Many dream of earning a passive income, especially when the cost of living is at its highest and showing no signs of slowing down, as it is currently in 2025.
Finding a way to generate additional revenue alongside the day job can be difficult. There isn’t an option that works for everybody, and many of them come with risks. For instance, many will look to invest in various stocks or assets and leave them to work in the background for a while. Of course, there is no guarantee that it will produce the desired results or provide a quick buck immediately.
One asset many have turned to is cryptocurrency. Indeed, there have been many instances of astronomical returns, encouraging many to consider holding digital currency. At the same time, there have also been instances of large downturns.
Crypto is undoubtedly emerging, which is why it has become a bullish investment opportunity for many. It’s now possible to use digital currency for various things, whether it be paying for goods and services or for entertainment purposes. You can play with real money at top Bitcoin casinos across America or enjoy many other forms of gaming, as the industry has adopted it as an accepted payment method for in-game purchases and ownership of in-game items.
In fact, in relation to gambling and gaming, crypto has become a very popular method for many Americans. Players can use virtual currency to bypass certain restrictions that are in place regarding laws. They can also enjoy enhanced security and privacy because of the blockchain technology that exists. Due to its use of encryption, players can remain anonymous while trusting transactions because they are transparent and difficult for hackers to intercept. If those benefits weren’t enough, then faster transaction speeds with reduced costs are also being enjoyed, meaning they can earn more returns and not have to pay additional funds to receive what has been won.
Still, is crypto mining and trading a viable option in 2025 for people to make a passive income from?
Crypto Mining – Pros and Cons
Crypto mining isn’t as passive as many may think it is. Once set up, it requires a semi-passive approach as things need to be monitored. It may also need semi-regular maintenance, as occasional upgrades can be needed to ensure the mining process is as efficient as possible. At the same time, with crypto extremely volatile and hardware potentially going awry, it’s difficult to take a passive approach.
In addition, it’s extremely costly to set up. Profitability from crypto mining can be minute, as electricity costs can be high. Add in the need for specialized equipment like GPUs and the difficulty that comes with mining, and it can be very hard to generate much of an income from this method.
Mining can also present risks, especially if it is done in a country where attitudes to cryptocurrency aren’t favorable. For example, China banned mining in 2021, disrupting global hash rates. Something like this happening again could dent profitability.
Crypto Trading – Is it any better?
As highlighted, crypto trading has become a popular investment method. Many have held crypto intending to have it as a long-term (or short-term) asset they could potentially profit from. They’ve become extremely popular because of the results that have been witnessed.
Crypto trading is a better option than crypto mining for those looking for a way to generate passive income in 2025, although it is not fully passive. Investing will require a semi-passive approach, as holders must ensure they are buying and selling at the right time. They’ll need to keep track of market movements, ensuring they maximize any potential returns. At the same time, it’s an accessible option as they have low entry barriers. Almost anybody can get involved, requiring a very small initial investment to get started.
Still, several risks can be experienced. Volatility can be positive, but it can also be negative. One example of the latter was when Bitcoin dropped 30% in a week in 2022, wiping out much of its value when no one had expected it to. Additionally, regulatory crackdowns and scams can impact the price, as confidence becomes rocked, leading to other investors pulling out of their positions.
Can they be a realistic form of passive income in 2025?
For those looking at cryptocurrency as a means of generating passive income in 2025, trading over mining is the best option.
Trading comes with far fewer initial costs and barriers to entry, allowing almost anybody to get started. Mining requires specialized equipment and significant regular electricity costs, reducing any profit that may be returned if successful.
Still, neither is totally passive, as both will need to be checked regularly. Trading is much easier to leave and come back to, making it a more realistic approach this year for those seeking to add further income to their pockets.
