated on the exchange or the exchange could by back the coin with the revenue from fees
- Referral links, the exchange will give you a specific link which you can use when informing your friends about the exchange
- Trade mining is another way to make income, although it is not passive. Some exchange airdrop tokens whenever an investor trades on their exchange,
The competition in this sector is very tough. There are 100s of crypto exchanges today. I doubt that all of them will still be online in the next five years. Invest carefully.
Is a new exchange which lists several EOS airdrop coins. The passive income here is referral fees and a percentage of the fees earned by the users referred. Currently, the site is also using trade mining.
Prandex is a new exchange platform which focuses on user-friendliness. It is currently implementing the trading mining facility, but this only for a short period.
DragonEx has a referral program which allows you to earn crypto passive income from this exchange when users register using your link. Also by staking DragonEx Tokens on the platform investors are entitles for a share from 100% of the revenue generated on the platform.
DragonEx is based in Thailand their priorities are security, optimized product and investing in their Human Resources. DragonEx has a digital asset transaction system, and it has recently been named the most user-friendly exchange. Its C level team members are of the highest calibre.
In 2019 On February 26, June 20, September 20 and December 20 LCS will issue a token which represents a share of the profits done in the preceding period. This will offer a passive income opportunity and exposure to many cryptos as the dividends will be paid out in the cryptos traded on the platform.
Dex DnGet 1,000 free EFIN coins simply by executing 10 Easy Trades on the eFIN platform. Automatically receive free EFIN coins every month simply by staking TPAY coins.
50% of the revenue is shared among the Kucoin coin holders. Coins need to be staked on the platform for the passive stream of income to come in. Kucoin also has a referral system. When users click on referral links, the owner of those links will get a commission from KuCoin.
Kucoin is an excellent exchange which has so far proved to be reliable and easy to use, they also share the Gas Generated from NEOS which is an additional source of passive income.
Coss coins staked on the exchange earn a share of the fees generated on the exchange.
All the passive income earned is a small share of the fees generated from each cryptocurrency traded. These small amounts or crypto dust need to be exchanged and consolidated to represent something meaningful. It seems that this exchange has not performed in line with investors expectations.
This is one of the largest exchanges (as of 2018). Binance uses their revenue to buy back BNB tokens until only 20 million are left. This makes the coins more scarce, and thus they will increase in value. While this system does not deliver any passive income, investors can sell a share of their BNB each time there is a buyback. Using BNB token to pay for fees on the exchange provides significant discounts.
Investors can earn a passive income from Trade.io when they invest in the liquidity pool. The liquidity pool is used by Trade.io to create liquidity and margin lending. In return, investors will earn a share of the revenue. A minimum of 2,500 TIOs is needed to participate.
Trade.io have delivered on their promises and are almost in line with the roadmap. The exchange is working and is currently undergoing live testing. The liquidity pool will launch towards the end of October 2018, to participate investors need to perform KYC.
CryptoBridge $BCO coin, when staked on the platform, allows for 50% revenue share from all the fees. In addition the longer the coins are staked an extra bonus is added as follows
- 3 Months (20% Bonus)
- 6 Months (50% Bonus)
- 12 Months (100% Bonus)
CryptoBrigde is a decentralized exchange, it works, but the system sometimes is slow and clunky. It was not the first time where traders had to wait for days to have their coins unstuck, due to a bug.
CobinHood is a zero-fee exchange. One way to make passive income from this exchange is by sharing the referral link.
BiBox will buy back BIX coins until there are only 200 million left. BiBox tokens, when used as fees, will provide for a discount over.
LocalCoinSwap is a worldwide crypto exchange which trades in over 20 cryptocurrencies on a peer to peer basis. It has the facility of over 250+ payment methods.
Minex allows you to park your coins and earn a reward in minex. Minex is building an exchange which is scheduled to be released in 2018, probably minex coins will be used as fees on this exchange.
Alqo is a Masternode coin. Masternodes generate a passive income.
The Alqo team are creating an exchange called Bitfineon, Alqo coins staked on the exchange will be entitled to a share of 50% of the revenue from the exchange. According to the roadmap, Bitfineon will be completed before the end of 2018. It should also support FIAT currencies
See also: Masternode Pools and Maternode Shares
Exscudo Masternodes, log and relay all the exchange transactions, they earn a passive income as a share of the fees from the transactions executed on the exchange. The exchange has minimal volume at this time, and the fees generated are insignificant. The Excscudo coin is priced accordingly. However, if the team does improve communication and deliver on their road map, there could be a reversal of fortune.
The team took well over a year to create what can be called an advanced MVP and the Channels app (Mobile Wallet and Encrypted Chat application). Which is live and working. Development seems slow, and only a handful of coins are listed on the exchange. At the time of writing the new roadmap still needs to be released.
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