Dubbed “The People’s Exchange” Kucoin is a cryptocurrency trading platform that supports over 1,100 trading pairs and has over 18 milion users in more than 200 countries. Crypto is risky and comes with its wins and losses. However, there are ways to earn passive income using the Kucoin exchange.
In this article, we will focus less on the direct trading of crypto and crypto futures, and instead cover 5 features of the Kucoin exchange that enable users to make a passive income even during a bear market.
What is Passive Income?
Passive income is a popular term that essentially means your ability to make money is not directly tied to the hours you work. Instead, passive income allows you to make money while you sleep or while you are not directly working on a project. It is the opposite of hourly income.
Passive income is a key principle to wealth creation. In terms of passive income with crypto and Kucoin, we are going to focus on how users can make money on their dormant crypto assets, and via outside promotions.
Here are the 5 most common ways to make passive income using the Kucoin exchange.
If you are looking to earn while you hodl your crypto, you can use Kucoin to lend out your crypto and earn an annualized rate of return.
Kucoin has a sophisticated system in place that makes sure that people who lend their crypto are not exposed to the market risks of traders who are borrowing the coin. The Kucoin lending platform matches users peer-to-peer and determines a fair market interest rate and protects lenders against fraud.
So if you plan to hold a coin for a while, you might as well earn a little APR on those crypto savings using Kucoin lending.
Kucoin earn is a service provided by Kucoin that allows users of the platform to maximize their holdings. This is primarily done through staking as a service and a few other professionally managed offerings.
Kucoin enables users to stake their crypto for an annualized rate of return. There are fixed term and flexible staking options.
The system is easy to use. Operations take just a few clicks and state a rate of return.
KCS Bonus Plan
KCS is Kucoin’s native token that was launched in 2017.
Users holding at least 6 KCS in their Kucoin accounts are eligible for the KCS bonus plan. The KCS bonus plan is a bonus that is payed daily from 50% of the Kucoin trading platform fees.
To qualify for the KCS bonus you must hold at least 6 KCS on your Kucoin account. You also must complete verification with a Google Authenticator app.
The KCS bonus plan shares the growth and profit of Kucoin trading fees with native KCS holders. This happens on a daily basis through the KCS bonus.
Looking at historical data, the KCS bonus plan pays between 3 and 30% APR. The large variation depends on the price of KCS, trading volume on the platform, and number of users participating in the KCS bonus program.
Crypto Trading Bots
Trading bots on Kucoin do take on a level of risk. However, you can automate trades to happen 24/7 at frequent intervals. That means, if the trades you automate are making money you are making a passive income.
Furthermore, you can use trading bots, like a spot grid bot, to make money trading an asset who’s price you do not expect to rise or decrease in price dramatically. Instead, you are simply making money off the little volatility and moves that the coin makes. This is how you make money in a sideways or “crab” market. the bot simply buys low and sells high, frequently in small intervals.
A trading bot certainly carries risk, but if you get the automation right (Kucoin’s Bot AI can help you with this) you could be making 1000s of profitable micortrades as you sleep.
Kucoin Affiliate Program
This one completely removes you form the trading side of Kucoin and instead focuses on marketing and promotion.
If you sign up for the Kucoin affiliate program and invite your friends, followers, and audience to trade on Kucoin through your link you earn up to 40% of their trading fees.
Also, you can even give your audience a discount, by taking your 40% finders fee and breaking off some for your audience. Giving some of your earned fees back to your readers is a nice practice. It also incentivizes users to sign up using your link.
So with that said:
^^ you need an account to sign up for the Kucoin Affiliate program. I’d appreciate if you use my link :).
Affiliate trading fees deposit weekly into your Kucoin account. From there you are welcome to withdraw to either your bank or an external crypto wallet. Of course, you can also try your hands at the market.
Conclusion: Passive Income With Kucoin
It is possible to make a passive income by lending, micro-bot trading, or promoting the Kucoin affiliate exchange. May users have made 1000s of dollars if not more a month utilizing these methods on the Kucoin exchange.
That said, cryptocurrency trading is inherently risky. You need to do your own research before trading. Also encourage anyone you may be promoting the exchange to, to do the same.
Thank you for reading this article on Kucoin passive income. I appreciate your time and wish you the best!